ARM has reported a 5 per cent rise in its second quarter profit.
A week after agreeing to be sold to Softbank for £24 billion, the Cambridge-based chip maker has reported a 5 per cent rise in profit and a 17 per cent rise in sales.
Sales reached £267.6m in the three months to June 30, up from £228.5m the previous year, while pre-tax profits increased 5 per cent to £130m on an adjusted basis, beating analysts’ expectations.
On a statutory basis, pre-tax profits were up 1 per cent to £95.9m.
ARM said that given restrictions linked to Softbank's recommended offer it would not be providing its usual full-year revenue guidance at this stage.
Analysts expect full-year sales to hit £1.21bn, up by a quarter, with earnings before interest, taxes, depreciation and amortisation increasing 17 per cent to £532.2m.
Simon Segars, ARM CEO, said: “Our royalty revenue growth continues to outperform the wider semiconductor industry, driven by market share gains and the increasing adoption of ARM’s latest technologies. With more end-users selecting ARM technology for products ranging from sensors to satellites to supercomputers, we expect this outperformance will continue.
“ARM is continuing to invest in products that will support our partners’ roadmaps as they develop next-generation technologies such as 5G networks, autonomous vehicles and the Internet of Things.
"Our recent acquisition of Apical enhances our expertise in visual computing, a rapidly-advancing field which is enabling smart buildings, augmented reality, self-driving cars and advanced robotics. As new technologies are created and new markets emerge, ARM will continue to evolve its products and business models to capture the opportunities ahead.”
To read PCR's full analysis on how the mega-sale of ARM to a foreign company will affect the UK tech channel make sure to read the forthcoming August issue of the magazine.