Apple's success provides shot in the arm for chip maker
Chip designer ARM Holdings has posted more strong sales and profits growth as it continued to benefit from the success of high-profile customer Apple.
The Cambridge-based firm, which employs 977 staff in the UK, reported a 22% jump in pre-tax profits to £68.1m in the three months to September 30 as revenues increased 20% to £144.6m.
The strong results drove a 5% rise in the company's share price, which has surged 34% since a year-low in July as Apple unveiled new models of its iPad and iPhone.
ARM also revealed it had signed a further 29 licences in the period for its microchip technology to be used in a range of products including digital TVs, mobile computers and smartphones, as well as hearing aids and automotive braking systems.
ARM, whose chips are in more than 95% of smartphones, 90% of hard drives, 80% of digital cameras, 65% of printers and 50% of digital TVs, said 2.2 billion of its chips were shipped in the third quarter. Meanwhile, processor royalties grew 27% compared with a 4% rise in wider industry revenues, while new products using the chips such as computers and servers from Dell and Microsoft were launched in the period.
Chief executive Warren East said ARM was seeing increased demand for its high performance and low power technology as "we move into an ever more connected world of mobile computing".
The group makes money by licensing its technology to customers and receives royalty payments every time devices with its chips are made by its clients.
Jonathan Jackson, head of equities at Killik -amp; Co, said the third quarter results were better than expected.