ARM Flexes First Quarter Results, Reports Highest Profits Ever

Paul Lilly

No one's going to argue that Intel's the big man on campus for desktops, notebooks, and servers, but in the mobile device world, well, ARM is the one muscling the competition. ARM Holdings this week announced its results for the first quarter ended March 31, 2011, and the numbers have never been better. Riding the mobile wave, ARM's revenue jumped 29 percent to $185.5 million, with profits up 35 percent at $30.5 million. Both are record numbers for ARM.

ARM partially attributed its record breaking performance to widespread growth in adoption of ARM processor technology. ARM added 39 processor licenses signed for all target end markets in the first quarter, including several major semiconductor companies who, for the first time, licensed ARM technology in order to develop chips for set-top boxes and digital TV applications.

"Influential market leaders are licensing ARM technology to gain access to a growing ecosystem of operating systems, software applications, tools and service providers," said Warren East , CEO of ARM. "Many of these companies have been ARM licensees for many years, and are now deploying ARM technology across a multitude of applications; in mobile, consumer electronics and embedded devices.

"This licensing drives ARM’s long-term royalty opportunity. Shipments of ARM-processor based chips increased 33 percent on the same period last year driven by growth in smartphones, tablets, digital TVs and microcontrollers. ARM’s revenue growth enables us to continue to invest in innovative technology development at the same time as delivering strong increases in profits and cash flow."

ARM also benefited from the emerging tablet market and increasingly popular smartphone segment. In just the first quarter, ARM shipped around 1.15 billion processor-based chips into mobile devices, the company said.

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