ARM Q1: Profits up, 2.6 billion ARM-based chips shipped

ARM Q1: Profits up, 2.6 billion ARM-based chips shipped

Summary: The British chip designer continues to exceed expections, thanks to a continued uptake in smartphone and tablet devices, while other chip makers are struggling in the PC sector.


British chip designer ARM said it shipped 2.6 billion chips based on its designs during the first quarter, thanks to an explosion in smartphone and tablet uptake.

ARM said it generated £89.4 million ($129.5m) in profit — up 44 percent — on revenue of £170.3 million ($263.9m), or 5.31 pence (8.1 cents) per share (statement).

Cash-wise, the company had £562.4 million ($857.9m) in the coffers, up 8 percent increase during the quarter.

The company, which licenses its processor designs to chip makers, reported a 33 percent in royalty revenue year-over-year during the quarter, thanks to a surge in Samsung Galaxy S4 and Apple's iPhone 5 sales. 

(Image: ARM)

The company's results today are based on the final three months of 2012, giving an indication of how the smartphone and tablet market is playing out during the December holiday season, where sales of technology goods are typically up.

Screen Shot 2013-04-23 at 09.08.27
(Image: ARM)

ARM chief executive officer Warren East said in a prepared statement:

ARM has delivered another quarter of strong revenue and earnings growth, driven by robust licensing and record royalty revenue.

Everyday devices are becoming smarter, more connected and more energy efficient, which is increasing the applicability of and demand for ARM’s technology. In particular, this quarter ARM saw strong uptake of its next generation, higher royalty-bearing ARMv8, Mali and big.LITTLE technology for smartphones and mobile computers.

Looking ahead, ARM said it had made an "encouraging start" to the new fiscal year and expects group revenues for the full-year 2013 to be in line with current market expectations. The company did note that industry data for the first quarter suggests a sequential decrease in industry-wide revenues of around 10 percent.

Topic: ARM

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  • ARM Is No Intel

    And that's a Good Thing. It's why makers of ARM-based devices are free to innovate in unexpected ways that makers of Intel-based ones are not.

    And it's also why Intel doesn't stand a chance of muscling in on ARM.
    • Intel will compete.

      There really isn't that much innovation with ARM the instruction set stays the same just as with x86 (except that v8 is kind of new to support 64 bit instructions). Companies can add more and different peripherals.

      Where Intel has an advantage is its ability to manufacture. Its technology has been estimated to be 3 years ahead of other foundries. Intel makes more profit per chip. And as they continue to shrink the process the power advantage for ARM will shrink. Also to compete at the same performance level, ARM chips need to up their frequency, consuming more power.

      At some point they will collide. But I think there will be a place for ARM and x86 for the next 10 years. I think we will begin to start seeing x86 infiltrate the mobile world as the power levels keep dropping. On the server side x86 will likely hold off ARM from any serious incursion due to low power levels, many core solutions, increasing floating point performance, efficient code execution via branch prediction, robust and ECC 64 bit memory controller, hardware virtualization and high performance peripheral controller busses. Some of this stuff ARM is just beginning to address.
  • IT also keeps MS at bay

    As their stuff just doesn't work very well - its just too tied to the x86 architecture.

    Some of it ports (Surface shows that), but the result is crippled.
    • That doesn't make sense

      It has nothing to do with being tied to the x86 because ARM and x86 have entirely different instruction sets. You can't stay tied to x86 if you are on ARM, it all has to go. BTW unless you forgot Windows used to run on a variety of RISC processors (alpha, MIPS).

      I suspect if Windows is slow on ARM that it is because it is heavier weight (not as streamlined) but has nothing to do with its x86 background.
  • Congratulation to ARM and its ecosystem

    We have been using ARM and anxious for ARM based computers and servers. Treat your partners and customers right with innovation and cost effective pricing.