By Simon Zekaria
LONDON--Computer-chip designer ARM Holdings PLC (ARM.LN)
Wednesday reported a rise in second-quarter profit on higher
revenue boosted by higher chip shipments and licensing revenue.
The Cambridge, U.K.-based company said net profit in the three
months to June 30 rose to 77.1 million pounds ($120 million) from
GBP55.5 million in the same period a year earlier. Revenue rose 22%
year-over-year to GBP228.5 million, lower than a consensus market
forecast of GBP234.5 million.
In U.S. dollar terms, the group said it expects full-year
revenue in line with market expectations, assuming macroeconomic
uncertainty doesn't further impact consumer spending.
"[The second quarter] has been a strong quarter for ARM," Chief
Executive Officer Simon Segars said.
The company said it recommends raising its interim dividend 25%
to 3.15 pence a share.
ARM designs the chips found in 95% of all smartphones. It earns
licensing fees from chip manufacturers such as Qualcomm Inc. (QCOM)
and Nvidia Corp. (NVDA) and royalties on every chip shipped. The
company's revenue often lags the market, because nearly half of its
business comes from royalties.
ARM shares closed Tuesday at 1,039 pence, valuing the company at
GBP14.6 billion.
Write to Simon Zekaria at simon.zekaria@wsj.com
