ARM's 4Q Net Profit Rises, Boosted by Demand for Higher-End Smartphones
February 10 2016 - 1:50AM
Dow Jones News
By Simon Zekaria
LONDON--Computer-chip designer ARM Holdings PLC (ARM.LN)
Wednesday posted higher fourth-quarter profit, boosted by demand
for higher-end smartphones.
The Cambridge, U.K.-based company said net profit for the three
months to Dec. 31 rose to GBP91.7 million ($132.7 million) from
GBP72.8 million in the same period a year earlier.
Pretax profit adjusted for exceptional items rose 17%
year-on-year to GBP138.7 million, slightly higher than a market
consensus forecast of GBP137.3 million.
Revenue, also adjusted, in dollar terms rose 14% to $407.9
million, higher than a forecast of $402.5 million
"2015 was a strong year for the shipment of chips containing
advanced ARM technology, and momentum continued through the fourth
quarter," said Chief Executive Simon Segars.
For 2016, it expects dollar revenue to be broadly in line with
market expectations.
The company designs chip technology found in more than 95% of
all smartphones, including Apple Inc.'s (AAPL) iPhone. It earns
licensing fees from chip manufacturers such as Qualcomm Inc. (QCOM)
and Nvidia Corp. (NVDA) and royalties on every chip shipped.
ARM is recommending a final dividend of 5.63 pence, up 25%.
Shares closed Tuesday at 940 pence, valuing the company at
GBP13.2 billion.
Write to Simon Zekaria at simon.zekaria@wsj.com
(END) Dow Jones Newswires
February 10, 2016 02:35 ET (07:35 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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