Record 48 licenses signed by 24 companies
Q3  results from UK chip designer ARM show profits up more than a third, with the company reporting that it has “a record order backlog” as it enters the final phase of 2013. The trading update, out today (22nd October 2013), shows that revenues for the period grew 27 per cent compared to 2012, with net cash generation of £111.6 million. Key growth drivers were said to include ARM’s advanced technology allowing a higher percentage of royalties per chip, with 48 new processor licenses signed during Q3.
In total some 2.5 billion ARM-based chips were shipped.
Commented CEO Simon Segars, “In the third quarter of 2013 we saw strong demand for our processor technology with a record 48 licenses signed by 24 companies, 11 of whom were licensing ARM technology for the first time.”
“ARM’s technology was licensed for an extensive range of end-markets including the Internet-of-Things, wired and wireless communications, and mobile computing.”
“This quarter ARM also signed four large licensing deals with thought-leading technology companies, which included MediaTek signing a broad license for ARM’s latest ARMv8-A processor technology and next generation Mali graphics.”
News that ARM’s order book is still robust is likely to send the company’s shares higher in London this morning when trading resumes.
It comes just a month after Deutsche Bank signalled the time was ripe to buy ARM shares, which claimed that investors had been overly spooked by adverse news.
It more than doubled its target price for the shares from 470 pence to 1,080 pence.
Last night they closed more than 2 per cent higher at 1036 pence, having been as low as 598 pence during the year .