Outlook uncertain4 Feb 2009 07:29
“Shares in ARM Holdings jumped 6.5p to 93.5p as the Cambridge based microchip designer reported a sharp rise in fourth quarter sales despite the industrywide slowdown. The company, whose semiconductors are used in various consumer electrical goods including Apple's iPhone, said fourth quarter revenue climbed by 47% to 94.4 million pounds while net income rose to 17.6 million pounds from 9.9 million pounds. Normalised pre-tax profits came in 57% ahead at 33.4 million pounds. Full year revenue rose to 298.9 million pounds versus 259.2 million pounds last time, beating analysts' forecasts of 286.62 million pounds. The final dividend was increased by 10% to 1.32p per share. "Whilst not immune from the impact of the industry slow down, ARM continues to build an established base of licenses that drives long-term royalty growth," said the company. "The current licensing opportunity pipeline to enlarge that base further remains robust," it added. However, it also warned that the near-term outlook for the sector remains uncertain.”