ARM Achieves Another Successful Quarter

By Peter Clarke, EETimes, London, Jul. 27, 2016 – 

Processor intellectual property licensor ARM Holdings plc achieved revenues of 267.6 million Pounds(about $350 million) for the second quarter of 2016, up 17 percent from revenues in 2Q15.

The company also achieved an exceptional increase in profit after tax. This increased to 122.3 million Pounds(about $160 million), up 18 percent on the profit after tax in 2Q15, partly on an effective tax rate of 6 percent. This compares with the typical effective tax rate ARM has been paying of about 16 percent.

On an annual basis, revenues from licensing climbed about 6 percent while revenues from royalties climbed about 12 percent.

Simon Segars, chief executive officer, said: "Our royalty revenue growth continues to outperform the wider semiconductor industry, driven by market share gains and the increasing adoption of ARM's latest technologies. With more end-users selecting ARM technology for products ranging from sensors to satellites to supercomputers, we expect this outperformance will continue."

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