Chipmaker Arm says it will grow faster than rivals
MICROCHIP designer ARM met expectations for third-quarter revenue and earnings yesterday and said it expects to outperform a recovery in the industry next year.
“Despite pressure on customers’ R&D budgets this year, demand for ARM’s processors and physical IP technology remains strong, with a record numbers of licences signed in the third quarter,” said finance director Tim Score. “Since the middle of the year, activity levels and the level of optimism in the industry have improved.”
Score said all signs pointed to a significant pick-up next year, and ARM expected to beat the 15 per cent forecast rise for the sector.
The company, whose designs are in 90 per cent of mobile phones, including Apple’s iPhone and Nokia’s N97, said it expected full-year sales in dollar terms at least in line with market expectations, which it put at $476m.
Shares in the Cambridge-based firm, which are up 72 per cent since the start of the year, closed up 0.6 per cent at 150p yesterday.
Panmure Gordon analyst Nick James, who has a “sell” recommendation on ARM shares said: “This is a solid set of numbers, but given the third quarter outperformance, it is a little disappointing that guidance is not upgraded at this point.”
UBS, however, said the group’s strong margin performance would likely see forecasts rise.
Chipmakers, led by ARM rival Intel, the giant US firm, have been increasingly optimistic about a tech sector recovery before the holiday season,