ARM almost doubles profits as chip licences boom

ARM almost doubles profits as chip licences boom
Alex Mayhew-Smith
ARM is profiting from growth across all its interests as the company’s profits rocket. The firm saw 1999 first quarter results leap with a 91 per cent growth in pre-tax profits to ?3.2m, compared to the same period last year.
“There are a variety of reasons [for the growth]. There are strong licensing demands for the processor, a strong recognition of our brand and increased interest from OEMs,” said Pete Magowan, ARM’s v-p for Europe.
The company’s revenues grew 51 per cent to ?13.1m – a five per cent increase on the previous quarter – with continued growth in the wireless segment. Magowan said: “We are expanding into networking and multimedia with games makers such as Sega and Sony.”
Licence revenues in the quarter amounted to 64 per cent of revenue, with Fujitsu becoming the most recent licensee of the ARM7TDMI processor. While the number of staff increased by only 15 to 369 over the last year, this year the firm expects to recruit about 80 new employees.

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