By Maximilian Clarke

Revenue, profits, operating margin and earnings per share are all up strongly for Q3 2011 at chip-designer, ARM Holdings, driven by a surge in new customers.

ARM, the Cambridge-based designer of processors powering a wide range of customers including Samsung, Texas Instruments and Apple, saw revenue up by 22% to $158.1m with a 44% rise in operating margins. Earnings per share rose 47% to £3.05.

The company’s focus on smaller and less power-hungry chips than their competitors has seen a renewed interest in their designs. Though released too late to influence the company’s latest profit statement, the company’s latest big.LITTLE design consumes just 20% of the power of similar spec chips, generating wide interest that will see the company continue to perform in subsequent quarters.

“In the third quarter of 2011, we saw a continued high level of design activity with many new customers licensing ARM technology for the first time, driven by end market requirements for smarter, low-power chips. Demand for our technology has come from a broad range of applications, from sensors to computers,” commented Warren East, Chief Executive Officer.

"Over the last year we have seen strong growth in shipments of ARM technology-based chips, with a 50% increase of shipments into non-mobile markets such as digital TVs, microcontrollers and networking applications. Royalty revenues in Q3 have been impacted by the below seasonal growth in the semiconductor industry, but we continue to gain share. With customers looking to design ARM technology into a widening product portfolio, ARM is continuing to invest in the development of new products to drive long-term growth in our revenues, profits and cash.”


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