This article is more than 1 year old
ARM Q2 profits slump
Static sequentially as royalties rebound
ARM's second fiscal quarter saw revenues of £31.4 million ($50.3 million) yield a profit of £4.3 million ($6.9 million), the company reported yesterday.
Both figures were well down on the same period last year, when ARM recorded revenues of £43.2 million and pre-tax profits totalling £16.2 million - a fall of 73.5 per cent.
Sequentially, the picture is only slightly better. ARM's income was static between Q1 and Q2, while revenue was up by just over one per cent - the equivalent of a £400,000 increase.
ARM's royalty revenues during the first half of the year were higher than they were during H1 2002, reaching £20.5 million, up from the £12.9 million recorded for the same period last year.
That said, total revenues for the first half of the year were well down on the year-ago period, falling xx per cent from £85.3 million to £62.4 million. Clearly ARM's initial licensing fee business and the service revenues it generates slumped during the first half.
ARM said it doesn't expect matters to change during the second half of the year: H2 results will be much the same as those of H1.
"Licensing to both new and existing partners has increased from the first quarter and royalty revenues matched the seasonally high level seen in Q1," said ARM CEO Warren East in a statement. "With mixed news emerging from across the semiconductor industry we expect subdued activity levels to continue among our partners for the remainder of the year.
"Our long-term position continues to improve, underpinned by discussions of broader, strategic collaboration with a number of large semiconductor companies and continued penetration of small and medium-sized companies." ®