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UK chip champ ARM flexes muscle: Shows strong profit and sales

Blighty tech success story records bumper results

UK processor core design biz ARM today posted double-digit profit and turnover growth for its full-year results 2014, with the company reporting a "record" number of licences signed in its fourth quarter.

Profits rose 13 per cent to £411.3m at the Cambridge-based group, on revenue up 16 per cent to £795m for the year ended 31 December 2014.

A total of 3.5 billion ARM-based chips were shipped during the company's fourth quarter, up 20 per cent on the previous year.

Some 12 billion ARM-based chips were shipped in 2014, with licence revenue for the company increasing 30 per cent to $580m (£361m*) compared with 2013.

Around 95 per cent of tablets and smartphones use ARM processors, the firm claims.

Simon Segars, chief executive officer, said: “In Q4 and throughout 2014 ARM has seen strong licence revenue growth, driven by market-leading semiconductor companies increasing their commitment to use ARM technology, and a broadening range of new customers choosing ARM technology for the first time.

"As expected, ARM’s royalty revenue growth rate increased in the fourth quarter. As the ARM Partnership continues to gain share, and as chips based on ARMv8-A processors and Mali graphics IP start shipping in higher volumes, the outlook for royalty revenues in 2015 and beyond is encouraging.

Segars said 2015 would bring "exciting opportunities and challenges" as ARM invests in new products and technologies.

At 31 December 2014, ARM had 3,294 full-time employees, an increase of 461 on last year. These are mainly engineers joining ARM’s processor R&D teams, it said. ®

* ARM's dollar revenues are based on its actual dollar invoicing (so the GBP amount shown relates to the rate of exchange applicable on the date of the transaction).

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