ARM Holdings Beats Expectations With $213m Sales

ARM Holdings has reported better-than-expected results as the British chip designer continues to make strides in the global processor market.

ARM, best known for its mobile chip designs that feature in Apple iPads and iPhones, reported sales of $213 million (£135.5m) for the second quarter of 2012, up from $190 million in the same period last year and ahead of the $205m predicted by analysts.

The company benefitted from signing 23 processor licenses over the quarter, whilst 2 billion chips based on ARM designs were shipped, up nine percent year-on-year. Processor royalties grew 14 percent year-on-year.

Windows 8 boost incoming

“ARM’s royalty revenues continued to outperform the overall semiconductor industry as our customers gained market share within existing markets and launched products which are taking ARM technology into new markets,” said Warren East, chief executive officer at ARM.

“This quarter we have seen multiple market leaders announce exciting new products including computers and servers from Dell and Microsoft, and embedded applications from Freescale and Toshiba.”

Indeed, ARM is set for a boost later in the year, when Windows 8 tablets based on ARM arrive. Microsoft’s operating system will arrive on 26 October and many expect plenty of Windows RT – or Windows on ARM to use its unnofficial name – tablets to appear in 2012 and beyond.

Asus has already shown off a Windows RT tablet and Samsung is expected to make a rival device, whilst Microsoft’s own Surface tablet will be available based on an ARM chip manufactured by Nvidia.

ARM is hoping to break the server market too, as it looks to challenge the x86 architecture that has served Intel so well over the years. Dell, which is rumoured to be working on a Windows RT tablet too, recently showcased some ARM “Copper” servers aimed at hyperscale customers.

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