ARM talks up 'internet of things' as profits rise

UK chip giant flying the Union Jack for innovation

ARM talks up potential as profits rise

UK chip giant ARM has once again put in an impressive quarter, with CEO Warren East suggesting that it will be pumping cash into future innovation.

A 22 per cent hike in year on year profit, ahead of tax, and 14 per cent rise in revenue underlines the Cambridge-based company's huge strength in not only mobile devices, but also in the burgeoning embedded processor markets.

That means the processors that are making their way into everyday electronic items – the so-called 'internet of things'.

Digital lives

"As many aspects of our lives become digital, we continue to see an increase in the demand for ARM's smarter and lower power technology, which is driving both our licensing and royalty revenues," said East.

"In the first quarter of 2012 we saw continuing demand for technology licenses driven by a remarkable variety of end markets from highly efficient servers to energy-sipping sensors.

"ARM's royalty revenues continued to outperform the overall semiconductor industry as our customers launch their products into new markets and gain market share within existing markets."

East is keen to point to the potential for ARM, a company that has reaped the benefit of designing processors that have low power consumption – something that is increasingly vital in an era where our computing is portable.

"With more customers choosing to deploy ARM technology in their products, this has been another quarter that underpins the long-term growth opportunity of the business," he added

"This growth enables us to invest in future innovative technology as well as delivering increases in profit and cash flow."

The volume of ARM-designed chips shipped in the quarter, although an impressive 1.1 billion, is relatively flat year on year, but the rise in chips for other consumer and embedded digital devices has increased 15 per cent.