ARM Q2 Results
ARM Holdings posted a 24% fall in quarterly profit ($23.2M to 16.3M). Dollar revenues saw a sharp decrease of 18% (£128.1M down to $105.5M). Sterling revenue however remained almost flat due to the strengthening of the dollar (£65.0M down to £64.8M).
Seventeen processor licenses were signed in Q2. Eleven were for ARM’s new and more advanced Cortex and Mali graphics processors. Interestingly, two licenses were for future processors still under development.
Warren East, CEO had this to say about the results, “The resilience of ARM in a difficult trading environment is demonstrated by these results for the first half of 2009. We continue to outperform the semiconductor industry; whilst ARM H1 dollar revenues declined 14%, overall industry revenues declined 30%. ARM technology-based chips continue to gain market share in both mobile and non-mobile applications.”
“Demand for the latest ARM technology remains robust as customers maintain high interest in licensing Cortex™ -A processors for smartphones and mobile computing, Cortex-M processors for microcontrollers and physical IP technology for advanced process nodes. With recent signs of increasing industry activity we expect that ARM’s trading performance will be on an improving trend in the second half of the year.”
ARM’s share price has fallen 5.00p to 127.5 (3.78%) since the announcement.
Update @ 12:01: Warren East during the analysts conference call resisted to comment on whether he thought there may be another slump in demand for ARM products this year. Warren had this to say: “We have no grounds to be bearish, but what we’re saying today is that it’s too early to talk about the fourth quarter.”
On questioning about Microsoft Windows running on ARM, he did however re-ignite rumours that Microsoft were working on getting Windows to run on ARM chip by suggesting that he could not comment on the good work being down between ARM and Microsoft. “You will have to talk to Microsoft” said Warren.
On questioning about Smartbooks, Netbooks and Intel, Warren was pleased to announce that the presentation that analysts were looking at was being run on an ARM powered smartbook running Linux, and that they expect to have a 20% share of the netbook market in 2010.
Given the turmoil in the semiconductor industry ARM produced a firm set of results this quarter, but trading of ARM shares has been volatile since opening today. The shares have fallen to as low as 124.25p as the time of writing.