ARM shares are up 5% this lunchtime on revenues up 27% to £321m for Q2. However, profits fell from £106.2m to £82.1m yoy. This was mostly down to a £41.8m legal charge for patent infringement plus increased legal costs for battling rivals like Intel. Dividend is increased by 26%. Incoming CEO Simon Segars, who took over as CEO from Warren East on 1st July, was pretty bullish about ARM’s latest technology. Indeed the order backlog is up 10%
ARM has also been increasing its share of the graphics processing market. Earlier this week Samsung said it had selected Mali for its latest high-end processor. This was rather bad news for Cambridge neighbour Imagination Technologies though.
ARM shares had been as high as 1111p in May but have come off a bit since. Intel is clearly waking from its denial about the need for low energy chips to power smartphones and tablets. On top of that, sales of smartphones seem to have eased off as shown by Samsung’s latest lacklustre results. Conversely sales of Apple’s iPhone beat expectation last night. See Apple fails to excite.
Anyway, great that a British company can still really lead the world! ARM shares at 942p are still up an impressive 23% YTD.