ARM bucks weak semiconductor market trend in Q2

ARM expects a strong third quarter even as rival semiconductor companies forecast gloom

ARM showed strong growth in an otherwise weak semiconductor market, with robust demand for smartphone and tablet processors driving profit and revenue growth in the second quarter, the company said on Wednesday.

The company's processors are used in devices like Apple's iPad and iPhone and Samsung's Galaxy smartphones and tablets, and ARM said it is set for strong growth in the coming quarter. The company reported strong growth even as chip makers such as Intel, Advanced Micro Devices, Qualcomm and Texas Instruments predicted a gloomy outlook for the coming year.

ARM reported profit of £54.8 million (US$85 million) before taxes for the second quarter, compared to £33.8 million in the second quarter of 2011. The estimated tax rate for fiscal 2012 is 25 percent.

It said revenue for the quarter was $213 million, up by 12 percent year-over-year.

ARM's rival Intel last week warned that it expected lower-than-anticipated growth in 2012 on account of weak consumer spending in Western Europe and North America. Qualcomm last week reduced chip shipment growth estimates for the remaining year, while AMD, which last week reported a year-over-year revenue decline, said softer consumer spending and lower demand for processors in China and Europe contributed to the company's revenue decline.

The Cambridge, UK company is benefiting from growing demand for tablets and smartphones, a market in which Intel has virtually no presence. It added 23 more licensees during the quarter, the company said in a statement.

The company also had some major design wins in the quarter. Microsoft said it would make an ARM-based tablet with the Windows RT operating system, and Advanced Micro Devices used an ARM Cortex-A5 processor inside its x86 chip for security processing.

In the quarter, ARM shipped approximately 2 billion processors, and is also finding new opportunities in microcontroller and server markets, with Dell testing ARM processors in a prototype server. The processor company last year expanded a pact with Taiwan Semiconductor Manufacturing Co. (TSMC) to make 64-bit chips.

ARM said it expects a strong third quarter as it is entering the second half of 2012 with a record order backlog. However the company could not predict fourth quarter revenue because of uncertainty about macroeconomic conditions. The company expects revenues for the whole of 2012 to be in line with expectations.

Agam Shah covers PCs, tablets, servers, chips and semiconductors for IDG News Service. Follow Agam on Twitter at @agamsh. Agam's e-mail address is agam_shah@idg.com

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Agam Shah

IDG News Service
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Tom Pope

Dynabook Portégé X30L-G

Ultimately this laptop has achieved everything I would hope for in a laptop for work, while fitting that into a form factor and weight that is remarkable.

Tom Sellers

MSI P65

This smart laptop was enjoyable to use and great to work on – creating content was super simple.

Lolita Wang

MSI GT76

It really doesn’t get more “gaming laptop” than this.

Jack Jeffries

MSI GS75

As the Maserati or BMW of laptops, it would fit perfectly in the hands of a professional needing firepower under the hood, sophistication and class on the surface, and gaming prowess (sports mode if you will) in between.

Taylor Carr

MSI PS63

The MSI PS63 is an amazing laptop and I would definitely consider buying one in the future.

Christopher Low

Brother RJ-4230B

This small mobile printer is exactly what I need for invoicing and other jobs such as sending fellow tradesman details or step-by-step instructions that I can easily print off from my phone or the Web.

Featured Content

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?