By Amir Mizroch 
 

BARCELONA--British semiconductor designer ARM Holdings PLC is looking to diversify beyond designing chips primarily for smartphones and is building its share in other markets, some of which have higher chip prices, according to Chief Financial Officer Tim Score.

Mr. Score, speaking at Morgan Stanley's European Technology, Media and Telecoms Conference in Barcelona, said that would attract higher royalty rates than the company has historically seen.

"We're in a multi-year program to get ARM in servers and enterprise networking," Mr. Score said. "The financial impact of that will be a multiple of anything we've yet seen."

ARM recently reported a sharp rise in third-quarter profit, but the results disappointed investors expecting a more robust rebound in revenue linked to smartphone sales.

The Cambridge, England-based company reported healthy demand for high-tech chips for mobile phones and a pickup in chips for so-called smart objects. But ARM, which designs technology found in chips in more than 95% of all smartphones, has had to weather an uncertain period in the smartphone industry. Growth in higher-end smartphones has been slowing, while inexpensive smartphones have begun to proliferate in emerging markets. That's weighed on shares for much of this year.

Lisa Fleisher in London contributed to this article

-Write to Amir Mizroch at Amir.Mizroch@wsj.com

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