By Lisa Fleisher
LONDON--Computer chip designer ARM Holdings PLC on Wednesday
reported a rise in first-quarter profit boosted by demand for its
technology for a growing range of products including so-called
supercomputers and sensors.
Net income for the first three months of the year rose to
GBP62.3 million ($104.7 million) from GBP51.9 million a year
earlier. Earnings per share were 4.4 pence, up from 3.7 pence in
the prior-year period, the company said. Revenue rose 10% to
GBP186.7 million.
The Cambridge, England-based company designs chips found in 95%
of all smartphones, which have fueled its revenue in recent years.
ARM designs processors and licenses them to chip manufacturers such
as Qualcomm Inc. and Nvidia Corp for a licensing fee and royalties
on every chip shipped.
As more companies try to bring Internet connectivity to everyday
objects, such as cars or bikes or even toothbrushes, demand for
chips will grow. But those chips aren't as lucrative for the
company as those used in smartphones, said Pierre Ferragu, an
analyst with Sanford C. Bernstein Ltd.
Write to Rory Gallivan at rory.gallivan@wsj.com and Lisa
Fleisher at lisa.fleisher@wsj.com
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