British chip maker ARM boisterously brushed aside concerns about a slide in smartphone sales growth on Wednesday morning, when it reported a robust rise in revenues and pre-tax profit.
The Cambridge-based company told the City that its annual sales had jumped 22 percent to £968.3 million in 2015, while profit before tax hit £414.8 million, up 31 percent from £316.5 million a year earlier. ARM—which has seen its share price take a knock, after Apple recently confirmed that iPhone sales would decline for the first time—added that it had shipped four billion chips in 2015. That’s a 16 percent climb compared with its performance in 2014.
ARM said that its strong results had been buoyed by its shift into “emerging market opportunities,” such as connected devices. It had also benefited from a growth in royalty sales, particularly for chips based on its ARMv8-A tech.
“During the year ARMv8-A surpassed 50 percent share of smartphone shipments, Mali became the industry's highest-shipping GPU architecture, and our partners increased their shipments into enterprise infrastructure and embedded markets,” said ARM chief Simon Segars.
“Demand for our technology is increasing, and during the quarter we signed multiple licences for the next generation of high-performance and secure ARM processors. Our increased investments in both 2015 and 2016 will help us meet demand by extending the capabilities of our technology and the ecosystem, and will support long-term growth and returns for shareholders,” he added.
It’s been a different story for ARM rival Imagination Technologies, which cut loose its long-serving CEO Sir Hossein Yassaie on Monday, and revealed significant restructuring plans for the business, citing a worrying slowdown in the semiconductor market.
Last month, Apple forecast it’s first year-over-year revenue decrease in more than a decade.
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