ARM's raised in defiance of chip gloom

Success flies in the face of the downturn...

By Joey Gardiner, 23 July 2001 11:00

NEWS Shares in UK chip firm ARM rose 10 per cent in early trading today as strong quarterly figures defied the abysmal market conditions for the semiconductor sector. ARM's profits rose 46 per cent on the equivalent quarter last year, with revenues up 56 per cent. Profit of £12.2m on revenue of £36m beat expectations. Robin Saxby, CEO of ARM, said a decline in revenues from chip shipments had been more than offset by increased sales from licensing and consulting services. ARM also said its business model enabled it to predict future revenues with more confidence than many other firms, giving it a positive outlook for the rest of the year. ARM's results are particularly impressive given the depth of gloom in the semiconductor market. Many sectors of the chip market are currently experiencing their sharpest ever decline in sales.

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