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Computer chip designer Arm Holdings today said it was encouraged by rising confidence among customers after reporting a sharp fall in profits.
The Cambridge-based firm, whose chip designs are used in the Apple iPhone, warned the short-term outlook “remains unclear” as demand for electronic devices such as phones remains muted.
But it said it is well placed to take advantage of “generally anticipated improvements” in 2010 and beyond as the global recovery gathers pace.
It came as Arm reported a slump in profits from £15.8 million in the third quarter last year to £7.7 million this time around.
Revenues rose 5% to £75.2 million and Arm said the outcome for the full year will “at least be in line” with City expectations. Analysts were expecting revenues of £73.7 million and Arm shares, which have rocketed this year, rose 2.2p to 151.4p.
Arm said it continued to outperform the semiconductor industry and gain market share as it provided “the technology of choice” for smartphones and in mobile computing.
Its designs are used by chipmakers Qualcomm, Texas Instruments and Samsung and it said demand remained strong “despite pressure on customers' budgets”. It bolstered hopes that a technology-led economic recovery is starting to emerge in the global economy.
Profits for the first nine months of the year were down from £40 million to £27.1 million but revenues were up 7% to £219.8 million.
