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Monday, 28 January, 2002, 08:12 GMT
ARM profits higher
Products that use ARM chips
ARM's chips power many everyday products
The UK computer chip designer ARM has reported another increase in profits, despite tough trading conditions.

Pre-tax profits for the three months to December reached 13.8m, 38% up on the same period a year earlier, and at the top end of analysts' forecasts.

Pre-tax profits for the full year jumped 42% to 50.3m.

"The continued growth in our business during 2001 was especially significant given the very tough environment in our industry which prevailed during the year," said executive chairman Sir Robin Saxby in a statement.

"We do not expect a quick industry recovery in 2002, but we do expect another year of growth for ARM."

Licensing deals up

ARM develops and licenses microchips used in mobile phones and other hi-tech gadgets, but does not make the chips itself.

Revenues during the last three months of 2001 were 40.2m - a 7% rise on the previous quarter and 35% up on the same period the previous year.

A growing percentage of the company's income came from licensing revenues, which reached 22.7m for the period.

Royalty revenues grew 7% to 6.8m compared to the previous three-month period, but were 16% down on the final three months of 2000.

"Licensing activity in the fourth quarter continued to be strong, with 15 licenses signed," said chief executive Warren East.

The firm now has 77 semiconductor partners compared to 50 at the end of 2000.

"2002 has started promisingly with a number of new licensing deals and good prospects in the pipeline," Mr East added.

ARM was one of the star performers during the surge in tech stocks two years ago, but its shares have lost about 67% of their value since peaking in February 2000.

In London trade, ARM shares opened up 3p at 338p.

See also:

15 Oct 01 | Business
ARM upbeat as chief steps aside
23 Jul 01 | Business
ARM posts 46% profits jump
12 Jun 01 | Sci/Tech
Fast chips with bigger bits
11 Apr 01 | Business
UK chip designer remains 'confident'
07 Mar 01 | Sci/Tech
'Smaller, faster' computers possible
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