ARM reports higher than expected Q2 earnings
Ryan Martin / 301 days ago
ARM supply processors for just about every tablet and smartphone on the market. So it is no surprise when we tell you that ARM has posted higher than expected Q2 revenue figures. ARM produces chips for Samsung, Apple and Microsoft to name but a few big companies.
The company posted revenue figures of $213 million, this is $7 million above the predictions of financial analysts who expected ARM to generate $206 million of revenue. Net profits were up a huge 48% over last years figures, from $41.3 million in 2011 to $61.2 million for 2012.
If the company’s rhetoric is anything to go by, then Q3 figures for 2012 should be even better. ARM reports a record order backlog because demand is just so much higher than what they can produce, although the shortfall in production isn’t enough to send customers anywhere else.
However, ARM has commented that it doesn’t expect these trends to continue further than Q3. It believes global economic uncertainties could dampen down demand for its chips in Q4. However all that aside, the yearly figures are still on target to meet analyst predictions of $860 million.
Even though ARM is nowhere near financially big enough to compete with Intel, its continued rapid growth should allow it to compete more as years pass by – providing it can gain a foothold in other markets and prevent Intel from eating into its current dominance of the smartphone and tablet market.