Chipmaker Arm eyes smart appliances as its profit and dividend jumpComments Off on Chipmaker Arm eyes smart appliances as its profit and dividend jump
The Cambridge-based company, whose chip designs are found in 95% of all smartphones, enjoyed a record end to 2014, with a 25% jump in fourth quarter profits to £118.9 million and a 19% rise in revenues to a record £225.9 million.
Investors are set to benefit from the record quarter, with management hiking Arm’s final dividend by 25% to 4.5p. Shares jumped 4% on the news.
Chief finance officer Tim Score said the strong performance is set to continue, citing the ‘internet of things’ – the trend for having everyday appliances connected to the web – and new products such as smartwatches as key areas of growth.
Score said: “Whether its wearables or medical or smart cities – multiple devices need to be smart. The internet of things is still taking shape but whatever shape it takes, it’s looking like its Arm-powered.
“If you look at things like wearable devices we’re in a very high proportion of those being sold today.”
Score also played down fears of a slowdown in smartphone sales, saying: “We don’t see smartphone as a lag at all, we see it something that is growing consistently with our other opportunities.”
Arm’s full-year revenue rose 11% to £795.2 million, while pre-tax profit improved 13% to £411.3 million.