Takeover target tech firm Arm Holdings boosts Q2 profits

ARM Holdings supplies technology for Apple's iPhone. Picture: Contributed
ARM Holdings supplies technology for Apple's iPhone. Picture: Contributed
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ARM Holdings, the British technology business about to be bought by SoftBank of Japan, today reports healthy profits and revenues for its second trading quarter.

The microchip maker revealed that sales lifted 17 per cent to £267.6 million, while pre-tax profits advanced 5 per cent to £130m.

It comes after SoftBank announced last week that it was buying Cambridge-based ARM, which supplies technology for Apple’s iPhone, in a £24 billion deal.

SoftBank has pledged a recruitment drive to double ARM’s 3,000-strong workforce, and to retain the existing management team of the British company.

Simon Segars, ARM’s chief executive, said today: “Our royalty revenue growth continues to outperform the wider semiconductor industry, driven by market share gains and the increasing adoption of (our) latest technologies.

“With more end-users selecting ARM technology for products ranging from sensors to satellites to supercomputers, we expect this outperformance will continue.”

The company also announced another Asian tie-up today, with Chinese private equity firm HOPU Investment Management. The venture will launch an industry fund focused on the so-called ‘Internet of Things’, smart devices, big data and cloud computing.