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ARM Holdings (NASDAQ:ARMH), the U.K. company that produces the computer chip technology powering Apple’s (NASDAQ:AAPL) iPhone and iPad, has reported a 23 percent boost in second-quarter profits — 66.5 million pounds of pre-tax profits on sales of 135 million pounds for the three months ended in June.
ARM’s figures beat analysts’ forecasts despite Apple’s lower-than-forecast profit rise for the same quarter. Demand for ARM technology in smartphones, computers, and TVs remains high.
ARM licenses its technology to chip makers, and receives royalty income on its intellectual property. The company said 2 billion chips were shipped during the April to June quarter, up 9 percent year-over-year compared to an industry-wide decline of 4 percent, while processor royalties grew 14 percent.
“ARM’s royalty revenues continued to outperform the overall semiconductor industry as our customers gained market share within existing markets and launched products which are taking ARM technology into new markets,” said the company’s chief executive Warren East.
ARM said full-year results would likely be in line with market expectations, unlike other chip companies like Intel (NASDAQ:INTC) and Qualcomm (NASDAQ:QCOM), which have reduced their forecasts in recent weeks.
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