Arm Holdings Drops into Quarterly Loss on Patent Costs
Published on: 4th Feb 2014
Note -- this news article is more than a year old.
UK based semiconductor chips developer, Arm Holdings has posted a quarterly loss for the final three months of last year as the company was hurt by patent write downs and higher operating costs.
The company was hit by a £59.5 million impairment charge following the acquisition of a patent portfolio from MIPS Technologies, which pushed it into a £6.2 million loss for the quarter.
Revenues however rose by 15% to £189.1 million.
The company's chip designs underpin most of the smartphones sold worldwide as the company specializes in low-power consumption devices.
ARM's Partners reported that they had shipped 2.9 billion ARM-based chips, a record number despite slower growth of chips for premium smartphones.
Simon Segars, Chief Executive Officer, said:"ARM's strategy is for our technology to continue to gain share in long term growth markets, such as smartphones, tablets, enterprise equipment and embedded computing, and to increase the royalty percentage ARM receives from each device."