ARM has announced its financial results for Q1 2014, with revenue up from £170.3 million to £186.7 million year-on-year, an increase of 10 per cent.
The company's profit before tax was also up by 9 per cent, from £89.4 million to £97.1 million.
Earnings per share were up 5 per cent year-on-year.
The firm noted that processor licensing revenue in US dollars jumped up 38 per cent year-on-year, but underlying processor royalty revenue was only up 4 per cent (though that was affected by a deduction due to an ARM customer's previous overestimation – in reality it was 8 per cent prior to adjustment).
This slower growth reflects the slowdown in high-end smartphones which was witnessed as we turned the corner into 2014. ARM expects this year will pick up considerably, though, with what it calls a "healthy" number of licensing opportunities in the pipeline – particularly when looking towards the Internet of Things arena.
Simon Segars, CEO of ARM, commented: "Q1 was a good start to the year for ARM, with more customers choosing to license ARM technology for their future products, which helped drive ARM's revenues."
"Licences are a precursor to future royalty revenues. Our customers are signing licences with a view to designing ARM technology into an increasingly wide range of markets from servers and supercomputers to embedded sensors and enterprise networking applications and thereby underpinning ARM's future royalty opportunity."