Semiconductor design company, Arm Holdings, reported a 23 per cent increase in revenue for its first quarter, its first financial report since merging with Artisan Components.
Arm reported first-quarter revenue of $US103.2 million for the quarter ended March 31, up from $US83.6 million in the same period a year earlier.The figures were arrived at by combining Arm's and Artisan's revenues for this year and last.
First quarter income before tax was $US23.5 million, Arm said.
The Arm business alone pulled in revenue of $US79.2 million, a jump of 27 per cent from its first quarter a year earlier, it said.
Arm does not manufacture chips itself, but licenses chip designs that are used by semiconductor manufacturers. Its intellectual property goes into chips used in a wide range of products, including handsets from Nokia and other phone makers. It is also used to make chips for Apple Computer's iPod music players.
The UK company doesn't break out results for license revenue related to the iPod, but a spokesman for Arm said it thought the success of the music player was a driver to its revenue growth.
Earlier this month, Apple reported record quarterly earnings and revenue thanks in part to growing iPod sales.
Arm said it was also encouraged in the first quarter by the take-up of Artisan offerings by exsisting Arm licensees.
Arm acquired Artisan last August for about $US913 million in cash and stock. Artisan licenses designs for components such as embedded memories and standard cell libraries, to customers including IBM and Tower Semiconductor. The deal, which closed in the fourth quarter last year, was intended to broaden Arm's portfolio beyond systems-on-chip, though analysts at the time expressed concern that Arm had paid too much for the company.
In the first quarter, revenue generated by Artisan - what Arm now calls its physical intellectual property division (PIPD) - reached $US24 million, up 12 per cent year on year, the company said.
Licensing and royalty revenues grew by 28 per cent in dollar terms compared to the first quarter last year.