ARM Holdings PLC, whose chip designs power Apple Inc’s iPhone and iPad, reported higher first-quarter sales that beat analysts’ estimates as demand for its graphics and processing technology grew.
Revenue in the quarter ending last month rose 29 percent to ￡170.3 million (US$260 million), the Cambridge, England-based company said yesterday in a statement. Analysts had predicted ￡160 million, according to the average of a Bloomberg survey.
ARM’s chip designs compete with patents from semiconductor makers such as Intel Corp.
Second-quarter revenue would be in line with market expectations, ARM said in the statement, as first-quarter data “points to a sequential decrease in industry-wide revenues of about 10 percent.”
Analysts had predicted 161.9 million pounds in the second quarter, according to a Bloomberg survey.
The “Internet of things,” which include connected appliances such as thermostats that can be controlled with mobile phones, or wireless medical monitoring devices, represents one of ARM’s fastest-growing markets. The embedded-processing business grew 25 percent last year and ARM got more than half of its sales from products other than mobile phones for the first time in the third quarter of last year.
Global shipments of PCs, tablets and mobile phones would increase 9 percent to 2.4 billion units this year, according to a study released this month by researcher Gartner Inc.
Wireless devices would account for the growth as consumers swap PCs for lower-priced tablets and mobile phones, analyst Carolina Milanesi said in the report.
Separately, STMicroelectronics NV, Intel’s biggest competitor in Europe, forecast revenue that fell short of analysts’ estimates after demand in the wireless business failed to improve in the first quarter.
Second-quarter sales would grow by 3 percent from the previous period, plus or minus 3.5 percentage points, the chipmaker said on Monday. Analysts on average project a 6 percent increase to US$2.13 billion.
The first-quarter net loss was US$171 million, bringing total losses over the past six quarters to about US$1.3 billion, Geneva-based STMicroelectronics said.
Texas Instruments Inc, the largest maker of analog chips, on Monday forecast sales and profit that may top some analysts’ estimates, helped by increased orders from makers of automotive and industrial machine parts.
Profit in the current period are set to be between US$0.37 and US$0.45 a share on revenue of between US$2.93 billion and US$3.17 billion, the Dallas-based company said in a statement.
Analysts on average had estimated profit of US$0.38 and sales of US$3.04 billion, according to data compiled by Bloomberg.