Arm Revenues Increased by 5 Percent to 844 Million Dollars

Arm Holdings reported net income of $107 million on revenue of $844 million for the quarter ended Sept. 30. These figures represent a decrease of 2.7 percent and a gain of 5 percent on an annual basis. The firm fell 6 percent in after-hours trading.

“As we mark one year since our IPO, we are extremely proud of the tremendous progress we have made, building further momentum on the world’s most popular computing platform.” The following statements are included in Arm Holdings’ letter to shareholders:. “The demand for AI everywhere is driving the need for more computing and, in turn, driving our partners to make long-term commitments to more, more powerful, energy-efficient Arm technology. “The cumulative number of chips shipped by the Arm ecosystem has now exceeded 300 billion.”

Revenues from royalties reached a record level of $514 million, increasing by 23 percent on an annual basis; The company stated that 25 percent of its royalty revenue comes from its latest Armv9 architectural design, which earns higher rates. But licensing and other revenues fell 15 percent to $330 million; Arm says this is “as expected due to normal fluctuation in the timing and size of multiple high-value licensing deals and contributions from backlogs.”

According to Arm Holdings, 47 percent of royalty revenues come from smartphones and mobile devices, 20 percent from IoT/embedded devices, 15 percent from consumer electronics, 10 percent from cloud and networking, and 8 percent from automotive.

Arm does not mention its historic legal battle with Qualcomm in its earnings report. But analysts asked the company about Qualcomm on the post-earnings conference call.

“There’s not much I can say about that,” Arm Holdings CEO Rene Haas said. “But at a basic level, Qualcomm required contractual consent to sign the Nuvia license, and that consent was not received. By not obtaining that consent, they were in violation. So we sent a notice of revocation of the architect’s license. To be clear, we did not revoke the license, but we did give them a notice.” We sent… Our (financial) forecasts and guidance always took into account that we would not prevail in this situation, so we essentially took a forward-looking view.”