“ARM Holdings Plc (ARM), whose chip designs power Apple Inc. (AAPL)’s iPhone and iPad, reported higher sales that beat analysts’ estimates as demand increased for its graphics and processing technology. The stock jumped.
Revenue rose 29 percent to 170.3 million pounds ($260 million) in the first quarter ended in March, the Cambridge, England-based company said today. Analysts predicted 160 million pounds, the average of estimates compiled by Bloomberg.
ARM Chief Executive Officer Warren East said in March he would retire July 1 after almost 12 years in charge. His successor, Simon Segars, will focus on increasing the company’s share of semiconductor designs and moving ARM’s technology into connected devices, Web-enabled “smart” televisions, tablets and smartphones. ARM’s chip designs compete with patents from semiconductor makers such as Intel Corp. (INTC)
“We’ve made an encouraging start to 2013 with more leading companies deploying our technology in their products,” ARM Chief Financial Officer Tim Score said on a conference call.
ARM’s revenue increase this year will be “quite well ahead of” the industry’s projected growth in the “mid-single digits,” Score said. That means ARM’s sales will be at least in line with market expectations, he said.
ARM rose as much as 8.8 percent to 945.5 pence, the biggest intraday gain since July, and advanced 7.3 percent to 932.5 pence at 8:30 a.m. in London. The stock had risen 53 percent in the 12 months through yesterday.
