ARM Holdings (NASDAQ:ARMH) recently reported strong third quarter results driven by demand for its processor-based chips. ARM licenses its processors for most smartphones and tablets, including the iPhone and iPad, as well as for televisions and electrical gadgets. It shipped about 1.5 billion chips, with 900 million for smartphones and tablets. Intel, the world’s largest chipmaker, which has been slow to enter the ARM-dominated smartphone and tablet market, is expected to release a chip aimed at tablets in early 2011. Let’s take a closer look.
ARM reported third quarter revenue of £100.4 million or $158.1 million, up 29%, and EPS of 2.08 pence, up 55%. Net cash was £251.9 million ($403 million) at the end of the quarter. ARM’s annual revenue in 2009 was £305 million, or $489.5 million. Over the past two decades, Arm has shipped about 20 billion ARM architecture based chips and aims to reach 100 billion by 2020. To hit that target, ARM is pushing for growth beyond smartphones and tablets and eyeing the chip market for televisions, household appliances, and cars.
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