Chip designer ARM Holdings has lifted the gloom surrounding the tech sector by posting better-than-expected quarterly figures.
A pre-tax profit of £12.2 million for the three months to June 30 was 7 per cent higher than the previous quarter and 46 per cent up on a year earlier.
ARM also remains bullish about the coming months, despite experiencing what it describes as the sharpest downturn in the history of its sector.
The Cambridge-based group says it achieved growth in the quarter through higher sales from licensing, consulting services and development systems. These offset a decline in royalty revenues - the fee it receives every time a device is sold that contains an ARM-developed chip.
ARM said royalties, which are always reported a quarter in arrears, are unlikely to improve as the year progresses. But the company is forecasting continuing strength for its licensing business as it steps up research and development spending.
Chief operating officer Warren East says: "We are very pleased with the progress we have made in the first half of what is clearly a very difficult year for the technology sector."
For the second quarter in succession, ARM has beat the predictions of City analysts, who had been expecting a quarterly pre-tax profit around the £11 million mark.
ARM said pre-tax profits for the six months were up by 43 per cent to £23.6 million, with revenues 54 per cent stronger at £68.5 million.
PA