ARM Holdings defied the flat technology sector by pushing past analysts estimates
in returning a 23 percent pre-tax profit of $103 million for the second quartert
. According to Reuters
, ARM out grew the industry as demand for mobile chips
based on the Cambridge company's designs continues to increase. Despite forecast warnings issued by Intel and ARM partner Qualcomm in recent weeks, ARM maintains that it is on track to meet its forecast for the full fiscal year.
Although ARM designs chips, it does not manufacture its own designs. Instead, companies like Apple, Samsung, TI, and Qualcomm all pay ARM license fees for developing chips based on its designs. For each chip each company sells, ARM is paid an ongoing royalty although it collects these in arrears - its second quarter results actually reflect its first quarter licensing returns on sales of around 2 billion devices shipping with ARM-based chips.
Looking ahead, ARM expects to earn between $875 and $877 million over the course of the fiscal year. Any downswing would reflect weaker than anticipated consumer demand ahead of the looming holiday season.