Oct. 23 (Bloomberg) -- ARM Holdings Plc, whose chip designs power Apple Inc.’s iPhone, said it started the current quarter with a record order backlog after third-quarter sales rose more than estimated by analysts.
Revenue in the three months through September rose 19 percent to 144.6 million pounds ($231 million), the Cambridge, England-based company said today in a statement. The average estimate by analysts compiled by Bloomberg was for sales of 139.4 million pounds. Pretax profit gained 29 percent to 55.3 million pounds.
ARM is benefiting from demand for semiconductors used in mobile phones and tablet computers. Apple’s iPad is based on ARM technology, as are most tablets on sale today. The shift in consumer spending to tablets is hurting makers of processors for traditional personal computers. Advanced Micro Devices Inc. last week forecast fourth-quarter sales that will miss analysts’ estimates and said it will cut 15 percent of its staff.
ARM predicts a “strong” fourth quarter for licensing revenue as it “enters the final quarter of 2012 with record order backlog and a robust opportunity pipeline,” it said.
The stock rose as much as 1.8 percent to 605 pence in London trading and was up 1.1 percent as of 8:03 a.m. The shares have risen 0.4 percent this year through yesterday, valuing the company at 8.3 billion pounds.
“As we move into an ever more connected world of mobile computing, cloud-based networks and the Internet-of-Things, ARM is seeing increased demand for its high-performance and low-power technology,” the company said. “This demand is helping to drive ARM’s licensing revenue.”
ARM predicted fourth-quarter revenues in U.S. dollars to be in line with market expectations.
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