ARM swings to Q4 loss of £6.2M, shares sink

|About: ARM Holdings, plc (ARMH)|By:, SA News Editor

ARM Holdings (ARMH) swung to a net loss off £6.2M in Q4 from a profit of £42.5M a year earlier, with the microchip designer hurt by one-off charges such as payroll taxes and impairments.

Adjusted pretax profit rose 19% to £95.5M.

Revenue climbed 15% to £189.1M, topping estimates of £181.8M, although growth was limited by slower sales of chips for high-end smartphones.

Processor royalty revenue +7% in U.S.-dollar terms and licensing revenue +26%.

2.9B chips using ARM technology shipped, +16%.

Signed 26 processor licenses.

ARM has "a strong opening order backlog and a healthy pipeline of licensing opportunities," and it expects full-year 2014 processor royalty revenues "to grow at a similar rate to that reported over the last three years." The company also forecasts overall revenue to be in line with market expectations.

Shares -4.35% in London. (PR)