ARM higher on large Q2 profit rise

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

ARM (NASDAQ:ARMH) has announced a large increase in Q2 profit due to heavy growth from higher chip shipments and licensing revenue.

Net income climbed to £55.5M ($94.8M) from £10.5 Y/Y.

Revenue rose 9% to £187.1M ($319.6M). ARM's revenue often trails the market since half of its business comes from royalties. It earns the royalties and licensing fees from chip manufacturers on every chip shipped.

The company raised its interim dividend 20% to 2.52 pence per share.

ARMH +5.6% premarket