Chip designer Arm reported record revenues for its latest quarterly trading update as it continues to diversify the business beyond licensing.
For its
second quarter ending 30 September - Arm’s 2022 financial year ends in March 2023 somewhat counterintuitively - royalty revenues jumped to $463.2 million from $378.2 million in the prior year period. For the arithmetically challenged, that is a 22.47 percent rise.
Yet total revenues were down 16 per cent to $655.85 million due to a 53 percent plunge in licensing to $192.7 million, a company spokesperson told
The Register.
This reflects the more spikes nature of licensing and highlights why Arm is keen to build royalties. “This spike was due to the timing of revenue recognition of two major licenses that were signed in prior periods,” Arm said.
All market segments for royalties grew, Arm said, with new highs reached for both the automotive line of business as ADAS adoption “continues to drive more advanced computing in cars”, and in IoT.
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