Good Results Push ARM Up 5%

LONDON -- ARM Holdings (ISE: ARM.L) -- the world's leading semiconductor intellectual-property company -- reported a strong set of second-quarter and half-year results this morning, which pushed its share price more than 5% higher in morning trade. Second-quarter revenue was 135.5 million pounds, up 15% on 2011, while profit before tax increased 23% to 66.5 million pounds. Earnings per share were up 20% to 3.58 pence.

The growth owed to increased adoption of ARM processor technology, with the signing of 23 new processor licenses, greater shipments of ARM processor-based chips, 2 billion chips supplied in the second quarter, and a 14% year-on-year boost in processor royalties.

ARM CEO Warren East said:

ARM's royalty revenues continued to outperform the overall semiconductor industry as our customers gained market share within existing markets and launched products which are taking ARM technology into new markets. This quarter we have seen multiple market leaders announce exciting new products including computers and servers from Dell and Microsoft, and embedded applications from Freescale and Toshiba. In addition, ARM and TSMC announced a partnership to optimise next generation ARM processors and physical IP and TSMC's FinFET process technology.

All of these new products are the result of technology engagements over many years, and ARM's long-term commitment to invest in the development of innovative technology.

As ARM enters the second half of 2012 with a record order backlog, perhaps this is the start of a recovery in its share price, which remains more than 20% below its 52-week high of 647.5 pence last November. Whether or not that recovery can continue remains to be seen.

Solid companies that are currently trading well below recent highs can provide excellent investment opportunities. Indeed, legendary stock-picker Warren Buffett recently bought a stake in a major FTSE name that has recently fallen out of favor. You can discover which "falling knife" he bought -- and the price he paid -- in "The One UK Share That Warren Buffett Loves." Download this free Fool report while it's still available.

Are you looking to profit from this uncertain economy? "10 Steps To Making A Million In The Market" is the very latest Motley Fool guide to help Britain invest. Better. We urge you to read the report today -- it's free.

Further Motley Fool investment opportunities:

The article Good Results Push ARM Up 5% originally appeared on

Jon doesn't own shares in ARM Holdings. The Motley Fool owns shares of Microsoft.Motley Fool newsletter serviceshave recommended buying shares of Microsoft.Motley Fool newsletter serviceshave recommended creating a bull call spread position in Microsoft. The Motley Fool has adisclosure policy. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. Try any of our Foolish newsletter servicesfree for 30 days.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.