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Hardware & electrical equipment

ARM Holdings boosts revenue and profits as takeover beckons

Semiconductor developer reported a 9% rise in group revenue to US$387.6mln

ARM Holdings PLC (LON:ARM) reported higher revenues and profits but stayed tight-lipped on the outlook due to its £24.3bn takeover by Japan's Softbank.

The semiconductor developer reported a 9% rise in group revenue to US$387.6mln and a 5% lift in pre-tax profit to US$130.1mln.

Processor licensing revenues in US dollars were up 14% year-on-year and processor royalty revenues increased 11% year-on-year.

The company boosted its interim dividend by 20% to 3.78p per share.

It said it had formed a strategic partnership with Chinese private equity firm HOPU Investment Management, launching an industry fund focused on the Internet of Things, smart devices, big data and cloud computing.

Chief executive Simon Segars said: "Our royalty revenue growth continues to outperform the wider semiconductor industry, driven by market share gains and the increasing adoption of ARM's latest technologies.

"With more end-users selecting ARM technology for products ranging from sensors to satellites to supercomputers, we expect this outperformance will continue."

But the company added: "Given the restrictions placed on forward-looking statements as a result of the recommended offer by SoftBank for ARM, it is not appropriate to provide the usual full-year 2016 revenue guidance."

Softbank surprised the market by announcing the deal for ARM, prompting analysts to conclude that the weak pound had been the main trigger.