ARM Holdings Q4 Pre-tax Profit Surges, Ups Dividend - Quick Facts

(RTTNews) - Chipmaker ARM Holdings Plc. (ARM.L, ARMH) Wednesday said fourth-quarter profit before tax increased to 91.4 million pounds from 12.2 million pounds in the previous year. The results are on the basis of IFRS.

The previous year's results included exceptional items of 59.5 million pounds, related to impairment.

Earnings for the period was 72.8 million pounds or 5.1 pence per share, compared to a loss of 6.2 million pounds or 0.4 pence per share last year.

Earnings per ADS were 24.0 pence per share, compared to loss per ADS of 2.2 pence per share in the prior year.

Revenues for the quarter grew to 225.9 million pounds from 189.1 million pounds reported last year. In US dollars, revenue increased to $357.6 million from $302.9 million in the prior year.

The directors recommended payment of a final dividend in respect of 2014 of 4.5 pence per share, up 25 percent from last year.

ARM said that as well as growing the dividend, the Board intends to continue to undertake a limited share buyback program to maintain a flat share count over time.

Looking ahead, with full year 2015 licence and royalty revenues anticipated to be consistent with market expectations, the company expects total group dollar revenues to be in line.

"We anticipate that total Group dollar revenues for Q1 will be up about 10% year on year, based on strengthening royalty revenue growth, and our expectation of the profile of licence revenue through the year," ARM said.