(Updates with share price starting in second paragraph.)
Jan. 31 (Bloomberg) -- ARM Holdings Plc, whose chip designs are used in Apple Inc.’s iPad, said fourth-quarter revenue climbed 21 percent as the company increased the number of licenses sold for smartphones and tablet computers.
The stock rose as much as 7.1 percent in London trading. Fourth-quarter sales rose to 137.8 million pounds ($217 million) from 113.9 million pounds a year earlier, the Cambridge, England-based company said in a statement. That beat analysts’ estimates for revenue of 127 million pounds, according to a Bloomberg survey.
ARM, with its low-power designs, is seeking to broaden its range of products, as it takes on Intel Corp., the world’s largest computer chipmaker. The company’s processor designs will be in almost one-quarter of all notebook computers shipped in 2015, according to researchers at IHS Inc.
“ARM has seen strong licensing growth, driven by market- leading semiconductor companies increasing their commitment to ARM technology, and more new customers choosing ARM technology for the first time,” Chief Executive Officer Warren East said in the statement. “We have also seen our royalty revenue continue to grow faster than industry revenues.”
ARM rose as much as 42.5 pence to 640 pence, the biggest intraday gain since Nov. 4, and was up 6.7 percent as of 8:16 a.m. The stock has gained 23 percent in the last 12 months.
Microsoft Corp. is enabling the next version of its Windows software to run on ARM-based chips for the first time. The Windows system will be tailored for battery-powered products, such as tablets, netbooks and other handhelds.
The company today said it predicts U.S. dollar revenue for the first quarter to be in line with market expectations of about $200 million. ARM also predicts sales for the full year to be at least in line with market expectations of more than $860 million “assuming the macroeconomic situation does not deteriorate significantly.”
--Editors: Simon Thiel, Robert Valpuesta.
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