New uses for chips keep ARM strong

Consumers' love affair with new technology such as smartphones and digital TVs continues despite global economic turmoil - that is the underlying message from computer-chip designer ARM.

Profits doubled in the past three months at the Cambridge-based firm as demand surged and a raft of new companies began buying its technology for the first time.

ARM, which designs the chips used in many mobile devices including Apple's iPhone and iPad, saw a 50% increase in shipments to "non-mobile" markets including digital TVs and micro-controllers in products such as gaming devices.

Revenues jumped 20% to £120 million, with profits of £41 million against £19 million a year earlier.
"We continue to gain share," said boss Warren East, who said the wider market was "broadly flat".

Broker Peel Hunt said it was "a little disappointing" that ARM was not increasing its full-year forecast.

Shares nudged up 3.5p to 579p.