ARM Holdings, a Cambridge-based chip designer, Tuesday announced a large increase in its second quarter profits due to significant growth from higher chip shipments and licensing revenue.
Profit before tax in the second quarter of 2014 increased by 9 percent to 94.2 million pounds (160.7 million U.S. dollars) from the same period a year earlier, said ARM in a press release.
Earnings per share in the second quarter were 5.43 pence per share, higher than 4.89 pence per share a year earlier. Revenue rose by 9 percent year-on-year to 187.1 million pounds, data showed.
In the first half of 2014, ARM's total revenue was 373.7 million pounds, 9 percent higher than a year earlier. Profit before tax also increased by 9 percent to 191.3 million pounds over the same period.
The mobile phone chip designer raised its interim dividend by 20 percent to 2.52 pence per share.
The company enters the second half of the year with a healthy pipeline of opportunities that is expected to underpin continued strong license revenue, said ARM.
"Market data indicates improving semiconductor industry conditions, leading to the expectation of accelerated royalty revenue growth in the second half of 2014," the firm said in a statement. (1 pound = 1.71 U.S. dollars)