British microchip designer ARM Holdings spared the technology sector fresh gloom today by reporting quarterly results much as expected and sounding confident about the coming six months.
ARM's January-to-March first-quarter revenues rose 9 per cent quarter-on-quarter to £32.5 million (euro 52.5 million) giving a pre-tax profit of euro 18.4 million - a 13 per cent increase.
The markets were keenly watching to see if ARM would be the latest high-tech company to report bad news but any downturn may be slower to emerge because it gives figures for royalty revenues - a key part of its income - a quarter in arrears.
ARM shares closed yesterday at 280p in London. They have halved in value since late January and peaked a year before that at just more than £10. They have performed much in line with their sector over the last year.
The Cambridge-based company designs the small low-power chips that go in most of the world's mobile phones. But it has been trying to diversify into other markets as the telecoms industry hits rockier times.
ARM incorporates technology designed by Ireland's Parthus Technologies into its mobile chips.
ARM said it had moderated its planned hiring of new staff until market conditions improve. The headcount rose from 619 at the end of 2000 to 659 at the end of the first quarter.