Semiconductor company Arm has shaken off a variety of issues to reach a record Q1 with a total revenue of $719 million (£593 million).
In its latest results for Q1 FY 2022, the firm reckons its strategy of diversifying into markets beyond mobile, such as automotive and infrastructure, is “paying off with strong growth in all new target markets”.
Arm is owned by SoftBank, which in a reversal of fortune saw its Vision Fund post a $23.1 billion (£19 billion) loss in the April-June quarter – with job cuts on the way.
There are other matters to consider as well.
As reported last month, SoftBank halted work on Arm’s London IPO following political turmoil in the UK government.
Prior to that, Arm said in March it will cut between 12-15% of its workforce due to the collapse of NVIDIA’s $40 billion (£29 billion) takeover. The majority of the losses will be in the UK and US – with up to 1,000 jobs being affected.
- A useful deal – Google Cloud Taps Arm to Build Tau VM – read the news here
While that backdrop is not particularly pleasant, Arm’s Q1 FY 2022 results are a happier tale. Its adjusted EBITDA was $414 million (£341 million), up 31% year-over-year and 58% margin.
Rene Haas, CEO of Arm, didn’t have anything interesting to say about the results, but the positive numbers speak for themselves.
Arm reported a record quarterly royalty revenue of $453 million (£373 million), up 22% year-over-year. This is the first time the quarterly royalty revenue has been higher than $400 million (£330 million).
There was a record number of Q1 unit shipments – and the tech company’s partners shipped 7.4 billion Arm-based chips, up 7% year-over-year.
It has now achieved four quarters of more than seven billion Arm-based chips shipped.
There was more good news last month when Google Cloud turned to the UK tech firm to launch its first line of Arm-based VMs.
The latest addition, Tau T2A under the Tau VM family, will use Ampere-based Altra Arm processors with single-threaded performance – a necessity for Oracle, Tencent, Azure and Equinix Metal processors.
Tau T2A VMs offers numerous predefined SKUs, networking bandwidth of 32 GBPS, 48 vCPUs per VM, 4GB of memory per vCPU, storage options, and improved performance of up to 56% over Azure and AWS.
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