NEW YORK (TheStreet) -- ARM Holdings (ARMH) reported a net loss of 6.2 million pounds in its fourth quarter, a significant drop from a profit of 42.5 million pounds in the same quarter last year, as the British semiconductor company dealt with one-off charges including payroll taxes and impairments.
The Cambridge-based business saw revenue climb 15% to 189.1 million pounds, beating estimates of 181.8 million pounds. Though 2.9 billion ARM-based chips were shipped over the quarter, demand for chips in premium smartphones tailed off.
The company generates around half its income through royalties on licensed semiconductor designs to customers such as Qualcomm. In the fourth quarter, the company saw 26% year-on-year growth in processor licensing and 7% year-on-year growth in processor royalties.
"ARM's strategy is for our technology to continue to gain share in long-term growth markets, such as smartphones, tablets, enterprise equipment and embedded computing, and to increase the royalty percentage ARM receives from each device," said CEO Simon Segars in a statement.By late morning, shares had taken off 6.5% to $42.87.
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