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ARM's Profit Rises, Backlog Jumps 10%

ARM, the U.K. semiconductor company, said third-quarter pretax profits rose 60% as licensing and royalty revenue jumped.

NEW YORK (

TheStreet

) --

ARM Holdings

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(ARMH)

, the U.K. semiconductor company, said third-quarter pretax profits rose 60% as licensing and royalty revenue jumped.

ARM said third-quarter normalized pretax profit was 38.8 million pounds ($61.1 million) vs. 24.3 million pounds a year earlier. Revenue increased 34% to 100.4 million pounds.

ARM Holdings said third-quarter licensing revenue rose 43%, while royalty revenue jumped by 39%.

ARM said the quarter benefited "from growth in applications where we are the established market leader, including in smartphones and mobile computers, but we are gaining share in markets like digital TV and microcontrollers."

The company, in a press statement Tuesday, said it's beginning the fourth quarter "with positive momentum" and expects sequential group dollar revenue growth in the period.

ARM said its order backlog at the end of the third quarter was up more than 10% sequentially. This was the company's highest ever backlog, driven partly by long-term strategic deals, ARM said.

-- Written by Joseph Woelfel

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