Chief Executive Officer Rene Haas said that the company could deliver sustained growth because its products are gaining ground in new markets because it wants to sell shares to the public this year.
The company, which has chip designs that are the heart of most modern phones, reported revenue of $746 million in its most recent quarter, an increase of 28% from the same period a year earlier. The Japan SoftBank Group Corp. division has well developed plans for an initial public offering by the end of the year, Haas said.
He said Tuesday in an interview that Arm as a company is not the Arm that people knew a few years ago. It is a diversified company. The ingredients that helped Arm win in the mobile industry are the same ones that help us in the automotive and data center markets. Data center owners and automakers need chips that are more capable, but can't work with limited access to power, because of the use of Arm's designs and intellectual property. While the smartphone market has slowed, Arm is gaining ground with new customers for processors that run the internet.
Many chipmakers, including some of the biggest users of the technology, have reported significant declines in revenue because of the performance of arm during the earnings season. Consumers and companies are cutting back on spending for infrastructure and gadgets, leading to a huge accumulation of component inventory at device makers.
Haas said that his company's growth is driven by the adoption of more technology per device and higher licensing rates rather than increasing unit sales. More chips are used in artificial intelligence workloads because of the multicore processors and data centers. Cars are increasingly home to multiple sensors and chips that provide more of the help and information that will eventually take over the job of piloting the vehicle.
The area that we will perform well in is power efficiency," Haas said in an interview with Bloomberg Television. These new AI algorithms are intensive and critically important in a world where we don't have that much energy to throw at a problem. None When Financial Bubbles Are Hard to Pop