Tues - ARM, leading UK chip company disappoints

ARM, the UK chip company, said full-year revenues would be at the lower end of expectations after revealing downbeat third-quarter results.

The company, which designs technology for mobile phones and music players including the Apple iPod, had previously revised its full-year forecast downwards.

Arm had earlier in the year said it expected dollar-denominated revenues to grow by “at least 20 per cent” but in July Warren East, chief executive, said 15 to 20 per cent was more prudent.

A key challenge has been the acquisition in August 2004 of Artisan, a semiconductor technology developer, for $913m. ARM has had to book higher integration costs. This brought net profits down, even on a revenue growth of 44% for the group.