ARM see shares dive as figures fail to meet forecasts

ARM holdings, the microchip designer, saw it shares dive 15% as fourth quarter figures missed analysts’ forecasts. In October, ARM failed to match analysts’ expectations when it posted its third-quarter results.

The Cambridge-based group said fourth-quarter sales were down 5.4% to £64.3 million, below City expectations of £69.8 million for the 3 months to end December 2007.

ARM’s profits of £21.3 million, which were flat on the same quarter last year, also missed analysts’ expectations of £24.9 million.

Tim Score, ARM’s finance director, blamed the group’s failure to meet market expectations on the timing of booking revenue in its processing division where it designs chips for electronic devices such as mobile phones.

ARM also gave a cautious outlook for the 2008 year. Mr Score said this year is turning out to be an unusual year due to macroeconomic uncertainty.

In a statement, the company said that if there was no market deterioration in 2008, it expected ‘to increase dollar revenues in full-year 2008 by at least the growth rate achieved in 2007′.

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