Arm hit by chip slump

June 7, 2001
Web posted at: 1117 GMT

LONDON (CNN) -- Chip designer ARM Holdings said unit shipments dropped 20 percent in the first three months of 2001 compared to the previous quarter.

ARM shares fell nearly 8 percent on the London Stock Exchange by noon on Thursday after ARM's chief financial officer Jonathan Brooks gave the news to an investors conference.

"The networking segment was hit the hardest, whereas wireless was only a bit lower," he said.

The fall impacts ARM's royalty revenues – its main source of income – a quarter later. In April, ARM reported a strong first quarter after unit shipments of 123 million in the previous three months, up from 72 million a year earlier.

But the world's semiconductor market is currently in one of its biggest slumps. The Semiconductor Industry Association on Wednesday predicted a rebound in the second half of this year.

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