Topic: How To Invest

Pat: with the growth in the tablet market could I have your opinion on a British firm: ARM Holdings plc. Thanks again.

Article Excerpt

ARM Holdings plc (ADRs), $18.16, symbol ARMH on Nasdaq (ADRs outstanding: 440.4 million; Market cap: $8.0 billion; www.arm.com) designs chips and software for a wide variety of electronic devices, including cellphones, network routers, digital cameras and automobile-control systems. ARM’s chips consume less electricity than competing chips. That helps extend the battery life of mobile devices. That’s why its chips now power roughly 95% of the world’s mobile handsets, and over 25% of all electronic devices. The Cambridge, U.K.-based company does not make its chips. Instead, it earns royalties by licensing its technology to makers of electronic products. Its major customers include Nokia, Sony, Samsung and Nintendo. Apple is also using ARM’s technology in its A4 processors, which power its new iPad tablet computer. ARM continues to post rising sales and profits. In the three months ended September 30, 2010, its sales rose 28.5%, to $158.1 million from $123.0 million a year earlier. Earnings per ADR rose 52.5%, to $0.98 from $0.64…