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ARM Holdings President Simon Segars on the factors driving the company’s growth in revenue.
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Also British chip designer arm holdings hitting a thirteen year high today that's right thirteen year high -- riding the wave of strong sales of Smartphones and tablets the company licenses -- listen it licenses its technology its chip architecture technology to other chipmakers.
And then gets a royalty on each ship that is shipped in devices from companies like apple and Samsung all of them.
How Long Will the demand keep up because it's looking pretty good now let's bring in Simon cigars he's arm holdings president joining me now -- Fox Business exclusive.
From San Francisco and you look at these numbers here.
And and your Q4 revenues I like to look at revenues of topic on EPS -- sort of feel sometimes it can be engineered up 19%.
What is really driving this right now which portion of your business Simon looks the best to you.
Hello across the border we've had a very strong IQ four and a very strong year I'm a lot of what's driving that is that success and growth all of consumer products.
A small funds tablets.
TVs but -- is designed into lots and lots of devices every.
Diverse range of end applications.
Anything from refrigerators and sciences.
Antilock brake system easing cause and -- and tablets says a very diverse -- evolve technology.
And look many of those markets are growing so it as a result of that is a very strong unit shipments -- -- -- Dawson sums of royalty.
And gives our customers the confidence and invest in on next generation of technology.
When we look at some of your partners and some of the biggest chip names are among them -- -- and there are a lot of the other big names what they get from you.
And and is it is -- -- an opportunity to simply get the architecture built upon what they want and then pay your license fee and everybody comes out happy.
What -- they lessons Hamas is the intellectual property all of the microprocessor itself when you look at the chips that our customers build.
And so to their customers there's a lot more than just the microprocessor inside.
I'm so what do customers do is at their own secret source -- in differentiation.
Around a standard process or architecture well that allows them to do is leverage of the software ecosystem -- support ecosystem.
Which helps lower their cost of building that chip in the first place.
So they can spend their time there aren't already dole is pretty different chasing -- products for their customers.
Licenses are -- huge highlight for you guys this time around and and the Q4 numbers were very very strong Simon can you promise those same numbers or even better.
For any of the quarter's coming up.
-- books.
Eight.
Good about our business model is a lot of the licensing globally these deals will be close and of course.
Rudolph quote and so we have a on the kind of cushion into our revenue and going forwards we had a very strong licensing quarter and very strong bookings -- So again to 2013 with the -- order backlog.
And I gives us confidence about 2000 assessing.
You outlined an articulated a lot of things that -- in everything from toasters to of course Smartphones but what about something say for example what the -- let the phone.
Slash -- what I kind of focused on this at CES because Paul Otellini of Intel it started showing it to us and he said that.
A lot of people in China and in the eastern nations now really wanna go with bigger phones they want a war but -- -- a sort of a morphing between the two.
Are you guys in that business.
Oh absolutely I mean -- processes that are in -- -- -- the funds and small funds around the world.
Almost great is we have a a range of products.
I'm with many different customers serving -- hawing.
Some -- and handsets mice.
You're gonna see many different and devices.
Business model as a civilian -- lower the cost of building chip.
I'm and a ultimately drives more choice for consumers.
So they can she's -- a -- -- aura.
Recently -- and or Smartphone or tablet dole or anything.
-- -- dim spot Jeremy -- get a great great quarter but the operating margins that they decreased when it comes to I guess year over year numbers up weighed on those and can you improve that preferred investor who might be thinking of buying the stock right now.
Quote it recreated the decrease in our operating margin in Q4 was actually a function at all success in a lot of -- licensing has licensing deals will be closed.
Because we close the year with very strong.
-- new order bookings.
-- true results in the -- bonuses.
You know I don't know is sales commissions and so that that's -- -- love with the operating margins slightly.
Thought that the result of that is that we had -- -- have a very strong backlog going into next year.
I like to let our viewers know not just about the course but also about the jockey you and your your cohorts there at that -- -- jockeys and and you yourself.
Hold numerous patents in CPU architecture but that's just a fancy way of saying you are unbelievably intelligent when it comes to these countries.
When -- stick to see they -- -- now it's really quite simple question what physicists say that's really quite simple but that's about when.
1015 years ago you were really thinking about developing something -- -- how he reached the point that you are at today because it fascinates me.
-- want -- of the company -- nearly 22 years now and throughout my entire time -- we've really done it is focus on.
Trying to understand him markets and -- you very closely with all upon as awesome to -- to licensees.
To understand their needs.
I'm by building that that knowledge where it would really understand what these two guys all process below some of the guys with -- and -- -- and product.
The worship.
In multiple years time so it's really about working I'm building a very strong partnership a strong ecosystem.
To trying and as much knowledge as we can.
And sharing that knowledge -- partners -- a very collaborative approach to designing these processes.
That results in Aussie and Gracie view technology and another technology that we license and it helps upon -- bring best in class chips to market.
Simon worry that where you pull it apart transistor radios as a kid that's all I -- What I'm telling -- think what -- I -- things happen.
-- -- like -- a few things and I didn't live -- again -- -- -- okay all right so you are fallible good to see you it's nice to have you on the show thank you.
Thanks -- -- was -- seekers is arm holdings president again the stock up 60% year over year hitting an all time high today of thirteen year high today not bad closing bell.
