ARM Says To Continue To Invest In Future Technologies For Smart Mobile Devices

(RTTNews) - ARM Holdings Plc. (ARM.L, ARMH) Tuesday said it expects to continue to invest in future technologies for smart mobile devices.

The company is increasing its investment in technologies for networking infrastructure and servers to achieve a higher market share than previously forecast.

Further, ARM is investing in complementary technologies that are expected to generate new revenue streams from emerging opportunities.

These investments will result in additional revenues and operating costs. This phase of new investments is expected to be earnings accretive from 2017 onwards.

The normalized operating expenses associated with this additional investment are mainly related to the hiring of more R&D engineers and technical marketing staff. These expenses will ramp through 2016, and are expected to grow to 40 million pounds, for full-year 2017, after which these expenses will grow more modestly.

This investment is expected to add about $40 million of revenues in 2016, rising to around $200 million in 2020.

ARM said its current trading and the expected normalized operating expenses for the quarter are consistent with the outlook issued on July 22.

The company is holding its analyst and investor day today.