Chip designer ARM Holdings posts 19 pct rise in profits

LONDON, Feb 4 (Reuters) - British chip designer ARM Holdings (LSE: ARM.L - news) met earnings expectations in the fourth quarter, as licence sales offset slower growth in royalties from the use of its technology in smartphones made by Apple (NasdaqGS: AAPL - news) and Samsung .

The Cambridge-based company posted a 19 percent rise in pretax profit to 95.5 million pounds ($156 million) on revenue up 15 percent at 189.1 million pounds, broadly in line with expectations.

Fears that the top-end smartphone market has reached saturation were reinforced last month when Apple and Samsung, both ARM customers, reported lower than expected sales of the iPhone 5S and Galaxy S4 phones in the holiday season.

"Despite slower growth in one end-market we expect full year 2014 processor royalty revenues to grow at a similar rate to that reported over the last three years," the company said on Tuesday.