ARM Holdings, plc (ARMH) - NASDAQ
  • Jul. 22, 2015, 2:22 PM
    • ARM (NASDAQ:ARMH) has slumped to its lowest levels since January after posting roughly in-line Q2 results and stating it expects 2015 results to match market expectations.
    • Tech licensing revenue only rose 3% Y/Y in Q2, while royalty revenue (based on Q1 shipments) rose 30% to $175.9M on the back of a 26% Y/Y increase in ARM-based chip shipments to 3.4B. Annual chip shipment growth slowed a bit from Q1's 31%.
    • A record 54 processor core licenses were inked, up from 30 in Q1 and 41 a year ago. 20 of the licenses were for low-power Cortex-M CPU cores (aimed at embedded/IoT devices), 15 were for the more powerful Cortex-A, 8 for the Cortex-R (used for real-time processing), and 9 for Mali GPU cores. 7 licenses were taken out for the 64-bit ARMv8-A architecture.
    • Weighing on license sales growth: No costly architectural licenses were taken out. ARM still expects "medium-term" license growth of 5%-10%.
    • Software/tool revenue rose 4% Y/Y to $13.7M, and services revenue 11% to $16.5M. Operating expenses rose 13% to £99.3M ($154.9M).
    • Canaccord's Matt Ramsay remains bullish: He notes backlog rose 2% Q/Q, and predicts royalty growth will remain strong thanks to "much broader contributions from higher-royalty-rate ARMv8 and big.LITTLE mobile processors and share gains in Mali graphics."
    • Apple and Linear Technology's calendar Q2 reports could be contributing to ARM's selloff - many chipmakers/ARM licensees are also posting steep losses.
    • Q2 results, PR, earnings slides (.pdf)
    | Jul. 22, 2015, 2:22 PM
  • Jul. 22, 2015, 6:06 AM
    • ARM Holdings (NASDAQ:ARMH): Q2 EPS of £0.07 in-line.
    • Revenue of $357.1M (+15.3% Y/Y) in-line.
    • Shares -2% PM.
    | Jul. 22, 2015, 6:06 AM
  • Jul. 22, 2015, 4:14 AM
    • The chief executive of ARM (NASDAQ:ARMH), the chipmaker which saw a spike in its share price this year around Apple takeover rumors, has told CNBC that remaining independent is the "right thing" for his company.
    • "There are rumors all the time about us being acquired. But when you look at our business model...it's much less expensive for them to license our technology than to buy the whole company." said Simon Segars.
    • The announcement came as ARM reported Q2 results. Profits came in at £124M ($193M), up 31% Y/Y, but slightly below market expectations of £126M.
    | Jul. 22, 2015, 4:14 AM
  • Jul. 21, 2015, 5:30 PM
    | Jul. 21, 2015, 5:30 PM | 2 Comments
  • Jul. 8, 2015, 11:37 AM
    • Chip stocks are underperforming as the Nasdaq registers a 1.2% decline. The Philadelphia Semi Index (SOXX -2.6%) is now down 13% from a June 1 peak of $101.80, and 4% YTD; it's still up 87% from a Nov. 2012 low of $47.58.
    • Plunging Chinese equity markets could be weighing on the group. With retail Chinese investors having set up brokerage accounts en masse over the last year, there are plenty of concerns about the reverse wealth effect of a crash. The Economist reccently downplayed those worries, noting a relatively modest 15% of Chinese household assets are invested in stocks.
    • Major decliners among chip developers include Skyworks (SWKS -4.9%), Qorvo (QRVO -5.6%), InvenSense (INVN -5.6%), NXP (NXPI -4.7%), Freescale (FSL -4%), MoSys (MOSY -9.4%), AppliedMicro (AMCC -5.1%), Cavium (CAVM -3.8%), and Silicon Motion (SIMO -6.4%). SIMO also fell yesterday after favorably adjusting its Q2 sales guidance. Skyworks and Qorvo sold off yesterday morning before rebounding in afternoon trading.
    • Other names tied to the industry that are seeing heavy selling pressure include ARM (ARMH -4%), TowerJazz (TSEM -5.1%), UMC (UMC -4.4%), Veeco (VECO -4.3%), and Axcelis (ACLS -4.6%).
    • Chip ETFs: SMH, XSD, PSI, SOXL, USD, SOXS, SSG
    | Jul. 8, 2015, 11:37 AM | 6 Comments
  • Jun. 26, 2015, 10:26 AM
    • Bernstein's Pierre Ferragu has cut ARM (NASDAQ:ARMH) to Underperform.
    • The downgrade comes a day after the CPU core giant closed less than a dollar away from a 52-week high of $54.82. Shares remain up 12% YTD.
    | Jun. 26, 2015, 10:26 AM
  • Jun. 1, 2015, 1:02 PM
    • The WSJ reports ARM (ARMH -0.2%) is in talks to buy Sansa Security, an Israeli provider of a mobile/IoT security platform encompassing chip IP for a trusted code execution environment, a client software stack, server-based provisioning software, and secure apps (called Trustlets) pre-integrated with the chip IP. Sources state the deal "could close within the month and is expected to be worth between $75 million and $85 million."
    • Sansa, which has been around since 2000, claims its technology ships within 150M devices/year and 55% of all high-end mobile devices. Chip partners include ARM, Intel, Qualcomm, Nvidia, and Freescale; hardware partners include Samsung, Microsoft, Lenovo, and HTC.
    • Sansa's chip IP is a natural complement to ARM's CPU and GPU core offerings. The company already offers licensees its TrustZone security platform (integrates with ARM CPU cores), as well as its SecurCore security processor cores (used in smart cards, among other things).
    • Prior ARM software acquisitions: Wicentric (Bluetooth), Offspark (embedded security), Sensinode (embedded Web connectivity)
    | Jun. 1, 2015, 1:02 PM
  • May 27, 2015, 3:00 PM
    • Chip stocks are posting outsized gains (SOXX +4%) amid a 1.3% increase for the Nasdaq after the WSJ reported Avago and Broadcom are in advanced merger talks, sparking hopes for further M&A.
    • A Broadcom/Avago deal would be worth ~$67B at current valuations, easily making it the largest in the chip industry's breathless consolidation wave. It would also touch markets ranging from smartphones to set-tops to servers to switches/routers.
    • Notable gainers include Avago RF chip peers Skyworks (SWKS +4.3%), Qorvo (QRVO +3.2%), and Anadigics (ANAD +4.9%). Others include Micron (MU +3.8%), SanDisk (SNDK +4.3%), NXP (NXPI +3.5%), Silicon Motion (SIMO +8.3%), Cirrus Logic (CRUS +4.8%), STMicroelectronics, (STM +3.4%), Synaptics (SYNA +3.4%), Atmel (ATML +2.8%), Cavium (CAVM +4.5%), Intersil (ISIL +4.6%), Semtech (SMTC +3.9%), ON Semi (ON +3.8%), Microsemi (MSCC +4.4%), and IDT (IDTI +4.2%).
    • Non-chipmakers tied to the industry are also doing well. Standouts include ARM (ARMH +4.4%), Amkor (AMKR +4.6%), ASML (ASML +3.1%), and Rambus (RMBS +3.3%).
    • Chip ETFs: SMH, XSD, PSI, SOXL, USD, SOXS, SSG
    | May 27, 2015, 3:00 PM | 41 Comments
  • May 6, 2015, 9:06 PM
    • AMD has guided (.pdf) at its 2015 analyst day for 2H15 revenue to rise 15% (+/- 3%) from an expected 1H15 level of ~$2B. That implies full-year revenue of ~$4.3B, close to a $4.28B consensus.
    • Gross margin is expected to be in a ~32%-34% range in 2H15 after amounting to ~32% in 1H15, and operating expenses are expected to fall to ~$680M-$700M from ~$715M. Free cash flow is expected to be negative in 1H15, and positive in 2H15.
    • Long-term targets: 36%-40% GM, over $0.50/year in EPS, double-digit revenue growth from AMD's server CPU, embedded processor, and pro GPU ops, mid-single digit growth from its semi-custom (inc. console APU) and other GPU ops, and flat to down PC CPU revenue. AMD plans to use any cash in excess of $1B to retire debt (it had $906M at the end of Q1).
    • AMD has also officially unveiled its 7000 Series notebook CPUs (codenamed Carrizo). The cheapest version has two 1.5GHz. cores, and a 10W max power draw.; the most powerful version had four 2.5GHz. cores, a 12-25W max power draw, and a Radeon R5 GPU. Also announced: A set of new mainstream desktop and notebook GPUs (the Radeon 300 series), and price cuts for A-series desktop CPUs (prices now range from $42-$127).
    • In Q2, AMD plans to launch its first GPU to support High Bandwidth Memory (HBM); performance/watt is said to be over 3x greater than current-gen GDDR5 memory. In 2016, it plans to launch GPUs that support HBM and use a FinFET (3D transistor) process; TSMC's 16nm process is a possibility. AMD is counting on the GPUs to reverse share losses to Nvidia (NASDAQ:NVDA).
    • Also launching in 2016: Zen, a next-gen CPU core said to handle 40% more instructions per clock cycle and feature a high-bandwidth/low-latency cache system. Samsung/GlobalFoundries' 14nm process is expected to be used; that would narrow Intel's (NASDAQ:INTC) manufacturing process edge, given Intel is currently at 14nm (10nm next year) and AMD at 28nm. Earlier today, SA author Alex Cho took a look at AMD's leaked 2016 Zen CPU roadmap.
    • On the ARM (NASDAQ:ARMH) front, AMD is abandoning Project Skybridge, which sought to create "ambidextrous" platforms supporting either x86 or ARM CPUs. The timetable for the company's custom K12 ARM core has been pushed out from 2016 to 2017.
    • AMD's analyst day slides
    | May 6, 2015, 9:06 PM
  • Apr. 29, 2015, 1:26 PM
    • European tech firms Nokia (NOK -2.5%), Alcatel-Lucent (ALU -4.4%), ARM (ARMH -2.8%), and STMicroelectronics (STM -2.6%) have sold off following broad declines for continental exchanges.
    • The U.K.'s FTSE 100, France's CAC 40, and Germany's Deutsche Borse have respectively fallen 1.2%, 2.6% and 3.2%, and the EURO STOXX 50 index has dropped 2.7%. Over in the U.S., the Nasdaq is down 0.9%, and the S&P 0.7%.
    • The selloff has come amid a 1.5% gain for the euro against the dollar, continuing a recent rebound. The euro/dollar exchange rate is back up to 1.11. It has also coincided with sharp increases in European debt yields.
    • Nokia reports earnings tomorrow morning, and merger partner Alcatel-Lucent (past deal coverage) on May 7. ARM rallied last week in response to a Q1 revenue beat driven by strong royalty growth.
    | Apr. 29, 2015, 1:26 PM | 11 Comments
  • Apr. 21, 2015, 2:49 PM
    • ARM (NASDAQ:ARMH) is less than $1 away from a 52-week high of $54.64 after beating Q1 revenue estimates on the back of a 31% Y/Y increase in processor royalty revenue (26% excluding a one-time year-ago event) to $167.5M, a sharp acceleration from Q4's 16% growth. Physical IP royalty revenue rose 5% to $23.9M.
    • Royalties were collected on the Q4 shipment of 3.8B ARM-based chips (+31% Y/Y). Both strong mobile chip sales (aided by smartphone growth and the end of an inventory correction) and a 40% increase in embedded shipments (microcontrollers and smart cards were "particularly strong") played a role.
    • Licensing revenue was softer, growing only 3% to $133.2M. Processor licensing fell 2% to £109.3M; physical IP licensing grew 31% to $23.9M. 30 processor licenses were signed (5 from new clients), down from 53 in Q4 and up from 26 a year ago. ARM still expects 5%-10% annual license revenue growth "in the medium term."
    • Software/tool revenue fell 9% to $14.7M; service revenue rose 6% to $15.6M. Operating expenses rose 19% Y/Y to £100M ($149M), with headcount rising 15% to 3,397. Free cash flow totaled £68.5M ($102M).
    • Mobile/connectivity products made up 46% of processor shipments, embedded 34%, enterprise 14%, and home products 6%. The high-end Cortex-A CPU core series accounted for 18% of shipments, and the low-power Cortex-M 43%. 8 Cortex-A and 16 Cortex-M licenses were respectively taken out, as were Mali GPU core licenses a 1 costly architectural license.
    • ARM expects Q2 revenue to be "in line with current market expectations." Royalties are expected to drop Q/Q due to seasonality.
    • Q1 results, PR (.pdf), slides (.pdf)
    | Apr. 21, 2015, 2:49 PM
  • Apr. 21, 2015, 6:16 AM
    • ARM Holdings (NASDAQ:ARMH): Q1 EPS of £0.07 in-line.
    • Revenue of $348.2M (+14.1% Y/Y) beats by $6.48M.
    • Shares +5.7% PM.
    | Apr. 21, 2015, 6:16 AM
  • Apr. 20, 2015, 5:30 PM
    | Apr. 20, 2015, 5:30 PM | 3 Comments
  • Apr. 16, 2015, 2:21 PM
    • ARM (ARMH -1.4%) has acquired Wicentric, provider of a software stack and service profiles for the low-power Bluetooth Smart protocol (increasingly used in embedded/wearable devices), and Sunrise Micro (SMD), a developer of radio IP that enables sub-1V Bluetooth operation. Terms are undisclosed.
    • The deals follow the purchase of Dutch embedded security software vendor Offspark and embedded Web connectivity software provider Sensinode.
    • ARM, which is looking to fend off Intel in an embedded/wearables space widely seen as a huge unit growth opportunity, launched its mbed IoT platform last fall, and recently followed up by launching its IFC hardware/software framework for connected ARM-based devices. Q1 results arrive on April 21.
    • See also: New ARM-based Atmel microcontrollers said to enable 10-year battery lives
    | Apr. 16, 2015, 2:21 PM
  • Apr. 1, 2015, 5:55 PM
    • Atmel's (NASDAQ:ATML) SAM L21 family of ARM-based (NASDAQ:ARMH) microcontrollers consume less than 35 microamps of power per MHz., far below the 120-160 microamps consumed by most low-power controllers. That, together with a sleep mode power draw of less than 200 nanoamps and various power-saving features, leads Atmel to claim the chips can enable embedded/wearable devices and sensors with battery lives of 10 years or more.
    • The SAM L21, which comes with built-in flash and SRAM, delivered a score of 185 an industry power benchmark - Atmel states that's 50% above its closest competitor (an STMicroelectronics chip).
    • The company argues its support for 5 different "power domains" (compared with just 2 for other chips) with varying levels of resource use improves power efficiency, and that devices containing SAM L21 chips might potentially be powered off energy captured from the human body.
    • In addition to Atmel, Freescale and other ARM microcontroller vendors are working on ultra-low-power chips meant for embedded devices. Intel is going after the opportunity via its tiny Quark CPUs.
    | Apr. 1, 2015, 5:55 PM | 3 Comments
  • Mar. 25, 2015, 12:03 PM
    • Chip stocks are particularly hard-hit  (SOXX -3.6%) on a rough day for tech. The Nasdaq is down 1.3%, and the S&P 0.7%. Going into today, good earnings reports and ongoing M&A activity had led the Philadelphia Semi Index to rise 10% from its Jan. 30 close; the index remains up nearly 2x from its fall 2012 lows.
    • AMD (AMD -7.2%) is a major decliner following a UBS downgrade. AMD rival/GPU giant Nvidia (NVDA -5.2%) and memory giant Micron (MU -3.7%) are also selling off, as are merger partners NXP (NXPI -3.8%) and Freescale (FSL -3.4%), RF chipmakers Avago (AVGO -5.2%), Skyworks (SWKS -5.3%), and Qorvo (QRVO -7.1%), LED/RF chipmaker Cree (CREE -4.1%), and high-flying video processor developer Ambarella (AMBA -4.3%).
    • Other decliners include telecom chipmakers/ARM server CPU vendors Cavium (CAVM -4.8%) and AppliedMicro (AMCC -4.4%), microcontroller vendors Atmel (ATML -3.5%), Cypress (CY -5.5%), and STMicroelectronics (STM -3.5%), voice processor developer Audience (ADNC -3.7%), analog/mixed-signal chipmakers Linear (LLTC -3.7%), Maxim (MXIM -3%), and Intersil (ISIL -3.5%), FPGA maker Lattice (LSCC -3.9%), and mixed-signal/wireless charging IC developer IDT (IDTI -5.4%).
    • Chip equipment, IP, and foundry providers are also underperforming. Big decliners include ARM (ARMH -4.4%), KLA-Tencor (KLAC -4.2%), Lam Research (LRCX -5.4%), ASML (ASML -4.1%), TowerJazz (TSEM -4.3%), Mattson (MTSN -4.5%), Ultratech (UTEK -4.7%), and Tessera (TSRA -6.1%). ASML has been downgraded to Hold by Banco Santander.
    • TSMC (TSM -4.6%) is among the decliners in spite of a Digitimes report stating the foundry giant's sales are expected to rise 0%-5% Q/Q in Q2 - consensus is for a 2% drop - with strong Apple A8 CPU orders offsetting soft Qualcomm Snapdragon 810 orders.
    • Chip ETFs: SMH, XSD, PSI, SOXL, USD, SOXS, SSG
    | Mar. 25, 2015, 12:03 PM | 19 Comments
Company Description
ARM Holdings Plc engages in the design of microprocessors, physical intellectual property (IP) and related technology and software, and sells development tools for the microprocessors applications. It also licenses and sells its technology and products to electronic companies. It provides... More
Sector: Technology
Industry: Semiconductor - Specialized
Country: United Kingdom