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ARM Holdings, plc (ARMH)

  • Fri, Nov. 6, 5:38 PM
    • Top gainers, as of 5.25 p.m.: IHG +4.5%. CLLS +4.0%. WTW +4.4%.
    • Top losers, as of 5.25p.m.: ERII -2.4%. TS -2.2%. GFI -1.9%. ACAD -1.7%. ARMH -1.0%.
    | Fri, Nov. 6, 5:38 PM | 15 Comments
  • Thu, Oct. 22, 12:24 PM
    • The Philadelphia Semi Index (SOXX +3%) has risen above $90 for the first time since July on a day the Nasdaq is up 1.5%. Helping out: Texas Instruments (TXN +10.4%) soundly beat Q3 estimates, reported positive growth for its analog and embedded processing (DSP/microcontroller) units in spite of a customer inventory correction, and (with the help of iPhone content gains) provided mostly above-consensus Q4 guidance.
    • Meanwhile, Cypress Semi (up 4.1%) is rallying in spite of posting mixed Q3 results and issuing light Q4 guidance. A new $450M buyback is helping.
    • TI/Cypress microcontroller peers NXP (NXPI +4.2%), Freescale (FSL +3.5%), STMicroelectronics (STM +2.5%), and Microchip (MCHP +2.9%) are among the gainers. As are TI analog/mixed-signal peers ON Semi (ON +5%), Intersil (ISIL +3.2%), IDT (IDTI +3.6%), Monolithic (MPWR +3.3%), and Silicon Labs (SLAB +2.6%).
    • Other notable gainers include InvenSense (INVN +2.6%), Nvidia (NVDA +3.5%), Cavium (CAVM +4.4%), Knowles (KN +3.6%), and Lattice Semi (LSCC +7%).
    • On its earnings call (transcript), TI mentioned automotive chip demand (boosted by growing chip content in various systems) was strong. Industrial sales were roughly flat (better than expected), and personal electronics benefited from "demand from one customer" (likely Apple). Wireless infrastructure fell 30% Y/Y (Chinese weakness), but rose Q/Q.
    • Chip stocks also outperformed yesterday after Western Digital announced it's buying SanDisk, Lam Research announced it's buying KLA-Tencor, and CPU core giant ARM (ARMH +2.7%) beat Q3 revenue estimates (EPS slightly missed) with the help of a 20% Y/Y increase in ARM chip shipments to 3.6B, and stated it expects 2015 revenue to be in-line with market expectations.
    | Thu, Oct. 22, 12:24 PM | Comment!
  • Wed, Oct. 21, 9:15 AM
    | Wed, Oct. 21, 9:15 AM | 3 Comments
  • Wed, Oct. 21, 6:30 AM
    • ARM Holdings (NASDAQ:ARMH): Q3 EPS of $0.35 misses by $0.01.
    • Revenue of $375.5M (+17.3% Y/Y) beats by $2.68M.
    • Shares +7.13% PM.
    • Press Release
    | Wed, Oct. 21, 6:30 AM | 5 Comments
  • Fri, Sep. 4, 5:36 PM
    • Top gainers, as of 5.25 p.m.: TE +25.0%. OCN +2.0%. KBIO +1.8%. TI +1.4%. ARMH +1.2%.
    • Top losers, as of 5.25p.m.: MNKD -3.2%. HCLP -2.0%. ZG -1.0%. RIG -1.0%. SHPG -0.7%.
    | Fri, Sep. 4, 5:36 PM | 5 Comments
  • Wed, Sep. 2, 9:51 AM
    • [W]e think ARM’s stock is now beginning to reflect the potential of slower royalty growth in 2016 versus higher 2010-2013 growth," writes JPMorgan, upgrading ARM (NASDAQ:ARMH) to Neutral. "With ARM stock having corrected since the beginning of July, we believe the stock is discounting the impact of the smartphone correction even though consensus estimates likely remain too high.”
    • The firm adds ARM - historically afforded high multiples due to its dominant position in the CPU core market - trades at 25.7x 2016E EPS, down from 35x at the beginning of the year and a peak (forward?) multiple of ~50x in 2011.
    • Shares are higher as the Nasdaq posts a 1.1% gain.
    | Wed, Sep. 2, 9:51 AM | Comment!
  • Wed, Jul. 22, 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)
    | Wed, Jul. 22, 2:22 PM | Comment!
  • Wed, Jul. 8, 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%).
    | Wed, Jul. 8, 11:37 AM | 6 Comments
  • Fri, Jun. 26, 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.
    | Fri, Jun. 26, 10:26 AM | Comment!
  • Wed, May 27, 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%).
    | Wed, May 27, 3:00 PM | 41 Comments
  • Wed, Apr. 29, 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.
    | Wed, Apr. 29, 1:26 PM | 11 Comments
  • Tue, Apr. 21, 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)
    | Tue, Apr. 21, 2:49 PM | Comment!
  • Tue, Apr. 21, 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.
    • Press Release
    | Tue, Apr. 21, 6:16 AM | Comment!
  • Wed, Mar. 25, 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.
    | Wed, Mar. 25, 12:03 PM | 19 Comments
  • Wed, Feb. 18, 1:35 PM
    • Fresh off acquiring IBM's x86 server unit, Lenovo (OTCPK:LNVGY) plans to create an ARM (NASDAQ:ARMH) server prototype for its IBM-developed NeXtScale high-density server line (used in scale-out data centers running Web/cloud, HPC, and analytics workloads). The effort is part of a collaboration with a U.K. HPC R&D lab.
    • Lenovo's server will run on Cavium's (NASDAQ:CAVM) ThunderX ARM server CPU line, which supports up to 48 cores per chip and clock speeds of up to 2.5GHz. Lenovo asserts 12 of its ARM servers will support up to 1,152 CPU cores and occupy a modest 6U of rack space.
    • The deal gives Cavium a high-profile client as it battles against AppliedMicro, AMD, Qualcomm, and others in the budding ARM server CPU market. Cavium has tried to differentiate itself from rivals in part by creating ThunderX CPUs optimized for storage, networking, and security appliances, as well as by providing high levels of I/O bandwidth. Shares have made new highs.
    | Wed, Feb. 18, 1:35 PM | Comment!
  • Wed, Feb. 11, 4:29 AM
    • "License revenue momentum has continued throughout the year," said ARM Holdings' (NASDAQ:ARMH) CFO Tim Score, as the company posted strong Q4 results.
    • With processor royalty revenue up 16% Y/Y, net profit came in at £72.8M ($111M), compared to a loss of £6.2M a year earlier.
    • The semiconductor giant also said it expects revenue to be up 10% Y/Y in Q1, reflecting revenue stemming from robust sales of Apple's iPhone 6.
    • ARMH +3.5% premarket
    | Wed, Feb. 11, 4:29 AM | Comment!
Company Description
ARM Holdings PLC designs microprocessors, physical IP and related technology and software, and sells development tools to enhance the performance and energy-efficiency of high-volume embedded applications.