Oct. 21, 2014, 5:57 AM
- ARM Holding's (NASDAQ:ARMH) Q4 guidance is "underwhelming," SocGen says, given previous expectations of a strong H2.
- The drop in value per new license sold implies that most of ARM's larger deals have been completed, firm says.
- Any positive aura from Apple's iPhone strength is "more than offset" by ARM's weakness in the broader smartphone market.
- SocGen maintains Sell rating with implied 18% downside.
- Shares -3.7% in London.
Oct. 21, 2014, 5:48 AM| Comment!
Oct. 20, 2014, 5:30 PM
Sep. 30, 2014, 11:14 AM
- Bernstein has downgraded ARM (ARMH -1.7%) to Underperform. The firm thinks forward estimates are too optimistic.
- After entering the year trading at steep multiples, ARM has underperformed the Nasdaq by a large margin; shares now trade at 29x 2015E EPS. Investors have historically granted ARM a premium on account of its near-monopoly position in the CPU core IP space.
Sep. 24, 2014, 6:50 AM
- ARM (NASDAQ:ARMH) has unveiled its new Cortex-M7 processor design aimed at the growing wave of Internet-connected industrial and household devices.
- "The day the refrigerator talks to the milk carton, that's in a gimmicky category. But to have the dishwasher and refrigerator coordinate their cycles to reduce the electricity load - that becomes useful," says CEO Simon Segars.
- ARM is increasing its offerings for connected devices, as the electronics industry moves further into the "Internet of Things".
Jul. 22, 2014, 5:38 AM
- ARM (NASDAQ:ARMH) has announced a large increase in Q2 profit due to heavy growth from higher chip shipments and licensing revenue.
- Net income climbed to £55.5M ($94.8M) from £10.5 Y/Y.
- Revenue rose 9% to £187.1M ($319.6M). ARM's revenue often trails the market since half of its business comes from royalties. It earns the royalties and licensing fees from chip manufacturers on every chip shipped.
- The company raised its interim dividend 20% to 2.52 pence per share.
- ARMH +5.6% premarket
Jul. 21, 2014, 5:30 PM
Jun. 24, 2014, 6:29 PM
- Nvidia's (NVDA) Project Denver (involves CPUs based on custom ARM cores) is only aimed at the mobile market for now, though the chipmaker is keeping its server options open, says a spokesman.
- Nvidia announced its first Denver CPU - a dual-core mobile chip expected in 2H14 - under the Tegra K1 moniker in January. CEO Jen-Hsun Huang has previously said Nvidia is "seeing a lot of interest in putting something like Tegra in micro servers." This week, Nvidia showed off a solution that pairs its Tesla HPC GPUs with 3rd-party ARM (ARMH) server CPUs.
- Meanwhile, a source tells the WSJ Samsung has decided to drop its ARM server CPU efforts. The company was previously reported to be working on ARM server parts with the help of AMD-poached talent.
- AppliedMicro (AMCC) and Cavium (CAVM) must be pleased. Each has bet big on the budding ARM server CPU market, hoping to tap into growing interest in using them in microservers, application-specific hardware (e.g. networking or security gear), and hyperscale data centers. AMD, Marvell, and TI have also announced or launched parts.
- The WSJ also reports Qualcomm (QCOM) is "working on [ARM] server chips," though no announcements have been made yet.
- CEO Steve Mollenkopf hinted at CES Qualcomm, which has a huge R&D budget at its disposal, could go after the market. "I think there's going to be a tremendous amount of growth in computing and resources dedicated to supporting the cloud ... We look at that as an opportunity."
Jun. 17, 2014, 6:58 PM
- The consolidation wave that has hit the semi industry could soon yield tax inversion deals for foreign firms similar to deals seen in the healthcare industry, says FBR's Christopher Rolland.
- Inversion deals allow U.S. companies buying foreign firms to see lower tax rates if less than 80% of the equity in the new company is owned by legacy U.S. shareholders, and the post-merger company has substantial foreign ops.
- Rolland thinks ARM (ARMH), NXP (NXPI), Mellanox (MLNX), and Taiwan's MediaTek could be among the foreign companies targeted by U.S. chipmakers. Worth noting: Mellanox sells more than just chips, and ARM's business model depends on the company maintaining a neutral status within the industry.
- Meanwhile, Nomura's Romit Shah names 15 potential M&A candidates, and divides them into 3 groups: "Sub-scale companies" with high margins and strong IP; "strategic companies" with compelling product lines; and "undervalued companies."
- Shah's "sub-scale companies:" IDTI, ISIL, MTSI, MCRL, SMTC, SLAB.
- "Strategic companies:" ALTR, AMCC, ATML, CAVM, MPWR, BRCM ($22.5B market cap could make it tough to digest).
- "Undervalued companies:" DIOD, IRF, MSCC.
Jun. 10, 2014, 12:02 PM
- Canaccord's Matthew Ramsay has launched coverage of AppliedMicro (AMCC) with a Buy and $16 PT, and on fellow ARM (ARMH) server CPU play Cavium (CAVM) with a Buy and $62 PT.
- Ramsay sees ARM designs grabbing 20% of a 2018 server CPU market he expects will be worth $19B (up from a current $12B).
- Though software support and the dominance of Intel's x86 CPUs act as challenges, there's plenty of optimism about the ability of ARM designs to address demand for low-power CPUs for hyperscale deployments, as well as to cater to application-specific niches better than general-purpose Intel CPUs.
- Cavium is going after the latter opportunity with its Project Thunder CPUs - Ramsay expects strong sales growth starting in 2H15. In the near-term, he expects a 50% 2013 increase in Cavium's core network processor design wins to drive 20%+ revenue growth.
- As for AppliedMicro, he sees the early lead for the company's X-Gene ARM CPUs - parts have been sampling for nearly a year, and plenty of software testing has been done - allowing AppliedMicro to hit its target of doubling quarterly sales by the end of 2016.
- Cavium recently unveiled ThunderX, a next-gen solution supporting up to 48 home-grown ARM cores (requires a costly architectural license) - chips meant specifically for networking, storage, and security hardware will be offered. AppliedMicro is prepping next-gen X-Gene CPUs supporting up to 16 cores.
May. 29, 2014, 6:57 PM
- ARM (ARMH) is acquiring Duolog Technologies, developer of a software platform (Socrates) meant to help SoC designers to configure and integrate chip IP Terms are undisclosed.
- ARM, whose CPU and GPU cores are used in plenty of advanced SoCs (especially in mobile), cites an interest in helping licensees deal with "increasing SoC integration complexity" as a reason for making the deal.
- Prior acquisitions: Sensinode, Geomerics, display controller IP,
May. 5, 2014, 4:00 PM
- Having just unveiled its Seattle ARM (ARMH -0.6%) server CPUs (they're set to ship in Q4), AMD (AMD -0.8%) has announced it's taking out a costly ARM architecture license (it allows AMD to build custom ARM cores), and will use it to create CPUs for "ambidextrous" hardware platforms that can run on either ARM or x86 CPUs.
- Leveraging a design framework codenamed SkyBridge, AMD plans to roll out pin-compatible, 20nm, ARM and x86 APUs and SoCs in 2015; the ARM chips will use the off-the-shelf Cortex-A57 core. AMD's first custom ARM core, codenamed K12, is expected in 2016. Former Apple mobile processor chief Jim Keller (previous) will head the effort.
- Analyst Patrick Moorhead notes AMD's solution could yield hardware R&D savings for OEMs. AnandTech: "I don't expect we'll see standard socketed desktop boards that are compatible with both ARM and x86 SoCs, but a pin compatible design will have some benefits for embedded, BGA solutions."
- The list of companies taking out ARM architecture licenses has been steadily growing, boosting ARM's licensing revenue (+37% Y/Y in Q1) in the process. In addition to AMD, the list includes Qualcomm, Nvidia, and Apple.
Apr. 30, 2014, 10:23 AM
- A week after ARM (ARMH -2.1%) sold off in response to its Q1 results, Citi has downgraded the CPU core developer to Neutral.
- While ARM's licensing growth remains strong (+37% Y/Y in Q1 and +27% in Q4), investors have been nervous about slowing royalty growth. Royalty revenue (based on the prior quarter's shipments) only rose 8% Y/Y and 7% in Q4, thanks in large part to slowing chip shipment growth (+11% and +16%).
- Moreover, the numbers suggest ARM's royalty/chip is declining in spite of growing mobile adoption of technologies that boost its royalty rate, such as 64-bit instruction sets, big.LITTLE, and dual/quad-core CPUs. ARM suggests growing shipments of microcontrollers, smart sensors, and low-end smartphones are pressuring its royalty rates for now.
- ARM, long granted steep multiples by the Street on account of its near-monopoly position in the CPU core licensing space, currently goes for 24x 2015E EPS.
Apr. 23, 2014, 4:03 AM
- ARM Holdings' (ARMH) Q1 net profit rose to £62.3M ($104.7M) from £51.9M a year earlier.
- EPS increased to 4.4 pence from 3.7 pence.
- Revenue climbed 10% to £186.7M ($305.2M).
- Adjusted pretax profit rose 9% to £97.1M.
- Processor licensing revenue +38% in dollar terms; underlying processor royalty revenue +8%.
- 2.9B chips using ARM technology shipped, +11%.
- ARM signed 26 processor licenses across multiple markets, including mobile computing, enterprise networking and chips for "Internet of Things" devices.
- ARM's pipeline "remains healthy for Q2 and the rest of the year," the company said. It expects FY dollar revenues to be in line with market expectations, assuming the semiconductor industry improves in H2, as is generally anticipated. Consensus is for $1.31B.
- Shares are -2% in London. (PR)
Apr. 23, 2014, 12:05 AM| Comment!
Apr. 22, 2014, 5:30 PM| Comment!
ARMH vs. ETF Alternatives
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.
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