Wed, May 6, 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
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, 6:16 AM
Mon, Apr. 20, 5:30 PM
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
Tue, Feb. 10, 5:30 PM
Oct. 31, 2014, 11:31 AM
- Three weeks after providing a calendar Q3 warning that triggered a massive chip stock rout, Microchip (MCHP +7.3%) has provided Q4 guidance that's in-line with lowered estimates. The microcontroller vendor, which has often seen trends emerge ahead of peers, also said it saw most of its inventory correction in Q3, and expects Q4 sales to be just "slightly below typical seasonal levels."
- Chip stocks are up strongly (SOXX +4%) on a day the Nasdaq is up 1.4%. Since Microchip's warning, a slew of analog chipmakers and microcontroller firms (e.g. Atmel, Freescale, STMicro, Intersil, Linear) have offered light Q4 guidance, and other firms have reported seeing high-end Android weakness (e.g. Synaptics, Cirrus Logic, Amkor).
- On the other hand, several mobile chipmakers (Skyworks, RF Micro, TriQuint, Silicon Motion), some of which have decent iPhone exposure, have provided strong results and/or guidance. Other chipmakers, such as Broadcom, Texas Instruments, and Xilinx, have rallied after delivering in-line guidance.
- Susquehanna's Chris Caso: "By now, we think it’s clear that the weakness MCHP saw in September is not company specific ... The question now is if the full extent of the weakness has been dialed into estimates. If it has, then this would be among the shortest and mildest downturns in many years."
- Notable gainers: SNDK +3.9%. MU +4.1%. AMAT +3.9%. TXN +4.7%. NXPI +3.9%. NVDA +3.5%. MXIM +4.7%. LLTC +5.1%. FCS +9.6%. FSL +8.8%. ADI +6.5%. TQNT +6.8%. RFMD +6.5%. ATML +5.9%. AVGO +5.1%. MRVL +4.7%. AMCC +8.9%. BRCM +3.6%. TSM +4.4%. ARMH +3.3%.
- Intel (INTC +3.5%) has recovered most of the losses it saw yesterday due to Intesil's (ISIL +3.3%) results and guidance, and related comments about a PC chip inventory correction.
- Chip ETFs: SMH, XSD, PSI, SOXL, USD, SOXS, SSG
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
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
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!
Feb. 4, 2014, 3:34 AM
- ARM Holdings (ARMH) swung to a net loss off £6.2M in Q4 from a profit of £42.5M a year earlier, with the microchip designer hurt by one-off charges such as payroll taxes and impairments.
- Adjusted pretax profit rose 19% to £95.5M.
- Revenue climbed 15% to £189.1M, topping estimates of £181.8M, although growth was limited by slower sales of chips for high-end smartphones.
- Processor royalty revenue +7% in U.S.-dollar terms and licensing revenue +26%.
- 2.9B chips using ARM technology shipped, +16%.
- Signed 26 processor licenses.
- ARM has "a strong opening order backlog and a healthy pipeline of licensing opportunities," and it expects full-year 2014 processor royalty revenues "to grow at a similar rate to that reported over the last three years." The company also forecasts overall revenue to be in line with market expectations.
- Shares -4.35% in London. (PR)
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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