ARM Celebrates Another Winning Quarter, Pockets $108M USD Pre-Taxes
October 23, 2012 4:42 PM
comment(s) - last by
Ubiquitous chipmaker beats the street expectations
In his company's quarterly earnings call ARM Holdings Plc. (
) Chief Financial Officer Tim Score gushed about his company sterling 25 percent rise in royalty revenues. By contrast, other intellectual core licensers saw a more anemic 4 percent industry average.
I. The Spoils of Victory
But ARM is
. With royalty revenue now at $121.1M USD, it's pulling in almost half a billion a year in just royalties. That's the upside to being the maker of the
world's most-used mobile instruction set
; a set that is licensed by
virtually every smartphone and tablet chipmaker
While many partners merely leverage its instruction set and system-on-a-chip optimization IP, ARM has also been
its intellectual property core licensing business. ARM sells
and CPUs (the Cortex-Axx series) to third-party chipmakers, which can then incorporate those units into their designs.
A survey of 17 analysts by
The Financial Times
of £144.63M ($230.41M USD) for the revenue and a pre-tax profit of £67.4M ($107.4M USD). ARM
the revenue mark almost precisely £144.6M ($230.36M USD), while beating the profit with a deliver pre-tax result of £68.1M ($108.5M USD).
Shipments of partner-licensed ARM Cortex-A cores rose from 5 percent of the total ARM-architecture chips sold, to 9 percent, on the back of growing smartphone/tablet consumption. Royalty revenue for Cortex-A now accounts for 35 percent of ARM's total royalties, with the chip architect tacking on seven new Cortex-A licensees for the quarter. ARM also signed three new Mali licensees.
Cortex-A licensing drove ARM earnings to new heights. [Image Source: ARM Holdings]
, "ARM is sensitive to some strong growth areas, like smartphones and tablets, and those of course are the parts of the industry that are growing much faster than the average. We would expect full-year consensus revenue to go up somewhere around $10 million to $885 to $890 (million)."
That target indicates ARM Holdings' creeping progress towards the $1B USD mark in terms of annual revenue.
II. Windows RT Could Drive New Gains in Q4
The company only makes around 4.5 to 4.9 cents off each chip sold, as it does not produce full-fledged system-on-a-chip (SoC) designs and does not fabricate (or contract someone to fabricate) chips itself. But the pure licensed architecture approach has allowed ARM Holdings to stay lean and enjoy massive profit margins on its product.
As ARM charges into the world of Windows with the
launch of Windows RT
this Friday, ARM could see further gains, at the expense of traditional PC-SoC veterans like Intel Corp. (
Still, ARM Holdings' earning targets are cautious, based largely on a low-single digit holiday sales spike in mobile devices (versus an average rate of 10 percent for the holiday season).
Watch for it to likely beat that cautious prophesy in calendar Q4 2012.
FT [analyst estimates]
This article is over a month old, voting and posting comments is disabled
Why can't AMD shift to the ARM model
10/23/2012 8:39:09 PM
AMD is just bleeding red every quarter going toe to toe with Intel. You can't beat the house with their games and rules.
AMD needs to invent their own tech and branch away from Intel.
ARM is just kicking ass right now, soon there will be more active ARM processors in use than Intel ones.
RE: Why can't AMD shift to the ARM model
10/24/2012 10:36:25 AM
there already are i think. by an order of magnitude. ARM is in every low power device isn't it? well, ARM and OMAP. calculators, fridge/freezer/microwave etc. possibly STBs too
RE: Why can't AMD shift to the ARM model
10/24/2012 8:48:33 PM
But could AMD compete with Qualcomm? They seem to be doing a fantastic job, although I'm not thrilled with qualcomm software.
"We basically took a look at this situation and said, this is bullshit." -- Newegg Chief Legal Officer Lee Cheng's take on patent troll Soverain
Windows RT Tablet runs Full PC Version of Unreal Engine 3 Demo
August 29, 2012, 3:23 PM
ARM Posts Earning Surprise, Fueled by 23 New Licensees
July 25, 2012, 2:04 PM
HTC Predicts Massive Turnaround, ARM Celebrates Another Epic Quarter
April 24, 2012, 11:56 AM
Whoever Wins, We're Winning Too: ARM Holdings Posts Record Earnings
February 1, 2012, 11:43 AM
Tudor Brown Retiring After Propelling ARM to the Top of Mobile Market
November 12, 2011, 1:00 AM
Microsoft Announces the First Steps in Its "Universal Apps" Program
April 15, 2014, 7:59 PM
Amazon Fire Phone Prototype Leaks, Will Feature 3D Camera Interface
April 15, 2014, 1:33 PM
Toshiba's $1,500 Satellite P55t Notebook Supports 4K Resolution
April 15, 2014, 10:27 AM
Xbox One April Update Now Available
April 15, 2014, 9:13 AM
Windows Phone 8.1 Developer Preview Goes Live
April 14, 2014, 4:46 PM
Report: Eight More Nokia Microsoft Phones Waiting in the Wings
April 14, 2014, 2:22 PM
Most Popular Articles
Cities to Carpoolers: Sharing Your Car is Illegal, We Will Seize Your Cars
April 4, 2014, 9:17 PM
Taiwan's AOU Claims to Have World's Highest-Res. OLED Smartphone Display
April 11, 2014, 1:44 PM
Navy Prepares for Historic First Live Test of a Rail Gun at Sea in 2016
April 9, 2014, 2:06 PM
It's Very Likely Neanderthals and Humans Had Sex, Produced Offspring
April 10, 2014, 8:40 PM
Cops at Historically Troubled LAPD are Sabotaging Digital Recording Devices
April 9, 2014, 11:10 PM
Latest Blog Posts
Facebook Aims to Provide Internet to "Every Person in the World" with Drones, Satellites
Apr 1, 2014, 10:20 AM
Retail Mobile Sites Experience Outages in Light of Simplexity's Bankruptcy
Mar 14, 2014, 8:48 AM
Tesla vs. BMW: Who Has the Safer EV?
Feb 1, 2014, 2:56 PM
Justice Leaks Details of Next HTC One Two Flagship Phone
Dec 5, 2013, 4:04 PM
Global Cyber Espionage Concerns Reveal Growing Cyber Armies
Nov 29, 2013, 11:04 AM
More Blog Posts
Copyright 2014 DailyTech LLC. -
Terms, Conditions & Privacy Information