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
RE: Great CPU
10/24/2012 9:28:25 AM
ARM had a good quarter, yet Intel had a great quarter. Made billions.
I agree that ARM is positioned very well for the future, but don't count Intel out.
"Google fired a shot heard 'round the world, and now a second American company has answered the call to defend the rights of the Chinese people." -- Rep. Christopher H. Smith (R-N.J.)
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
HTC Desire 510 Officially Announced, May be First 64-Bit Android Smartphone
August 27, 2014, 3:50 PM
Report: Apple to Unveil "iWatch" at iPhone 6 Event on September 9
August 27, 2014, 2:00 PM
Reports: Snapchat is Now Worth $10B, Cofounders are Billionaires to Be
August 27, 2014, 9:30 AM
Tim Cook Says iPad Sales Have Merely Hit a Temporary “Speed Bump”
August 27, 2014, 9:16 AM
ZOTAC Announces Diminutive ZBOX PI320 pico
August 27, 2014, 9:00 AM
Verizon Wireless' VoLTE Service Tiptoes Closer to Launch
August 26, 2014, 3:21 PM
Most Popular Articles
Microsoft's Surface 2 Tablet Family Gets a $100 Price Cut
August 25, 2014, 1:16 AM
Report: Microsoft to Announce Windows 9 on September 30
August 21, 2014, 11:20 AM
From HULC to FORTIS: the Evolution of Lockheed Martin's Incredible Exosuit
August 22, 2014, 12:45 PM
SpaceX Falcon 9-R Rocket Suffers Malfunction, Self-Destructs During Test Flight
August 23, 2014, 9:36 AM
Owner of "Decepticon" Maserati Ordered to Appear in Court This Thursday
August 25, 2014, 7:55 AM
Latest Blog Posts
Space Terrorism is a Looming Threat For the United States
Apr 23, 2014, 7:47 PM
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
More Blog Posts
Copyright 2014 DailyTech LLC. -
Terms, Conditions & Privacy Information