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 10:28:59 PM
This is just silly lol. The Raspberry Pi sales go to a charity, their goal isn't to make money. Intel is a company who profits in the billions dude. Why would Intel make machines for the same price, when their CPU's are sold in machines that sell for much much more?
Your point of view is on this is...kinda warped. Comparing ARM SOC's to Intel is silly.
RE: Great CPU
10/25/2012 12:56:20 PM
You are just not seeing the forest for the trees and have no sense of the future. The Pi is an entry point into low cost computing on a cpu architecture that is in billions of devices world wide. I am not saying intel will go away tomorrow becasue of ARM what i am saying is that the computing market is changing and the ARM Architecture is leading it.
"Well, we didn't have anyone in line that got shot waiting for our system." -- Nintendo of America Vice President Perrin Kaplan
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
Retiree Sues Apple For $7,500 for Wiping Honeymoon Photos From His iPhone
November 30, 2015, 10:23 AM
iPhone 7 May Pack 3-4 GB Memory, More Storage; 4-Inch Comeback is Rumored
November 20, 2015, 10:12 PM
OnePlus One, OnePlus 2 Will Receive Android Marshmallow in Q1 2016
November 16, 2015, 9:58 AM
Lenovo Whoa: Motorola Droid MAXX 2 and Turbo 2 Break Cover in Leaks
October 26, 2015, 3:12 PM
Leak: Apple Preps for First Real Android App Foray With New Apple Music App
October 24, 2015, 1:59 PM
Pepsi Smartphone? Empty Calories Coming Soon to the Midrange
October 12, 2015, 11:41 PM
Latest Blog Posts
Sceptre Airs 27", 120 Hz. 1080p Monitor/HDTV w/ 5 ms Response Time for $220
Dec 3, 2014, 10:32 PM
Costco Gives Employees Thanksgiving Off; Wal-Mart Leads "Black Thursday" Charge
Oct 29, 2014, 9:57 PM
"Bear Selfies" Fad Could Turn Deadly, Warn Nevada Wildlife Officials
Oct 28, 2014, 12:00 PM
The Surface Mini That Was Never Released Gets "Hands On" Treatment
Sep 26, 2014, 8:22 AM
ISIS Imposes Ban on Teaching Evolution in Iraq
Sep 17, 2014, 5:22 PM
More Blog Posts
Copyright 2016 DailyTech LLC. -
Terms, Conditions & Privacy Information