LIBERUM | EOIN LAMBE AND JANARDAN MENON
Arm has reported first quarter results below our forecasts, mainly due to weaker than expected processor royalty revenues. We believe the disappointing royalty trend is mainly driven by slowing growth in smartphones and tablets and we expect these trends to continue. Sell maintained.
INVESTEC | JULIAN YATES
With gross margins and opex in line, we expect to maintain our underlying forecasts, but will put through a two per cent trim to 2014 pre-tax profits based on currency exchange and slightly lower interest. We maintain our positive view on the stock and retain our buy recommendation.
ESPIRITO SANTO | VIJAY ANAND
The pattern in these results is similar to the previous two quarters – licensing ahead but royalties lower. Arm remains well positioned. While first quarter results are relatively lacklustre, we believe Arm is likely to have a strong second half and we reiterate a buy recommendation.