JONATHAN JACKSON KILLIK & CO
Processor royalties were impacted by the industry-wide issues of slower HDD sales in the fourth quarter of last year following supply chain disruptions caused by flooding in Thailand. Management expect revenue for 2012 to be in line with consensus as shipments recover over the course of the year.
PAUL MORLAND PEEL HUNT
Results for the first quarter were in line, but given the small beat on sales this suggests costs were slightly higher than expected as ARM invests for the future. Full year sales expectations are up two per cent so far this year and this has not been reflected in the share price. We maintain buy.
JULIAN YATES INVESTEC
Royalties were slightly behind consensus as a one-off impact from Thai floods. We would see any weakness regarding this slowdown as a good buying opportunity and we expect ARM to deliver a strong cycle of royalty-driven upgrades on the back of the recent doubling of licence revenue. Buy.