We Are Placing ARM Holdings Under Review

We are digging deep into ARM Holding's strong 4Q results and we are likely to increase our fair value estimate

Brian Colello, CPA 2 February, 2011 | 9:02AM
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We are placing ARM Holdings (ARM) under review while we dig deeper into the company's fourth-quarter earnings and revisit our long-term assumptions surrounding the firm. The company reported excellent fourth-quarter results that were modestly ahead of our expectations. Revenue was up 14% sequentially, driven by higher processor royalty revenue due to an increase in ARM-based chip shipments into handsets and a variety of other electronic devices. Meanwhile, processor licensing revenue came in a little ahead of our expectations, up 28% sequentially, which we suspect is due to the firm's recent agreements with Microsoft (

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About Author

Brian Colello, CPA  is a senior stock analyst with Morningstar.

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