It has been suggested PTK might be looking at ARM for a business model. Below, their latest news release. The stock trades at almost $50. at the moment. Not sure how many shares are out.

ARM website: http://www.arm.com/

ARM Holdings Surges 7%: Street Dazzled by Royalty Revenue GrowthBy Tiernan Ray



Shares of semiconductor licensing giant ARM Holdings ( ARMH) are up $3.03, or almost 7%, at $47.80, in early trading, after the company this morning announced Q3 revenue that topped analysts’ expectations, and earnings per share in line with consensus, and said it expected to meet the Street’s outlook for the full year.

Revenue in the three months ended in September rose 17%, year over year, to $375.5 million, yielding EPS of 7ts pence per ordinary share, equating to 35 cents a share.

Analysts had been modeling $371 million and 35 cents.

The company said its revenue from licenses for its technology rose 5%, while its revenue from royalties collected on parts containing its technology rose 37%.

On the all-important matter of backlog, the company saw a decline of “about 7%” from Q2’s level.

The company said for this quarter, it has “strong royalty momentum, as indicated by industry and customer data, and a healthy licensing pipeline,” and that “we expect group dollar revenues for the full-year to be in-line with market expectations.”

CEO Simon Segars called it “another strong quarter for royalty revenue growth, driven by premium chip pricing and elevated royalty percentages from recently introduced ARMv8-A based chips.”

Among early responses, Canaccord Genuity’s Matthew Ramsay reiterates a Buy rating, and a $60 price target, calling the results “strong,” and arguing that “the impact of increased ARMv8 penetration and Mali share gains on royalty/unit allowed ARM results to de-couple from a weak corresponding JuneQ smartphone/tablet market.”

The company’s licensing revenue was below what the Street was looking for, he observes, but it’s okay because “we believe most investors will be very pleased with the royalty upside and the demonstration of the potential royalty impact new multi-core ARMv8 chips should have across multiple end markets.”

Ramsay’s colleague Mike Walkley this morning cut his smartphone outlook, and so ARM’s actually holding up well despite that gloomy turn:

Overall, while the smartphone macro has been tough and our Canaccord Genuity research team is lowering 2015/16 smartphone estimates again today, we remain confident in solid ARM mobile royalty growth in the medium term and MCU, networking, and modest server growth longer term. Further, we remain confident in upside to 2016 consensus royalty growth estimates as ARMv8 chips penetrate the mid- and low-tier, and believe this mobile royalty growth should dovetail into ARM enterprise networking/server growth in 2017-20.

Also this morning, Raymond James’s Hans Mosesmann, who has an Outperform rating on the stock, writing that the shortfall in licensing was ” largely related to process node transitions from 28nm/20nm to more advanced nodes.”

He thinks industry shipment data for chips support growth for ARM, compounded by higher pricing for its IP: