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Arm Holdings | 6-K: Report of foreign private issuer (related to financial reporting)

SEC ·  Nov 7 15:14

Summary by Moomoo AI

Arm Holdings plc reported a 5% increase in total revenue to $844 million for the three months ended September 30, 2024, compared to $806 million for the same period in 2023. The six-month revenue also rose by 20% to $1,783 million from $1,481 million in the previous year. The growth was attributed to a recovery in the smartphone market and a better mix of products with higher royalty rates, such as Armv9 technology. Despite this, license and other revenue saw a 15% decrease in the three-month period, mainly due to fluctuations in the timing and size of high-value license agreements. Royalty revenue, however, increased by 23% for the quarter. Revenue from external customers grew slightly by 1%, while revenue from related parties, including Arm China, increased by 19%. Cost of sales...Show More
Arm Holdings plc reported a 5% increase in total revenue to $844 million for the three months ended September 30, 2024, compared to $806 million for the same period in 2023. The six-month revenue also rose by 20% to $1,783 million from $1,481 million in the previous year. The growth was attributed to a recovery in the smartphone market and a better mix of products with higher royalty rates, such as Armv9 technology. Despite this, license and other revenue saw a 15% decrease in the three-month period, mainly due to fluctuations in the timing and size of high-value license agreements. Royalty revenue, however, increased by 23% for the quarter. Revenue from external customers grew slightly by 1%, while revenue from related parties, including Arm China, increased by 19%. Cost of sales decreased by 30% for the quarter and 16% for the six-month period, primarily due to lower share-based compensation costs and professional services activities. Research and development expenses decreased by 19% for the quarter but increased by 3% over the six-month period, reflecting investment in next-generation products. Selling, general, and administrative expenses also saw a decrease due to lower share-based compensation costs. Income from equity investments experienced a 100% decrease for the quarter but increased by 217% over the six months, mainly due to unrealized gains from a publicly listed company. Interest income saw a slight increase due to favorable interest rate yields. Other non-operating income faced a significant decrease due to realized and unrealized foreign exchange losses. Income tax benefit increased substantially, influenced by windfall tax benefits associated with share-based compensation and the release of a tax contingency. The company's liquidity remains strong with $1,498 million in cash and cash equivalents and $860 million in short-term investments.

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