How long until Apple does a hostile takeover? /s
I assume regulators would block a hostile takeover like they would a regular buyout if there are concerns regarding market power?
Arm Announces Public Filing for Proposed Initial Public Offering
61–70 of 279 posts
Re: Arm Announces Public Filing for Proposed Initial Public Offering
#62Earlier quoted context omitted.
Total revenue: 2.679bb Gross profit: 2.573bb (page 18, FY2023) 96% gross profit margin? Ahh to be an IP licensing company....why would anyone invest in building physical things when there are opportunities like this out there! edit: clarify gross profit margin
Small correction: Net income: 0.524 bb So 19.6% profit margin. Still nice.
I'm not an accountant, but I think I'm referring to gross profit margin [1], which is revenue minus cost of goods sold (which is small for an IP licensing company, any company that actually sells hardware will be a fraction of that).
I think your math refers to operating margin, that's after they subtract all the operating overheads which are fixed, and not proportional to sales volume. In other words a 96% gross margin means they have virtually no friction to increasing sales.
Compare to Intel statement [2], they have a 35.8% gross margin and a negative operating margin this year, which would be the apples to apples comparison against 96% gross margin and 19.6% operating margin in the F1.
My read on the income line is they do a good job of 'spending money', but they are signaling that can be turned into things like dividends to shareholders once they IPO, perhaps by doing short sighted things like cutting R&D expenses and/or accounting tricks.
[1] https://en.m.wikipedia.org/wiki/Gross_margin
[2] https://www.intc.com/news-events/press-releases/detail/1637/...
Re: Arm Announces Public Filing for Proposed Initial Public Offering
#63Earlier quoted context omitted.
Uncompetitive compared to?
Compared to the US. Dan Abramov who works for Facebook and is one of the primary engineers of the hugely popular React framework makes less than one of my junior engineers.
And when he gets sick gets free healthcare while your junior will go bankrupt. Compensation isn't comparable without comparing external costs and benefits.
Re: Arm Announces Public Filing for Proposed Initial Public Offering
#64Earlier quoted context omitted.
> which I'd categorise as being generally apathetical, if not hostile, to the engineering profession Any chance you could elaborate on this? Arm exists and is British, after all.
Goes all the way back to https://en.wikipedia.org/wiki/The_Two_Cultures and beyond. The UK has a great engineering tradition, especially from the Victorian and Empire eras, all the way up to WW2, but it seems that after that there was a dramatic and incredibly short sighted turn to economisation and avoiding investment. The absolute poster child for this was the UK space programme, which was cancelled just before the…
I'm not British, but it is my understanding that after WW1 and WW2 the money had just dried up when it came to capital-intensive projects. I've just finished reading a book [1] that explicitly mentions the lack of available money as a reason for the Brits having to give up their Sea Power status just after WW2.
[1] https://www.amazon.com/Seapower-States-Maritime-Continental-...
Re: Arm Announces Public Filing for Proposed Initial Public Offering
#65Bit of a downer for the UK to see them list in the US, I do understand they just want access to the most capital, but I find a shame LSE is not competitive for this kind of thing.
> Bit of a downer for the UK to see them list in the US I wonder to what extent the overarching business culture of the UK (which I'd categorise as being generally apathetical, if not hostile, to the engineering profession) might have anything to do with it. (...speaking as a former UK eng myself)
> I wonder to what extent the overarching business culture of the UK (which I'd categorise as being generally apathetical, if not hostile, to the engineering profession) might have anything to do with it.
That's nothing to do with it - the company is only listing on NASDAQ - ARM has office all over the world but will still be based and managed in the UK along with most of its employees (engineers) like when it was owned by a Japanese company.
Listing on the tech heavy NASDAQ rather than the LSE gives the company more access to investors that are likely to buy shares: retail, commercial, and hundreds of index trackers and funds - increasing the share price.
Re: Arm Announces Public Filing for Proposed Initial Public Offering
#66Earlier quoted context omitted.
And you don't have one...? In that case I'd highly recommend you to get insured too.
Most people who can afford it do. We still come out and cheer for the national religion once in a while though since we are told repeatedly it is the envy of the world.
No the British news accurately reports on how bad it has become after over a decade of politicians defunding it. It's sad. When I left London a decade ago I had no reason to ever use my private insurance. NHS was excellent. Now I still use NHS when I visit but it not to the very high standards it used to be. And I have to sometimes use my private insurance. Everyone knows this and talks about it. I don't expect this to continue though. Most people want to return to a well funded and more functional NHS.
Re: Arm Announces Public Filing for Proposed Initial Public Offering
#67Bit of a downer for the UK to see them list in the US, I do understand they just want access to the most capital, but I find a shame LSE is not competitive for this kind of thing.
It's been a topic for quite a while that UK regulations mean pension funds don't invest as much in equities and as a result there's not a huge amount of liquidity available to dump into stocks on the London Stock Exchange. They are working on trying to fix this though (slowly).
The irony of course is that this has been caused by regulatory induced de-risking of employer pension funds after a lot of them went bankrupt and left the government on the hook via the PPf
Re: Arm Announces Public Filing for Proposed Initial Public Offering
#68Earlier quoted context omitted.
Compared to the US. Dan Abramov who works for Facebook and is one of the primary engineers of the hugely popular React framework makes less than one of my junior engineers.
And when he gets sick gets free healthcare while your junior will go bankrupt. Compensation isn't comparable without comparing external costs and benefits.
And as a FB employee gets private healthcare as a perk and would also get it in the US. The US comp is much higher than the UK's even taking into account healthcare.
Re: Arm Announces Public Filing for Proposed Initial Public Offering
#69Interesting. As much as ARM-based processors are doing so well in the market, it's important to understand that ARM has specific licensing agreements with Apple, Samsung, etc. It is not so obvious that it will continue being a cash cow for many more years.
Well no one can predict the future but what's your reasoning that such an important technology partner to such massive companies will all of a sudden stop innovating and become less significant?
Re: Arm Announces Public Filing for Proposed Initial Public Offering
#70Bit of a downer for the UK to see them list in the US, I do understand they just want access to the most capital, but I find a shame LSE is not competitive for this kind of thing.
Is there more global access to the US market? Does capital flow with less friction to it? What about indexes? If they qualify for NASDAQ or some other major index, there's some "mandatory" investment that gets triggered by a bunch of funds that do index tracking. I would presume where you choose to list is kind of a flag of convenience, like it is in maritime. It's probably not as irrelevant as to where things actual…
> Is there more global access to the US market? Does capital flow with less friction to it?
Yes, and yes.
> What about indexes? If they qualify for NASDAQ or some other major index, there's some "mandatory" investment that gets triggered by a bunch of funds that do index tracking.
NASDAQ is an exchange, not an index.
The most prominent index on NASDAQ is the QQQ, the top 100 stocks,market cap weighted.
But this is the big boy playground, the smallest stocks in QQQ should have at least $400B marketcap. ARM by the most optimistic estimation should be 1/10th of that.