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SoftBank-backed Arm reveals revenue decline in US IPO filing

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SoftBank-backed Arm reveals revenue decline in US IPO filing

FILE PHOTO-The Arm Ltd logo and a U.S. flag are seen in this illustration taken March 6, 2023. REUTERS/Dado Ruvic/Illustration/File Photo Acquire Licensing Rights

Aug 21 (Reuters) – SoftBank Group Corp’s (9984.T) Arm Holdings Ltd reported a 1% fall in annual revenue due to a slowdown in smartphone sales, after the chip designer disclosed the paperwork for an initial public offering that is expected to be the largest of the year.

Arm’s stock market launch is expected to bring back to life a lackluster IPO market, which has over the last year seen several high-profile startups postpone their listing plans due to market volatility.

For the year ended March 31, Arm’s sales declined to $2.68 billion, hurt mainly by a slump in global smartphone shipments. Sales for the quarter ended June 30 fell 2.5% to $675 million.

Arm said that more than 50% of its royalty revenue for the most recent fiscal year came from smartphones and consumer electronics. The global smartphone market is on track to hit a decade low this year, according to Counterpoint Research. Arm’s modest decline in revenue, despite heavy reliance on smartphones for royalties, suggests that its per-chip rates have increased.

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The company, whose chip technology powers most smartphones including iPhones, did not reveal the number of shares it is planning to sell and the valuation it will seek. Reuters has previously reported that SoftBank plans to sell about 10% of Arm’s shares in the IPO and seek a valuation of between $60 billion and $70 billion for the chip designer.

Arm was earlier planning to raise between $8 billion to $10 billion from the IPO, but is now expected to raise less capital, after SoftBank bought the 25% stake in Arm it did not directly own from its Saudi-backed Vision Fund, Reuters first reported earlier in August. SoftBank confirmed the deal with the Vision Fund in its filing on Monday.

SECOND CRACK AT IPO

Founded in 1990, Arm was launched as a joint venture between Acorn Computers, Apple Inc (AAPL.O) (when it was known as Apple Computer), and VLSI Technology. The company was publicly listed on the London Stock Exchange and the Nasdaq from 1998 until 2016 when SoftBank took Arm private for $32 billion.

SoftBank began preparations for an IPO of Arm after a deal to sell the company to Nvidia Corp (NVDA.O) for $40 billion collapsed last year over objections from U.S. and European antitrust regulators.

Arm makes money from upfront licensing fees for technology and then a royalty paid on each chip sold by Arm’s customers. The company has been expanding those royalty revenues, saying that the newest version of its technology has the “potential to drive our royalty opportunity per device even higher,” according to its filing.

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Arm said 24% of its revenue came from China in its most recent fiscal year. That is broadly in line with many other companies in the semiconductor industry, but Arm’s revenue all comes through Arm China, a separate company in which it has only an indirect 4.8% stake.

“The fact that Arm China operates independently of us exposes us to significant risks. Arm China’s value to us as a customer is dependent on Arm China’s business results, which are, in turn, subject to substantial risks that are outside of our control,” Arm said in its filing.

Earlier in August, Reuters reported that SoftBank had held talks with several technology companies, including Amazon.com (AMZN.O) and Nvidia (NVDA.O), which are considering investing in Arm’s IPO.

Arm’s listing is expected to provide a much-needed boost to the IPO market, with big names including grocery delivery service Instacart, marketing automation firm Klaviyo, and German sandal maker Birkenstock expected to go public in the coming weeks.

Arm said it expects to list on the Nasdaq and trade under the ticker symbol ‘ARM’.

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Barclays (BARC.L), Goldman Sachs (GS.N), JPMorgan Chase (JPM.N), and Mizuho Financial Group (8411.T) are the lead underwriters for the offering. Arm, which picked a total roster of 28 banks for the IPO, has not picked a traditional “lead left” bank and will split underwriter fees evenly among the top four banks.

Reporting by Manya Saini and Jaiveer Shekhawat in Bengaluru and Stephen Nellis in San Francisco; additional reporting by Max Cherney in San Francisco and Echo Wang in New York; Editing by Anirban Sen and Stephen Coates

Our Standards: The Thomson Reuters Trust Principles.

Acquire Licensing Rights, opens new tab

Manya Saini reports on prominent publicly listed U.S. financial firms including Wall Street’s biggest banks, card companies, asset managers and fintechs. Also covers late-stage venture capital funding, initial public offerings on U.S. exchanges alongside news and regulatory developments in the cryptocurrency industry. Her work usually appears in the finance, markets, business and future of money sections of the website.
Contact: 9958867986

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Good Morning America Meteorologist Rob Marciano Out at ABC News

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Good Morning America Meteorologist Rob Marciano Out at ABC News


Rob Marciano Out at ABC News: Meteorologist Leaves Network



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Arrest warrant issued for Central African Republic's former president over human rights abuses

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Arrest warrant issued for Central African Republic's former president over human rights abuses

An internationally backed court in the Central African Republic issued an international arrest warrant Tuesday for the country’s exiled former President François Bozizé for human rights abuses from 2009 to 2013, a spokesperson said.

The Special Criminal Court was set up in the capital, Bangui, to try war crimes and other human rights abuses committed during the coups and violence that the country has experienced since 2003.

CENTRAL AFRICAN REPUBLIC REPORTS 10,000 CHILDREN STILL FIGHTING WITH MILITANT GROUPS

Court spokesperson Gervais Bodagy Laoulé said the warrant was for crimes committed under Bozizé’s leadership in a civilian prison and at a military training center in the city of Bossembélém where many people were tortured and killed.

A spokesperson for an internationally backed court in the Central African Republic says the panel has issued an international arrest warrant for exiled former President François Bozizé for human rights abuses. (SIMON MAINA/AFP via Getty Images)

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The warrant covers crimes from 2009 to 2013 by the presidential guard and other security forces, Laoulé said.

Bozizé current lives in exile in Guinea-Bissau, where that country’s President Umaro Sissoco Embaló told the Associated Press that he had not received any request from Bangui about the arrest warrant, and that the country’s laws do not allow for extradition.

Ibrahim Nour, whose father was tortured and killed in the infamous Bossembélé prison, welcomed the arrest warrant.

“Justice may be slow, but it will eventually catch up with the executioners. That’s why I welcome the arrest warrant for the men who killed my father, and for whom we are waiting for explanations so that we can begin to mourn,” Nour said.

The court was created in 2015, but took several years to begin operating. Human Rights Watch has described its creation as a landmark to advance justice for victims of serious crimes.

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Patryk Labuda, an expert in international criminal law at the Polish Academy of Sciences, told the AP that the warrant issued Tuesday sends a message about the court’s intention to prosecute wrongdoing by the state.

“This arrest warrant is certainly one of the most high profile developments in the 5 years the court has operated,” Labuda said.

Bozizé seized power in a coup in 2003, and was ousted by predominantly Muslim Seleka rebels a decade later. That led to a civil war between the rebels and mostly Christian militias marked by sectarian violence atrocities and the forced use of child soliders.

Both the U.S. and the United Nations targeted Bozizé with sanctions for fueling the violence.

The U.N., which has a peacekeeping mission in the country, estimates the fighting has killed thousands and displaced over a million people, or one-fifth of the population. In 2019, a peace deal was reached between the government and 14 armed groups, but fighting continues.

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About 10,000 children are still fighting alongside armed groups in Central African Republic more than a decade after civil war broke out, the government said earlier this year.

“It’s a great day for us victims to learn that François Bozizé is the target of an international arrest warrant,” said Audrey Yamalé, a member of the Association of Victims of the 2013 Crisis. “But let’s not stop there. We would like Guinea Bissau to cooperate in his extradition.”

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New York City police enter Columbia campus as Gaza protest escalates

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New York City police enter Columbia campus as Gaza protest escalates

Protesters detained as police head for Hamilton Hall, which students began occupying on Tuesday morning, and the main campsite.

Large numbers of New York City police officers have entered the campus of Columbia University in the latest escalation in the Gaza protests that have swept dozens of universities, mostly in the United States.

The New York Police Department received a notice from Columbia authorising officers to take action shortly before they entered the campus late on Tuesday night, a law enforcement official who spoke on condition of anonymity told The Associated Press news agency.

Live television images showed police entering the campus in upper Manhattan, which has been the focal point of student protests against Israel’s war in Gaza, in which more than 34,535 Palestinians have been killed.

After entering the campus, some officers approached Hamilton Hall, the administration building that students began occupying early on Tuesday morning after the management said it had begun suspending students who had refused to meet a deadline to disperse on Monday.

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They renamed the building “Hind’s Hall”, in memory of six-year-old Palestinian girl Hind Rajab who was killed in Gaza in February.

“We’re clearing it out,” police in a riot unit yelled as they marched up to the barricaded entrance to the building. Dozens more police marched to the protest encampment.

Police secured access to the building via a ladder extended from a truck [Kena Betancur/AFP] 

Columbia Students for Justice in Palestine said in a post on X that the police officers were “wearing riot gear” and that “multiple blocks have been barricaded off”.

A long line of police officers were seen climbing into the building from the top of a truck into a second-storey window. Dozens of other officers targeted the nearby protest encampment.

Shortly afterwards, officers were seen leading protesters, their hands tied behind their backs with plastic zip ties, to police vehicles outside the campus gates.

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“Free, free, free Palestine,” chanted protesters outside the building. Others yelled “Let the students go”.

‘They’re students’

Dozens of protesters barricaded the entrances of Hamilton Hall after occupying Hamilton Hall on Tuesday.  A student organiser who spoke to Al Jazeera said that the occupation group was separate from the group that had established a camp on the campus lawn.

At an evening news briefing held a few hours before police entered the campus, Mayor Eric Adams and city police officials alleged the Hamilton Hall takeover had been instigated by “outside agitators” who lacked any affiliation with Columbia and were known to law enforcement for provoking lawlessness.

Adams suggested some of the student protesters were not fully aware of “external actors” in their midst.

“We cannot and will not allow what should be a peaceful gathering to turn into a violent spectacle that serves no purpose. We cannot wait until this situation becomes even more serious. This must end now,” the mayor said.

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One of the student leaders of the protest, Mahmoud Khalil, a Palestinian student at Columbia’s School of International and Public Affairs, disputed the claims.

“They’re students,” he told the Reuters news agency.

The protesters are calling for the university to sell off any investments linked to Israel, be transparent about its financial ties to the country, and provide amnesty from any disciplinary measures to all students participating in the rallies.

Universities across the US are grappling with growing protests at the same time as they prepare for end-of-year graduation ceremonies.

On Tuesday, police also fired tear gas at students who set up a Gaza solidarity camp at the University of Southern Florida in Tampa, according to videos from journalists and witnesses verified by Al Jazeera.

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The videos also show police forces arresting two people at the protest scene.

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