ARM drops on cautious 2012 outlook - UPDATE
ARM Holdings was among the worst performers on the FTSE 100 on Friday after the firm's president yesterday gave a cautious outlook for 2012.
ARM Holdings was among the worst performers on the FTSE 100 on Friday after the firm's president yesterday gave a cautious outlook for 2012.
The microchip designer expects research and development (R&D) spending growth to slow next year due to an uncertain outlook in the smartphone and tablet markets, Tudor Brown told Dow Jones Newswire reporters in a technology forum in Taipei.
The company put aside $200m in R&D costs this year, up from $150m the year before.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Dow Jones writes that chip makers such as ARM, Taiwan Semiconductor Manufacturing Co and Hynix Semiconductor Inc predict that demand for their products could remain soft as a result of the economic slowdown in Europe and the US.
"Fundamentally ARM's business is in great shape, but remember, in 2009, when people went into meltdown and the whole world went into recession, we had a blip then in shipments. This wasn't disastrous, but it was down, now that could happen in 2012," Brown said.
"We're still cautious about next year, and we haven't gotten to messaging for 2012 yet realistically, but the message I know is going to be reasonably cautious," he added.
In contrast, ARM's chief financial officer Tim Score told reporters at a conference in Barcelona yesterday that "prospects are quite bright" for 2012, Dow Jones writes.
Meanwhile, chief executive Warren East said ""We are on that long-term journey and there certainly will be growth [in smartphones] in 2012."
Shares were down 3.69% at 599.5p by 14:53.
BC
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.
-
Thousands of estates are sitting unclaimed in the UK – is your family name on the list?
More than 5,700 unclaimed estates are on a government list waiting to be found by living relatives. We take a look at the list, and explain how to make a claim
-
420,000 more pensioners to be dragged into paying income tax – how does tax on the state pension work?
Hundreds of thousands more pensioners will need to pay tax on their pension income at the end of this tax year, new HMRC data shows. We look at how taxation on the state pension works.