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Smartphones account for the majority of Arm's royalty revenue and the slower sales in this segment is expected to reduce Arm's royalties below current market expectations.
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Check out her gig as Lemonem on "30 Rock" after the gallery of Childish Gambino songs (including many from "Royalty") below.
PKZ has had numerous disputes regarding royalties, taxes and below-market-price sales, yet to date all have been resolved at a negligible cost to the company.
Even excluding a one-off adjustment of $5m in the quarter, royalties were 5% below our expectations.
But Julian Yates at Investec kept his buy rating, saying: Royalties were slightly below expectations at $122m versus our $126m (consensus $128.2m) and fourth quarter guidance suggests this shortfall will not be made up.
The amount of royalties payable is always slightly below the amount that the company makes in gross profit.
For a start, they should halt the vast sums lavished on fossil-fuel industries as tax breaks, below-market royalty payments and other hidden subsidies.
The law suspended royalties as long as oil remained below a threshold price of $28 a barrel.
I do look forward to the WSJ's complaints about oil's subsidy bonanza, from tax breaks for drilling, loopholes that allow royalty-free or below market offshore oil leases, manufacturing tax breaks, as well as roughly $7 billion in subsidies in the wake of the Katrina disaster.
Just below, I read of visits from Swedish royalty: Prince Bertil in 1938, and King Carl XVI Gustaf in 1976.
We also expect Arm's processor royalties to grow at 15% in 2014, below current guidance of about 19%.
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