Does Arm pay dividends

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Georgesriver10

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23/02/22

19:57

Post #: 59771322
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Originally posted by pierre23: ↑

Just so you can put it into perspective... this is part of the 2021 annual report on ARM Holdings PLC.

"During the year, Arm signed over 160 license deals, which is much higher than its historical run rate. In addition, multiple high-value deals did not contribute much revenue to fiscal 2020 and will yield the majority of revenue in future periods.

It takes our customers time to develop complex system-on-chips, and so licenses signed today are not expected to yield royalty revenue for another 2-3 years. However, if the chips are commercially successful, they can bring additional royalty revenue streams that may last for years, and even decades, to come. Most of Arm’s royalty revenue growth in fiscal 2020, is therefore due to licenses signed in 2017 or earlier."

As you can see in the semi-conductor industry it takes years for revenue to eventuate. ARM signed over 160 license deals in a single year yet they will not see much revenue from that until years on.

It will be no different for Brainchip and AKIDA. This is a long term hold until this company really gains traction. Licenses signed today won't have reported revenue for years. IE. the Megachips license agreement probably won't have a significant reported revenue until at least 2024 onwards.

If it happens that any big name does a licensing agreement, it won't have an effect on the bottom line for years after the deal was made. That is why companies like this are so forward-looking and the shares are valued many years ahead.

This is at minimum an 8-10 year hold to get the most out of your investment, pending they continue on the right track.

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Does Arm pay dividends

BRN Price at posting: $1.26 Sentiment: Hold Disclosure: Held
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