Arm’s full-year sales fell 1% in the run-up to the IPO – source

The Arm Ltd logo and a rising stock chart are seen in this illustration dated March 6, 2023. REUTERS/Dado Ruvic/Illustration/File Photo acquire license rights

Aug 18 (Reuters) – SoftBank Group Corp’s Arm Ltd (9984.T) is expected to report a revenue decline of about 1% for the year ended March when the chipmaker announces its initial public offering (IPO) on Monday at a date with the thing familiar person.

Arm’s revenue fell to $2.68 billion in the 12 months ended March 31, due to a slump in global smartphone shipments, said the source, who asked not to be identified. Revenue for the quarter ended June 30 fell 2.5% to $675 million.

In May, SoftBank reported that Arm’s annual revenue increased 5.7% according to International Financial Reporting Standards. Arm will release its latest financial figures in accordance with US accounting standards next week, the source added.

Arm, which is preparing to list its shares on the Nasdaq as soon as next month, declined to comment.

Global chipmakers have recently signaled the beginning of the end of a semiconductor glut, but the outlook for demand from customers outside of the artificial intelligence (AI) industry remains bleak.

All the major markets for chips — smartphones, PCs and data centers — have contracted this year as both corporate customers and consumers scale back spending amid a sluggish global economy, high inflation and rising interest rates.

Earlier Friday, Reuters reported that SoftBank had acquired the 25 percent stake in Arm it did not directly own from its Vision Fund unit. The chip designer was valued at 64 billion US dollars.

Reuters previously reported that SoftBank intends to list Arm in its IPO at a valuation of $60 billion to $70 billion.

Preparations for Arm’s IPO are being led by Goldman Sachs Group (GS.N), JPMorgan Chase (JPM.N), Barclays Plc (BARC.L) and Mizuho Financial Group.

Details of Arm’s financials were first released by Bloomberg News.

Reporting by Anirban Sen in New York and Manya Saini in Bengaluru; Edited by Shinjini Ganguli

Our standards: The Thomson Reuters Trust Principles.

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Anirban Sen is the senior editor for US M&A at Reuters in New York, where he leads coverage of the largest deals. After joining Reuters in Bangalore in 2009, Anirban left in 2013 to work as a technology deal reporter for several leading business news outlets in India, including The Economic Times and Mint. Anirban rejoined Reuters in 2019 as senior finance editor to lead a team of reporters covering everything from investment banking to venture capital. Anirban holds a degree in History from Jadavpur University and a Postgraduate Diploma in Journalism from the Indian Institute of Journalism & New Media. Contact:+1 (646) 705 9409

Manya Saini reports on well-known publicly traded US financial companies, including Wall Street’s largest banks, card companies, wealth managers and fintechs. Also covers late-stage venture capital funding, IPOs on US exchanges, and news and regulatory developments in the cryptocurrency industry. Her work usually appears in the Finance, Markets, Economics and Future of Money sections of the website. Contact: 9958867986