Arkle Resources Share Discussion Threads

[spyderman] 25/11/2002 23:25

Intel Corp raising flash memory semiconductors prices by 20 percent to 40 percent due to stronger demand for next-generation cellular phones...

[spyderman] 25/11/2002 22:44

what tone?

[tone] 25/11/2002 21:45

Think about who will get the cash; Directors they paid nothing for their
shares....

[spyderman] 25/11/2002 20:43

AMD soared in US today, perhaps boost UK/euro chip stocks tomorrow

[drsmessguide] 25/11/2002 20:42

Oh dear Halfwit,

You continue to amaze!


Leave the board soooooon!


Any one with slightly more than haf a wit would recognise the nonsense of your statement

[divina] 25/11/2002 16:14

Lehman sticks with Arc
This is a Citywire subscription article

[divina] 25/11/2002 15:41

LOL You are the weakest Link
FILTERED bye

[halfpenny] 25/11/2002 15:26

Glad I SOLD on Friday.....looks like we may see a huge drop towards 16p..due to cash not being returned this year.......


maybe 16p to come sooonnnnn

risky...

[boobly] 25/11/2002 11:38

LOL!
Repaired my water wings , and looking for a rubber ring !

[divina] 24/11/2002 21:35

Actually i dont understand the Telegraph's article bec it does not give a real reason to sell. At least citywire article gives a reason to buy.

anyways good luck ye all

[divina] 24/11/2002 21:25

Telegraph one story Citywire another pays your money makes your choice


Citywire Article

As Citywire predicted, chip designer Arc International is set to give back some £50 million of its £108 million cash pile to shareholders after its strategic review concluded it has more than it needs to get to profitability.


Citywire pointed out earlier this month, when Arc (ARK) appointed WestLB Panmure as a joint advisor to help with the review, that Arc was almost certain to come under pressure to do something with its cash, and the most likely option was return some to shareholders since no suitable acquisitions had been identified.

The company, which designs computer and mobile chips and the software and peripherals that surround them, floated during the height of the dotcom boom in 2000, hence the massive pile of cash.

Andre Godber of WestLB told Citywire that Arc would need some £15-20 million to get it break even, which he expects to be by the first quarter of 2004 at the pre-amortisation level. The remainder of the £53 million cash that Arc would have left will be for a buffer against any future downturn in the industry and to strengthen the balance sheet to assure customers that Arc will survive.

The return of cash needs to be approved by the courts, since Arc is loss-making and technically has no distributable reserves. The whole process is likely to take two or three months, and at some point there will be a date set on which investors will need to be holding the shares in order to get the cash back. It is likely to be some 16.8p per share Arc currently has around 35p per share of cash.

While most chip companies have suffered from the global downturn in the semiconductor market, Arc seemed to suffer more than most last year, lacking strategic direction.

Last December, Mike Gulett joined the struggling company as chief executive, and has been slowly turning the business round.

Today Arc said it now believed it has 'more than sufficient working capital funding to bring the group to profitability on the basis of reasonably prudent assumptions,' and it is hoping to return £50 million to shareholders in the first half of next year.

The company said it is making 'meaningful progress towards achieving ebitda breakeven [before interest, tax, depreciation and amortisation],' and it is on target to meet analyst forecasts for the full year.

Analysts are expecting losses for the full year of £18.7 million or 6.18p per share.

Last month Arc reported turnover for the third quarter to September up 37% to £2.8 million, which was 6% down on the second quarter in sterling terms, but only 2% at constant exchange rates. Before exceptional costs, net losses decreased by 22% to £5.3 million and cash outflow was down 30% on last year at £5.4 million.

Godber said while Arc had looked at acquisitions, its priority now is on organic growth, which would be the 'safest way to grow,' Godber said.

WestLB's forecasts for next year are slightly lower than the current consensus of £16.9 million loss or 5.89p per share given that Arc will lose interest on the returned cash. Nevertheless, most analysts are expecting revenues to ramp up quite steeply next year.

Shares were up 0.75p at 26.75p.

Citywire Verdict:

This seems to be the only sensible thing for Arc to do at this time. The company is still getting its own house in order, so it would not be the right time to make a serious acquisition even if it found the right candidate.

With the amount of cash likely to come back, the loss making business is currently valued at just 10p per share, or £29.7 million. It still faces a bumpy ride, and there are always likely to be cyclical downturns, but for those that fancy some risk this is worth a look.

[mad4it] 24/11/2002 20:55

No, the Telegraph says sell....the market will tell us this week.

[tone] 24/11/2002 20:50

In sane; market says sell

[nashwan123] 24/11/2002 20:48

An article in the Sunday Telegraph today advises investors to sell. This puts me in a quandry as to heed the advice or otherwise. There have been some positive signs for gradual recovery in the tech market in recent days, especially led by the American exchanges. The company has good products and is financially sound and is trading on a low mark. It would probably prove a cheap asset at current prices for a rival. All in all the downside would appear to be limited and to date discounted in its price of around 26p.Anyway here's the comment:-

Back in September we advised readers to buy Arc International (26.75p), the chip designer. The company, which was sitting on a cash-pile of £111m, had a stock market value of just £79m and institutional shareholders were getting restless.

The cash, we reckoned, could soon be back in the hands of the shareholders.

The management proved more resistant to shareholder pressure than we expected and only the threat of a shareholder revolt, led by Andrew Regan, the entrepreneur best known for an aborted £1.2bn bid for the Co-op, seems to have finally prompted some action:

Arc announced on Friday that it would return £50m to shareholders. We had hoped for more. The shares stand where we tipped them two months ago, but readers should sell.

[mad4it] 24/11/2002 20:48

" The establishment of the Asian sales channel will become an important revenue stream for ARC in the future, with revenue from this channel expected to match that coming from Europe within a year. "


That is another very bullish statement by the management and matches the upbeat tone of friday's RNS. They are obviously very confident of contract wins....

....or they're insane! ;)

[tech] 24/11/2002 20:29

From iii board

ARC International expands Asian presence
San Jose, USA, November 21 2002 - ARC International (LSE: ARK), a world leader in configurable System-on-Chip (SoC) platform technologies, has today announced plans to open two offices in the Asia Pacific region by the end of the year. The offices, to be opened in Taiwan and Japan, will provide local sales and technical support bases to focus on consumer electronic and communication product applications such as digital still cameras, MP3 players, color scanners and USB connectivity devices. ARC will bring it's entire portfolio of intellectual property (IP) to the Asian market, including the ARCtangent™ 32-bit RISC/DSP microprocessor cores, Ethernet and USB peripherals, RTOS, software stacks, host development tools, and the recently introduced USB Now™ IP platform solution.
The first office is expected to open this month in Taiwan, and will be fully supported with dedicated sales, applications engineering and technical support staff. ARC International's Japanese office will focus on recruiting sales channels for the region to establish ARC's technology in the fast-growing USB and 802.11 Japanese markets.
The new offices mark a further step forward in ARC's expansion plans for Asia - a strategic commitment made by chief executive Mike Gulett earlier this year. The company's push into Asia was initiated earlier this year in June with the appointment of Jim Lang as head of Asian sales. Since then, ARC has signed major distribution and sales agreements with local companies, including the Taiwanese IC distributor, EDOM Technology, as well as forming partnerships with companies such as Hynix Semiconductor Inc.
"Asia Pacific is an important world centre for communication and consumer electronic product design, making it a major growth focus for ARC", said Mike Gulett, president and chief executive of ARC International. "ARC's SoC IP platform technologies can be customized to a wide range of applications, so we see a tremendous amount of sales potential for ARC's broad product line in Asia. By opening local, fully supported offices, ARC will be well-positioned to meet the diversified demands of this region".
At present, the majority of ARC's customers are located in the USA and Europe, with approximately 70-80% of revenue coming from the US. The establishment of the Asian sales channel will become an important revenue stream for ARC in the future, with revenue from this channel expected to match that coming from Europe within a year.
About ARC International
ARC International is an industry-leading developer of embedded user-customizable, high-performance 32-bit RISC/DSP processor cores, with integrated development tools, peripherals, RTOS and software. These integrated products and solutions are a result of the acquisitions of MetaWare, VAutomation and Precise Software Technologies. ARC's integrated intellectual property solutions assist customers in rapidly developing next generation wireless, networking and consumer electronics products, reducing time to market, reducing their cost, reducing the number of IP suppliers and reducing their risk for system-on-chip products. Products based on ARC's technology include digital still cameras, set-top boxes, and network processors.
ARC International employs 200 people in research and development, sales, and marketing offices across North America, Europe and Israel. Full details of the company's locations and other information are on the company's web site, www.ARC.com http://www.arc.com>. ARC International is listed on the London Stock Exchange as ARC International plc (LSE:ARK).

[halfpenny] 23/11/2002 00:32

Its the buyer we need to watch.....remember each sell is bought by someone....


looking good for 45p plus....sooonnnn

[spyderman] 22/11/2002 22:53

does anyone know how the managements share options will be adjusted fot the capital repayment? something to watch very closely i would suggest. surely cant get a cash payout!? presumably adjust the exercise price, but how?

[mad4it] 22/11/2002 18:51

A pretty good summation by citywire. Still an attractive risk reward scenario.

Here's a snippet from today's statement to highlight the bullish stance the company are taking, either they're bullsh*tting us, or this company looks cheap valued at 10p! Note " the acceleration of its expansion into the Asian market."
Interesting, I wonder what contracts are being negotiated there!



" Along with a number of key strategic partnerships announced this year,
the Intel Microelectronics Services business has recently added the
ARCtangent processor to its IP library. Within its product offering,
ARC has several new products that will be introduced in the next few
months, which include a new generation of the ARCtangent processor as
well as additional platform offerings. The Company also announced
yesterday the acceleration of its expansion into the Asian market.


Current Trading

As announced at the third quarter results in October 2002, ARC
believes that it continues to make meaningful progress towards
achieving EBITDA breakeven and expects its financial performance for
the year to fall within the current range of published analyst
forecasts.


Mike Gulett, CEO of ARC, commented:

'We have made good progress this year in our drive towards
profitability and this remains our focus. We have won many important
new customers and the recent addition of the ARC processor to the
Intel Microelectronics Services library further endorses the strength
of our technology. On the basis of these achievements I am very
optimistic about ARC's future. "

[divina] 22/11/2002 17:52

Half Pennies Short term target! 45p Looking good IMO

[divina] 22/11/2002 17:51

divina - 22 Nov'02 - 17:46 - 135 of 136 edit


Citywire Article

As Citywire predicted, chip designer Arc International is set to give back some £50 million of its £108 million cash pile to shareholders after its strategic review concluded it has more than it needs to get to profitability.


Citywire pointed out earlier this month, when Arc (ARK) appointed WestLB Panmure as a joint advisor to help with the review, that Arc was almost certain to come under pressure to do something with its cash, and the most likely option was return some to shareholders since no suitable acquisitions had been identified.

The company, which designs computer and mobile chips and the software and peripherals that surround them, floated during the height of the dotcom boom in 2000, hence the massive pile of cash.

Andre Godber of WestLB told Citywire that Arc would need some £15-20 million to get it break even, which he expects to be by the first quarter of 2004 at the pre-amortisation level. The remainder of the £53 million cash that Arc would have left will be for a buffer against any future downturn in the industry and to strengthen the balance sheet to assure customers that Arc will survive.

The return of cash needs to be approved by the courts, since Arc is loss-making and technically has no distributable reserves. The whole process is likely to take two or three months, and at some point there will be a date set on which investors will need to be holding the shares in order to get the cash back. It is likely to be some 16.8p per share Arc currently has around 35p per share of cash.

While most chip companies have suffered from the global downturn in the semiconductor market, Arc seemed to suffer more than most last year, lacking strategic direction.

Last December, Mike Gulett joined the struggling company as chief executive, and has been slowly turning the business round.

Today Arc said it now believed it has 'more than sufficient working capital funding to bring the group to profitability on the basis of reasonably prudent assumptions,' and it is hoping to return £50 million to shareholders in the first half of next year.

The company said it is making 'meaningful progress towards achieving ebitda breakeven [before interest, tax, depreciation and amortisation],' and it is on target to meet analyst forecasts for the full year.

Analysts are expecting losses for the full year of £18.7 million or 6.18p per share.

Last month Arc reported turnover for the third quarter to September up 37% to £2.8 million, which was 6% down on the second quarter in sterling terms, but only 2% at constant exchange rates. Before exceptional costs, net losses decreased by 22% to £5.3 million and cash outflow was down 30% on last year at £5.4 million.

Godber said while Arc had looked at acquisitions, its priority now is on organic growth, which would be the 'safest way to grow,' Godber said.

WestLB's forecasts for next year are slightly lower than the current consensus of £16.9 million loss or 5.89p per share given that Arc will lose interest on the returned cash. Nevertheless, most analysts are expecting revenues to ramp up quite steeply next year.

Shares were up 0.75p at 26.75p.

Citywire Verdict:

This seems to be the only sensible thing for Arc to do at this time. The company is still getting its own house in order, so it would not be the right time to make a serious acquisition even if it found the right candidate.

With the amount of cash likely to come back, the loss making business is currently valued at just 10p per share, or £29.7 million. It still faces a bumpy ride, and there are always likely to be cyclical downturns, but for those that fancy some risk this is worth a look.

curently only valued at 10p!!!!!!!!!!!!


It is likely to be some 16.8p

Nevertheless, most analysts are expecting revenues to ramp up quite steeply next year.


LOOKING GOOD IMO

[halfpenny] 22/11/2002 13:07

Has fallen 76% since the peak on 2 May 2001 at 109. Has broken the ceiling of the falling trend, which indicates a slower initial falling rate. An inverse head and shoulders formation is under development. A decisive break of the resistance at 30.13, ideally with an increase in volume, signals a further rise.
Support and resistance: The stock has marginally broken up through the resistance at 25.00 p. An established break predicts a further rise.

looking good for move towards 45p plus....

[divina] 22/11/2002 09:52

wish the 250k seller will piisss off!

[divina] 22/11/2002 09:41

Lol royaloak i dont think sooooooo