( ARMHY) designs reduced instruction set computing microprocessors, physical intellectual property and related technology and software. It has been downgraded to hold from buy. The company's third-quarter revenue rose by 7.1% compared with the same period last year, which trailed the industry average of 9.5%. ARM Holdings also has a largely solid financial position with reasonable debt levels by most measures. Its return on equity improved slightly in the third quarter compared with the same period last year; this can be construed as a modest strength in the organization. However, the company's stock price has fallen by 14.29% in the last 12 months, and looking ahead, we do not see anything in its numbers that would change the one-year trend. (Naturally a bull or bear market could sway the movement of this stock.) ARM Holdings had been rated a buy since May 2007.