Chip manufacturer ARM has reported a 34 per cent year-on-year rise in quarterly revenues to $158.1m, largely on the back of soaring smartphone sales.
Over 900 million ARM-based processors were shipped in mobile devices during the period, and the introduction of tablets is set to continue this upward trend, the firm said.
Royalty revenues increased by 31 per cent from the sale of 1.5 billion ARM technology-based chips. The Cortex family now represents nine per cent of units shipped, up from two per cent in the same quarter a year ago.
ARM attributed this increase primarily to Cortex-M series shipments in microcontrollers and wireless networking chips, and Cortex-A series shipments driven by high-end smartphones adopting smarter applications processors.
Warren East, chief executive of ARM, acknowledged the strong quarter and said that profits and cash generation are rising.
"Not only are we benefiting from growth in applications where we are the established market leader, including in smartphones and mobile computers, but we are gaining share in markets like digital TV and microcontrollers," he said.
"Our partners are also starting to develop chips in new markets for ARM, such as servers and laptops, creating longer-term opportunities. In addition, both physical IP and Mali graphics performed well with important licence wins and increasing royalty revenues."
Average royalties per chip grew by four per cent from 4.5 cents to 4.7c in the period, owing to higher sales of the group's latest Cortex-A series chips.
Revenues from licensing increased by 33 per cent year on year to $52.7m, as Apple, Dell, RIM and Samsung incorporated ARM chips into their products. Pre-tax profit jumped to $31m compared to $12.2m during the same period last year.
On the back of the strong quarter, ARM is to focus its efforts on the laptop market together with Chinese chipmaker Nufront. A 2GHz dual-core ARM chip could be in laptops early next year.
Rival chip firm Texas Instruments also posted big numbers for the quarter, showing revenue of $3.74bn, up seven per cent over the previous quarter and 30 per cent year on year.
However, while demand from industrial markets was strong, consumer demand cooled, affecting the computing and television markets, according to Rich Templeton, chairman, president and chief executive of Texas Instruments.
"As we move into the fourth quarter, we expect sequentially lower revenue reflecting a combination of seasonal patterns, continued soft demand in computing and consumer markets, and slowing growth in the industrial market," he said.
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