ARM sold a record 1.85 billion chips in the first quarter of 2011, helping the company to revenues of £116m and beating estimates with a 26 per cent year-on-year rise.
ARM-based chips are found in most high-profile mobile devices, including the market leading Apple iPhone 4 and iPad 2, so it is unsurprising that the mobile sector accounts for 61 per cent of ARM's business.
Some 1.15 billion ARM chips were shipped in smartphones and tablets in the first quarter, the firm said, while the remaining 0.7 billion were shipped in equipment including TVs, disk drives and microcontrollers.
The ARM7 processor family accounted for 44 per cent of sales, but the firm was keen to point out that sales of Cortex chips are increasing steadily and now represent 17 per cent of shipments.
Average royalty per chip rose from 4.6c (2.8p) to 4.8c (2.9p) owing to strong growth in sales of Cortex-A series processors, which command higher average royalty percentages and are normally associated with higher value chips.
ARM's licensing business also continued to perform strongly, and the company now has 39 licence agreements in place. This includes a partnership with Microsoft which will see future versions of Windows and Office applications running on low-power ARM chips.
"Influential market leaders are licensing ARM technology to gain access to a growing ecosystem of operating systems, software applications, tools and service providers," said Warren East, chief executive of ARM.
"This licensing drives ARM's long-term royalty opportunity. Shipments of ARM-processor based chips increased 33 per cent on the same period last year driven by growth in smartphones, tablets, digital TVs and microcontrollers."
Despite a strong quarter, ARM refused to get carried away with projections, pointing to the effects of the earthquake in Japan on the semiconductor industry supply chain and end-product markets.
However, ARM expects group dollar revenues for 2011 to at least be in line with current market expectations.
Loon's balloons will bring the internet to remote areas of the country
New clues into the biosphere on Earth in the lead up to the emergence of animal life
Planetary collision might shed light on the chaotic processes behind a star's early development
Success boosted by streamer Ninja and celebrity gamers