Chip firm ARM has posted bumper quarterly profits of £46.9m, up 23 per cent year-on-year, with Microsoft's forthcoming Surface tablets helping boost demand for its chip designs.
ARM reported that sales for the three months ending 30 June had risen 12 per cent compared to the same quarter one year ago, to £136m.
While rival chipmaker Intel had recently warned about sagging demand for its processors, ARM was upbeat about demand for its low-power chips, as smartphone and tablet demand remained robust.
“This quarter we have seen multiple market leaders announce exciting new products including computers and servers from Dell and Microsoft, and embedded applications from Freescale and Toshiba,” said Warren East, chief executive of ARM.
ARM has been boosted by the prospect of forthcoming Windows-based tablets from the likes of Acer, Asus, Toshiba and Microsoft itself, with Windows RT tablets expected to go on sale this autumn.
Meanwhile, ARM has expanded its presence in servers, with companies such as Dell announcing ARM-based servers for cloud hosting, web servers and off-line analytics.
But the company also sounded a note of caution, showing that it is not immune to the global economic uncertainty that has weighed on its competitors.
ARM makes a significant chunk of its money from royalty payments. These enter its account one quarter in arrears, so those sold in its most recent quarter will not show up until its next results.
ARM warned that global economic trends made its fourth quarter royalties hard to predict – suggesting uncertainty over how many ARM-based chips it expects its partners to sell next quarter.
The company also confirmed that it had completed the construction and fitting out of its new datacentre facilities at its Cambridge headquarters.
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