Arm shares rose 7% after reporting a 44% profits rise to £89.4m, beating analysts’ forecasts by £10m.
The UK chip designer has benefitted from rising demand for smartphones and tablets using its technology. Its customers include Samsung and Apple, as well as Qualcomm.
Unlike Apple,which is expected to report a fall in profits today for the first time in ten years, Arm has benefitted from a broad base of customers which include Apple’s competitors.
Arm's Q1 2013 results showed profits rising to £89.4m, up 44% and around £10m ahead of analyst forecasts. Its performance is put down to strong demand for its chip designs in smartphones and tablets and its low-energy processors.
The strength of the dollar also boosted profits, since Arm collects most of its revenues in US dollars.
Chief executive Warren East, who is set to leave after 12 years at the company, said: ‘Everyday devices are becoming smarter, more connected and more energy efficient, which is increasing the applicability of and demand for Arm's technology.
'In particular, this quarter Arm saw strong uptake of its next generation, higher royalty bearing Armv8, Mali and bigLittle technology for smartphones and mobile computers. We expect group revenues for full year 2013 to be at least in line with current market expectations.’
Arm’s first quarter results calmed fears that rival Intel's entry into Arm's key smartphone and tablet market may hit Arm’s business. Its shares have soared nearly 7%, up 59.5p at 928.5p.