Revenues were up seven percent year-on-year to $134.4 million and earnings per share were up 23 percent to 1.38p as ARM raked in royalties from over a billion processor units for the first time.
ARM makes its money from selling licenses to use its designs and then from royalties every time a product based on one of those designs is shipped. The products include not just the processors inside phones like the iPhone, but also things like Bluetooth chips (in both the handset and headset) and other pieces of smart functionality.
HEXUS.channel spoke to Ian Thornton, the director of investor relations at ARM, to get an idea of where these revenues came from and he gave us this rough breakdown of where those billion units appeared.
- Smartphones and similar devices - 65%
- HDDs, networking devices and enterprise - 14%
- Automotive and deeply embedded - 13%
- TVs and general consumer electronics - 8%
"In Q3, ARM delivered the best quarterly revenue performance in its history and we continue to see strong demand for ARM's technology including long-term commitments for our physical IP technology by industry leaders," said CEO Warren East.
"We are encouraged to see that the inherent operating leverage in the ARM business model, combined with sound cost discipline and the recent strengthening of the dollar against sterling, has given rise to earnings growth in Q3 of more than 20% on dollar revenue growth of 7%."