ARM is benefiting from the smartphone craze with more than 2.2 billion ARM chips shipped in the third quarter.
The company reported revenue of $227.9 million for Q3, up from $192.3 million in the same quarter last year. Earnings before tax climbed by 22 percent from $88.7 million to $108.5 million. ARM announced that it signed 29 new processor licenses during the quarter, which includes one new ARMv8 architecture licensee, one ARMv8 processor licensee and one Cortex-A15 processor licensee. The identities of the new customers were not revealed.
As the PC industry is struggling with doubt regarding product demand, ARM said it is starting "the final quarter of 2012 with record order backlog" and a "moderate sequential increase in ARM's royalty revenue in Q4."
The majority of ARM's revenue is based on royalty income, which was $121.1 million in Q3, up 25 percent year over year. License revenue climbed by 15 percent to $83.4 million, while development system, sales amounted to $12.1 million, up 3 percent over 2011. Service revenues were $11.3 million.