The Cambridge, U.K., based company said its second-quarter sales surged 24% from a year ago, and its adjusted pre-tax profit spiked 30%. Shares in ARM jumped by 4% in pre-market trading on Wednesday.
ARM Holdings ( has been a stock market darling, with shares increasing more than 10-fold over the past five years. It has been boosted by strong demand for its chip designs, which are used in roughly 95% of cell phones and smartphones around the world. )Apple (Fortune 500), , Qualcomm (Fortune 500) and , Samsung ( are among the company's largest customers. )
ARM's second-quarter results have silenced critics who worried that the company would soon face a slowdown in licensing its tech designs -- its main revenue driver.
"I think the key thing with ARM is that it has been doing well for a long time and it continues outperforming the industry," said London-based analyst Fatima Iu from Polar Capital. "Obviously that is a function of targeting the right areas."
ARM's stellar financial report came a day after Apple announced that its iPhone sales grew by 20% last quarter.
It wasn't all sunshine and roses for ARM, which was hit by various charges over the quarter, including legal costs and a patent-related settlement. But ARM clearly outshined Intel (Fortune 500), ARM's struggling competitor. ,
Earlier this month, Intel, the world's largest chipmaker, reported its fourth straight quarter of sales declines and its third quarter in a row in which profit fell year-over-year. Intel's business has struggled as PC sales remain very weak. Worldwide, shipments of PCs fell by 11% last quarter, according to Gartner.
To counteract the trend, Intel has desperately been trying to get into the mobile computing business. It made some limited headway recently, partnering with a handful of brands to put its chips in smartphones and tablets.
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