UK chip maker ARM saw pre-tax profits grow 22% to £68m in its third quarter, compared with the same period last year.
The company's sales grew 20% to £144.6m. Processor royalty revenue also increased 27% year-on-year.
ARM CEO Warren East (pictured) said mobile computing, cloud-based networks and a move towards the "internet of things" meant ARM was seeing an increased demand for its high-performance and low-power technology.
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"This demand is helping to drive ARM’s licensing revenues, and this quarter we saw market leaders license ARM’s advanced processor technology for next-generation super-smartphones, tablets and mobile and embedded computing applications," he said.
ARM said it would enter the final quarter of 2012 with a record order backlog.
"Data from our customers suggests a moderate sequential increase in ARM’s royalty revenue in the fourth quarter. We therefore expect group dollar revenues for the fourth quarter to be in line with current market expectations," said a company statement.
"We do not want to set any goals, but to accrue close to 50% of that market [by 2016] would not be unrealistic," he said.