by Max Clarke

British based tech company, ARM Holdings (LSE:ARM, NASDAQ:ARMH) has delivered a strong first quarter performance, with revenue up 29% to £185.5 million, delivering profits of £50.8 million.

While the Cambridge company does not manufacture anything, they receive royalty payments when the chips they design are used. With ARM’s wide range of processors featured in a range of tablets and smartphones, including Apple’s iPad, the popularity of such devices has massively boosted ARM’s sales. ARM have sold the rights to a total of 15 billion semiconductor chips worldwide.

Warren East, ARM’s CEO, said:

“Influential market leaders are licensing ARM technology to gain access to a growing ecosystem of operating systems, software applications, tools and service providers. Many of these companies have been ARM licensees for many years, and are now deploying ARM technology across a multitude of applications; in mobile, consumer electronics and embedded devices.

This licensing drives ARM’s long-term royalty opportunity. Shipments of ARM-processor based chips increased 33% on the same period last year driven by growth in smartphones, tablets, digital TVs and microcontrollers. ARM’s revenue growth enables us to continue to invest in innovative technology development at the same time as delivering strong increases in profits and cash flow.”

ARM are confident that their company’s outlook for the remainder of 2011 will reflect the strong start, even when production stoppages incurred after Japan’s tsunami and earthquake have been taken into account.