ARM's second quarter results have shown just how well the British company is doing, with the company beating market expectations.

ARM-designed chips are becoming a common factor in consumer electronics, and the growing market for not only smartphones, netbooks and tablet computers, but also more advanced white goods has taken ARM to record pre-tax profits of £43.5 million.

Warren East, chief executive officer, said: "We are pleased to report strong underlying revenue and profit performance in the first half, in improved trading conditions compared with one year ago.

Strategy on track

"Our strategy remains on track for growth in mobile, non-mobile and new technology outsourcing," he added.

"Major semiconductor vendors and consumer electronics companies are making long-term commitments to using ARM technology in their future products.

"Freescale, Microsoft and TSMC all recently announced adoption of ARM's latest technology which will further increase ARM's market penetration, and royalty potential, in a broadening range of end applications.

"ARM continued to gain share in the quarter with shipments of ARM-based chips growing faster than the industry in all target markets."

Interestingly, just over two thirds of ARM's revenue comes from royalties, with 31% from licensing revenues.

ARM has recently announced deals with Taiwan Semiconductor Manufacturing Corp. (TSMC) and, impressively, Microsoft.