ARM seems well-placed to ride out the downturn in the mobile phone market.
The processor firm benefited from the dollar/sterling exchange rate with Q3 sales increasing by 5% to £75.2m.
In dollar terms sales in the quarter fell 8% to $123m.
However, ARM CEO, Warren East said that despite pressure on customers' R&D budgets the quarter saw a record number of processor licenses.
A factor is ARM's move to expand its business beyond the mobile phone market. It saw 15 new processor licenses signed for markets including digital TV, microcontrollers, hard disk drives and networking applications
East does see "improving confidence in our customer-base" and he expects dollar revenues for the full year to be at least in line with current market expectations.
But East said that short term consumer demand "remains unclear".
Pre-tax profit for the quarter slipped 2% to £24.3m.
East believes there is new resilience in the ARM business model.
"Our improving revenue and disciplined cost control has delivered a sequential improvement in margins and profitability, as well as a high level of cash generation," said East
"We are particularly encouraged by the licensing of ARM's next generation processor technology, and by the first license to a leading
fabless semiconductor company of ARM's advanced 28nm physical IP," said East.