CAMBRIDGE, U.K. ( TheStreet) -- Chip design firm ARM Holdings ( ARMH) continues to ride the smartphone wave, comfortably beating Wall Street's estimates when it released its first-quarter results before market open on Wednesday. The British chipmaker amassed revenue of $185.5 million, well above the $173.79 million forecast by analysts, and a 29% hike on the prior year's quarter. Excluding items, the company earned 13.2 cents a share, above analysts' estimate of 11 cents, and up from 9.3 cents in the same period last year.
British chipmaker ARM reported its first-quarter results on Wednesday before market open.
Investors responded positively to the results, despite some analyst skepticism about ARM's upside potential. The company's shares rose 61 cents, or 1.98%, to $31.35 shortly after market open on Wednesday. ARM's low-power technology is clearly gaining momentum in the mobile market. Some 1.15 billion ARM-processor based chips were shipped into mobile devices such as smartphones and tablets during the quarter. Another 700 million chips were also deployed into non-mobile devices like digital TVs and disk drives, according to a statement. "Shipments of ARM-processor based chips increased 33% on the same period last year driven by growth in smartphones, tablets, digital TVs and microcontrollers," said Warren East, ARM's CEO, in the statement. The company's cash position also increased to $570.2 million from $480.7 million in the prior year's period. ARM's cash flow was $104.2 million during the first quarter. ARM expects normal seasonality for its royalty revenues during the second quarter, and also offered up robust outlook for this fiscal year. "Notwithstanding the current uncertainty as to the economic impact of the Japanese earthquake -- we expect that group dollar revenues for the full-year 2011 will be at least in line with current market expectations," ARM said. --Written by James Rogers in New York. >To follow the writer on Twitter, go to http://twitter.com/jamesjrogers. >To submit a news tip, send an email to: email@example.com.