British chip designer ARM Holdings Plc said royalty sales growth will accelerate this quarter on demand for new devices such as Apple’s iPhone 6. "Q3 has seen accelerating royalty revenue growth and strong demand for our processors and physical IP. We have seen encouraging license momentum and design activity throughout our customer base, with more partners choosing to deploy ARMv8-A architecture in multiple end markets," said Simon Segars, Chief Executive Officer, said today during during a call with reporters.

"We launched important new products in the quarter. Our Cortex-M7 processor will deliver unprecedented performance for microcontroller chips, and our mbed IoT Device Platform offers developers foundational software that can realize the potential of the Internet of Things. Our partners also demonstrated the capabilities of ARM’s innovative technology. For example, PayPal showed how ARM-based servers from HP can deliver class-leading performance and efficiency, and HiSilicon produced the first ARM-based networking processor on TSMC’s advanced FinFET manufacturing process.

These milestones are further evidence of the broadening adoption of ARM technology and are encouraging for future royalty revenue growth."

Royalties are fees ARM collects when customers use its technology. Such revenue rose 9 percent to $150.2 million last quarter.

Royalty growth slowed last quarter from a 13 percent rate a year earlier, the company said today. Royalty revenue from ARM’s processor unit rose 11 percent to $135.5 million.

ARM said total revenue in the current quarter will be about $350 million. Third-quarter sales rose 6.3 percent to 195.5 million pounds.

License revenue, the upfront fee customers pay to access ARM’s technology and an indicator of future sales, increased 16 percent to $142.5 million.