Britain’s ARM Holdings (Nasdaq: ARMH), whose low-power chips are in most mobile products from Apple (Nasdaq: AAPL), reported third-quarter net income surged 28 percent but warned the fourth quarter might not be as robust as it has in past years.

ARM reported net income on its American Depositary Shares was 18 cents, compared with 14 cents a year ago, as revenue rose 18 percent to $227.9 million. Cambridge, UK-based ARM, which only designs but doesn’t manufacture any chips, reported a record backlog and profit margins around 94 percent.

While CEO Warren East said ARM encounters “ever-increasing demand for its high-performance and low-power technology” chips, CFON Tim Score warned slowing global demand may taper fourth-quarter results.

ARM's A5 and A6 processors are designed into the iPhone and iPad lines from Apple, as well as tablets from many of the top mobile specialists including Samsung Electronics (Seoul: 005930) and Lenovo Group of China (Pink: LNVGY). 

Intel (Nasdaq: INTC), the No. 1 chipmaker, has unveiled the Atom line to compete with them.

ARM’s U.S. shares jumped about 10 percent in Tuesday trading, before easing slightly to $30.50, up $2.38.