April 29 (Bloomberg) -- ARM Holdings Inc., the U.K. designer of semiconductors used in Apple Inc.’s iPhone, said first-quarter dollar revenue dropped 10 percent from a year earlier, tracking overall declines in the chip industry.

First-quarter sales were $120.9 million and full-year dollar revenue “will be at least in line with market expectations, unless industry conditions deteriorate to a greater extent than is generally anticipated,” Cambridge, England-based ARM Holdings said in a statement today.

The company, which also designs chips used in iPods, video- game consoles, personal computers and cameras, said its first- quarter results outperformed a decline of about 30 percent in the overall semiconductor industry. ARM Holdings said demand for its products remained “robust” and the company should be resilient in the current financial slowdown.

“This outperformance, combined with careful management of costs and the strengthening of the dollar against sterling, has given rise to year-on-year earnings growth of 18 percent and further robust net cash generation in the first quarter,” Chief Executive Officer Warren East said in the statement.

To contact the reporter on this story: Kristen Schweizerkschweizer1@bloomberg.net

Last Updated: April 29, 2009 02:42 EDT