Imagination Technologies benefits from new product launches

Imagination Technologies Group said it has experienced a robust performance in the first half of the year as revenues have grown in line with expectations.

In a trading update, the multimedia, communications and processor technology company revealed an increase in royalty revenues on the back of demand for smart phones and tablets and customers launching new products.

Samsung's Exynos 5410 Octa now incorporates Imagination's PowerVR SGX544MP core.

Imagination's system on a chip has also been picked up by Allwinner, Altair, Ceragon, Ingenic, Intel, LG, MediaTek, Renesas, SiS, ST and TI.

Licensing activity remains steady with extensive on-going interest and activities across the company's technologies.

"We continue to make good progress with volume ramp up across many of our existing technologies, as more of our licensees bring our latest technologies to market in increasing volumes," said Chief Executive Hossein Yassaie.

"At the same time we are making the necessary investments in essential complementary technologies to fuel our continued long-term growth."

However, the firm said macro-economic uncertainty has created caution among customers, impacting project timing and licensing.

The licensing pipeline remains active despite the uncertainties over the timing of deal closures, particularly as some semiconductor companies in certain regions undergo structural and business changes.

Looking ahead, the firm expects to benefit from further product launches from customers. Unit shipments for this year are forecast to exceed 500m units.

Shares fell 0.19% to 529.00p at 09:07 Tuesday.