Imagination Technologies warns on profits

Micro chip maker Imagination Technologies warned that profits would fall below expectations after delays to several deals hit licensing revenue for the full year.

Micro chip maker Imagination Technologies warned that profits would fall below expectations after delays to several deals hit licensing revenue for the full year.

The company said that as a result of short-term delays to several agreements, licensing revenue would reach £27m for the year to end-April, a fall of 22% on the previous year's £34.4m, which would obviously hit profits.

Imagination, a key supplier for Apple's iPhones and iPads, noted that despite an active pipeline of licensing engagements, the closure timing of a number of deals had been subject to higher levels of uncertainty because of "structural and organisational changes among a number of semiconductor partners in various regions".

The group said it was "confident this timing issue is a short term phenomenon related to the 'lumpy' nature of licensing revenues" and that in recent months it had "witnessed increased engagement activities and a growing pipeline of opportunities across all our key IP offerings".

Chief Executive Hossein Yassaie said: "Whilst we continue to see strong demand for our technologies, we are disappointed that the licensing revenues are below our expectations in this period.

"Despite these short-term timing issues, we continue to see growing partner engagements across our key technologies - these include a number of very significant, strategic deals."

"The volume shipment ramp-up continues apace towards our target of 1.0bn units in 2016 - excluding MIPS - whilst the licensing pipeline remains as active, strong and sound as ever."

For the full year 2013 the group said it expected unit shipment growth to continue to be very strong, with annual shipments in excess of 500m units, driving significant year on year royalty revenue growth.

For full year 2014 Imagination said it currently expected licensing revenue to be in the range of £30m-£35m excluding those from acquisition MIPS.

OH

Recommended

Best junior stocks and shares ISA platforms
Isas

Best junior stocks and shares ISA platforms

A junior stocks and shares ISA is a great way to save for your child tax-efficiently. But it can be confusing deciding which investment platform to ch…
25 Nov 2022
Share tips of the week – 25 November
Share tips

Share tips of the week – 25 November

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
25 Nov 2022
Investing in a recession: 5 moves investors should make now
Investment strategy

Investing in a recession: 5 moves investors should make now

As we enter a recession, here’s what investors should do with their portfolios.
23 Nov 2022
It’s time to focus on Fuller’s
Share tips

It’s time to focus on Fuller’s

The pub sector has had a torrid two years, but this group is resilient and poised to prosper. We take a closer look at Fuller’s.
21 Nov 2022

Most Popular

Wood-burning stove vs central heating ‒ which is cheapest?
Personal finance

Wood-burning stove vs central heating ‒ which is cheapest?

Demand for wood-burning stoves has surged as households try to reduce their heating costs this winter. But how does a wood burner compare with central…
29 Nov 2022
Fan heater vs oil heater – which is cheaper?
Personal finance

Fan heater vs oil heater – which is cheaper?

Sales of portable heaters have soared, as households look to cut their energy costs. But which is better: a fan heater or an oil heater? We put them t…
21 Nov 2022
Best regular savings accounts – November 2022
Savings

Best regular savings accounts – November 2022

You can earn an attractive rate on the best regular savings accounts. We tell you the best on the market to take advantage of right now
29 Nov 2022