Imagination Technologies expect strong year

Computer graphics chip specialist Imagination Technologies said strong momentum in the first half has continued and it expects full year results to achieve good growth.

The group's technologies, which are used in mobile devices, in-car information systems, digital set-top boxes, games consoles and arcade machines, said revenue also showed good growth against last year as demand for its technologies increases.

"A combination of new product launches, the traditional holiday period uplift and continuing momentum across the customer base, all contributed to the expected ramp in royalty volumes in the quarter ended December 2011" the group said in a company statement.

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Imagination, which owns radio maker PURE, said despite the tough UK retail environment and weak global consumer demand, PURE revenues remained marginally ahead of last year. Strong growth in overseas markets continued.

The group said it remains confident that it is on track for continued progress, with a robust licensing pipeline, which is expected to result in another good year of growth in licensing revenue.

Chief executive Hossein Yassaie said, "Demand for our technologies continues to grow strongly. They are powering the transition in several markets to "smart" devices - in particular phones, tablets, TVs and in cars, where our state-of-the-art multimedia and connectivity offering are key drivers."

"Our strategy to identify and create disruptive technologies is paying off - it is set to continue to fuel further strong progress over the next few years."

CJ