Imagination still going strong, though royalty rate eases
The day after the much ballyhooed release of Apple's iPhone5, chip designer Imagination Technologies released a well-timed trading update in which it revealed its business momentum has continued in the new financial year.
The day after the much ballyhooed release of Apple's iPhone5, chip designer Imagination Technologies released a well-timed trading update in which it revealed its business momentum has continued in the new financial year.
"Our partners' product launches in the second half of the last financial year, together with shipments starting for a number of customers for the first time this year, have both contributed to strong growth in unit shipment volumes," the group said in its interim management statement.
The volume growth has been driven across the expected key segments, including: mobile phone, computing/tablets, mobile multimedia/gaming and home consumer.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Royalty revenue growth has continued to be strong, in line with expectations. As expected, the strong unit volume growth has steadily extended to the lower-end of the smart phone market resulting in a small downward movement in the average royalty rate.
Licensing activity remains steady but is subject to the usual uncertainty over timing, particularly given the continuing macro-economic volatility.
"Our 'smart' technologies are being adopted more widely across both new and existing partners, creating a wider base for continued momentum in future volume growth which maintains our stated goal of around 1bn annual unit shipments by 2016 as a realistic objective," said Hossein Yassaie, Imagination's Chief Executive.
JH
-
FTSE 100 hits record highs – why is it rising and will we see more gains?
Advice UK equities have been described as unloved for a long time but as the FTSE 100 hits new highs, we explain if now is the time to buy British.
By Marc Shoffman Published
-
How to invest in copper
It may be time to invest in copper as the red metal appears poised for a big jump. Dominic Frisby looks at what should investors should buy
By Dominic Frisby Published