At the Annual General Meeting of Imagination Technologies Group plc today, Chairman Geoff Shingles is making the following comments to shareholders:
“We continue to make significant progress with our partners in establishing the basis for substantial future market share for our IP and royalty revenue growth. Over the last 12 months this progress has included new deals and significant deal extensions with Texas Instruments, Intel Corporation, Sharp and Frontier Silicon.
“We have significant relationships in place with six of the worldwide top 10 semiconductor companies. Our partners now have 32 system-on-chip (SoC) devices in development or production utilizing our IP, compared to around 20 at the time of the AGM last year.
“There are currently 11 SoCs using our IP publicly announced, including: Frontier Silicon’s Chorus, Logie and Kino, Texas Instrument’s OMAP2, Renesas’ SH-Mobile3 and SH7770, Philip’s Nexperia PNX4008, Freescale’s i.MX31 and Intel’s 2700G.
“We have seen a marked increase in the volume of chips shipping incorporating our IP. In FY04/05 our partners shipped a total of 2.5 million devices using our IP. In Q1 FY05/06 our partners have already shipped approximately 1.7 million such devices, compared to around 200,000 in the same period last year, with growth coming across the mobile, in-car and DAB markets. These shipments are from the three partners shipping to date Frontier Silicon, Renesas and Intel.
“Mobile end-user products based on our PowerVR MBX IP are shipping, including phones from SK Teletech, Fujitsu, Mitsubishi and Samsung, as well as the Dell Axim X50v PDA and PepperPad tablet PC.
“Renesas, the in-car navigation market leader, has significant customers already shipping, including Mitsubishi and Pioneer, with many other design wins in place, including Alpine. We are already seeing increased volume of devices shipping in this area mainly driven by the migration of shipments from the ‘after market’ to ‘factory fit’.
“DAB digital radio products enabled by our META and UCC IP are being shipped by leading brands and these technologies have now shipped in over two million devices in the DAB market. The first T-DMB mobile TV product using META and UCC IP has also been demonstrated in Korea. PURE Digital continues to lead in the DAB consumer market and has a strong product roadmap enabling it to further consolidate its position.
“We are continuing to invest in the required support for our growing customer base as well as the development of future generations of our PowerVR, META and UCC IP offerings. The strong roadmap we are creating is the key to securing future business with our partners.
“Today we have also announced the debut of PowerVR SGX, an industry leading scalable and fully programmable unified shader graphics and video IP core family, which compliments PowerVR MBX. This will enable our partners to have a strong future roadmap.
“While timing on deal closure is uncertain our prospects remain strong across the broad spectrum of our IP with continued high levels of interest and negotiations currently progressing with both new and existing partners. We continue to target further members of the worldwide semiconductor top 10 as well as other strategic opportunities. As more devices using our IP come to market we are starting to get better visibility of our partners’ chip volume ramp-up and growth in those volumes is encouraging.”