Imagination Technologies Group plc (LSE: IMG, “Imagination” or “the Group”), has issued a trading update for the six months to 31 October 2010 in conjunction with its intention to place up to 12,208,950 new ordinary shares of 10 pence each in the capital of Imagination with new and existing shareholders – see separate statement.
Trading in the first half of the current financial year remains in line with market expectations at the Group level.
Within the Technology business, Imagination continues to see strong demand for its technologies and has achieved good growth in licensing revenue and strong growth in royalty unit volume, with a current expectation approaching 100 million partner chip shipments in the six months to 30 October 2010.
Trading in the PURE division, as highlighted in the recent IMS, has continued to be challenging in the current environment, particularly in certain international markets. Revenues are now expected to show a decline compared with the first half of the previous financial year.
For the full year, building on the momentum achieved in the first half and continued strong demand for its technologies, the Group is confident it will exceed the 200 million partner chip shipment target and that it will also see satisfactory growth in licensing revenues. The translation of US dollar denominated revenues into sterling will be impacted by the weakening US dollar.
The PURE business is likely, in the short-term, to continue to face headwinds from the uncertain outlook for consumer spending. Revenues in this division are now expected to see a modest year on year decline this year before returning to growth as the environment improves.
The Group’s half year results for the six months to the 31 October 2010 will be published on Tuesday 14 December 2010.
The Group has also conditionally agreed to acquire HelloSoft, one of the world’s leading providers of Video and Voice over Internet Protocol (V.VoIP) and wireless LAN technologies, for a maximum of consideration of $47 million – see separate statement.
Hossein Yassaie, CEO
Trevor Selby, CFO
Tel: 01923 260511
College Hill Associates
Adrian Duffiled/Carl Franklin
Tel: 020 7457 2020