11th January 2001

Interim Results for the six months to 31 October 2013

Continuing momentum in royalty growth, improving licensing environment and build-up of a comprehensive IP range

Imagination Technologies Group plc (LSE: IMG, “”Imagination””, “”the Group””), a leading multimedia, communications and processor technology company, today announces results for the six months to 31 October 2013.

Financial highlights

  • Group half-year revenues up 19% to £85.2m (2012: £71.4m)
    • Good performance in Technology Business with revenues increased 24% to £70.8m (2012: £57.3m)
      • Royalty revenues up 44% to £56.2m (2012: £39.1m)
      • Licensing revenues of £14.4m (H1 2013: £17.8m, H2 2013: £11.3m)
    • Pure revenues improved to £14.4m (2012: £14.1m)
  • Adjusted pre-tax profit* of £13.2m (2012: £16.8m)
  • Reported pre-tax profit of £2.2m (2012: £10.5m)
  • Adjusted earnings per share* 3.8p (2012: 4.7p)
  • Reported (loss) / earnings per share (0.4)p (2012: 3.0p)
  • Cash balance of £11.6m after paying MIPS tax liability in June (30 April 2013: £76.6m)

* Adjusted results exclude non-recurring items, non-cash based share incentive charges and amortisation of intangible assets acquired from acquisitions. The reconciliation from reported results to adjusted results is set out in note 6.

Business highlights

Technology business

Volume shipment & royalties

  • Total partner chips shipped of 640m. Non-MIPS shipments up 18% to 280m units (2012: 237m)
  • Significant volume shipments in all mobile segments (performance, mainstream and entry smartphones), tablet/personal computing, networking & enterprise, industrial , TV/STB & automotive
    • Smartphone market continues to grow strongly albeit with lower growth rates
    • Average royalty rate reduced less than expected due to mix with overall revenue effect positive  
  • PowerVR Series6 graphics now shipping in volume across all key segments including mobile, TV and automotive
  • Growing MIPS volume in developing 32-bit microcontroller and Internet of Things (IoT) markets, with MIPS 64-bit architecture well established in multiple markets
  • Strong video processing IP unit shipments

Licensing & design wins

  • Activity levels increased across all IP families
    • 43 licenses including 18 for PowerVR GPU, 14 for MIPS CPU, eight for PowerVR VPU (including one for new Raptor camera vision IP) and three for Ensigma RPU
    • Customer base continues to increase with several new partners in new areas added including Broadcom, GUC, Pluschip and Toshiba
    • Many new and extended agreements with existing partners including Actions, Allwinner, Freescale, Ineda, LG, MediaTek, MicroChip, MobileEye and STMicroelectronics
    • A number of on-going long-term subscription licenses with certain key partners
    • Over 20 MIPS license deals signed since acquisition (completed on 7 February 2013)
  • Increase in number of customers signing licenses for IP from multiple families
  • Half-year licensing activity has resulted in over 30 new SoC design-wins which will contribute to future royalties
  • Continued active and growing pipeline of prospects across all IP families

Pure business

  • Continues to drive key markets
    • Launch of Jongo wireless speaker products in key UK and US markets
    • Continued refresh of DAB product line-up
  • Strategic interest from key players in our wireless and multi-room speaker technologies

Hossein Yassaie, Chief Executive, commented:

“”Our strategy to develop and exploit three main areas of IP – multimedia, processors and communications – has continued to make good progress.

“”In a more established graphics and video market, our strong existing and important new partnerships coupled with our very strong offerings will help us to take advantage of the future growth potential in all the key segments and maintain our leading position.

“”Our plans and roadmap for MIPS are receiving good initial traction from existing and potential new partners. All the indications are that the alternative that MIPS processors offer is respected and welcome, both for the technological benefits and the much needed industry balance they can help to bring about.

“”There is a growing excitement around Ensigma communications technology and how this is a key enabler of the Internet of Things and the next revolution in home connectivity. Our MIPS processor and Ensigma connectivity cores in conjunction with our FlowCloud technology offer a very strong solution – centric platform for these emerging opportunities.

“”There will continue to be fluctuations and changes in the markets in which we operate, but we are confident that our strong and comprehensive IP families, and the solution-centric platforms they are enabling, will allow us to take advantage of the numerous growth opportunities ahead.””

Download the full statement here


Imagination Technologies Group plc

Tel (today): 020 7457 2020

Sir Hossein Yassaie, CEO

Tel (thereafter): 01923 260 511

Richard Smith, CFO

College Hill

Tel: 020 7457 2020

Adrian Duffield / Kay Larsen

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