By Rory Gallivan
LONDON--U.K. semiconductor group Imagination Technologies Group
PLC (IMG.LN) posted a wider full-year pretax loss as it continued
to invest in research and development.
Imagination, whose chips are found in devices made by Apple Inc.
(AAPL), reported a pretax loss of 12 million pounds ($19.1 million)
for the year ended April 30, against a GBP314,000 loss the previous
year, on revenue up to GBP177 million from GBP170.8 million.
Royalty revenue from sales of devices containing Imagination's
technology rose 9% to GBP118.9 million. Revenue from licensing its
technology to other companies rose just 2% to GBP39 million, in
line with the company's warning in March that licensing revenue
would be close to the previous year's level, not up 10% as
previously predicted.
Imagination, which competes with companies such as its much
bigger U.K. rival ARM Holdings PLC (ARM.LN), said it is targeting
licensing growth of 10% in the current year and that it expects
royalty revenue to rise, without being more specific.
"As our revenues grow, the natural operational gearing of the
business means that the financial performance is expected to
significantly benefit from a slower growth in operating costs,"
said Chief Executive Hossein Yassaie.
"We therefore expect to see significant expansion in operating
margins in the medium term," he added.
Write to Rory Gallivan at rory.gallivan@wsj.com; Twitter:
@RoryGallivan
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