TIDMIMG
RNS Number : 2709Z
Imagination Technologies Group PLC
18 September 2009
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18 September 2009
Imagination Technologies Group plc
Interim Management Statement
Imagination Technologies Group plc ('Imagination', LSE: IMG), a leading provider
of System-on-Chip (SoC) Intellectual Property (IP), is today issuing its Interim
Management Statement for the period from 1 May 2009 to 17 September 2009.
The Group has continued to see important and active interest in its technologies
across many partners and markets. For many of our partners, the technologies we
offer are of long-term and strategic significance and are increasingly becoming
fundamental to their business success. Earlier in the financial year, this led
to two of our key partners, Apple and Intel, taking increased shareholdings in
the Group.
To date, we have concluded a number of licensing agreements with both existing
and new partners. We have an on-going active dialogue with others prospects on a
variety of opportunities which are increasingly diversified across our IP
portfolio. Whilst we expect licensing revenue to continue to make progress
across the year as a whole, as always it remains difficult to predict the
precise timing of the closure of licensing deals, particularly as the decision
making process of some companies continues to be influenced by the economic
environment.
Taking into account the formal royalty statements received from licensing
partners covering the first two months of the financial year, we continue
to expect strong volume unit and royalty revenue growth for the year. This
results from the continued ramp up of volume of existing products as well as the
launch of an increasing number of new end-user products incorporating our
IP. The actual rate of increase in volume this financial year will be influenced
by consumer spending and our partners' market deployment plans. We remain on
track to achieve our target of around 200 million units shipping in the 2010/11
financial year.
Across the financial year, we also expect to see a progressive increase in the
number of licensee products incorporating our latest generation graphics
technology, POWERVR SGX, as well as a growing proportion of devices
with multiple Imagination IP cores. We also expect to see shipments increase in
new markets including TV/Set-Top-Box and Mobile Internet Devices, such as
netbooks.
After the tougher trading environment last year, especially in the first half of
the financial year, PURE is making solid progress, with revenue in the first
four months significantly ahead of the corresponding period last year. In the
UK, PURE has maintained market leadership and strong product ranging at key
retailers.
We are seeing an acceleration in the adoption of digital radio standards
overseas and PURE has been active in developing key relationships in support of
developing revenues from overseas markets. We expect this to be a fast growing
element of PURE's business. This continued progress in overseas markets together
with the improved environment in the UK, means that we are expecting a marked
improvement in PURE's trading performance for this financial year.
PURE has maintained its very strong product line up with the launch of several
new products including the first bedside connected radio, Siesta Flow, a second
generation Chronos iDock, and the first fully iPhone-ready micro system, Sirocco
150. Of particular note is the launch yesterday of the ground breaking PURE
Sensia which in addition to DAB offers an advanced intuitive touch screen user
interface, internet connectivity and new capabilities such as social networking
applications, photoframe functionality and on-line information services. As a
result, we believe PURE is well positioned for the important Christmas season.
Based on an active licensing pipeline, the expected chip volume and royalty
revenue growth, plus PURE's strong product line-up and the emerging overseas
opportunity, the Group remains well on track for further good growth. Whilst the
macro economic volatility and its influence on consumer spending could have some
impact in the short term on the rate of our development, the Board remains
confident that the Group's solid progress will continue in line with its
expectations.
ENQUIRIES:
+-------------------------------------------+---------------------------------+
| Imagination Technologies Group plc | Tel: 01923 260 511 |
+-------------------------------------------+---------------------------------+
| Hossein Yassaie, CEO | |
+-------------------------------------------+---------------------------------+
| Trevor Selby, CFO | |
+-------------------------------------------+---------------------------------+
| | |
+-------------------------------------------+---------------------------------+
| College Hill | Tel: 020 7457 2020 |
+-------------------------------------------+---------------------------------+
| Adrian Duffield/Carl Franklin | |
+-------------------------------------------+---------------------------------+
This information is provided by RNS
The company news service from the London Stock Exchange
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