Imagination Technologies Group Plc (IMG.L), which designs chips that power Apple Inc.'s (AAPL) iPhone and iPad, Tuesday reported a significant increase in fiscal 2012 profit on higher royalty and licensing revenue, boosted by strong demand for its technologies.
Looking ahead, Chief Executive Hossein Yassaie said that the full exploitation of many of its key technologies is still at a relatively early stage in many markets. The shares are currently trading around 8 percent lower on the London Stock Exchange.
The company noted that smart phone market is forecast by industry analysts to grow over three times by 2015 reaching an annual volume of around 1.5 billion units, while the company, with its existing partnerships, believes that a market share goal of over half of the total smart phone market by 2015 and beyond, is a reasonable and realistic goal.
The company also expects that the fast-growing tablet market will make a notable contribution to its progress.
"We believe that these facts as well as our growing partnerships with respect to our other key complementary technologies .... across several diverse markets will create the demand for the Group to achieve the target of around 1 billion per annum unit shipments by 2016," the company said.
For the full year, the chip designer reported a 74 percent increase in pre-tax profit to 28.5 million pounds, and adjusted pre-tax profit climbed 53 percent to 36.8 million pounds. Adjusted earnings per share increased to 11.0 pence from 7.90 pence per share reported for the previous year.
Group revenue increased 30 percent to 127.50 million pounds with strong demand for technologies. In the year, technology revenues were benefited by improved royalties and licensing revenues.
Partners' chip shipments increased 33 percent to 325 million units as more of its customers started shipping devices. The company said the unit volume shipment was at the higher end of expectations demonstrating the strength and growing diversity of the SoC design wins.
For Pure, the strong growth in overseas markets helped offset the impact of the tough UK market and resulted in growth in revenues, while its adjusted operating loss widened due to difficult trading conditions.
Total gross margin climbed driven by the strong progress in the very high margin Technology business.
Imagination added that it has maintained its momentum and performed very well during the year and is now in a fundamentally stronger position.
In a separate statement, Imagination said it has appointed Gilles Delfassy as an independent non-executive director with immediate effect.
Imagination shares are currently trading at 450.20 pence, down 35.60 pence or 7.33 percent in London.
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by RTT Staff Writer
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