Imagination Tech warns on profit on licence deal delays

“Imagination Technologies said annual profit would miss forecasts due to delays in signing licensing deals as some of its chipmaking customers diversify from smartphones and tablets into areas like smart technology for cars,” Christine Murray and Paul Sandle report for Reuters.

“Shares in the British firm, whose technology is in Apple’s iPhone and Samsung’s Galaxy S4, fell as much as 27 percent on Thursday as it cut revenue forecasts for the year ended April and for its new financial year,” Murray and Sandle report. “Chief Executive Hossein Yassaie said he was confident the issue would be a short-term phenomenon, related to the ‘lumpy’ nature of licensing revenues, and that demand for its graphics and video processors had not fundamentally weakened.”

Murray and Sandle report, “However, some analysts were concerned by the magnitude of the slowdown in second-half licensing revenues and by the downgrade to forecasts for the new financial year… Shares in Imagination, in which Apple and Intel hold stakes of 8.7 percent and 14.5 percent respectively, were down 19 percent by 1130 GMT to 342 pence, giving it a market valuation of around 924 million pounds.”

Read more in the full article here.

Related articles:
‘Breakthrough Apple product’ looming? Imagination Technologies and TSMC strengthen technology collaboration – March 25, 2013
Apple nearly triples stake in U.K. chip maker Imagination Technologies – June 26, 2009
Apple takes 3.6% stake in mobile system-on-chip maker Imagination Technologies – December 18, 2008

4 Comments

  1. “whose technology is in … Samsung’s Galaxy S4, ”

    New Headline:

    Check of supply chain reveals weakness in demand for Samsung Galaxy; stock tumbles

    How’s that for creative journalism. /s

  2. I wonder which technology company is diversifying into smart technology for cars?
    I wonder if the smart technology for cars requires new hardware that does not need processors particularly from IT?
    I wonder if all the chips for the smart technology for cars is already embedded in the hardware that will then be docked into the cars docking unit?
    I wonder if this is not a report made to shield IT from the fact that it has no other eggs in its basket and is therefor dependent on a very small market base?
    I wonder if wonders will never cease to amaze me?

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.