“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.
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