Imagination Tech sees royalty revenues and profit soar

Imagination Technologies has reported a 21% increase in sales revenues for the 12 months to 30 April.

The processor developer reported a 69% jump in royalty revenues as sales for the year reached £98m.

Licensing revenue was up 24% as design activity continued.

The number of chips shipped by customers containing the Hertfordshire-based company’s IP almost doubled to 245 million units.

“The almost doubling of the annual unit shipment of devices using our technologies, and strong licensing activities, have again resulted in a substantial jump in full-year revenues and profits,” said Hossein Yassaie, chief executive.

There were significant volume shipments in mobile phone, TV/STB, personal computing/tablets, digital radio & automotive markets.
 
“With well over 500 million devices across numerous categories having shipped to date, approximately half of this volume during the last financial year alone, we now see a revised target of around one billion units for the annual run-rate for our partners’ chips as a reasonable goal within five years,” said Yassaie. 

However, the firm’s consumer digital radio brand, PURE saw revenues decline to £28.2m.

“Despite the current slow-down in consumer spending PURE continues effectively to showcase and drive key technologies. We expect to see an improvement in this division over the medium term, particularly in international markets,” said Yassaie.

The rollout of DAB+ digital radio services in Germany set for August 2011, will be important for the consumer business.

“Whilst acknowledging the on-going challenges to the global economy, we are increasingly confident of our continued good progress in the current financial year and beyond given the very active,” said Yassaie.

Group pre-tax profit increased by over 50% to £16.4m