Imagination Technologies Group PLC Trading and Apple update, planned sale of units (1541E)
04 May 2017 - 4:00PM
UK Regulatory
TIDMIMG
RNS Number : 1541E
Imagination Technologies Group PLC
04 May 2017
4 May 2017
Imagination Technologies Group plc
Year end trading update, Apple dispute resolution procedure and
planned sale of MIPS and Ensigma
Imagination Technologies Group plc (LSE: IMG, "Imagination",
"the Group"), a leading multimedia, processor and communications
technology company, publishes a trading update for the year to 30
April 2017, has commenced a dispute resolution procedure with Apple
Inc. ("Apple") and announces that it intends to sell its MIPS and
Ensigma businesses.
Trading update
The Group finished the financial year strongly with the results
expected to be in line with the Board's expectations, reflecting
the positive effects of the restructuring implemented during the
last 15 months as well as a focus on Imagination's new
priorities.
Dispute resolution procedure
As announced on 3 April 2017, the Group is in discussions with
Apple regarding its commercial relationship.
Imagination has been unable to make satisfactory progress with
Apple to date regarding alternative commercial arrangements for the
current licence and royalty agreement.
Imagination has therefore commenced the dispute resolution
procedure under the licence agreement with a view to reaching an
agreement through a more structured process.
Imagination has reserved all its rights in respect of Apple's
unauthorised use of Imagination's confidential information and
Imagination's intellectual property rights.
Operational update and proposed disposal of MIPS and Ensigma
Since 3 April 2017, the Board has reviewed the composition of
the business.
While the Group has continued to invest in its MIPS and Ensigma
businesses, it has now decided to actively market these businesses
for sale, concentrate its resources on PowerVR and strengthen
Imagination's balance sheet.
MIPS is focused on the embedded processor markets, where it has
a strong position, and completed a number of deals with major
customers during the last financial year. It has continued to see
design wins in networking, routers and DTV/STB and has made good
progress in the mobile LTE modem and industrial IoT markets.
MIPS also has a growing position in automotive through its
relationship with Mobileye and is collaborating with a number of
OEMs and Tier 1 suppliers.
Ensigma offers leading, comprehensive IP licensing for
connectivity in mobile computing, unmanned systems and IoT, with
low power capability. Revenues more than doubled in H1 FY17 driven
by strong licencing activity. This momentum has been
maintained.
MIPS and Ensigma have complementary capabilities in low power,
connected devices providing end to end customer solutions with a
strong security solution.
PowerVR
Imagination's market leading PowerVR business continues to
address attractive growth markets.
The Group has recently launched its new PowerVR offerings in
both the high-end XT and mid-range XE families, representing
significant competitive advances in the PowerVR architecture.
With continued investment, the Group considers PowerVR to be
well placed in mobile, automotive, digital TV/set top boxes and the
rapidly emerging AR/VR market and having the potential to exploit
investments for artificial intelligence in the medium-term.
Imagination will continue to make the appropriate investments in
the PowerVR business.
The Group expects to publish its year end results the week
commencing 3 July 2017.
This announcement contains inside information.
There will be a conference call for analysts and investors at
8:30am UK time today.
Please contact Jessica Bennett for conference call details:
jessica.bennett@instinctif.com
Enquiries
Imagination Technologies Tel: 01923 260 511
Group plc
Andrew Heath, Chief Executive
Officer
Guy Millward, Chief Financial
Officer
Instinctif Partners Tel: 020 7457 2020
Adrian Duffield/Kay Larsen/Chantal
Woolcock
Notes to editors
Imagination is a global technology leader whose products touch
the lives of billions of people across the globe. The company's
broad range of silicon IP (intellectual property) includes the key
processing blocks needed to create the SoCs (Systems on Chips) that
power all mobile, consumer and embedded electronics. Its unique
multimedia, processor and connectivity technologies enable its
customers get to market quickly with complete and highly
differentiated SoC platforms. Imagination's licensees include many
of the world's leading semiconductor manufacturers, network
operators and OEMs/ODMs who are creating some of the world's most
iconic products. See: www.imgtec.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCFMGGKKDFGNZG
(END) Dow Jones Newswires
May 04, 2017 02:00 ET (06:00 GMT)
Imagination Technologies (LSE:IMG)
Historical Stock Chart
From Apr 2024 to May 2024
Imagination Technologies (LSE:IMG)
Historical Stock Chart
From May 2023 to May 2024