Royalty growth remains strong for Imagination

 
Oliver Smith
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IMAGINATION Technologies, the British graphics and microprocessor maker that counts Apple among its customers, said yesterday that its outlook for licensing revenue and royalty growth remain strong for the year.

The company reaffirmed their guidance of £30m to £35m in licensing

revenue, excluding the MIPS business that it acquired last year for $100m (£62.8m).

“Our strong technology base, partner engagements, design wins achieved, and growing opportunities, give me confidence that we will continue our planned progress,” said Imagination chief executive Hossein Yassaie.

Unit shipments for the year for 2014 are expected to be in excess of 650m, driven by new smartphones and tablets, as well as internet-connected televisions from LG and Sony.

Imagination Technologies provide the graphics chips that drive Apple’s iPhone range of phones. Last week Apple unveiled the iPhone 5s which uses Imagination’s next generation Rogue chip. And also last week, Imagination Technologies extended its multi-year licensing deal with chipmaker MediaTek, which boosted the group’s share price.

Shares in Imagination Technologies fell nearly three per cent yesterday, closing at 334.6p.