Imagination Technologies, the company that designs microchips used in Apple’s iPad and iPhone, seems to have doubled their prediction towards mobile chip shipments. By 2016, this company expects more than 1bn shipped a year, way up from a previous forecast of 500m.
The company which is based in Hertfordshire UK, specialised on designs the chips for the graphics that powers the display screens of smartphones and tablet computers, on Wednesday said the fact that 245m chips utilizing their blueprints have already been shipped in the year to the end of April.
Imagination falls despite upbeat forecast - Mar-16
Imagination buys Caustic in graphics chip push - Dec-14
Imagination to license chips to telecoms - Dec-14
Imagination chief urges UK to nurture IT - Oct-11
Imagination more than trebles profits - Jun-24
Apple raises Imagination Technologies stake - Jun-26
This is nearly double the quantity previous year and also has prompted Imagination to revise sharply its medium-term forecasts.
“Our licensing pipeline is very strong so I think this is a reasonable goal,” said Hossein Yassaie, chief executive. “When we set a 200m unit target in 2008 we were only shipping 10m units and a lot of analysts thought I was mad. But we have passed that now.”
Chips for mobile phones account for about 80 per cent of Imagination’s royalties, but Mr Yassaie said that television set-top boxes, tablet computers and cars were increasingly using the technology.
Revenues at the company increased 21 per cent to £98m, while pre-tax profits rose more than 60 per cent to £16.4m. Earnings per share were up 32 per cent at 7.4p.
Some analysts were disappointed, however, that the average royalties Imagination gets from each chip was only 27 cents compared with market expectations of 30 cents.
In spite of strong growth for smartphone and tablet sales, Imagination faces increasing competition from companies such as Qualcomm, Nvidia and Arm, which will keep royalty rates under pressure, said Adrien Bommelaer, analyst at Matrix Corporate Capital.
Imagination’s results were also held back by its unprofitable Pure Radio division, which makes DAB digital radios. Revenues at the unit fell 16 per cent to £28.2m and operating losses widened to £3.8m.
However, Mr Yassaie said he was not thinking of selling the Pure business, which he sees as a useful showcase for Imagination’s technology products.
Shares in Imagination, which have gained nearly 40 per cent over the past year, fell 18½p to 414½p on Wednesday.
The company which is based in Hertfordshire UK, specialised on designs the chips for the graphics that powers the display screens of smartphones and tablet computers, on Wednesday said the fact that 245m chips utilizing their blueprints have already been shipped in the year to the end of April.
Imagination falls despite upbeat forecast - Mar-16
Imagination buys Caustic in graphics chip push - Dec-14
Imagination to license chips to telecoms - Dec-14
Imagination chief urges UK to nurture IT - Oct-11
Imagination more than trebles profits - Jun-24
Apple raises Imagination Technologies stake - Jun-26
This is nearly double the quantity previous year and also has prompted Imagination to revise sharply its medium-term forecasts.
“Our licensing pipeline is very strong so I think this is a reasonable goal,” said Hossein Yassaie, chief executive. “When we set a 200m unit target in 2008 we were only shipping 10m units and a lot of analysts thought I was mad. But we have passed that now.”
Chips for mobile phones account for about 80 per cent of Imagination’s royalties, but Mr Yassaie said that television set-top boxes, tablet computers and cars were increasingly using the technology.
Revenues at the company increased 21 per cent to £98m, while pre-tax profits rose more than 60 per cent to £16.4m. Earnings per share were up 32 per cent at 7.4p.
Some analysts were disappointed, however, that the average royalties Imagination gets from each chip was only 27 cents compared with market expectations of 30 cents.
In spite of strong growth for smartphone and tablet sales, Imagination faces increasing competition from companies such as Qualcomm, Nvidia and Arm, which will keep royalty rates under pressure, said Adrien Bommelaer, analyst at Matrix Corporate Capital.
Imagination’s results were also held back by its unprofitable Pure Radio division, which makes DAB digital radios. Revenues at the unit fell 16 per cent to £28.2m and operating losses widened to £3.8m.
However, Mr Yassaie said he was not thinking of selling the Pure business, which he sees as a useful showcase for Imagination’s technology products.
Shares in Imagination, which have gained nearly 40 per cent over the past year, fell 18½p to 414½p on Wednesday.
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