5th Jul 2016 06:46
LONDON (Alliance News) - Chipmaker Imagination Technologies Group PLC on Tuesday said it swung to a loss amid the restructuring undertaken over the year to the end of April, while revenue also declined.
Imagination said it made a pretax loss of GBP63.2 million in the financial year to April 30, swung from a GBP2.2 million profit a year earlier. The loss was driven by exceptional charges booked for restructuring within the group to cut costs and refocus activities.
Imagination is seeking to sell its Pure consumer electronics business, as well as other non-core activities, as it focuses on its graphics & multimedia, processing, and connectivity chips businesses.
Revenue fell to GBP120.0 million from GBP156.8 million the year prior, with licensing revenue more than halving and royalty revenue lower. Imagination said it anticipates this will improve in the current financial year and said it was seeing good demand for licences for its core technologies.
"As previously indicated in our trading update in May, the last year has been particularly challenging for Imagination. The results reflect a combination of difficult trading conditions and a significant restructuring of the business. However, we have now taken the necessary action to put Imagination back onto a sound financial footing," said Chief Executive Andrew Heath.
"Despite recent trading challenges, I see a bright future for Imagination. The market for our IP remains large. We now have a sound financial position and have maintained our strong positions with leading customers. Overall we are well positioned to take advantage of a number of attractive end markets and deliver profitable growth," he added.
By Sam Unsted; [email protected]; @SamUAtAlliance
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