24th May 2006 07:01
Imagination Technologies Group PLC24 May 2006 Imagination Technologies Group plc 11.9 million partner chips shipped; up from 2.5 million Imagination Technologies Group plc, leading provider of System-on-Chip (SoC)Intellectual Property (IP), today announces preliminary results for the twelvemonths to 31 March 2006 Business Update • Royalties • 11.9 m partner chips shipped (2005: 2.5m) • Mobile phones from NEC, Fujitsu, Mitsubishi, Panasonic, Sony-Ericsson, Sharp, Motorola, SKY and others in the pipeline • 70% DAB market share - Sony, Philips, Sharp, Roberts, PURE • Leading position in 3D car navigation system market • First shipments - Sharp LCD TV and Samsung mobile TV handsets • Partner design wins up 43% to 40 SoCs (2005: 28) - 13 devices now shipping• Licensing • Nine major new licensing/customisation agreements - includes 3 PowerVR SGX licensees - Intel, Renesas and NEC • Now have 7 out of the top-ten semiconductor companies as licensees• PURE Digital • Maintained leadership position through broadened product range, full product ranging at leading retailers, strong Christmas period and overseas growthFinancials• Group revenue up 15% to £35.3m (2005: £30.6m) • Royalty revenues up over 300% to £5.6m (2005: £1.3m) • Improved outlook for licensing business in H2 with order book of £6.0m carried forward • Strong year for PURE Digital - 25% revenue growth to £20.7m and £1.4m profit• Gross profit increased to £19.0m (2005: £17.6m) - margins at 54%• Loss before tax £6.9m (2005: loss £6.4m)• Cash reserves £6.4m (2005: £7.7m) Geoff Shingles, Chairman, commented: "During the last year our business has begun to demonstrate its real strength inachieving volume and royalty growth across a number of partners and markets. Wehave seen partner chip unit shipments more than quadruple, to 11.9m units, withroyalties also dramatically up for the year. Also as the number one supplier inthe digital radio/audio market, PURE Digital has become a major force in thedigital radio/audio market with significant revenue growth during last year. "The considerably more active pipeline of licensing opportunities in recentmonths, together with the significant existing order book, gives us confidencethat our technologies will continue to be needed by both existing and newpartners. In the current financial year we expect to see increasing engagementsin mobile multimedia, mobile TV, digital radio/audio and next generation TVpartnerships. It still remains difficult to precisely forecast the timing ofthese new engagements and the resulting level of licence revenues in a givenperiod. "However we are confident of another strong performance from royalties and PUREDigital as well as the upward trend in partner chip design wins, which are thebase for medium term royalty revenues, to continue." 24 May 2006 Enquiries:Imagination Technologies Group plc Tel (today): 020 7457 2020Geoff Shingles, Chairman Tel (thereafter): 01923 260 511Hossein Yassaie, CEOTrevor Selby, CFO College Hill Tel: 020 7457 2020Nick Elwes/Adrian Duffield Operational and Financial Review Overview The growth momentum of our partners' chip unit shipments has continued duringthe second half resulting in a full-year volume of close to 12 million units,more than quadrupling the previous year's unit shipment of 2.5 million units.This continued rapid growth has been driven by the build up of production ofexisting customer SoCs, together with the start of production of new ones, inmobile multimedia, digital radio and car navigation, as well as the firstshipments in the LCD TV and mobile TV markets. The number of partner devices nowin production has almost doubled to 13 compared to 7 at the end of 2004/5financial year. During the year we have also increased our SoC design wins with partners. Weestimate that the overall chip design wins now stand at around 40 up over 40%since the beginning of the year. We expect continued success in growing partnerSoC design wins as existing customers continue to deploy previously licensed IPand start using our latest IP cores in more devices, and also as new partners'license our IP. This growth in SoC design wins is expected to drive continuedroyalty growth downstream. We concluded major new and/or extended licensing agreements during the year withseveral existing partners including Intel, Renesas, Sharp, Philips and Sunplus.Additionally, important new partners, NEC and Centrality, were also signed up inthe year. A number of these agreements were of significant strategic importance,with considerable scope for future expansion and royalty income. However,overall licensing revenue was lower than expected. Among the key reasons were ageneral industry slow-down during the first half of the financial year, thebeginning of the transition to next generation graphics technology and itsassociated impact on partner decision processes, and the early stage nature ofthe market in mobile TV. Given the progress in customer engagement made during the second half of 2005/6,the market relevance, and relatively early stage of exploitation of many of ourtechnologies, and the on-going strong interest from prospective customers, thereis real potential for growth in licensing revenues. Although, given the natureof the IP licensing business and the complex nature of partners' decision makingprocesses, it remains difficult to predict this aspect of revenues accuratelyfor any given period. PURE Digital, our systems business, grew significantly during the year to recordlevels with revenues 25% higher than last year's. The business has maintainedits position as number one supplier in the digital radio market with acomprehensive product range and a highly recognised brand. This success, whichwe expect to continue, was driven by a combination of the broadening PUREproduct portfolio, full ranging with leading retailers and a strong Christmasperiod for this business. Financial Review In the year ended 31 March 2006, group revenues were £35.3m, a 15% increase onlast year (2005: £30.6m). This was made up of technology business revenues,comprising royalties and licensing, of £14.6m, up 4% on last year (2005: £14.1m)and systems business revenues of £20.7m up 25% (2005: £16.5m). Within the technology business revenues, there was very strong growth in royaltyrevenues which increased over 300% to £5.6m (2005: £1.3m), based on the shipmentof 11.9 million chips (2005: 2.5 million) incorporating our technology. Duringthe year, the volume has accelerated, with 8.7 million chips shipped in thesecond half compared to 3.2million in the first half. Whilst strategicallyimportant license deals were also closed with several major partners, overalllicensing revenue was lower than last year at £9.0m (2005: £12.8m). With theimproved licensing activities during the second half, an order book of £6.0m oflicensing and support revenue has been carried forward at the end of the year,the majority of which is expected to be recognised in the current financialyear. The expected strong second half for PURE Digital materialised with revenue forthis period up 85% on the first half and 37% up on the corresponding period lastyear. Overseas sales now account for around 10% of revenue, with the DAB marketsin Scandinavia, Benelux and Switzerland now developing. Gross profit for the year was £19.0m, an 8% increase on last year (2005:£17.6m). The gross margin was 54% for the year, the reduction from 58% last yearprimarily accounted for by the higher proportion of revenues from the PUREDigital business. Research and development expenses increased by 7% to £20.7m (2005: £19.4m). Thisincrease was significantly less than that of the previous year of 20% when amuch larger investment was needed at the time in support of new technologydelivery. R&D investment is critical to ensure that our IP developmentprogrammes, particularly the PowerVR SGX graphics/video technology and our METAand Ensigma based mobile TV platform and TV technologies, stay on schedule tomeet market requirements. In addition, it is important to ensure that there areadequate resources to support our growing customer base to exploit ourtechnologies and generate future royalties. Sales and administrative costs were£5.5m (2005: £5.0m); this included additional investment in overseas businessdevelopment resources. The loss before tax for the year of £6.9m (2005: loss £6.4m) reflects theincreased investment in research and development which has offset the growth ingross profit. In comparison to the first half, the increased royalties andstronger performance of systems business significantly reduced the second halfloss before tax by over 50% to £2.1m. The company no longer qualified in theyear to receive a Research and Development tax credit in the form of a cashrefund and therefore we have incurred a tax charge of £0.5m on overseas earningswhich compares to a tax credit of £0.8m for last year. Working capital showed an increase of £4.4m compared to March 2005 due to somebuild up of stock for PURE Digital and also increased debtors. The latterresulted from the increased royalties and licensing billings at the end of year;the first quarter of the current financial year will benefit from these cashreceipts. Capital spend in the year of £1.5m was lower than last year (2005:£2.6m). The operating cash outflow of £10.1m in the year was offset by the £9.1mraised in July 2005 by the placing of 15.0m shares. However, with the on-goingincrease in royalties, the operating cash outflow in the second half wassignificantly reduced to £2.5m. Cash resources at March 2006 were £6.4m (March2005: £7.7m). Business Update Overview Technology Business The key elements and drivers for our technology business are: i- Partner SoC volume shipments which drive today's royaltiesii- New SoC design wins which result in deployment of our IP in silicon products and drive royalties in 1.5 to 2 yearsiii- Licensing our IP to existing or new partners which drives market penetration of our IP through new partner SoCs The progress during the financial year and outlook for each of these elements isas follows: Partner SoC Volume Shipment and Target Markets We started the year with seven partner SoCs in production or shipping acrossfour key markets; one in digital radio (Frontier Silicon), three in mobilemultimedia (Renesas and Intel), two in car navigation (Renesas) and one in STB/TV (Frontier Silicon) segments. During the year the number of partner devices inproduction or shipping has risen to 13 which includes four new devices in themobile phone segment (Texas Instruments, Renesas, Philips, Freescale), one T-DMBmobile TV device (Frontier Silicon) and the first Sharp TV SoC for LCD TVs. Thegrowing number of partner SoCs has in turn driven the dramatic increase in thevolume of SoCs shipped during the year. At the beginning of the year, in the mobile phone/handheld segment, threehandsets based on our PowerVR graphics were shipping as well as the DELL PDAs.The number of announced handsets and mobile devices using our PowerVR technologyhas now risen to well over 25. These include well over 10 DoCoMo FOMA 902i and902iS handsets from NEC, Fujitsu, Mitsubishi, Panasonic, Sony-Ericsson, andSharp using OMAP2 or SH-Mobile application processors; three recently announcedDoCoMo 702iD handsets from Panasonic, Sharp and Mitsubishi also based on eitherRenesas or TI OMAP devices; the Motorola MS550 and SKY IM-8300, based onSH-Mobile shipping in Korea; the Helio Hero, based on SH-Mobile just shipping inUSA; and Sony Ericsson P990, M600, W950 handsets, as well as the recentlyannounced M608 (targeting the Chinese market), based on Philips Nexperia PNX4008device. Many of these are yet to start shipping but they provide increasedconfidence that royalty in this market segment should increase significantly. We expect further handset design wins and/or launches over the current financialyear including major handset suppliers in key markets such as Japan, Korea,China, Europe and the US. The mobile phone market is fast approaching 1 billionunits per year and we continue to believe that over time more than 50% of thismarket is a very relevant target for mobile graphics and multimediatechnologies. Given that our existing semiconductor partners include themajority of the world top ten, we have the potential to benefit significantly asthis market develops. In the digital radio market we continue to have over a 70% market share via ourpartnership with Frontier Silicon, whose Chorus device has been selected by manymanufacturers including top brands such as Sony, Philips, Sharp, Roberts andPURE Digital. Currently over 130 shipping end-user products are using ourtechnology. We expect new shipments in the UK DAB market to exceed 2.5 millionunits in 2006 and reach close to 6 million by 2008. In the car navigation market, the vast majority of the new 3D-based navigationsystems in Japan use the Renesas NaviCore family of chips which deploy ourPowerVR technology. This market is now transitioning from an 'after-market' to'factory-fit' which is driving increased volume. The 2005 market size for carnavigation was around 4 million units for the Japanese market, which tends todemand advanced technologies first. Already 25% of shipping end-user products inthis market have migrated to 3D-based solutions and the trend is continuing withmost of the new designs adopting 3D technology. The worldwide car navigationmarket, which generally takes its lead from Japanese trends, is currently around9-10 million units however over time a car navigation system is expected tobecome a standard feature in every car, leading to bigger volumes for thismarket. Additionally the trends towards virtual dashboards using LCD technologyand synthesized 3D-graphics are accelerating within the car industry and willfurther grow this market. The additional major multiple-use licenses closedrecently with Renesas and another significant new partner targeting this marketare endorsements of our offerings and are expected to further strengthen ourposition in this market. With our initial lead partner activities in the set-top and TV markets wellunder way our TV technologies are now attracting more interest from key players.Our early generation technologies were originally deployed by Frontier SiliconSoC targeting the set-top market and shipped in a number of Freeview boxes. Ourpartnership with Sharp, which has licensed our TV platform for use in its LCD TVproducts, continues. Sharp is a leader in the LCD TV market with a market shareof around 40% in Japan and 20% worldwide in this segment. The first SoCdeveloped through this partnership entered production recently leading to thefirst LCD TV shipment in Japan. The worldwide market for LCD TV in 2005 reached17 million. The forecasts from key industry players suggest that the LCD TVmarket will exceed 100 million units by 2010. In addition to the relationshipsabove, certain of our IP cores, including graphics, are also being designed inby our other semiconductor partners targeting the TV market. We expect furtherprogress in existing lead partner activities and also the securing of newpartners in this market as our technology base matures and broadens. The scalability and flexibility of our software-defined radio technology basedon our UCC and META IP has enabled us to very effectively adapt thesetechnologies to mobile TV in addition to the digital radio and TV segments. Weare one of the very first companies with digital mobile TV technologiesimplemented in silicon and shipping in the market. The Samsung T-DMB mobile-TVproduct, the B2300, is already shipping in Korea and will be followed by theSamsung SGH-P900, a T-DMB handset for Europe, which is being released tocoincide with this year's FIFA World Cup in Germany. We have this yearintroduced the Vigo and Kurosawa IP platforms for multi-standard mobile TVreception. Multi-standard support is increasingly in demand in this market dueto the proliferation of competing local standards. Vigo has already beenlicensed by Frontier Silicon and is the basis of its recently announced Paradisochip. New SoC Design Wins We have seen continued growth in the number of committed partner SoCs that useour technologies. This growth underlines our medium to long-term royalty revenuestream as these new design wins progress through development and launch. Acrossthe mobile phone, TV, mobile TV, digital radio/audio, car navigation, andamusement market segments, we now have a total of around 40 partner SoCscommitted by partners, up from 28 at the same time last year. Thirteen of theseare now in production and shipping with some only recently reaching this stage. The target markets for the 40 committed partner SoCs are: 20 in mobile phone/PDA, seven in STB and TV, two in digital radio, six for car navigation/information, two in amusement and three for mobile TV segments. These devicesconstitute a strong basis for both our participation in the relevant markets andcontinued future growth of royalty revenue as volume ramps up and more devicesenter into production. We expect the number of shipping devices to increase from13 to over 20 by the end of 2006/7. Given our partners' activities in deploying the IP that they have alreadylicensed from us and also the ongoing active and strong pipeline of newlicensing discussion, we expect the number of partner SoC design wins tocontinue its steady growth in the current year. Licensing and Customisation Progress For the year to 31 March 2006, we concluded nine major new licensing/customisation agreements across the mobile, TV, digital radio and car navigation/information segments. Intel was the first lead partner to license PowerVR SGX, our new generation ofprogrammable multimedia technology. This technology sets the benchmark forprogrammable graphics and video solutions and provides scalability acrossmobile, consumer, and computing segments. During the last year two other top tensemiconductor companies, Renesas, an existing PowerVR MBX licensee, and NEC, anew partner, also licensed the Power SGX technology. As a result we now haveseven out of the top ten semiconductor companies who have selected PowerVRtechnology. We are seeing strong interest from other existing and new partnersfor PowerVR SGX and expect it to secure further market penetration.Additionally, we concluded further licensing agreements for the PowerVR MBXfamily with both existing partners Renesas, Philips, and Sunplus and new partnerCentrality for a variety of markets including mobile, car navigation, consumerand toys. We expect further licensing agreements for PowerVR MBX in the currentyear as some of our partners extend their license and also as second tiercustomers identify demands for such technology in their products. We alsoextended our relationship with Sharp which is focussed on the TV segments. A number of factors impacted the level of progress in new license closure duringthe year. There was some slow down in the industry in the first half, whichimpacted the decision making process on new technologies, however this has beenfollowed by a pick-up in the second half. More specific to our business, thiswas compounded by uncertainty over the adoption of new graphics standards suchas OpenGL ES 2.0 and OpenVG. This situation became clearer towards the end oflast year and accelerated our discussions with partners. The early nature ofmobile TV market has meant that the decision and review cycles at our potentialcustomers have tended to be longer than normal. Again, the trends andrequirements of this market are now becoming clearer which is helping toprogress our licensing discussions and activities. In particular, the clearindication that the mobile TV market will require support for multi-standards(DVB-H/MediaFLO in USA, T-DMB/DVB-H in Europe, 'One Seg' ISDB-T in Japan andT-DMB/DMB-T in Korea and China) means that, through our programmable softwaredefined radio technology based on Ensigma UCC and META, we are now in a uniqueposition of being able to supply such a multi-standard solution. In addition,our activities in the TV market have to date been at a relatively early stagewith engagement only with lead partners. We expect this area to develop andresult in further important partner engagement during the current year. Overall, the growing customer engagements and serious discussions over the pastsix months have significantly strengthened our opportunity pipeline. This hasinvolved both existing and new technologies and is helping to drive futurelicensing business. The key areas that we are seeing strong and activeengagements in are mobile multimedia (graphics/video), TV, mobile TV, carnavigation, and digital radio/audio markets. Additionally, as we said at the end of last financial year, we have completedthe establishment of a small but effective marketing and sales team in the USwhich is beginning to bear fruit with new opportunities. Similar steps have beentaken in Taiwan and we expect to be taken in Korea to ensure we are able toservice the growing interest in our technologies from all key regions. PURE Digital During the year, PURE Digital has maintained its leadership of the DAB marketthrough a strategy aimed to address three key goals. Firstly, it has continuedto deliver products which provide advanced and novel features, taking advantageof the digital nature of DAB and the emergence of digital audio. In this regardit has launched new or enhanced products with features such as pause/rewind/record, digital storage (SD Card), MP3 integration, USB upgradeability, EPG(Electronic Programme Guide) and more recently teletext-style capabilities(IntellitextTM). EVOKE-3 for example brings many of these advanced featurestogether in an elegant and iconic design with industry-leading sound quality. Secondly, it has diversified the product range beyond portable/kitchen radiosenabling other traditional consumer audio segments with DAB while increasingusability and other advanced features. Specifically PURE's new micro systemproduct, DMX-50, integrates many advanced features as well as CD, MP3 anddigital storage making it an industry leading step in this segment. Thirdly, PURE has also ensured it enables quality low-cost products formainstream markets so that its brand can secure maximum shelf space and reachmost consumers. The recently launched PURE ONE at £49 has been receivedextremely positively and has attracted strong demand. This product offers theIntellitext technology which has gained strong industry support frombroadcasters, including services targeting World Cup news coverage. As a result, PURE Digital sales have been growing, and in particular it enjoyeda strong Christmas period, and now has over 25% market share in UK, volumeshipments increasing accordingly as the digital radio market becomes mainstream.European shipments have been steadily increasing and now account for around 10%of PURE Digital's business; we expect these to grow further as the digital radiomarkets in these regions develop. In the UK, all major stores and retailersincluding John Lewis, Argos, Dixons, Comet, and Tesco now sell PURE Digitalproducts. Additionally, PURE Digital's range was selected by M&S as it entersthe consumer electronics markets with quality products. Outlook and the Future With the growth in partner chip volume close to 12 million units and royaltyrevenues to £5.6m, the real strength of our business has begun to bedemonstrated during the last year. We expect this unit shipment and royaltygrowth to continue with increased volume from existing shipping devices,end-products already announced starting to ship, and future partner SoCintroductions continuing. Similarly, we expect PURE to continue its progress in the digital radio/audiomarket as its innovative and leading products continue to be selected byretailers and digital radio technology becomes a de facto feature in most homeaudio and music systems. Our fundamental technologies have been designed to effectively address a numberof key emerging and growing markets. We have our graphics/video and mobile TVtechnologies now deployed in a growing number of handsets from most of the keyglobal players. This is complemented by continued growth in digital radio/audioand car navigation/information markets where we have already achieved leadingpositions, and now by the initial LCD TV shipments in Japan and mobile TVshipments in Korea which use our technologies. Whilst we expect a significantly more active year for licensing opportunities,it remains difficult to precisely forecast the timing and the associated levelof revenues. However, ongoing customer discussions and the resulting activepipeline of licensing opportunities are giving us confidence that ourtechnologies will continue to be adopted by existing and new partners. In the current financial year we expect to see increasing engagements in mobilemultimedia, mobile TV, digital radio/audio and next generation TV partnerships.In support of this we have, in the current financial year, recently signed a newimportant licensing agreement with our partner Freescale which, together withthe £6.0m licensing order book brought forward from last financial year,provides a sound base for licensing revenue growth in the current financialyear. Hossein Yassaie Chief Executive 24 May 2006 Preliminary Results for the twelve months to 31 March 2006SUMMARISED CONSOLIDATED INCOME STATEMENT Year to Year to 31 March 31 March 2006 2005 £'000 £'000 Revenue 35,273 30,583 Cost of sales (16,231) (12,947) Gross profit 19,042 17,636 Research and development expenses (20,649) (19,381)Sales and administrative expenses (5,549) (4,953)Total operating expenses (26,198) (24,334) Operating loss (7,156) (6,698) Financial income 329 299Financial expenses (43) (39)Net financing income 286 260 Loss before taxation (6,870) (6,438) Income Tax (490) 805 Loss after taxation (7,360) (5,633) Loss per share - basic and diluted (3.7p) (3.0p) During this and the previous year all results arise from continuing operations. CONSOLIDATED STATEMENT OF RECOGNISED INCOME AND EXPENDITURE Year to Year to 31 March 31 March 2006 2005 £'000 £'000 Loss for the financial year (7,360) (5,633)Exchange differences on translation of 2foreign operations 2Total recognised income and expense for (7,358) (5,631)the financial yearEffective change in accounting policy:Effect of adoption of IAS32 and IAS39 on 1 5,542 -April 2005 (1,816) (5,631) The gain on currency translation arises on the retranslation of overseassubsidiaries. SUMMARISED CONSOLIDATED BALANCE SHEET At 31 March 2006 At 31 March 2005 £'000 £'000Assets Non-current assetsIntangible assets 4,675 4,949Property, plant and equipment 3,712 3,747Investment 6,155 613 14,542 9,309Current assetsInventories 3,445 2,332Trade and other receivables 9,254 7,192Cash and cash equivalents 6,384 7,670 19,083 17,194Current liabilitiesTrade and other payables (6,896) (8,111) Net current assets 12,187 9,083 Non-current liabilitiesLong-term borrowings (557) (588) Net assets 26,172 17,804 Equity Called up share capital 20,706 18,905Share premium account 44,472 36,415Other capital reserve 319 313Warrant reserve 1,104 1,111Merger reserve 2,402 2,402Revaluation reserve 5,542 -Translation reserve 4 2Retained earnings (48,377) (41,344)Total equity 26,172 17,804 SUMMARISED CONSOLIDATED CASH FLOW STATEMENT Year to Year to 31 March 2006 31 March 2005 £'000 £'000Cash flows from operating activities Loss before tax (6,870) (6,438) Adjustments for: Depreciation and amortisation 1,757 1,885 Net financing income (286) (260) Loss/(gain) on sale of property, plant & 5 (104)equipment Share-based remuneration 327 172Operating cash flows before movements in working (5,067) (4,745)capital (Increase) in inventories (1,113) (329) (Increase) in receivables (1,993) (2,609) (Decrease)/increase in payables (1,539) 2,305 Cash generated by operations (9,712) (5,378) Interest paid (43) (39)Taxes (paid)/ received (304) 805 Net cash flows from operating activities (10,059) (4,612) Cash flows from investing activitiesInterest received 260 216Acquisition of intangible assets (346) (321)Acquisition of property, plant and equipment (1,216) (2,164)Proceeds on disposal of property, plant and 344equipment 6Net cash used in investing activities (1,296) (1,925) Cash flows from financing activitiesProceeds from the issue of share capital 9,857 7,172(Repayment of)/ proceeds from borrowings (31) 614Net cash from financing activities 9,826 7,786 Net (decrease)/ increase in cash and cash equivalents (1,529) 1,249Effect of exchange rate fluctuation 243 (77) Cash and cash equivalents at the start of the 7,670 6,498period Cash and cash equivalents at the end of the 6,384 7,670period NOTES 1. The above Profit and Loss Accounts and Balance Sheets are an abridged statement of the full Group accounts for the years ended 31 March 2006 and 2005, on which the reports of the Auditors, KPMG Audit PLC, are unqualified and which did not include a statement under Section 237(2) or 237(3) of the Companies Act 1985. The Statutory Accounts will be filed with the Registrar of Companies in due course. The 2005 Statutory Accounts have been filed with the Registrar of Companies. 2. Segmented Reporting With effect from 1 April 2005, the Group has operated as two business segments; the Technology business, comprising licensing and royalty revenues, and the Systems business. The segment information in respect of these businesses is presented below. Figures for the year to 31 March 2005 are shown for comparison purposes. Year to Year to 31 March 2006 31 March 2005 £'000 £'000Revenue Technology business 14,624 14,079 Systems business 20,649 16,504 35,273 30,583 Operating profit Technology business (8,545) (7,482) Systems business 1,389 784 (7,156) (6,698) Total assets Technology business 20,610 13,090 Systems business 6,631 5,743 Unallocated 6,384 7,670 33,625 26,503Total liabilities Technology business 4,450 3,285 Systems business 2,446 4,826 Unallocated 557 588 7,453 8,699Other segment itemsCapital expenditure Technology business 1,168 2,478 Systems business 291 114 1,459 2,592Depreciation and amortisation Technology business 1,554 1,770 Systems business 203 115 1,757 1,885 Revenue is segmented by geographical area of sales as follows:- Year to Year to 31 March 2006 31 March 2005 £'000 £'000Revenue United Kingdom and Europe 23,491 20,251 Asia 5,561 4,343 North America 4,978 4,628 Rest of the world 1,243 1,361 35,273 30,583 All revenue originated from United Kingdom and Europe. The operating loss and net assets of the Group materially relate to the UnitedKingdom and Europe. 3. The Directors do not propose the payment of a dividend. 4. The taxation charge for the period relates to tax deducted at source on overseas earnings not recoverable in the period. In the year to 31 March 2005, there was a tax credit for the financial period due to a Research and Development tax credit of £1,096,000 which offset the tax deducted at source on overseas earnings not recoverable in the period. No corporation tax charge has arisen due to accumulated tax losses. 5. Loss per share The basic earnings per share for the financial periods reported have been calculated on the weighted average number of shares in issue as shown in the table below. The diluted earnings per share has been calculated on the weighted average number of shares potentially in issue. There were no potentially dilutive ordinary shares in issue at 31 March 2006. Year to Year to 31 March 2006 31 March 2005 Loss attributable to (£7,360,000) (£5,633,000)shareholders Weighted average number of 200.8m 186.8mshares in issue 6. Copies of the Group's full Report & Accounts will be sent to shareholders by 4th July 2006. Additional copies will be available from the Company's registered office, Home Park Estate, Kings Langley, Hertfordshire WD4 8LZ. 7. The Annual General Meeting of Imagination Technologies Group plc will be held at Imagination House, Home Park Estate, Kings Langley, Hertfordshire WD4 8LZ at 11.00am on 26th July 2006. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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