11th January 2001

Full Year Results Statement FY2012-13

Strong unit shipments resulting in 49% growth in royalty revenue; organisation strengthened for next stage of growth


Imagination Technologies Group plc (LSE: IMG, “Imagination”, “the Group”), a leading multimedia, communications and processor technology company, today announces results for the year to 30 April 2013.

The Group’s partners shipped 700m units consisting of 535m (2012: 325m) from Imagination excluding MIPS Technologies, Inc. (MIPS) and 165m from MIPS in the 12 weeks since the business was acquired on 7 February 2013.

Read the full statement here

Financial Highlights

  • Group revenue up 19% to £151.5m (2012: £127.5m) including £8.2m from MIPS*
    • Technology revenue increased 28% to £125.7m (2012: £98.2m)
      • Royalty revenue up 49% to £95.1m (2012: £63.8m) including £5.6m from MIPS*
      • Licensing revenue of £29.1m (2012: £34.4m) including £2.6m from MIPS*
    • Pure revenues of £25.8m (2012: £29.3m)
  • Adjusted pre-tax profit** of £34.3m (2012: £36.8m)
  • Reported pre-tax profit of £12.2m (2012: £28.5m)
  • Adjusted earnings per share** 9.4p (2012: 10.1p restated***)
  • Reported earnings per share 2.4p (2012: 8.0p restated***)
  • Net cash balance of £45.6m (2012: £60.7m)
    • Net cash included £56.3m held to settle MIPS patent sale tax liability – paid on 14 June 2013

* Reflects revenues from 7 February 2013 to 30 April 2013
** The reconciliation from reported results to adjusted results is set out in Note 3.
*** See note 6.


Business Highlights

Technology business

Royalties and design wins

  • Partner chips shipped 535m units, excluding MIPS (2012: 325m), up 65% – saw substantial growth in H2 to 298m units (H2 2012: 202m)
  • Mobile phone and tablet markets grew very significantly, TV/STB rapidly accelerating with other segments showing steady growth
  • Momentum maintained in chip design win growth with 158 active partner chips (2012: 136); 84 in production (2012: 60)
  • Average royalty rate (excluding MIPS) maintained in H2 despite significant volume ramp-up and strong lower-end handset demand, as high end devices market continues to show good growth
  • Next generation graphics products – Series6 (‘Rogue’) – now shipping


Licensing

  • As announced in our trading update on 2 May 2013 licensing was influenced by transitory market changes and regional consolidations impacting on customer base and timing of deal closure
    • Many new and extended agreements with existing partners including Allwinner, Greenplug, Intel, LG, MediaTek, Realtek, Renesas, Samsung, ST, ST-Ericsson, TI and Toumaz
    • Several new partners added including Entropic, Ineda, Metaio and Socle
  • Over 20 important customer engagements involving around 35 silicon IP (intellectual property) core licenses
    • Including graphics, video, vision, broadcast/connectivity and processor silicon IP cores, as well as V.VoIP (video and voice over IP) technologies
  • Continued active pipeline of prospects across all IP families – multimedia, processor, communications and cloud technologies


Acquisition of MIPS

  • Acquisition for $100m in cash – completed on 7 February 2013
  • Accelerates Group’s presence in the substantial and growing CPU/processor IP market
  • Expands IMG’s broad range of SoC IP
  • 165m units shipped since deal completed
  • Revenue of £8.2m since 7 February 2013, generating a profit of £1m – synergies exceeding prior expectations


Pure business

  • As previously announced the UK and some export markets continue to be tough in the short-term
  • On-going DAB adoption worldwide and growing demand for connected audio
  • Continued strategic development and pathfinding role
    • Focus on development of technologies for digital broadcast, cloud connected devices for home audio streaming and automation
    • New Pure wireless streaming products including Jongo family launched

Hossein Yassaie, Imagination’s Chief Executive said:

“Last year marked a number of key strategic developments by Imagination. We saw a notable jump in unit shipments and we also implemented a programme of significant investment in technologies, people and infrastructure to support our five year growth programme.

“In particular, the MIPS integration is progressing very well and customer reaction to the acquisition and the technology roadmap has been very positive.

“We have established leading positions in two of the fastest growing global markets – smartphones and tablets. In smartphones we are on course to maintain strong market share, whilst we provide the technology for many of the leading tablets.

“We are also well positioned to address the growing requirement for the existing and emerging categories of devices for home entertainment, digital health, automotive, security and utilities markets whilst meeting their ever-expanding range of communication needs.

“We have started the year well and are on course to see over 650m units (excluding MIPS) shipped in the current financial year – another significant step towards our 1bn unit shipment target in 2016.”

Read the full statement here

Enquiries

Imagination Technologies Group PLC
Sir Hossein Yassaie, CEO
Richard Smith, CFO
Tel (today):+44 (0)20 7457 2020
Tel (thereafter): +44 (0)1923 260 511

College Hill
Adrian Duffield/Kay Larsen
Tel: +44 (0)20 7457 2020


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