Seven new agreements concluded in the second half of 2003/4 totalling $16.7m (£9.5m)
Four new partners signed; Philips, Samsung, SEGA, Sunplus
Extensions signed with three existing partners, including new market areas.
Since announcing our interim results in November 2003, we have made significant progress in licensing the range of technologies from our PowerVR, Metagence and Ensigma divisions to industry leading partners.
As we mentioned in our interim statement, whilst industry conditions remained tight in the first half of the year they were steadily improving and we have seen marked progress in the second half with the closure of licensing and customisation business of $16.7m (£9.5m) in this period. Seven agreements have been concluded in the second half; four of these have been with new partners Philips, Samsung, SEGA and Sunplus – and three are repeat business from existing partners, including the extension of some of those relationships into new market areas such as Digital TV. Five of the top 10 semiconductor companies, including the top four, now license our IP: Intel, Philips, Renesas, Samsung and Texas Instruments (“”TI””).
Alongside this broadening partnership base, the number of chips committed by partners utilising our technology has increased from 14 in November to 20 today. Whilst royalty revenues in the 03/04 financial year have been modest with only one chip, Frontier Silicon’s Chorus processor, shipping throughout the year, royalty revenue flows will start to increase as our partners’ chips progressively come to market through 2004 and 2005. In addition to the Chorus processor, which continues to dominate the digital radio market, we have recently seen Renesas announcing the launch of a SoC for the in-car market as well as TI revealing details of two SoCs in its OMAP2 architecture for the mobile market. We will see further product announcements by our partners on an on-going basis. Chips utilising our IP are expected to achieve considerable penetration in a wide range of markets; digital radio, digital TV, PDA, mobile phone, in-car navigation/entertainment, slot machines and arcade.
We have continued to see revenue growth from our PURE Digital division, which has now established itself as a leading supplier of digital radio products.
The increased technology business as well as the continued success of the PURE Digital division has resulted in an improved financial performance for the group in the second half, compared to the first half.
Imagination Technologies’ preliminary results will be announced on 20 May 2004.