Imagination Revenue Up On Currency, Connectivity, Shares Jump
December 06 2016 - 7:02AM
Dow Jones News
By Rory Gallivan
LONDON--Shares in Imagination Technologies Group PLC (IMG.LN)
jumped after the semiconductor designer reported a reduced interim
pretax loss as currency factors and demand for its connectivity
technology drive revenue higher.
The company, whose technology is found in Apple Inc (AAPL)
devices, Tuesday reported a pretax loss of 2.6 million pounds ($3.3
million) for the six months ended Oct. 31, down from a GBP5.8
million loss the previous year, on revenue up to GBP64.4 million
from GBP60.8 million.
Among the factors in the revenue boost was sales from licensing
its Ensigma connectivity technology jumping by 260% to GBP3.6
million. Imagination also specializes in graphics technology and
general processing units, which power the basic functions of
smartphones and other devices.
Liberum analyst Janardan Menon lifted his full-year forecasts
for the company to revenue of GBP140.1 million from a previous
estimate of GBP136.3 million in anticipation of strong royalties
sales of Apple devices containing its technology and a continuing
currency boost.
Like other analysts, he sees Imagination, which has previously
had discussions with Apple about being bought by the tech giant, as
a possible bid target.
Shares at 1123 GMT, up 20 pence, or 9.1%, at 240 pence valuing
the company at GBP675.1 million .
-Write to Rory Gallivan at rory.gallivan@wsj.com; Twitter:
@RoryGallivan
(END) Dow Jones Newswires
December 06, 2016 06:47 ET (11:47 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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