Since the Group published its half year results in December 2015, market conditions have not improved and the slow-down in the overall semiconductor sector has continued, reinforced by global uncertainty about future trading prospects with China.Imagination is best known for its line of PowerVR graphics chips, which are found in a wide variety of SoCs used in many portable devices, including Apple's iPhone and iPad lineups.
Royalty returns from some key customers have fallen short of previous expectations for the last calendar quarter of 2015 with lower forecasts for the first calendar quarter of 2016. While the licence pipeline remains strong, and licences and related revenues already secured this year amount to £24 million, the pace of deal closure is falling short of prior expectations.
The royalty reduction coupled with continuing uncertainty over licence revenue timing is likely to result in a material reduction in expected FY16 revenues and resulting profitability. The Group now expects to report an EBIT loss for the financial year to 30 April 2016.
The Group continues to have sufficient cash resources to meet its obligations going forward.
Imagination facing full-year loss, CEO steps down
Posted on Tuesday, February 09 2016 @ 12:59 CET by Thomas De Maesschalck