Financial highlights
Group revenue up 19% to £151.5m (2012: £127.5m) including £8.2m from MIPS
o 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
o 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)
o Net cash included £56.3m held to settle MIPS patent sale tax liability - paid on 14 June 2013
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
o Many new and extended agreements with existing partners including Allwinner, Greenplug, Intel, LG, MediaTek, Realtek, Renesas, Samsung, ST, ST-Ericsson, TI and Toumaz
o Several new partners added including Entropic, Ineda, Metaio and Socle
Over 20 important customer engagements involving around 35 silicon IP (intellectual property) core licenses
o 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 Imagination'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
o Focus on development of technologies for digital broadcast, cloud connected devices for home audio streaming and automation
o New Pure wireless streaming products including Jongo family launched
Hossein Yassaie, Chief Executive, commented:
"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."
