Sign up USA
Proactive Investors - Run By Investors For Investors

Smartphone caution knocks Imagination Technologies

Smartphone caution knocks Imagination Technologies

Imagination Technologies (LON:IMG), the maker of the graphics chip used in the iPhone and others, took another sharp turn downward as it warned smartphone demand was slowing.

Imagination said the growth in chip shipments would be 580-630m units for the second half of its year against its previous forecast of 650mln. The total for year will now be about 1.3bn.

 “This takes into account the general slower growth trend in the higher-end smartphone shipments and also market share considerations in the low-end,“ it said.

Underlying profits in the half year to October fell to £13.2mln from £16.8mln, though revenues improved 19% to £85.2mln. Pre-tax profits fell to £2.22mln (£10.5mln). The lower profitbaility reflected a big rise in research spending.

Shares in the group have more than halved since March on fears growth may be stalling and they tumbled another 15% today.

Investec said the results missed consensus forecasts on a number of fronts, with earnings, revenues and shipments all below consensus.

“The group is in a transitional year with major licensees having pulled out of the smartphone market; others have the potential to ramp up activity, but in FY15E,” said the broker.

Shares fell 39p to 209.5p.


View full IMG profile View Profile

Imagination Technologies Group Timeline

Article
September 17 2014

Related Articles

RSI International Systems looking to scale up with its innovative hotel property management system
July 18 2017
RoomKeyPMS is the product at the heart of Toronto-listed RSI International Systems Inc's business
Office productivity
September 11 2017
It would have been somewhat embarrassing had an office productivity software firm not got its flagship product delivered on time, but fortunately BOS did
office computers
September 05 2017
The EG board has recommended Verint’s offer of 112.5p a share

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You understand that the Company receives either monetary or securities compensation for our services. We stand to benefit from any volume this write-up may generate.

You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

Copyright © Proactiveinvestors.com, 2017. All Rights Reserved - Proactive Investors North America Inc., Proactive Investors LLC

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use