Imagination Technologies (LSE: IMG) — a leading multimedia, communications and processor technology company — published an interim management statement this morning, for the almost 20 weeks from 1 May to 16 September 2014. Its share price is currently up almost 5% in trading so far today.
The company 
says that licensing activity during the period has been good and that the level of activity across both all three of its main IP product areas (multimedia, processors and communications) and its broad customer base has been “encouraging“.
Imagination Technologies says that royalty revenue for the quarter to 30 June was in line with expectations, and reflected growth from a number of its partners and the short-term impact from known product transitions with other partners. It also says that its pipeline of active licensing across both its IP range and customer base is “building the foundation for significant future unit growth“.
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However, adverse exchange rates affected both licensing and royalty revenues, worsening the comparison with previous years, and the company says that the recent volatility of sterling makes it hard to forecast the likely impact for the full year to April 2015.
The company says that its Pure DAB radio business has been trading in line with its expectations, and that it’s expecting “further progress” with the latest product releases.
Looking ahead Imagination Technologies says that the progress on licensing made during the period covered by the statement supports its target of 10% growth for the full year, and that the board is confident that the company will continue to trade in line with expectations.
Commenting on the trading statement, CEO Hossein Yassaie said:
“The launch of MIPS 64-bit cores, which can be used in a broad range of high volume applications, is a significant milestone in our development and is seen as an industry changing step by many.
“The three IP families and the platforms they enable are increasingly seen as a strong and relevant proposition for the existing and emerging opportunities by many of our customers.“
At 198p, Imagination Technologies’ share price is up 11% so far in 2014, during which time the FTSE All-Share index has barely moved (it’s up just 0.22%). However, longer-term shareholders may well be disappointed — over the past five years Imagination Technologies has only gained 7.5%, compared with a 40% rise in the FTSE All-Share.
