Imagination Revenue Up On Currency, Connectivity, Shares Jump

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 [e-mail]; Twitter: @RoryGallivan

(END) Dow Jones Newswires

December 06, 2016 06:47 ET (11:47 GMT)

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