Imagination Technologies Warns of Full-Year Loss, CEO Steps Down--Update

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   By Rory Gallivan 
 

LONDON--Imagination Technologies Group PLC (IMG.LN) announced the resignation of its long-standing Chief Executive Hossein Yassaie as the semiconductor designer warned it will report a loss for the full year.

Mr. Yassaie has stepped down with immediate effect and will be replaced in the interim by Imagination non-executive director Andrew Heath, said the company, which now expects to report a loss before interest and taxes for the year ending April 30. The company had previously predicted a profit.

Imagination, whose technology is used in Apple Inc. (AAPL) products, also announced plans to sell its digital radio division Pure, which it said should help to reduce operating costs by 15 million pounds ($21.4 million) in the next financial year.

Monday's announcement is the latest in a string of warnings from the company, which has suffered from a slowdown in demand for smartphones and other products made by Apple and other customers.

Imagination has also faced tough competition, particularly from its bigger rival ARM Holdings PLC (ARM.LN).

Analysts had long seen Pure, which is a separate division from the semiconductors business, as a drag on the company.

"I am proud of the successes Imagination has achieved over the last decade or so," said Mr. Yassaie, who became chief executive in 1998.

"We have built Imagination from very small beginnings into the leading provider of graphics processors as well as general purpose micro-processors and connectivity solutions," he added.

Shares at 0913 GMT, down 4 pence, or 3.4%, at 127 pence valuing the company at GBP348.8 million.

Write to Rory Gallivan at [e-mail]; Twitter: @RoryGallivan

(END) Dow Jones Newswires

February 08, 2016 04:38 ET (09:38 GMT)

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