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Imagination reports a 57 percent drop in profits

Cost of research mounts up
Wed Jun 19 2013, 17:13
An Intel chipset

GPU DESIGNER Imagination Technologies saw profits for the year ending 30 April 2013 fall by 57 percent to £11.2m.

Imagination Technologies is best known as the firm behind the PowerVR GPU that is licensed by Apple, Intel and Samsung in their mobile chips. Despite the firm having an impressive customer list, it posted a 57 percent decline in full-year profits to £12.1m despite seeing revenues increase by 18 percent to £151m.

Imagination has been busy buying what is left of MIPS, which added to its expenses but by far the biggest increase in expenses was in research and development costs. The firm spent 40 percent more on research in 2013 from the previous year, spending a total of £83.9m to ensure that the firm remains competitive.

Imagination Technologies CEO Hossein Yassaie said, "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."

Yassaie said the firm will see its technology in 650 million shipped processors in the current financial year, not including those using technology from MIPS.

Imagination Technologies has a new competitor as of yesterday with Nvidia announcing that it will start to license its graphics architecture to chip designers. However Imagination's reputation in the mobile GPU business is second to none and Nvidia's best hope is that research and development costs will mean that it can catch up on low-power technologies before Imagination can close the performance gap between Nvidia GPUs and its PowerVR products. µ


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