UK silicon-on-chip (SoC) IP provider, Imagination Technologies, has reported doubling its losses in the first six months to September to £3.9m from £1.9m at the same time last year. Group revenue also decreased 11% to £5.8m which the company attributed to lower systems revenues, which fell 28% compared with the same period last year.
Gross profit decreased by 9% to £3.9m from £4.3m last year and overhead structure increased by 15% following business development activity in the year which included the opening of an office in Japan.
According to the company statement, tough market conditions in the first half of the year resulted in a reduction cash reserves from £9.1m in March 2002 to £5.3m at September 2002.
Geoff Shingles, chairman of Imagination, said: "The last year or so has been testing for all those in high technology businesses. However, with our strong and highly relevant technology base, Imagination has succeeded in widening its p artner base with several further engagements at an advanced stage. We are well positioned to become a top tier IP provider as the economy and the semiconductor industry recover."
The company's transition in strategy from delivering bespoke technologies to that of an IP provider supplying a larger customer base has resulted in three licensing partnerships with Intel, Hitachi and Frontier Silicon for six system-on-chip (SoC) ICs that incorporate Imagination's IP cores. The company hopes that these partnerships will lead to royalty streams and future licensing deals.
"We have expanded our IP, created our off-the-shelf IP packages and delivered these in System-on-Chip solution to clients," said Shingles. Our activity in preroyalty areas is at its highest level ever with more partnerships expected to be announced in the second half".