RNS Number:1718S
Imagination Technologies Group PLC
18 November 2003
Imagination Technologies Group plc
("Imagination")
Results for the six months to 30 September 2003
Imagination Technologies Group plc, leading provider of System-on-Chip
Intellectual Property (IP), today announces results for the six months to 30
September 2003
Business Update
* Licensing partnerships
* targeting to finalise in excess of 5 licensing partnership agreements
in the financial year
* extensive license agreement already closed with Frontier Silicon
* serious interest from major players with a number of negotiations at
an advanced stage
* 14 committed partner chips
* 2 devices in production, 4 in prototype silicon and 8 devices in
development
* addressing 5 key market segments; Digital Radio/Audio, Mobile (phone/
PDA), Digital TV, In-car and Amusement
* development platform based on single-chip ARM9 and MBX SoC released by
ARM
* undisputed leadership in the fast growing DAB digital radio market
with over 80% market share
* solid basis for future royalty growth
* PURE Digital DAB products driving growth of digital radio market
Financials
* Total revenues up 127% to #13.1m (2002: #5.8m)
* technology revenues up 37%
* systems revenues up over 300% to #7.6m
* Gross profit increased by 70% to #6.6m
* Continued investment with #7.8m spend in R&D and capex of #1.4m
* Pre-tax loss before goodwill amortisation of #3.1m (2002: #4.1m)
* Over #12m of committed business on hand which is expected to be
recognised as revenue in the second half; #5.5m of which is for technology
revenues
* Cash reserves as at 30 September of #6.4m
Geoff Shingles, Chairman, commented:
"The significant increase in SoC design wins from our partners, compared to only
one or two just two years ago, is a clear sign that our strategy is working.
This is building a solid foundation for a steady growth in royalty revenue.
While we would have liked a further one or two of the advanced licensing
negotiations to have closed in the first half, the prospect pipeline looks very
encouraging giving us confidence in achieving our target of over five new
licensing agreements for the year."
18 November 2003
Enquiries:
Imagination Technologies Group plc Tel (today): 020 7457 2020
Geoff Shingles, Chairman Tel (thereafter): 01923 260 511
Hossein Yassaie, CEO
Trevor Selby, CFO
College Hill Tel: 020 7457 2020
Kate Pope
Chairman's Statement
During the first half the environment that we operated in has been tough but
improving steadily. The free fall in the semiconductor market that bottomed out
in 2002 has begun to reverse, although somewhat slowly. The total monthly chip
volume across the industry has increased by around 20% compared to the lows of
2002. However, price pressures have been a key feature with average selling
prices across the industry only stabilising in recent months. This has improved
sentiments in the industry but has resulted in a degree of cautiousness and slow
decision-making. Overall, the industry appears to have begun its upturn, which
will encourage R&D investment by the semiconductor companies.
Imagination has continued to make real progress implementing its strategy to
create and market a comprehensive portfolio of System-on-Chip (SoC) silicon
Intellectual Property (IP). We have said in the past that this IP is a vital
strategic investment for us, which we have made at a particularly difficult
period in the industry. It enables us to provide a complete spectrum of SoC
designs for applications including digital radio, digital television, mobile and
handheld devices. The pedigree of our designs is demonstrated best by the
quality of the partners which we recently brought on board including Intel, TI,
Sharp and Renesas and which have resulted in an increase of 37% in technology
revenues in the first half compared to the same period last year.
This year, we are aiming to achieve five major license deals. Since the end of
the first half, we have concluded a wide-ranging licensing deal with Frontier
Silicon. Alongside this licensing and development deal, Frontier Silicon, our
partner in DAB ICs and modules, also announced that Apax Partners and Alta
Berkeley have provided significant investment to reinforce its position in DAB
and build the resources needed to accelerate its continued growth into new
markets. Imagination holds a 17% equity stake in Frontier Silicon and under the
new deal will receive licence and development fee payments, in addition to loan
stock in Frontier Silicon up to a value of #1.25 million. We have many other
serious licensing negotiations in the areas of mobile, digital TV, in-car, PC
graphics, and amusement in progress and we expect a number of these to conclude
during the second half.
As expected, royalty revenues in the first half, while growing, have been modest
with only one major SoC, namely the Chorus digital radio device shipping in
volume. We expect around five devices in total to have reached the production
stage by the end of the current financial year.
Turning to our systems business we have enjoyed stunning success in the first
half year with our range of Digital Audio Broadcasting (DAB) products. As a
result the revenues from our systems business amounted to #7.6m in the six
months, an increase of over 300% compared with the same period last year. This
success has not only been instrumental for developing the DAB market but it has
also positioned our PURE brand as the market leader in this exciting new field.
Financial Results
In the six months ended 30 September 2003, group revenue was #13.1m, an increase
of 127% (2002: #5.8m). Gross margins were 51%, with gross profit at #6.6m
(2002: #3.9m). Our sales and administration expenses excluding goodwill
amortisation have increased by 13% on last year. We have increased our
expenditure in research and development by 26%. We continue to invest in
research and development as it creates future revenues and supports our growing
customer base. The loss before tax excluding goodwill amortisation has declined
from #4.1m for the first half last year to #3.1m for the current year. Our loss
before tax was #3.6m (2002: #4.6m) after goodwill amortisation. The tax charge
in the half has benefited by #0.4m from a Research and Development tax credit,
which netted off against withholding tax incurred on overseas earnings has
resulted in a net tax credit of #0.2m in the half year.
Our balance sheet is strengthened as a result of the placing of 8.5 million
shares in July, representing 5% of the issued share capital. This raised #4.4m
in cash to give additional working capital until the royalty stream starts to
accelerate in the middle of 2004. There was an operating cash outflow during the
half of #3.4m and, after allowing for a #1.4m capital spend mainly in
state-of-the-art design tools and computer equipment for our engineers, our cash
at the end of September was #6.4m (March 2003: #6.1m). We also have a #3m
overdraft facility in place.
We currently have in excess of #12m of committed business which we expect to
recognise as revenue in the second half, of which approximately #5.5m will be
technology revenues. This is significantly ahead of where we were at the same
time last year.
Summary and Outlook
In our IP business the first half has presented an improving, but still tough,
marketplace for our offerings. We continue to attract the interest of high
calibre licensees but a number of potential transactions have moved into our
second six months.
Our current success in the DAB market has been outstanding with a broadening
range of products now entering the market. We are very optimistic about our DAB
market share across all manufacturers in general and the prospects for PURE
products in particular during the upcoming Christmas season.
Overall, our financial performance in the second half will remain primarily
dependent on licensing revenues. In this respect we are encouraged by the
significant pipeline of prospects but, as always, accurately predicting the
timing of deal closures is difficult. As an increasing number of chips
encompassing our IP move into the production phase during the next twelve months
we look forward to earning significant royalty incomes and having a relatively
lesser dependency on licensing income.
During the past two years of deep recession in the semiconductor industry
Imagination's Board determined to pursue an investment led strategy. In the
process, we have significantly expanded our range of IP and our customer base.
With the marketplace now beginning to show real signs of recovery we believe
firmly that this strategy will be vindicated.
The commitment and hard work from our highly capable staff has been and will
continue to play a crucial part in our progress. I would like to use this
opportunity to thank them. I would also like to thank our shareholders for their
continued support.
Geoff Shingles
Chairman
18 November 2003
Chief Executive's Review
Business Update Overview
In this period the number of SoC design wins using our IP has increased to
fourteen; two for digital radio/audio, four in mobile phone/PDA, four in digital
TV/STB, two for in-car and one in amusement market segments. Of these partner
chips two devices are now in production, four have reached prototype silicon
with the remaining eight in the design and development stage. This is a
significant increase compared to the position only two years ago when the
company was still in its initial IP exploitation phase and we were able to
engage with and support only one or two customer SoCs. This trend is forming a
solid basis for growing our future royalty streams.
While we have migrated some of our more established IP cores (e.g., MBX and
META) to off-the-shelf status, some of our newer IP cores will need time to go
through this process and can at this time only be used in "lead partner"
projects. This means that our bandwidth to engage with a wider customer base
will further grow as more of our IP base becomes off-the-shelf. An increasing
feature in the future will be partners developing their own SoCs using
off-the-shelf IP from Imagination. Our highly skilled SoC design resources and
capabilities will primarily be used to pathfind/develop new market areas as well
as to support and servicing new customers with initial implementations.
Of the above market segments, the digital radio/audio has been the first target
market and is therefore the most advanced in terms of delivery of the end-user
products incorporating our technology. Through our partnership with Frontier
Silicon, we have been able to capture over 80% of the DAB market with their
Chorus chip. Currently over 20 end-user products from various manufacturers,
including our own highly successful PURE brand, are based on our technology. As
we go forward and our partner chips in other market segments, including digital
TV/STB and mobile phone/PDA, are deployed in end-user products, we will
significantly increase the penetration and volume of our IP cores as well as
Imagination's visibility in global markets.
Whilst the closure of new licensing agreements during the first half has been
slower than we would have liked, we have continued to see serious interest in
our technologies from major semiconductor companies, particularly in the mobile
graphics/video and digital TV market segments. More recently, and in addition to
interest from new potential partners, as the first round of the projects with
our existing partners reach the final stages of development, we are also seeing
licensing opportunities in conjunction with their follow-on product plans. These
facts give us high confidence in achieving our target of over five new licensing
partnership agreements for the full year. We have already announced the
significant extension of our licensing agreement and the expansion of our
partnership with Frontier Silicon. We have in excess of 10 further serious
negotiations in the areas of mobile graphics/video, digital TV, in-car, PC
graphics, and amusement underway.
Technology Development Update
Latest developments in our three families of fundamental technologies PowerVR,
Metagence and Ensigma are highlighted below:
PowerVR now has a comprehensive set of visual IP cores in 2D/3D graphics,
digital video/TV, and display that can address the requirements of many markets
including mobile phone, PDA, digital TV/set-top box, In-car, PC/console and
arcade. PowerVR MBX, our scalable graphics family, is increasingly taking a
leadership position in mobile, in-car, and gaming markets. Currently there are
seven SoCs from various partners in the development pipeline that use one of the
MBX family members, with two of these also using our digital video acceleration
and display pipeline processing cores. Four of these are at prototype silicon
stage with the remaining three at earlier development phases. Additionally, ARM
recently announced the availability of their PrimeXsys Versatile Platform that
is based on a single chip combining ARM9 and MBX, as a development platform for
its customers and for content developers. In addition, the market for 3D
graphics in mobile phones has taken a significant step forward with the
ratification of the Khronos OpenGL ES standard at Siggraph this year, which
paves the way for much wider deployment of 3D capable handsets. MBX's
technological leadership, the significant partners already committed to MBX,
combined with extensive software support, is increasingly making the MBX family
a de facto standard in the mobile market with first product shipments expected
early next year. Our standard and high-definition digital video engines and our
latest advanced interlace-to-progressive technologies play a key role in both
the low-cost digital TV space and in next generation advanced flat-panel TV
systems. Currently a further five SoCs from our partners use our video and
display technologies targeted at global TV markets.
The diversity of our range of PowerVR graphics, video and display technologies
continues to attract real interest from significant semiconductor companies
across a broad range of applications. Licensees for our PowerVR range of IP
cores now include Frontier Silicon, Hitachi, Intel, Sharp and Texas Instruments.
We continue to develop our next generation advanced graphics technologies to
keep our core technology at the leading edge. In this regard, in addition to our
work on highly flexible next generation technology for high-end applications
such as PC, console and arcade markets, we have begun a programme that brings
our latest know-how from this area into next generation MBX technology. We are
also continuing to strengthen our video offering for the emerging digital flat
panel TV and mobile TV/DMB (Digital Multimedia Broadcast) markets.
Metagence's RISC/DSP processor, by virtue of its revolutionary multi-threaded
capabilities, is able to address the multimedia/audio, communication and general
processing demands of many modern and emerging systems. META IP cores are now
supported by our industry-leading CodeScape development tools, a variety of
major operating systems including Linux, Nucleus and Intent from Tao as well as
a range of Ensigma multimedia application software including personal and home
audio. META has to-date been designed in a total of seven SoCs from our partners
in the areas of radio/audio, TV and consumer applications. Of these, two are in
production and four are at design stage. META licensees include Digital One,
Frontier Silicon and Sharp.
In addition to developing future META technologies we are also extending META's
market coverage by developing co-processors that target video encoding and
compression to address camera, mobile TV, mobile video communication and next
generation video recording devices. Among the technologies to be supported are
MPEG-4, H264 and Microsoft WMA and WMV codecs. The META architecture is being
recognised as the leader in embedded multi-threading with a very favourable
recent review in the much-respected Microprocessor Report.
Ensigma has, in addition to providing audio/multimedia application software IP
running on META, developed the first generation of the innovative and important
Universal Communications Coprocessor (UCC). This IP core offers programmable,
customisable, and multi-standard engines that can, under a common architecture,
address the requirements of a number of radio and TV broadcasts (e.g.,
terrestrial, satellite and their geographical variations), global analogue TV
standards (NTSC, PAL and SECAM), emerging mobile digital TV formats, and
wireless communication standards (e.g., 802.11), which will be essential for
future home media communication. UCC cores with support for DAB and DVB-T are in
production. The UCC developments for DVB-S, analogue TV (NTSC, PAL, SECAM) are
at a very advanced stage with ongoing development on Japanese (ISDB-T), American
digital TV standards (ATSC) and wireless (802.11) standards underway. A key
benefit of this technology is the concept of the "multi-standard TV" where a
single programmable engine can be used to implement many digital terrestrial and
/or satellite reception standards as well as traditional analogue TV processing.
Such flexibility has huge advantages when one considers the geographical markets
that a universal TV could address efficiently and economically and we believe
this unique capability will have far reaching market implications. Currently
there are 6 committed partner SoCs that utilise a member of UCC family. Of these
two are in production and four are at the design stage.
PURE Digital continues to do an outstanding job in promoting and demonstrating
our technologies, pathfinding and developing new markets, and offering
system-level engineering design capabilities to our partners and customers. It
achieves these objectives by using SoCs, that our licensing partners develop
using our IP cores, in innovative and market developing products. PURE has
become well established as a leading brand through its acclaimed digital radio
range of products, particularly the EVOKE-1 and EVOKE-2 products, which use our
own META & Ensigma based DAB IP through our Frontier Silicon partnership. PURE
Digital has transformed the DAB market and secured a significant market share.
The new PURE hi-fi DAB tuner, DRX-702ES, based on our own META and Ensigma IP,
followed the standard set by its two predecessors and for the third year running
won the prestigious "What Hi-Fi? Sound and Vision Tuner Product of the Year 2003
" award.
PURE Digital will continue to showcase and deliver our IP in state-of-the-art
products including highly integrated products that combine DAB with other major
functionality as part of its effort to encourage standardisation of DAB in
everyday consumer audio products in general and use of our technology in
particular. In the longer term, PURE Digital will create wireless communication
products to enable the linking of many home appliances that use our
technologies.
Market Exploitation Progress Update
During the first half we have made significant progress in developing our
technologies to focus on the following market areas:
* Digital Radio & Audio - the Chorus SoC, marketed by Frontier Silicon, has
continued to take the vast majority of the new and growing DAB market
despite increased competition. Our multi-threaded META core, its extensive
peripherals and Ensigma DAB technology have resulted in Chorus' unparalleled
competitive edge in terms of super-integration, low-cost, low-power and
high-audio quality. During the first half Frontier Silicon shipped close to
quarter of a million Chorus chips and modules. Currently over 20 end-user
products from various manufacturers, including our own highly successful
PURE brand, are based on our technology and we expect this number to exceed
40 by the end of this financial year including products from top tier
consumer electronic brands. We expect the DAB market to reach 700K+ units
this financial year, which represents a 400% growth over last year with our
technology having the lion's share. We expect to play a significant role in
this market as it develops further and the volume ramps up with mass
adoption of digital radio at home, in-car and on the move. In the home
segment, a key focus has been to use META's flexibility and performance
headroom to enable Chorus to address a wide range of audio and radio
applications such as clock/alarm, CD, MP3, software FM, and more advanced
user interfaces for little additional cost. As a result, DAB-enabled
end-user products will in the near future begin to encompass most form
factors including mini-systems, clock radios, advanced personal systems,
in-car and hi-fi. We have also engaged in an important cooperation with
Microsoft to deliver 5.1-surround sound audio over DAB as part of trial in
London. We continue to work closely with Frontier Silicon to ensure that the
cost profile of digital radio technology addresses the requirements of the
market as the volume grows and that a strong roadmap is in place to maintain
market leadership.
* Digital TV - The META RISC/DSP processor core, PowerVR digital video and
display IP cores, together with the UCC from Ensigma constitute a flexible
and powerful platform for addressing the requirements of digital TV markets.
We now see three distinct areas of growth in the digital TV market for
exploitation. One is the general and mainstream transition from analogue to
digital TVs, fuelled by non-subscription (e.g., Freeview) digital TV
transmissions in many countries including the UK. This trend requires low
cost digital TV solutions, either in the form of a set-top box or a digital
ready TV. The second is the emerging flat-panel TV based on LCD or plasma
displays which require advanced technologies to allow traditionally
interlaced TV signals to be displayed on a flat-panel in high quality
progressive scan mode. The high definition digital video decode and advanced
audio requirements of this market segment are well supported with our IP
offerings. The third is the new area of mobile TV where new transmission
standards are being defined to enable effective transmission of low
resolution TV content to mobile devices. This market requires complex
demodulation technology to address the more challenging mobile reception
environment and advanced video and audio processing to cope with low data
rate transmission.
These requirements are well addressed by our UCC, META and PowerVR video
accelerators. Currently there are in total five committed SoCs from our partners
for the digital TV market segment. One being Frontier Silicon's Logie chip which
has design wins in a number of end-user products. Whilst this project has been
delayed by a few months due to the integration of application software and final
product qualification, it is expected to ship in end-user products in the very
near future. There is also a second satellite-based chip being developed in
partnership with Frontier Silicon. The details of developments with other
partners in this area will be announced in due course.
* Mobile Phone/PDA - The PowerVR MBX family is emerging as the de-facto
standard in these markets. We already have three major licensing partners
including Texas Instruments, the leader in the mobile chip market, and
Renesas who are using various members of the PowerVR MBX family in their
SoCs. The PowerVR MBX family of cores is marketed directly by ourselves as
well as by ARM for use with ARM microprocessor cores and as part of ARM's
PrimeXsys platform solution. We are currently in discussion either directly
or via ARM with a number of other major players who are seriously
considering using this technology.
* Car Information System (CIS) - Car information systems are increasingly
demanding advanced 3D and 2D graphics for navigation and dashboard
applications. Renesas, a market leader, is already well advanced in
developing a number of SoCs using our PowerVR technologies to address this
growing market. Discussions with other potential partners are in progress.
* Amusement and Gaming - Our partnership with Renesas and its first customer
Sammy is very advanced in this area and we expect the developed SoC to reach
production status by end of this financial year. The project uses many of
our technologies including graphics, digital video, display/TV and audio
cores.
* PC/Console - We are continuing to develop our next generation advanced
graphics technologies, which are a key vehicle for taking our fundamental 3D
technology forward and is also a platform that allows us to target PC,
console and arcade market opportunities. Discussions are underway with
potential partners in this market segment.
The Future
The fourteen SoCs already committed by our partners, when compared to one or two
chips only two years ago, are a clear endorsement of both our technology and
strategy. This trend is also forming a solid base for our future royalty revenue
streams when these chips enter volume production. The significant and growing
design wins in end-user equipment products for our DAB technology is only a
precursor of what we aim to achieve through our partnerships elsewhere.
Whilst during the first half we would have liked to have made more progress on
the timing of the closure of some of the ongoing licensing negotiations, the
seriousness of the level of interest from the potential partners is very
encouraging. Combined with the clear signs that our existing partners intend to
license new technologies from us as they conclude their first round of joint
projects, this gives us confidence that we are on track to close 5+ agreements
during this financial year.
Hossein Yassaie
Chief Executive
18 November 2003
SUMMARISED CONSOLIDATED PROFIT & LOSS ACCOUNT
Half year to Half year to Year to
30 September 30 September 31 March
2003 2002 2003
(Unaudited) (Unaudited) (Audited)
#'000 #'000 #'000 #'000 #'000 #'000
Group turnover 13,063 5,765 19,568
Cost of sales (6,455) (1,881) (7,649)
Gross profit 6,608 3,884 11,919
Research & development expenses (7,756) (6,168) (12,891)
Sales and administrative expenses (2,517) (2,308) (4,652)
Other operating income - 24 42
Group operating loss before goodwill
amortisation (3,156) (4,037) (4,541)
Goodwill amortisation (509) (531) (1,041)
Group operating loss (3,665) (4,568) (5,582)
Share of operating profit/(loss) of
associated
undertaking 33 (182) (170)
Total operating loss (3,632) (4,750) (5,752)
Net interest receivable 60 122 177
Loss for the financial period
before taxation (3,572) (4,628) (5,575)
Taxation (Note 2) 249 (120) 248
Loss for the financial period
after taxation (3,323) (4,748) (5,327)
Loss per share
(Note 3) Basic (1.9p) (2.8p) (3.1p)
Basic - before goodwill (1.6p) (2.5p) (2.5p)
amortisation
Diluted (1.9p) (2.8p) (3.1p)
Diluted - before goodwill
amortisation (1.6p) (2.5p) (2.5p)
SUMMARISED CONSOLIDATED BALANCE SHEET
At 30 September 2003 At 30 September 2002 At 31 March 2003
(Unaudited) (Unaudited) (Audited)
#'000 #'000 #'000
Fixed assets
Intangible assets 4,597 5,504 5,034
Tangible assets 4,287 3,950 3,875
Investments in associate 547 399 459
9,431 9,853 9,368
Current assets
Stock and work in progress 1,495 1,228 1,571
Debtors 3,670 1,586 3,293
Cash at bank and in hand 6,440 5,277 6,082
11,605 8,091 10,946
Current liabilities
Creditors: amounts falling due within
one
year (5,478) (2,960) (5,900)
Net current assets 6,127 5,131 5,046
Net assets 15,558 14,984 14,414
Capital and reserves
Called up share capital 17,907 17,039 17,039
Share premium account 29,728 26,075 25,854
Other capital reserve 243 - 221
Shares to be issued - 274 274
Warrant reserve 1,180 1,201 1,201
Merger reserve 2,402 2,402 2,402
Profit and loss account (35,902) (32,007) (32,577)
Shareholders' funds - equity (Note 4) 15,558 14,984 14,414
SUMMARISED CONSOLIDATED CASH FLOW STATEMENT
Half Year to Half Year to Year to
30 September 2003 30 September 2002 31 March 2003
(Unaudited) (Unaudited) (Audited)
#'000 #'000 #'000
Cash outflow from operating activities (Note 5) (3,425) (3,326) (2,085)
Net cash inflow from returns on investment
and servicing of finance 57 138 197
Taxation 632 (120) 248
Net cash outflow for capital expenditure (1,375) (350) (1,213)
Cash outflow before use of liquid resources and
financing (4,111) (3,658) (2,853)
Net cash outflow from acquisitions and disposals - (200) (200)
Management of liquid resources - cash inflow
from liquidation of short term deposits 606 3,796 3,530
Financing - issue of shares 4,469 - -
Increase/(decrease) in cash in the period (Note 964 (62) 477
6)
NOTES:
1. The summarised profit and loss account for the half year to 30 September
2003 comprises the consolidated results of Imagination Technologies Group plc,
Imagination Technologies Ltd and its subsidiaries.
2. The credit for taxation in the period includes #419,000 of research &
development tax credit offset by tax deducted at source on overseas earnings not
recoverable in the period. No corporation tax charge has arisen due to
accumulated tax losses being in excess of the profit earned during the period.
3. The Basic earnings per share for the financial periods reported have been
calculated on the weighted average number of shares in issue as shown in the
table below. The Diluted earnings per share has been calculated, in accordance
with the requirements of FRS14, on the weighted average number of shares
potentially in issue, also shown in the table below.
Half Year to Half Year to Year to
30 September 2003 30 September 2002 31 March 2003
(Unaudited) (Unaudited) (Audited)
Loss attributable to shareholders (#3,323,000) (#4,748,000) (#5,327,000)
Loss attributable to shareholders before
goodwill amortisation (#2,814,000) (#4,217,000) (#4,286,000)
Weighted average number of shares in issue 174.1m 170.4m 170.4m
Diluted weighted average number of shares
potentially in issue 178.9m 170.5m 172.0m
4. Reconciliation of movements in shareholders' funds
Half year to Half year to Year to
30 September 2003 30 September 2002 31 March 2003
(Unaudited) (Unaudited) (Audited)
#'000 #'000 #'000
Shareholders' funds as at 1st April 14,414 19,732 19,732
Loss for the period (3,323) (4,748) (5,327)
Loss on foreign exchange translation (2) - 9
New share capital subscribed
(net of expenses) 4,742 325 325
Shares to be issued (274) (304) (304)
Warrant Reserve (21) (21) (21)
Other Capital reserve 22
Shareholders' funds at the end of the
financial period 15,558 14,984 14,414
5. Reconciliation of operating loss to operating cash flows
Half Year to Half Year to Year to
30 September 2003 30 September 2002 31 March 2003
(Unaudited) (Unaudited) (Audited)
#'000 #'000 #'000
Operating loss (3,665) (4,568) (5,582)
Depreciation and amortisation charges 1,401 1,364 2,709
Investment in associate in respect of
services provided - (307) (307)
Decrease/(increase) in stock 58 (337) (728)
(Increase)/ decrease in debtors (374) 2,877 1,150
(Decrease)/increase in creditors (845) (2,355) 673
Net cash outflow from operating
activities (3,425) (3,326) (2,085)
6. Reconciliation of net cash flow to movement in net funds
Half Year to Half Year to Year to
30 September 2003 30 September 2002 31 March 2003
(Unaudited) (Unaudited) (Audited)
#'000 #'000 #'000
Increase/(decrease) in cash in the period 964 (62) 477
Cashflow from decrease in liquid resources (606) (3,796) (3,530)
Movement in net funds in the period 358 (3,858) (3,053)
Net funds at 1st April 6,082 9,135 9,135
Net funds at the end of the financial
period 6,440 5,277 6,082
7. The financial information contained in this interim report does not
constitute statutory accounts within the meaning of Section 240 of the Companies
Act 1985. The figures for the half year to 30 September 2003 and half year to 30
September 2002 are unaudited. The comparative figures for the year to 31 March
2003 have been extracted from the consolidated statutory accounts of Imagination
Technologies Group plc which have been filed with the Registrar of Companies.
The auditors' report on those accounts was unqualified and did not contain any
statement under Section 237 (2) or (3) of the Companies Act 1985.
A copy of this Interim Report will be sent to all shareholders. Copies of this
Report and the Annual Report for 2003 can be obtained from Imagination
Technologies Group plc, Home Park Estate, Kings Langley, Herts WD4 8LZ.
Telephone 01923 260511.
This information is provided by RNS
The company news service from the London Stock Exchange
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