Published on February 8th, 2016 | by The GC Team0
Imagination CE steps down; Pure to be sold
Imagination Technologies has announced that Sir Hossein Yassaie has stepped down as Chief Executive with immediate effect and confirmed that its consumer electronics business Pure is to be sold as part of the Group’s restructuring and cost-cutting initiatives.
The news follows media speculation of the sale of Pure, following what the CE described as a “disappointing” half-year at the time of reporting the Group’s results on 15th December 2015.
Imagination said the Board now expects to report an EBIT loss for the financial year to 30 April 2016.
According to the company, since the Group published its half year results in December 2015, market conditions have not improved and the slowdown in the overall semiconductor sector has continued, reinforced by global uncertainty about future trading prospects with China.
“Royalty returns from some key customers have fallen short of previous expectations for the last calendar quarter of 2015 with lower forecasts for the first calendar quarter of 2016. While the licence pipeline remains strong, and licences and related revenues already secured this year amount to £24 million, the pace of deal closure is falling short of prior expectations,” Imagination said in a statement today.
“The royalty reduction coupled with continuing uncertainty over licence revenue timing is likely to result in a material reduction in expected FY16 revenues and resulting profitability. The Group now expects to report an EBIT loss for the financial year to 30 April 2016.”
Chairman Bert Nordberg said: “The measures announced today will allow the business to maintain the necessary investment in key areas, in order to further strengthen our unique IP, technologies and system solutions. They will also set the Group on track to deliver attractive returns in the coming years.”
Sir Hossein Yassaie commented: “I am proud of the successes Imagination has achieved over the last decade or so. 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. Imagination is now one of the genuine UK-headquartered companies with significant global influence and impact.
“It’s now time for someone else to lead this great company. I have been fortunate to work with a hugely talented team and would like to thank all my colleagues for all their support and dedication over the years. I would also like to thank the many customers and partners who have chosen to work with us over many years.”
Andrew Heath, a non-executive director of the company, has been appointed Interim Chief Executive.