Theres a vast amount of research on this company so instead of my normal layout I will just copy the chairmans statement from the last results 30/09/2003, plus give a note on what it does.

About Imagination Technologies

Imagination Technologies Group plc - a leader in SoC IP - develops, licenses and
supplies market-leading graphics/video cores, real-time multi-threaded DSP/RISC
processors and communication and broadcast technologies for the consumer
entertainment and PC markets. It supplies both licensable IP (Intellectual
Property) and related advanced development tools to leading semiconductor and
consumer electronics companies worldwide. Imagination Technologies Group plc has
its corporate headquarters in the United Kingdom and is publicly traded on the
London Stock Exchange (FTSE:IMG). See:
www.imgtec.com


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.

cheers gf.

Please DYOR and you are responsible for your buying and selling timing actions.

Mad get back to SPS tick up ;-)

Happy1.

I don't why you're launching your unprovoked attack at me. I'm a better trader than you'll ever be and this thread needs me more than it needs you.

How do you like them onions.

Chortle, nay gaffaw.

mad

Happy.

That's not the real mad4IT, I am.

It's just one of those abusive muppets. Probably Neo.

They're frustrated because I've filtered all of them on AFN. So now they're bringing their frustrations onto this site. I've just had that username blocked. Because, surprise, surprise, the person using it has already been banned from this site before. Why does that not surprise me!

Look.

If any of you knew anything about trading you'd know that I get most of my calls right. I've got a lot of money invested in the markets and to prove it my last trade was for about 1600.

I don;t know who the muppet crusher is and WTF is neo when it's at home.

I'm here to talk trading, I make my living by trading. Don't launch anymore unprovoked attacks on me I'm only here to discuss the markets in very general terms.

Sigh.

Mad.

Hi mad, bye mad. Aye, mad.

p.s. It's a tribute to how frustrated you are that you've appeared here. One day without me and you're already tearing your hair out because you no longer exist for me, because I've filtered you all and effectively wiped you from the face of the earth.

LOL!

Mad

Don't take everything personally until you know who you are talking to !!

TK

What do you mean, Happy ?

It doesn't get more personal than deliberately stealing my AFN nickname, does it!

I really don't understand your attitude at all. Especially considering you were a victim of their abuse for months!

Happy is confused !

Now Happy understands.

MC = Mad (ADVFN)

Happy has gone

Aye. I did explain who I was a couple of posts ago.

But I can see how you thinking I'd suddenly attacked you would confuse the issue.

No worries. We're both 'happy' now! ;)

Anyone know why it keeps dropping?

Not sure, Shares quotes Seymour Pierce as bullish on the stock with the current weakness as a buying opportunity, they may well be correct with results out next thursday that should show an improvement. If you look at old trading statements, they imply that this is the first set of results that should show a significant increase in reveues with more to follow as more licenses kick in, I would also expect to see a lot of buying next week before the results come out. IMG is a class act and is growing everywhere, still prefer superscape though myself but I think that this is a good company to invest in!

At least we know why this week, ie. following the rest of the market down.

http://www.moneyam.com/action/news/showArticle?id=361952