Reduced margins on Pure DAB radio sales have pulled down profits at Imagination Technologies, while its intellectual property (IP) licensing business continues to grow.
"Adjusted operating profit for the technology [IP] business, before share-based incentive costs, increased 94% to £2.0m [2007: £1.0m]," said Imagination. "Whilst the US dollar movement has benefited the technology business, it has adversely impacted margins in the PURE Digital business which had an adjusted operating loss of £1.3m [2007: profit £0.6m]."
Adjusted group pre-tax profit was £0.8m compared with £1.8m in 2007 and reported pre-tax profit was £0.1m, down from £1.3m last year.
Group revenues for the six months to 31 October 2008 were £27.2m, 6% up on the first half revenues of last financial year of £25.6m.
Licensing and royalty revenues increased by 10% to £15.5m.
"Licensing revenues at £9.0m were, on a sterling basis, similar to last year, and on a US dollar basis showed an underlying 12% reduction," said Imagination. "However this recognition of revenue does not reflect the very strong order input during the first half of over $40m."
Licences were sold into phones, digital TV, personal media players and in-car entertainment.