The Investment Column: Imagination Technologies
Wednesday 10 November 1999
Still, there's no danger of Imagination being valued on mere fundamentals. On analysts' full-year forecasts of pounds 3.9m pre-tax profits and 2.5p earnings per share, the shares trade on a forward p/e of 78. There's much to support the rating, however.
The success of PowerVR has been built on games consoles. The big prize is domination of the fragmented market for graphics chips inside personal computers. Imagination is licensing its technology to STMicroelectronics, which sold five million PC graphics chips in the past 18 months. For the time being, STMicroelectronics lacks the partnerships with the big PC manufacturers required to make PowerVR a real money-spinner in this respect.
Still, Sega's Dreamcast is likely to have a three-year lifespan, and Sega is funding development of the next generation of PowerVR chips.
Next autumn, Imagination should complete development of PowerVR for digital television set-top boxes. This is also licensed to STMicroelectronics, whose chips appear in more than half of all set-top boxes produced.
The possibility that Imagination will tie-up with Symbian, the mobile- phone manufacturers' joint venture, to use PowerVR in handheld devices, and the likelihood that STMicroelectronics will unveil a deal with a PC manufacturer will support the shares at these levels and investors should not be tempted to sell.
- 1 Should Apple buy Greece?
- 2 Michael Douglas regrets 'embarrassing' Catherine Zeta-Jones with oral sex comments
- 3 Drummer Lee Rigby's family reject 'extremist' groups using Woolwich murder for political gain
- 4 Tunisia hotel attack: Locals form 'human shield' to protect hotel from gunman Seifeddine Rezgui
- 5 Fox News anchor asks 'what's to prevent' three people from marrying after same-sex marriage legalised
The moment a Queen's Guard soldier lost it and drew his gun at annoying tourist
Greece crisis: The wider lesson is that it’s time to abandon this failed experiment in currencies
'I wish the BBC would stop calling it Islamic State' – David Cameron unleashes frustration at broadcaster
Extend Right To Buy to tenants of private landlords, Labour's Jeremy Corbyn says
David Cameron struck double blow in his hopes to win Britain a new EU deal
Pentagon accuses Russia of 'playing with fire' over nuclear threats towards Nato
iJobs Money & Business
£22500 - £27000 per annum + OTE £45K: SThree: Since our inception in 1986, STh...
Negotiable: Recruitment Genius: This extremely successful and well-established...
Competitive with monthly bonus: Guru Careers: We are seeking an experienced FX...
Competitive (Freelance) : Guru Careers: An Investment Writer / Stock Picker is...