London, UK; 6 January 2021 – Imagination Technologies today announces initial unaudited results for 2020, overall revenues increased by 44% to $125m (2019: $87m).
Adjusted EBITDA* increased by $22m to $4m (2019: loss $18m); and adjusted EBITDA margin increased to 3% (2019: loss of 20%).
Closing cash was $60m (2019: $66m); the business has no external third-party debt.
Imagination completed the sale of its Ensigma technology to Nordic Semiconductor as of 31 December 2020. For comparative purposes, excluding Ensigma and other discontinued activities on a proforma basis: revenues for the continuing business are $122m (2019: $80m). Adjusted EBITDA $13m (2019: loss $10.5m); and adjusted EBITDA margin 11% (2019: loss 13%).
Imagination has a 35.5% share in smartphone graphics processing unit (GPU) (source: TSR) and is the largest GPU supplier to the automotive industry with approx. 43% share (source: company data). 2019 investment in Imagination’s A-Series and B-Series GPU products, which have the highest performance density of any GPU IP, has enabled the company to gain significant traction in the higher performance GPU space with six customers now targeting laptop, desktop, or datacentre.
Simon Beresford-Wylie, CEO, says: “I am confident that Imagination has turned a significant corner. These initial results represent a notable turnaround compared to 2019 and give us a significant springboard for growth and increased profitability in 2021. The company has proven to be resilient, but this success is driven by its ability to innovate and provide our customers with the building blocks they need to succeed in a wide range of GPU and AI driven markets.”
Imagination is wholly owned by private equity company Canyon Bridge and specialises in technologies for graphics, including ray tracing; AI, notably neural network acceleration; and general compute.
Canyon Bridge founding partner and Imagination Executive Chairman Ray Bingham, says: “We have bold ambitions for Imagination, and on that basis made significant investments in R&D leading to the creation of an outstanding new GPU architecture and the re-invigoration of ray tracing development. The company’s innovative technologies intersect with important trends towards remote work, Cloud transition, energy efficiency, AI and automation, especially ADAS. In a very challenging year for the World, Imagination has continued to deliver to its customers IP technologies that drive successful, life-enhancing, consumer experiences.”