Imagination Technologies is attractive for growth seeking investors

As Imagination Technologies updates the market with half year results, Helal Miah, investment research analyst at The Share Centre, explains what they mean for investors.

"Despite the health of the global economy Imagination Technologies reported a 90% rise in unit shipments to 237m, coming in ahead of targets. The volume increase was across all mobile segments, particularly lower-end handsets and emerging markets. As a result the average royalty rate declined as expected, however this is a significant positive effect on the revenue numbers. Revenue increased by 27% to £71.4m, with most of the growth coming from its technology division.

"Imagination Technologies' intellectual property is being adopted into an increasingly diverse range of end products, across many partners and regions. Given the better than expected growth in units shipped the company is confident of meeting its target of 500m for the full year and shipping 1bn units annually by 2016.

"The company has a strong presence in Andoid and iOS operating platforms and expects to see further gains from Windows 8 phone platform. It is in a takeover battle for the patent assets of MIPS technologies and is confident of achieving more than 50% share of the global market by 2015.

"We believe the company is well positioned to benefit from the further adoption of gadgets and technologies by the consumer and continue to recommend Imagination Technologies as a buy for investors seeking capital growth. As this is a high risk growth stock investors should be aware there is no yield available and there is unlikely to be for some time."

For more information, visit share.co.uk.