Woh oh oh, feelings....
Ultimately this was a supremely professional and confident presentation & Q&A session.
'Without our graphics, the smartphone revolution would have been 5 years later'
Ballsy.
Many concerns assuaged here I think, some of the nuances ref the Mediatek relationship are hard to communicate and their decision to dual source (remember they took a MALI license BEFORE their IMG license IIRC) is one of these. It seemed like more of an incidental result of power politics and oversights internally during the mergers of various business divisions and apologies WERE MADE in relation to the manager's comments - it was not right and no-one should base any decisions on it.
The other thing that you had to see their eyes for was about the competition and the benchmarking questions. Not all test platforms are genuine reflections, not all benchmarks mean that much, power consumption will be more of a factor in future generations of tests, if you want to just make things bigger and run them faster you will run out of headroom.
If you run to the bottom and sell crappy tech as new tech then you get found out when the lower end moves up - I feel that this is why there is a Rogue 6100.
I am sure this report will not convert any views, but it is as accurate and honest as I can recall - I am here, listening, writing, asking questions, etc so a little overworked on an iPad !
If you take ANY negatives I really don't think you were reading it right or I wasn't writing it right.
Ultimately, if you are a worried shareholder or a happy shareholder, there is really nothing like being here. You get so much more out of it and will be more able to make comment on very important matters you have concerns over rather than sitting at a keyboard making comments that are ill informed by definition. If you have concerns there is no better place to be than in front of the people who can give you the answers - and if you don't buy their answers you can tell them, ask them for clarification or just plain tell them you don't believe them. I know it's easier to sit at home moaning but if you're serious about it then a small amount of effort is 100% worth it.
More to come later - either here or in another place following the casual chats later.
Thank you Kings Langley, you've been great.
More, MORE !
Ok, the new building is very nice, I'm sure the Californians feel quite at home when they're visiting.
Peace :-)
IMG
Friday 20 September 2013
Q & A - my question about benchmarks and the competition
Said hello from Dave - wouldn't have been the same without his spirit raising its head. No tattoos though sorry, I'm not going there !
Ok my question was stupidly long as I hadn't prepared it and wanted it to be a general overall catch all about the competition and how things stand in relative performance terms.
Have the competition caught up ? Are they at the peak of where their solutions can go ?
If you do not care about power usage you make the solution bigger and uglier and you burn your face when you make a call
Where is Rogue in terms of your expectations of it when in development.
Rogue is doing exactly what we thought it would do - there is plenty of headroom we are still very early.
Are you looking at ways of making benchmarks more effectively reflect the performance in relation ?
yes the team is working very hard to try to get power consumption into more of these so that you get an actual real performance measure.
To get benchmarks to do what is claimed for them there is a lot of cheating going on - removing complexity, etc. We will be highlighting these cheats very soon
At v low end power is not as important so less good tech can get traction. Over time though as the high end becomes low end then rogue will again come into its own as low end will need OpenGL3, etc so companies will no longer be able to masquerade old tech as new. The day of reckoning will come.
Ok my question was stupidly long as I hadn't prepared it and wanted it to be a general overall catch all about the competition and how things stand in relative performance terms.
Have the competition caught up ? Are they at the peak of where their solutions can go ?
If you do not care about power usage you make the solution bigger and uglier and you burn your face when you make a call
Where is Rogue in terms of your expectations of it when in development.
Rogue is doing exactly what we thought it would do - there is plenty of headroom we are still very early.
Are you looking at ways of making benchmarks more effectively reflect the performance in relation ?
yes the team is working very hard to try to get power consumption into more of these so that you get an actual real performance measure.
To get benchmarks to do what is claimed for them there is a lot of cheating going on - removing complexity, etc. We will be highlighting these cheats very soon
At v low end power is not as important so less good tech can get traction. Over time though as the high end becomes low end then rogue will again come into its own as low end will need OpenGL3, etc so companies will no longer be able to masquerade old tech as new. The day of reckoning will come.
Per mm and per Mw we are 'by far' the best. QCOM second
Q and A
Atty G asks the MTK general manager comment question
Reality - that answer is not correct and senior MTKVguys have apologised. Their business is growing, was compartmentalised and some people said things. HY questions their logic in making the choice they made, but not that they made a decision.
May have been a function of them merging their feature and smartphone segments.
Ecosystem is important when you care about your customers (Apple) not when a tiny Chinese handset maker sells smaller numbers and moves on. They can choose any solution as they do not support an ecosystem. Sticky is important when you care basically
MTK is v strong relationship and more so on a corporate values level for the future
Reality - that answer is not correct and senior MTKVguys have apologised. Their business is growing, was compartmentalised and some people said things. HY questions their logic in making the choice they made, but not that they made a decision.
May have been a function of them merging their feature and smartphone segments.
Ecosystem is important when you care about your customers (Apple) not when a tiny Chinese handset maker sells smaller numbers and moves on. They can choose any solution as they do not support an ecosystem. Sticky is important when you care basically
MTK is v strong relationship and more so on a corporate values level for the future
Finance guy
A lot more confident thankfully than at previous meeting.
Basically took the mick out of analysts previously complaining we were over dependent on Apple, now it's Apple, MTK and Intel. Looking foward to a few years time to seeing that reliance list getting ever longer.
Good confidence.
More blah on how positive people are about MIPS, etc.
Basically took the mick out of analysts previously complaining we were over dependent on Apple, now it's Apple, MTK and Intel. Looking foward to a few years time to seeing that reliance list getting ever longer.
Good confidence.
More blah on how positive people are about MIPS, etc.
PURE
Still very committed to the future and possibilities for PURE as was the venerable Paul Smith earlier - more from him later but he seems invigorated by the possibilities from the Jongo, Flow type dealio
Flow
Next step from Toumaz tests in USA is that the plaster tech will soon go onto A&E incoming as well as on the wards. Nice. Lots of chat about the possibilities, which are huge - thankfully no mention of bloody fridges - that's a tomorrow's world ref I hate !
Ensigma will be an increasingly important income generator of revenue and sales opportunities
Ensigma will be an increasingly important income generator of revenue and sales opportunities
MIPS/CPUs
CPUS usage
5-10 phone
Car - 30-50
House - 100's
Mentioned the need not to have a monopoly, DID NOT MENTION ANY SOFT DRINKS :-)
I don't mind that analogy, some of you lot do, but your CEO is listening to you.
5-10 phone
Car - 30-50
House - 100's
Mentioned the need not to have a monopoly, DID NOT MENTION ANY SOFT DRINKS :-)
I don't mind that analogy, some of you lot do, but your CEO is listening to you.
Graphics trends
All recent trends will accelerate moving forward - but getting performance within power envelopes will be increasingly important.
Ray tracing - doing it 200 x more efficiently than current best of the rest. And it is easier, cheaper and faster to generate content.
Will ask questions later on more of this power/performance balance to stop the kids squabbling.
Ray tracing - doing it 200 x more efficiently than current best of the rest. And it is easier, cheaper and faster to generate content.
Will ask questions later on more of this power/performance balance to stop the kids squabbling.
Industry trends - various stuff but concentrate on MIPS potential -slide 17
CPU ISA no longer a key in the near future thanks to LLVM, etc
Compile on demand will be big and this helps MIPS as you can compile when you need to run it and it compiles onto your platform.
Compile on demand will be big and this helps MIPS as you can compile when you need to run it and it compiles onto your platform.
Shipments - big news
Potentially very interesting development going back to something I've been forecasting for ages now.
1bn non MIPS target now moved to FY 2016 from previous CY2016. So my interpretation we are ahead of previous target date.
MIPS graph is as it is Ian because new IP is 1.5-2 yrs, customers have 1.5-2 yrs so the growth leg is down the line. Until then we have a steady rise, hockey stick comes later
"People underestimate MIPS, we will prove them wrong over the next few years."
1bn non MIPS target now moved to FY 2016 from previous CY2016. So my interpretation we are ahead of previous target date.
MIPS graph is as it is Ian because new IP is 1.5-2 yrs, customers have 1.5-2 yrs so the growth leg is down the line. Until then we have a steady rise, hockey stick comes later
"People underestimate MIPS, we will prove them wrong over the next few years."
Wearables
Please do not judge wearables on stupid looking watches you see on websites, they will be much more integrated and invisible
Progress
'I am not interested in doing things if there is no money in it.'
Take that ARM :-)
Basically saying that the company are not in areas for the sake of it because it is fun for engineers to play (take that naysayers) - IP is ONLY developed if it fits in and will help to generate CASH.
Vision is vital - in future cars will have 10 cameras in them that you won't even see, they will record everything saving time, money, lives, solving accident questions, etc
'Notable licenses for Ensigma'
And Flow helps all these interconnected things work together so customers don't have to have huge investments in software and systems
Take that ARM :-)
Basically saying that the company are not in areas for the sake of it because it is fun for engineers to play (take that naysayers) - IP is ONLY developed if it fits in and will help to generate CASH.
Vision is vital - in future cars will have 10 cameras in them that you won't even see, they will record everything saving time, money, lives, solving accident questions, etc
'Notable licenses for Ensigma'
And Flow helps all these interconnected things work together so customers don't have to have huge investments in software and systems
Strategic partnerships
Working with industry groups vital
Mentioned Google, TSMC (v important relationship as much of their wafer throughout is now using IMG IP), synaptic
Mentioned Google, TSMC (v important relationship as much of their wafer throughout is now using IMG IP), synaptic
Broadening TAM
Each IP block added adds potential new markets with MIPS offering potentially the biggest possibilities.
Adding MIPS hugely increased the licensee base and offers more options to cross sell '2 years ago we said QCOM & Toshiba were the 2 majors we hadn't licensed to, now we have signed both'
Intel have always used their own graphics and always will but they will be continuing to sell more.
Intel sold low 10's millions last year, will sell higher 10's millions this year, rising to 100-100's millions in the future. They have the resources to successfully complete the transition from PC to mobile.
Mediatek - don't worry other companies IP will be in some products but that is life but we are a major part of their future.
Confident on BCOM deal to take on some of the gap left by TI. 'Better that Renesas business went to BCOM than it staying in Japan'
To shi'a v important.
Cavium - mentioned specifically 'people mention Cavium taking an ARM license, they are going with ARM - NO.' Very positive about this MIPS licensee
Adding MIPS hugely increased the licensee base and offers more options to cross sell '2 years ago we said QCOM & Toshiba were the 2 majors we hadn't licensed to, now we have signed both'
Intel have always used their own graphics and always will but they will be continuing to sell more.
Intel sold low 10's millions last year, will sell higher 10's millions this year, rising to 100-100's millions in the future. They have the resources to successfully complete the transition from PC to mobile.
Mediatek - don't worry other companies IP will be in some products but that is life but we are a major part of their future.
Confident on BCOM deal to take on some of the gap left by TI. 'Better that Renesas business went to BCOM than it staying in Japan'
To shi'a v important.
Cavium - mentioned specifically 'people mention Cavium taking an ARM license, they are going with ARM - NO.' Very positive about this MIPS licensee
SOC
All IP blocks we offer are open - customers my choose IP blocks, multiple IP blocks or entire SoC.
Global Imagination - we are now 1,600 people and USA is the biggest growth area.
'Rise and rise of MIPS' - says there is big love for MIPS in USA (I thought it was more in Far East)
Global Imagination - we are now 1,600 people and USA is the biggest growth area.
'Rise and rise of MIPS' - says there is big love for MIPS in USA (I thought it was more in Far East)
What we do
'Where we are now is not an accident' - it has taken years to get to where we have an offering that covers all bases.
4 groups
Multimedia, Processors (MIPS), Comms (Ensigma), Cloud (Flow)
HY thinks in 10 years time EVERYTHING will be connected (even trees & crops !) maybe that's part of the green revolution :-)
4 groups
Multimedia, Processors (MIPS), Comms (Ensigma), Cloud (Flow)
HY thinks in 10 years time EVERYTHING will be connected (even trees & crops !) maybe that's part of the green revolution :-)
Sir HY
No slide handouts this year unfortunately so limited chance to make notes for in depth q's at the end.
Sneaky.
Basically there's going to be a lot of re-iterating of the IMS I think.
Expecting H2 licensing to be stronger than last year.
MIPS - now FULLY integrated. Important and to be expanded on later.
6XT already with 'very, very lead partners' - h2 says 'Apple and Mediatek'.
More emphasis on the importance of PURE as a central core to the business.
Confirms that the co has 'a long term plan' not short term.
Sneaky.
Basically there's going to be a lot of re-iterating of the IMS I think.
Expecting H2 licensing to be stronger than last year.
MIPS - now FULLY integrated. Important and to be expanded on later.
6XT already with 'very, very lead partners' - h2 says 'Apple and Mediatek'.
More emphasis on the importance of PURE as a central core to the business.
Confirms that the co has 'a long term plan' not short term.
FTSE 100
First reference to this in the opening statement from GS - new format for speeding thru the voting at the end in a FTSE100 company style.
And so to the big man...
And so to the big man...
Big turnout
Not a Scottish euphemism, a statement of fact. There is almost standing room only even in this bigger room.
My predictions this year - all the motions will be passed. You read it here first folks.
My predictions this year - all the motions will be passed. You read it here first folks.
Tuesday 17 September 2013
Imagination Technologies IMS
IMG gave a boringly reassuring IMS today - after the controversies and SP gyrations which followed the last IMS this is very welcome imo. Steady progress across all fronts together with in-line ASP (5-6X that of ARM Mali) despite increasing royalty volume:
Imagination Technologies Group plc ('Imagination', LSE: IMG), a leading multimedia, communications and processor technology company, is today issuing its Interim Management Statement for the period from 1 May 2013 to 16 September 2013.
Trading updateThe momentum in the business has continued and there have been a number of strategically important developments during the period.
Royalty revenue growth for the latest quarter has continued to be strong, in line with our expectations. The unit volume growth has been significant, driven by volume ramp-up and new product launches from a number of our customers. The average royalty rate achieved is in line with our expectations.
Licensing activity remains steady with significant engagements in progress with a number of important partners.
The Pure business is gaining traction, with promising initial interest in and orders of the Jongo range of wireless speakers.
Technology
Multimedia
Our PowerVR Series6 technology has seen further deployment in the market and is now shipping for use in automotive, DTV and mobile devices, delivering the latest features (e.g. OGLES 3.0) and demonstrating the performance and power consumption advantages of this class-leading technology.
We see continued interest in and licensing of the existing Series6 cores, and initial licensing of the new PowerVR Series6XT technology which will be delivered to customers in FY14H2.
The level of interest in our ray tracing IP is significant with a number of major partners evaluating this ground breaking technology.
CPU and processor cores
Following the complete integration of MIPS, the organisation is performing well and a very successful event held at Stanford University recently was very well attended with high levels of customer interest in the products and the progress we have made.
Development of the MIPS ‘Warrior’ family of processor cores and the drive to strengthen and build on the MIPS ecosystem continue as planned.
Existing customers are increasingly comfortable with the support and direction the MIPS architecture is taking, and we are seeing positive engagements across the MIPS product range.
Of particular note is the wearable device market which is an exciting opportunity for MIPS processor cores given its efficient architecture and we have seen important progress in this area.
Whilst the progress on MIPS is very encouraging we re-iterate that this is a long-term strategy to offer real choice in the CPU and processor IP market.
Communications
The traction we have seen with our communication IP has increased further, with the recently announced license agreement with Toshiba a good example of this.
There is considerable interest in these technologies from potential customers, some of which we expect to convert to licensing in this financial year.
We expect to see some of our existing partners introducing new products using our Ensigma communication technologies to the market during this financial year.
We expect to see some of our existing partners introducing new products using our Ensigma communication technologies to the market during this financial year.
Our announcement of the new Caskeid multi-room wireless audio technology, which also powers Pure Jongo wireless speakers, at the recent IFA show has been strongly received, with several prospects in progress.
Cloud technologies
The cloud technology which we have developed is highly relevant to the key established and emerging markets including audio and video content delivery, home automation, security and the general Internet of Things (IoT). We recently launched FlowAudio (www.flowlive.com) as a licensable service and the Pure Connect online audio service is a compelling example of applications running on this platform. We expect both the underlying platform and services based on it to be of significant interest to our customers.
Pure
We have continued the development and launch of a number of strategic products and technologies that will help to transform home multimedia, which includes the entire range of Jongo multiroom speakers. Important relationships with key retailers have been developed in the UK and US, including BestBuy and Walmart, to establish and drive our presence in this exciting product category.
Outlook
The progress on licensing to date and the current sales pipeline support the existing guidance of £30m-£35m of licensing revenue (excluding MIPS), which equates to a range including MIPS of £38m - £43m.
Based on our view of existing partner shipments and new products which are starting to ship, we maintain our guidance of unit shipments (excluding MIPS) in excess of 650m for FY14 (1.35bn including MIPS).
We expect to see a financial improvement in the Pure division over the medium term, driven by the launch of the new Jongo product range.
The financial position of Imagination remains robust and the Board is confident that the Group’s progress will continue.
Hossein Yassaie, Imagination’s Chief Executive said:
“We continue to focus on building sustainable and long-term value in our business, despite the transient events and short term variations that are inevitable in the dynamic markets in which we operate.
“Our important strategic engagements continue with further partnerships developing and new opportunities arising which will continue to drive our market penetration and growth.
“Our strong technology base, partner engagements, design wins achieved, and growing opportunities, give me confidence that we will continue our planned progress.”
END
Friday 13 September 2013
Major new strategic agreement with Mediatek
IMG today announced a major new agreement with Mediatek:
Multi-year, multiple core agreement provides MediaTek with access to market leading graphics technologies
Imagination Technologies (LSE: IMG.L), a leading multimedia, processor, communications and cloud technologies company, has signed a further license agreement with MediaTek Inc., a leading fabless semiconductor company for wireless communications and digital multimedia solutions. The multi-year agreement includes multiple cores from Imagination’s PowerVR Series6 ‘Rogue’ family and beyond.PowerVR Series6 is already enabling MediaTek to deliver products with advanced graphical features, such as OpenGL ES 3.0 support, while maintaining the low power profile essential to mobile devices. The new agreement will ensure MediaTek has access to innovative and market leading graphics technology for years to come.
Says Johan Lodenius, chief marketing officer for MediaTek: “MediaTek is focused on providing a market-leading product range that delivers all key market requirements resulting in true end user benefits, including leading performance and an enhanced feature set, all at low power. The strengthening strategic relationship with Imagination is a significant element in our SoC roadmaps and we are pleased with this multi-year agreement which will deliver the next wave of success for both companies across key segments.”
Says Imagination EVP marketing, Tony King-Smith: “Graphics performance and efficiency, particularly in terms of optimal power consumption, are crucial to the majority of markets today, especially mobile. With wide ranging adoption of PowerVR technology MediaTek will confidently deliver a range of solutions that address those markets in a compelling way. MediaTek’s SoCs are a great example of how we see our partners using their unique expertise and innovation combined with our technologies to differentiate their products.”
MediaTek will deploy the technology in SoC devices targeting multiple markets across its product range.
Under the terms of its licensing arrangements Imagination receives license fees, and royalty revenues on shipment of SoCs incorporating Imagination's IP.
END
This is IMG's first multi-year/multi-core rns since September 2008 (with Apple) and comes after a period of time when many had doubted the strength of the relationship with Mediatek. It reinforces the Mediatek feedback from Dave/Ronak's recent meeting with Sir HY .Well done to all the team.
Wednesday 11 September 2013
Apple and Broadcom updates
Apple unveiled the iPhone 5c and iPhone 5s, as widely predicted, last night:
http://www.apple.com/pr/library/2013/09/10Apple-Announces-iPhone-5s-The-Most-Forward-Thinking-Smartphone-in-the-World.html
http://www.apple.com/pr/library/2013/09/10Apple-Introduces-iPhone-5c-The-Most-Colorful-iPhone-Yet.html
The 5s contains the new A7 (64-bit) chip, with support for Open GL ES 3.0 - presumably this implies a PowerVR Series 6 Rogue GPU (not confirmed yet) which is obviously great news for IMG. The graphics are said to be 'up to 2X' performance of the iPhone 5 .
The 5c uses the A6 processor, with SGX 543MP3 GPU.
Availability is from 20th September, including China and also NTT DoCoMo of Japan . DoCoMo of late has been using Qualcomm, instead of Renesas, for its smartphones so IMG will obviously increase market share once again in Japan.
In other important news Broadcom last week announced it had acquired the LTE-related assets of Renesas, in order to not miss out in this rapidly expanding market and 'catch-up' with market-leader Qualcomm.
http://www.broadcom.com/press/release_987090413.php
This is a really big deal for IMG in my view.
Broadcom will immediately enter the market with the EOS2 dual core LTE chip (this is the Renesas MP5232 platform, using SGX 544MP graphics, already carrier-validated) and have multiple Tier 1 customers lined up, including Samsung . Ramp-up will be Q4 '13/Q1 '14 and a quad-core version is in-design for production late 2014.
Broadcom inherits Power VR Series 6 Rogue with this deal.
Broadcom are already a major customer for MIPS and are thought to be an Ensigma licensee also. This deal should further deepen and broaden the relationship with IMG.
It also removes some of the uncertainty around the loss of future royalty volume via ST/E, Renesas Mobile and TI (mobile).
The IMG interim-management statement is on the 17th September, with the AGM (live blogged again by Ken) 3 days later.
http://www.apple.com/pr/library/2013/09/10Apple-Announces-iPhone-5s-The-Most-Forward-Thinking-Smartphone-in-the-World.html
http://www.apple.com/pr/library/2013/09/10Apple-Introduces-iPhone-5c-The-Most-Colorful-iPhone-Yet.html
The 5s contains the new A7 (64-bit) chip, with support for Open GL ES 3.0 - presumably this implies a PowerVR Series 6 Rogue GPU (not confirmed yet) which is obviously great news for IMG. The graphics are said to be 'up to 2X' performance of the iPhone 5 .
The 5c uses the A6 processor, with SGX 543MP3 GPU.
Availability is from 20th September, including China and also NTT DoCoMo of Japan . DoCoMo of late has been using Qualcomm, instead of Renesas, for its smartphones so IMG will obviously increase market share once again in Japan.
In other important news Broadcom last week announced it had acquired the LTE-related assets of Renesas, in order to not miss out in this rapidly expanding market and 'catch-up' with market-leader Qualcomm.
http://www.broadcom.com/press/release_987090413.php
This is a really big deal for IMG in my view.
Broadcom will immediately enter the market with the EOS2 dual core LTE chip (this is the Renesas MP5232 platform, using SGX 544MP graphics, already carrier-validated) and have multiple Tier 1 customers lined up, including Samsung . Ramp-up will be Q4 '13/Q1 '14 and a quad-core version is in-design for production late 2014.
Broadcom inherits Power VR Series 6 Rogue with this deal.
Broadcom are already a major customer for MIPS and are thought to be an Ensigma licensee also. This deal should further deepen and broaden the relationship with IMG.
It also removes some of the uncertainty around the loss of future royalty volume via ST/E, Renesas Mobile and TI (mobile).
The IMG interim-management statement is on the 17th September, with the AGM (live blogged again by Ken) 3 days later.
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