Imagination Interims 2015/16

A rough morning for Imagineers, with very poor financials (mostly expected) and short-term outlook:

https://imagination-technologies-cloudfront-assets.s3.amazonaws.com/presentations/15122015/FY16%20Half%20Year%20Results%20December%202015%20FINAL%20v2%2015dec2015.pdf

https://imgtec.com/news/press-release/half-year-results-statement-2015/

Imagination Technologies Group plc (LSE: IMG, “Imagination”, “the Group”), a leading multimedia, processor and communications technology company, today announces results for the six months ended 31 October 2015.

Overview

• Short-term royalty revenues impacted by slowdown in semiconductor and smartphone markets, and ramp-down of customer’s legacy chip as previously reported
• Medium-term outlook on royalty revenue substantially strengthened through new multi-year multi-core license agreement for PowerVR graphics
• Further significant design-wins achieved in key markets for mobile, automotive and TV
• The above new license agreement and design-wins are expected to result in additional multiple 100m’s of unit shipments in FY18 and beyond
• Licensing closure timing and recognition rate in H1 does not reflect the strong pipeline and substantial growth in backlog
• Operating costs tightly managed resulting in significantly lower rate of cost growth than previously guided, while maintaining the necessary investment in key areas
• The Board currently expects adjusted operating profit for the financial year to 30 April 2016 to be below previous expectations

Financial highlights

• Group revenues of £71.1m (2014: £82.2m)
• Technology revenues of £62.7m (2014: £72.8m)
  • Licensing revenues of £12.6m (2014: £16.0m)
• £3.0m deals closed 24hr outside half-year window (resulting in £1.5m of recognised revenues moving from H1 to H2)
  • Royalty revenues of £49.8m (2014: £56.3m)
• Adjusted operating loss* of £7.3m (2014: profit £5.0m); reported operating loss of £20.8m (2014: £10.3m)
• Adjusted loss per share* 2.6p (2014: earnings 1.3p); reported loss per share 7.7p (2014: earnings 3.9p)

Business highlights

• Strong licensing pipeline and backlog
  • 42 licenses signed (2014: 49) with over 22 existing and new partners
  • Backlog of booked (but not recognised) orders up 50% over the same time last year
• Further increase in new committed SoCs with over 28 additional SoC design-wins which will contribute to future royalties
• New strategic multi-year agreement with tier-one mobile market partner
• Penetration of significant automotive market for both PowerVR and MIPS continues to develop strongly with multiple partners
• PowerVR deployed in all key over-the-top TV platforms
• Strong platform offering for emerging IoT opportunities
• Pure loss further reduced following the actions taken last year

Outlook

• The high backlog level and both the size and quality of the sales pipeline support H2 licensing revenue increasing from H1 and also being higher than H2 FY15
• Unit shipments are expected to recover in H2, although it remains difficult to provide precise guidance given dependence on timing of semiconductor industry recovery
• Careful direction of our investments will result in underlying operating cost growth of around 2%, significantly reduced from previously expected 5%-10%, resulting in a c.£5m reduction against our original plan for the financial year

Hossein Yassaie

, Chief Executive, commented:

“Although our financial performance in the first half has been disappointing, reflecting a short-term slow-down in the overall semiconductor industry and softness in the mobile market, the fundamental medium-term demand drivers remain strong.

“Imagination has significantly strengthened its position in several key markets and in particular in mobile, automotive and TV/STB segments. The strategic license agreements secured with key players in these segments provide the backbone for significant acceleration in unit shipments with multiple 100’s of million unit growth over the next 2-3 years.

“With growing revenues driven by the strong design-win base already established, continued demand for our existing and new technologies and ongoing discipline on operating costs mean that the operating margin is expected to significantly improve in the medium-term.”

AGM 2015

AGM 2015 I arrived quite early to see extensive building work ongoing as the final phase is nearing completion by the end of the year. In total the campus will hold 900 people. For a while I thought I'd be the only attendee, fortunately most people had arrived and whilst a number of familiar faces and stalwarts were missing we still had many others who continue to be very very patient investors.  First impressions of the new Chairman Bert, he is a heavy weight in terms of stature, let's see if that leads to real progress where it matters with galvanising the executive management team and attaining the goal being revenue generation and ultimately consistent shareholder return. In terms of the current financials - "poor" is the only word that can be used. Outgoing and frankly out of his depth CFO Richard Smith gave little reason for optimism. To be fair he did present fairly well but, without a clear indication of where the money is being spent I feel we are more in the dark than ever in terms of how this will really translate into forward revenue in the magnitude that makes the initial investment effort worthwhile. Moving on to the industry and business presentation from HY. As ever it was well delivered and positive. Was it believable? Roll back a few years and no one would question the vision. Given the ride we've been on we can only question whether the strategy is plausible and without the pitfalls that have stricken us with regularity in recent years. Yet HY remains confident and circa £100m license fees in the last 30months must translate into something more than just treading water whilst peddling faster. As for the slide show, here are some key points: On mobile / tablets - IMG will see real growth in late 2016/17, we assume bulk of the growth will come via Spreadtrum. Hossein also mentioned that he saw the iPad pro as a shift from tablet based content consumption to creation. In the home with TV we see good business with Realtek and there is opportunity for connectivity as well. In the network space he spoke about heterogeneous processing as more video based data gets processed via the cloud. In wearables IMG are in the lead player and also have strong wins for graphics and cpu in China. With Automotive the key players in graphics and ADAS we have over 50% of the market. IoT is massive, so massive that it will drive changes 10x greater in the next ten years than the last ten years. Hossein talked about big focus China has put in the semi industry. China only makes 10% of silicon so has huge potential for IMG. Verticalisation - Apple, Amazon, Cisco and now smaller companies with new markets. Volumes - mix of customer base is evolving with different customers IMGs now deal with. We have the four categories of companies IMG deal with in the market place. IMG target all four. Within the partnership OEM space IMG now want to talk more about this market. IMG see huge growth in the platform level space. Big growth will come via adoption in health, industry, energy, retail, security/safety and agriculture. IMG offer 3 types of IOT solutions from basic sensor hub to audio/vision based platforms. Creator gives developers the tools to build the infrastructure. This market will pick up in about three years. Omnishield - security is a big thing. Current phones only have a single secure domain. This is ok if there is just one service provider. Virtualisation is the IMG technique to create up to 256 secure domains. Gaining real traction and is better than trust-zone. do not be surprised if ARM has something up their sleeve. PowerVR Focus to move down from mid-high end to low end. series 7 in production. Series 8 is very efficient super scaleable and is positioned for low end design wins. >50% share in car likely to increase by 2017. TV up take has been slow, but seeing design wins including Realtek. Ray tracing partnered with TSMC. Chip is now back and something cool will be demoed soon. Vision platform targeted for the IOT space. MIPS 3 areas: mobile strategic win on modem side. Still aiming for Apps Processor. Automotive : Mobileye working with the undisputed number 1. Micro controller side is doing well with Microchip. Design wins with tier 1 is the key and discussions continue. MIPS advertising campaign targeting Silicon Valley. Ensigma Relatively sticky as its new and is solving problems today. Explorer shipping in Korea . Whisper lowest power solution for IOT. In 5-10years they see wifi integration in chip. IMG want to be no.1 connectivity IP company. IMG custom solutions designed to save customers $$$ in design costs. Pure To enable digital radio but pushed into unprofitable price points. Has been adjusted to middle price points. Pure is helping with IOT solution development. HY summary Rate of investment now tightly controlled. Semi industry has changed but IMG are ready to make money from MIPS, Ensigma is 2 years from break even. powervr will continue generating revenue. This will enable the 30-40% target. Ray tracing is so disruptive you really have to show it in real silicon. TSMC very excited about it as it could generate huge revenue. 5-6 Ray tracing customers await. Q&A Tony, asked the question around profitability. I felt the answer was rather simplistic and I struggle to give IMG the benefit of the doubt here. We deserved a better response than the one we got. In fact HY was more cohesive at lunch on this topic. HY when asked the question about FTSE 100 by Paul, he unsurprisingly responded yes in 5 years (2020), but that would mean a market cap of £4-5bn at today's market cap which would need something remarkable to happen. My view is we need licensing to be double where we are now by 2018 to have even a faint sniff of that. Post presentation, I wondered into the demo room first. Having wondered around quickly I was about to leave for lunch but luckily bumped into Alexandru Voica and we had a good 20min conversation. Firstly graphics, series 7 delivered to Apple's requirement and series 8 will take things forward. We've heard already about the increased scalability of series 8 and that will matter as high end tablets encroach into the laptop arena. Seemingly we are in a one year cadence cycle. On the current series 6XT/7XT Alex showcased a new demo on an iPad. Graphics quality was fantastic. He stated with Vulkan IMG are leading the pack, and it is now up to Android developers to start to use this far more efficient and graphically rich approach and shift away from OpenGL ES. This would be a key differentiator. In terms of where Alex sees Arm currently, he expects them to shift from vector based to scaler based solutions. He feels IMG have a healthy lead but when price is a key factor you cannot always win as we have found to our detriment in the past 3 years.  We moved on to Ray Tracing. Demoes on the new silicon are a couple of months off, we can assume CES is a good stage to showcase. With Ray tracing IMG have in his words a 5 year lead in mobile. Competition wise the PC space IMG expect to see the likes of AMD and Nvidia give IMG a run for their money. In terms of mobile space we are 2-3 years out from end user product but we can expect this to be when series 9/10 is out and the hybrid solution will no doubt be amazing. Alex then moved on to talk about Creator and we can expect to see announcement of a family of creator products servicing different needs and different end user capabilities. On wearables aside from Apple Watch he appeared to place more emphasis on Android Wear which is surprising given current sales. Having concluded the demo room I moved on to the lunch marque. Unsurprisingly, HY was encircled by many and would expect Pete and Tony's accounts to fairly comprehensive summaries. From what I gleaned when asked about the sox supplier space he mentioned 3 - Qualcomm, Mediatek, and Intel. Nothing will happen with the former, things are slowly improving with Mediatek (which means it's neck and neck with Arm); with Intel I got a two phase answer, currently IMG are not doing well, however the expectation is things will improved via the significant relationship with Spreadtrum. As for the Intel relationship as a whole this continues albeit one can assume they've refocused for the short term in pushing the Rochchip/Mali socs. In terms of current state of play and investment strategy HY was better in his explanation as to why he made the decision to scale and diversify. His legacy is to leave the UK industry with a thriving company that's around in 20 years time, unless of course they get an offer they can't refuse... Apart from HY, I talked to a number of people in the senior management team. No surprise they all reiterated things are progressing well and felt disappointed not to be allowed to shout about what's on the horizon (hopefully not storm clouds). Talk was about using a different business model for new business and where attainable subscription based services would be a supplementary model to follow via cloud based services. So what are Pure up-to, they've retrenched from the US, and refocused on DAB with key markets - UK, Germany, Norway and recently Poland have signalled a full digital switchover. We spent some time with Christ Moseley and Paul Smith who joined a bit later. We learned, Jongo is dead, the concept of wireless speaker will be reborn mid-2016 with something uniquely differentiating. It will feature an all new MIPS based SoC which incidentally isn't a frontier silicon solution.  As for current focus, there are some new radios of which key is a new F3(?) which has inbuilt Spotify capability. I also glimpsed at a legato esq model as well as one up market model that will give Roberts some challenge. In terms of market share Pure is around 26%, behind Roberts 33%. Chris alluded to getting back to no.1 but will that deliver profitability - no need to give an answer :(. Paul mentioned that Caskeid is doing ok and we can expect further news this year. He also referred to a non audio use case for Caskeid, supposedly with video. So for conclusions : for many years at the AGMs we've seen a lot of optimism and this was no different. Ultimately, with little to back up the body language as simply the numbers did not stack up. To get to where we need to be in 5 years time, what management need to set are aggressive executable targets that eat into the competition in the next 2,3 years?  What is the investment strategy? As the budget grows the % spend might tail off but the absolute spend and how it translates to a revenue multiple is what matters! On an upbeat note, if things do work out and we achieve 50% of the plan we will be in a far better place.  To end, many thanks again to the wonderful Susi for organising the AGM it was and always is a great day at KL. We only need some tangible progress on the revenue front in the 2nd half to fully rekindle our dampened enthusiasm.

IMG H1 trading update

IMG released a disappointing trading update a couple of days ago:

https://imagination-technologies-cloudfront-assets.s3.amazonaws.com/presentations/16092015/Interim-update-16-September-2015.pdf

The GPU royalty shortfall is said to be a single quarter issue relating to one customer, though it is against a background of semiconductor 'softness'. Obviously, if IMG could rely on multiple high volume smartphone SoCs from the likes of Mediatek (instead of just 1) and Intel (not IMG's fault) instead of just the Apple juggernaut, then we would not be in this position. ie. GPU-wise we are spread too thin.
The poor performance of the IMG senior sales/executive team 2 years ago, when they dropped the ball at Mediatek in particular, and continued failure to win back Samsung LSI from Mali for over 5 years now (or even understand the importance of this), continues to hurt IMG and its shareholders. Hopefully things will change from next year....

In full:

Imagination Technologies Group plc (LSE: IMG, “Imagination”, “the Group”), a leading multimedia, communications and processor technology company, is today issuing its Interim update for the period from 1 May 2015 to 15 September 2015.

 Business update Licensing activity in the period has been steady with an encouraging increase in the overall pipeline of opportunities. While some of our customers have performed strongly, overall unit shipments and royalty revenue for the quarter ended 30 June 2015 have been slightly lower than our expectations. The semiconductor market in general has experienced a weaker quarter ending 30 June 2015.
Unit shipments and royalties in the June quarter were also impacted by a customer’s ramp-down of a legacy silicon chip earlier than previously indicated. This resulted in a timing gap before the replacement chip ramps up.
Pure is trading in line with expectations, with improvements seen in the important UK and German markets.
 Operating costs continue to be tightly managed and are marginally lower than our expectations. Technology Multimedia
 Early PowerVR Series7 devices have entered production with several others to follow. PowerVR Series8 technology is at an advanced stage of development with initial engagement with lead partners having begun and already resulted in strong positive feedback and interest.
The reference chip demonstrating our ray tracing IP, mentioned in our June 2015 results statement, has now been received from the foundry. The bring-up and evaluation process is progressing as expected. We are aiming to have demonstrations based on this reference platform for key interested partners by the end of the calendar year.
 CPU and processor cores
 MIPS processors continue to gain further industry recognition and acceptance. The recently announced virtualisation-based security technology, OmniShield, has attracted considerable interest. It offers hardware-enforced multi-zone separation which is essential for emerging security needs as well as reliability in applications which include safety critical aspects, such as automotive. The MIPS business unit is steadily extending the family members across all three of the M, I, and Pclasses. We expect to be able to announce additional cores in the M-class and P-class categories in the near future. The comprehensive range of MIPS IP cores for everything from microcontrollers and Internet of Things (IoT) devices to 64-bit application processors and servers is delivering choice in the processor IP market that is increasingly welcomed by a growing number of customers.
Communications
 Ensigma’s key business goal remains becoming the number one global connectivity IP provider, especially in the emerging and fast-growing IoT market, as this IP market continues to develop and grow. In that endeavour the two product lines, Explorer and Whisper, are designed to address performance and low-power requirements across all key markets. The complementary and growing RF technology we are now able to offer alongside our basebands is increasingly enabling delivery of complete solutions which are in growing demand and are helping to create an expanding opportunity pipeline. There are several design-wins for both Explorer and Whisper Series4 RPUs and the first design has now entered production.
 Pure
The Pure business has progressed as expected. With its latest products, the customer engagement and ranging has improved significantly in the UK with Germany also improving steadily. The most active business period is normally the run into Christmas, from October to January.
 Outlook
 The semiconductor sector in general had a weak June quarter but the industry expectation is for this to improve in the second half of the year and in particular in CYQ4. Part of this has been driven by the sharp slowdown in the rate of growth of the emerging economies, and in particular the Chinese market. The combination of general market softness in H1 and the short-term timing impact of the replacement chip ramp up mentioned in the business update, lead us to expect lower H1 revenues than we had previously forecast, which is likely to lead to a loss for H1. Based on the strength of the licensing pipeline and customers’ product launches we now expect a stronger H2 than previously forecast. However, at this early stage of the year, we cannot be certain that we will recover all of the H1 shortfall.
Given the strong licensing activities in the last couple of years and the growing design wins in various markets, we expect the medium-term volume to gain significant momentum despite these short-term industry and specific factors. The progress in Pure has been maintained and we continue to expect an improvement in revenue and profitability this year. To the extent that we see the weaker performance from the June quarter persisting then we will manage the rate of investment in operating costs accordingly.
 Hossein Yassaie, Imagination’s Chief Executive said: “Following the strong licensing during the second half of last financial year, the pipeline of opportunities has encouragingly built-up to healthy levels during the first quarter of the year. “For both our PowerVR GPUs and MIPS cores we are seeing growing interest and engagements from several high volume partners. We expect these engagements to lead to licenses during this financial year and, combined with tier-one deals closed during the second half of last year, will help to build significant volume growth in the medium-term.

“The Ensigma IP families continue to strengthen as we build up all the elements towards complete solutions. The level of customer engagement is increasing strongly, helping to grow this developing business. “There are some indications of general softness across the semiconductor industry for the short-term. However, given the relevance of our technologies to the key markets and design-wins we have already secured and expect to secure, we remain confident of a growing momentum in our business in the medium-term.”

 Enquiries Imagination Technologies Group plc


AGM was today -  presentation slides:

https://imagination-technologies-cloudfront-assets.s3.amazonaws.com/presentations/AGM15/Imagination-AGM-015.pdf



Some good news via Amazon yesterday, as 3 new Fire tablets, including a budget <$50 version, and new Fire TV were announced - all using PowerVR Series 6 graphics.

New Apple products announced

Apple announced 5 new IMG'd products yesterday:

Apple TV - A8 SoC
iPhone 6s & iPhone 6s Plus - A9 SoC
iPad Mini 4- A8 SoC
iPad Pro - A9X SoC

Power VR Series 7XT is favourite for the A9/A9X but there is no confirmation as yet.

More details:

http://www.anandtech.com/show/9615/apple-announces-the-ipad-mini-4

http://www.anandtech.com/show/9619/apple-announces-iphone-6s-iphone-6s-plus

http://www.anandtech.com/show/9616/apple-announces-the-new-apple-tv

Next week (16/9/15) there is IMG's interim trading update, followed 2 days later by the AGM.
Royalty volume has been pretty strong of late by the look of things, with huge iPhone 6 sales and growing Mediatek MT6795 volumes. Licensing though is anyone's guess, given the lack of rns these days.

Imagination Technologies FY 2014/15

IMG yesterday released FY results, as below.
These results were always going to be more about the message/outlook rather than the figures , which were fairly poor as expected. The rns itself is quite bullish.
On the plus side, there was the Spreadtrum GPU win (hitherto ARM cpu/gpu, though recently Intel took an equity stake) - will be interesting to see if PowerVR gets actual volume there. H2 licensing was strong but can IMG maintain the momentum? The 30-40% margin target is re-stated but without ditching PURE (7th year in a row of losses)  I am unclear how this will happen - an IP company doesn't need an OEM division no matter what justification is provided - if the IP is good enough, it will be licensed, simples (have a word Bert). The MIPS emdedded sub-system is interesting, looks like a side/back-door entry into mobile apps market - not clear at all who it is but sounds like a vertical player ? The non-MIPS ASP remains strong though we have stagnation of volume -  should pick up this year with more MTK volume (via Meizu MX5 etc etc) but vast majority at MTK still Mali of course.
No change in the post-CC analyst opinions either way, as evidence is required ie. hard numbers. Hard to argue with that.

https://imagination-technologies-cloudfront-assets.s3.amazonaws.com/presentations/30062015/Imagination%20Technologies%20-%20Full%20year%20results%20-%2030%20June%202015.pdf


Key bits:

 Financial highlights

·         Group revenues of £177.0m (2014: £170.8m)

·         Technology revenues increased 7% to £158.6m (2014: £147.6m)

-      Licensing revenues up 2% to £39.0m (2014: £38.3m)

-      Royalty revenues up 9% to £118.9m (2014: £109.0m)

·         Adjusted operating profit* of £21.1m (2014: £24.0m); Reported operating loss of £8.5m (2014: £0.1m)

·         Adjusted earnings per share* 6.3p (2014: 8.1p); Reported loss per share 4.9p (2014: earnings 0.3p)

Business highlights

·         Strong licensing across all IP families, delivering highest ever licensing revenue and record backlog

-        121 licenses signed (2014: 115) with over 40 existing and new partners

-        Agreements signed with partners including Ali, Atomos, Avago, Broadcom, Celeno, Elvees, Fujitsu, HiSilicon, Ineda, InfoTM, Intel, JCI, Lantiq, Loongson, MediaTek, Pioneer, Renesas, Sigma, Spreadtrum, Texas Instruments, Toshiba, Toumaz and Yokogawa

·       Significant increase in new committed SoCs with over 60 additional SoC design-wins which will contribute to future royalties

·       MIPS unit shipments increased 9% year on year to record level of 797m (2014: 729m); non-MIPS shipments stable at 530m (2014: 530m)

·       Pure loss reduced following the actions taken last year

Outlook

·       Based on the increased backlog and the active pipeline of prospects, target of 10% growth in licensing revenue in FY16

·       Expect growth in unit shipments and royalty revenue

·       Underlying operating cost growth expected to be 5% - 10%

·       Expansion of operating margins in medium-term with longer-term target of 30% - 40%, with a rise in profitability in FY16

Hossein Yassaie, Chief Executive, commented:

“We have seen robust licensing and royalty revenues across all three IP families whilst continuing to tightly control our costs.

“Significantly we have secured major design wins for our graphics and processor IP with new high volume mobile players - these multi-year agreements will further drive unit shipments in the medium term. Our connectivity IP continues to gain momentum.

“The established strengths and comprehensive nature of our three key IP families have enabled our unique platform capability which has significantly contributed to licensing revenues this year.

“As our revenues grow, the natural operational gearing of the business means that the financial performance is expected to significantly benefit from a slower growth in operating costs. We therefore expect to see significant expansion in operating margins in the medium-term.”

Acceleration of licensing in the second half of the year resulting in record licensing revenues  121 licenses including 52 for PowerVR multimedia, 47 for MIPS CPU, 15 for Ensigma comms and 7 System-level / support IP (including FlowCloud, VoIP, and Caskeid)  Significant agreements with over 40 partners during the year including Ali, Atomos, Avago, Broadcom, Celeno, Elvees, Fujitsu, HiSilicon, Ineda, InfoTM, Intel, JCI, Lantiq, Loongson, MediaTek, Pioneer, Renesas, Sigma, Spreadtrum, Texas Instruments, Toshiba, Toumaz and Yokogawa  Licenses signed for new IP across all key IP families (including Series7 GPU, Warrior MIPS cores and Ensigma RPU / NPU)  New, significant and strategically important licensing deals with high volume / tier-one mobile players for both PowerVR graphics and MIPS processors  Increasing number of licenses signed involving IP from multiple families. There is a growing and general trend towards demand for IP sub-systems or solutions combining multiple IP cores, an aspect that our strategy is designed to fully support

Partner chip unit shipments grew to 1,327m units (2014: 1,259m)  Non-MIPS shipments were stable at 530m (2014: 530m). We have seen an increasing proportion of shipments using Series6 graphics technology and given the design wins achieved during the year we expect this to continue to grow  MIPS shipments increased strongly to their highest annual level of 797m units (2014: 729m)  The licensing activity in the year has resulted in a significant increase in new committed SoCs with over 60 new SoC design-wins added which will contribute to future royalties 

 During the year there were 27 PowerVR GPU licenses across all markets and segments. These included a number of licenses to customers using PowerVR graphics in high volume markets, with one licensing PowerVR graphics for the first time.

 As a result customers’ engagements and licensing activities have been strong and encouraging with 47 licenses concluded globally for MIPS cores across existing and new customers during the year. Among these there were a number of strategically important agreements including a key license with a tier-one mobile player for a significant embedded subsystem in mainstream mobile application processors

Imagination's OmniShield

HY has been talking up Security for nex-gen SoCs for some time now, and here is the end-product. He feels , obviously, that it is a better solution than ARM's TrustZone ie. an important differentiator, and that customers are more likely to choose IMG-based SoCs as a result.

http://www.imgtec.com/news/detail.asp?ID=989

LONDON, UK – 20^th May, 2015 – Imagination Technologies (IMG.L) introduces OmniShield™ technology designed to provide the industry’s most scalable and secure solutions for protection of next-generation SoCs. With OmniShield-ready hardware and software IP, Imagination is ensuring that customers’ SoCs and OEMs’ products are designed for security, reliability and dynamic software management, as use models and services evolve across a wide range of connected devices.

Connected products such as Internet of Things (IoT), gateway routers, IPTVs, mobile devices and automotive systems must increasingly be designed to support numerous unique applications, various content sources, and in-the-field software updates from service providers and operators, all while ensuring privacy and data protection. With these multiple applications and associated data co-existing on the same SoC, each must be kept secure both from external attacks and also from each other.

For example, set-top boxes must now protect not only broadcast content, but also over-the-top (OTT) streaming video and third party applications. In automotive, communications are becoming tightly coupled with smartphones, bringing third party services into the automotive infrastructure. And in supporting emerging applications such as self-parking and autonomous driving, it is critical to ensure ultra-safe operation to meet ADAS requirements.

Today’s embedded security approaches are CPU centric, binary (one secure zone / one non-secure zone) and are complicated to implement. These solutions won’t scale to address the sophisticated types of applications and services being enabled by next-generation connected devices and the cloud.

Imagination’s OmniShield is a scalable security technology that ensures that applications that need to be secure are effectively and reliably isolated from each other as well as protected from non-secure applications, while still meeting required levels of functionality, performance, cost, and power consumption. OmniShield goes beyond a binary approach to create multiple secure domains, where each secure/non-secure application/operating system can operate independently in its own separate environment. For example, secure processes such as DRM and payment systems can coexist with non-secure processes such as gaming and web browsing.

This multi-domain separation-based architecture not only ensures security and reliability, but also eases development and deployment of applications and services. Thanks to OmniShield, developers will be able to securely develop and debug code in a virtualized environment, and operators and other service providers can configure devices for provisioning of services in the field.

OmniShield also addresses the scalability that heterogeneous architectures will require by protecting all of the processors in an SoC – including the CPU, GPU and others. In a heterogeneous architecture, application data and resources will be shared between the CPU and other processors in the system, so those processors will now face the same level of exposure as the CPU, and must be given the same level of protection.

OmniShield encompasses both hardware and software components, enabling companies for the first time to implement a truly secure, heterogeneous multi-domain application environment using hardware-enforced separation and protection throughout. Because it is based on hardware supported virtualization, OmniShield is efficient and does not compromise performance, which is especially important in embedded environments such as IoT.

OmniShield leverages the fact that hardware virtualization is applicable to all processing engines including general processors (CPUs) and application specific processors such as GPUs. In addition, since virtualization concepts are already well understood and supported techniques in many operating systems and RTOS, they provide an ideal and proven foundation for hardware enablement and extensions needed for next-generation security. These facts mean that OmniShield can offer a universal security solution that delivers the ultimate combination of protection, scalability and efficiency.

Tony King-Smith, EVP marketing, Imagination, says: “The separation-based architecture of OmniShield will play a critical role in minimizing attack surface area in next-generation connected devices. Our customers are using OmniShield-ready IP to create innovative SoCs that will empower their customers to deploy new trusted services and applications. PowerVR IP is already used in secure heterogeneous environments thanks to the virtualization in some Series6XT GPUs. We’ll soon see OmniShield-ready systems based on our other processors including PowerVR Series7 GPUs and MIPS Warrior CPUs. This is the start of a new era of secure SoC and cloud-based systems design.”

OmniShield-ready hardware and software

Imagination is building OmniShield support into its entire range of processors, including MIPS Warrior CPUs, PowerVR multimedia processors and Ensigma processors. Imagination’s processors are designed to operate in heterogeneous and coherent clusters connected by a scalable secure interconnect fabric which extends OmniShield throughout the SoC with secure flows controlled by a trusted hypervisor. In addition, Imagination and its partners will provide a growing range of virtualized Root-of-Trust IP blocks for OmniShield including crypto, Public Key Accelerator, true random number generators, secure I/O for external TPMs and secure ROM.

Imagination is building on its OmniShield-ready processor IP technologies by assembling some of the industry’s most advanced SoC and platform software, all OmniShield-ready. This includes trusted boot and other security functions, as well as trusted hypervisors and secure OS, some of which will be available in 2015 through the open source prpl Foundation. The prpl security working group is also working to deliver an overall security framework, open APIs (application programming interfaces), and reference platforms supporting the multi-domain technology. Imagination is already working with a wide range of industry-leading providers of third party security solutions in support of OmniShield, resulting in a strong and growing ecosystem of partners supporting Imagination in every aspect of secure SoC and connected system design.

Availability

Multiple partners are already designing SoCs using OmniShield technology. OmniShield reference designs will be available in 2015. Contact info@imgtec.com for more information.

Imagination Summit Silicon Valley: Securing the Future

Imagination will hold its annual Silicon Valley Summit at the Hyatt Regency Santa Clara on Thursday, May 21st. This year the event is focused on “Securing the Future” with presentations from Imagination and partners on a variety of related topics, including OmniShield. Visit http://www.imgtec.com/events/detail.asp?ID=37 for more information and to register.

Supporting Quotes

“As Elliptic focuses on driving open security initiatives as part of the prpl Foundation, we are in close collaboration with Imagination as they develop and roll out OmniShield enabled technologies. The success of future technology advancements depends on trust, therefore it is essential to take a holistic approach to security as we address evolving threats to connected devices in relation to the IoT, gateways, big data and the cloud.”

– Mike Borza, CTO, Elliptic Technologies

“With Ikanos’ multi-threading MIPS-based processors, we are enabling end-to-end, high speed and secure broadband access for provisioning of new revenue-generating triple- and quad-play services. And in the connected home, our processors are powering an array of new wireline and wireless gateways and routers, designed to address performance and security requirements of carriers, looking to offer new applications in IOT, home automation and other cloud-based services. It’s good to see Imagination addressing security needs as use models and services for these devices continue to evolve.”

– Kourosh Amiri, Vice President of Marketing, Ikanos

“Next-generation connected devices such as smart home gateways need to implement new security paradigms to address changing usage models, new applications and a range of new threats. We are pleased to see Imagination taking a leading role in driving discussion and action around next-generation security, which will be key to successfully delivering connected home devices that are consumer-friendly and trusted.”

– Dan Artusi, VP & General Manager, Lantiq – an Intel Company

“With Imagination’s PowerVR GPUs, MediaTek continues to push the envelope in terms of graphics innovation in our products. And while our graphics capabilities will continue to grow in exciting new directions, GPUs will also increasingly go beyond providing pure graphics functionality, and will need the same level of protection as the CPU. We’re pleased that Imagination is taking a leadership position in driving SoC security by offering a separation-based multi-domain architecture across all its GPUs.”

– Tom Hsieh, Marketing Director of Wireless Communications BU, MediaTek

“Imagination’s multi-domain OmniShield technology fits perfectly into the open framework that we are developing in the prpl Foundation’s security working group. There is clear market demand for hardware-based security to augment software-based approaches, particularly in heterogeneous, multitenant applications. Companies in a variety of vertical segments are demanding a way to securely deploy new services on existing devices without impacting services that are already present. Imagination is making important contributions in this regard, and we are excited to rally the prpl community to enable this type of secure, scalable, multi-domain approach.”

– Art Swift, President, prpl Foundation

“Together with Imagination and Green Hills Software, we’ve already shown the power of virtualization on a PowerVR G6400 GPU in our R-Car H2 SoC, enabling a real-time subsystem and a Linux-based subsystem to execute concurrently and securely. The direction Imagination is taking by enabling multi-domain security through its OmniShield-enabled GPUs and other processors with hardware virtualization is well aligned with what we see as needs in future automotive platforms.”

– Masahiro Suzuki, Vice President, Head,
Automotive Information System Business Division, Renesas

“The industry needs to reexamine how it’s dealing with embedded security in light of emerging applications and an ever increasing number of connected devices. The holistic approach that Imagination is taking with its OmniShield technology represents the right direction. Imagination has also developed OmniShield to be accessible to its customers with negligible performance and area overhead. The ability to keep security related costs to a minimum will be a key advantage, especially for cost sensitive applications such as IoT.”

– Richard Wawrzyniak, Senior Market Analyst: ASIC & SoC, Semico Research Corp.

Apple Q2

Yet another record-breaking quarter from Apple, with China sales getting the headlines on this occasion.Apple Watch is also off to a great start, with demand exceeding supply.

Q2:
iPhones: 61.2m
iPads: 12.6m

for the past 6 months we have:
iPhones: 135m
iPads; 34m

Earnings call:
http://seekingalpha.com/article/3107596-apples-aapl-ceo-tim-cook-on-q2-2015results-earnings-call-transcript?part=single

This, together with quite a few Chinese flagship phones being announced currently, featuring Mediatek MT6795, suggests there should be a recovery in GPU royalty volume at IMG .



In other news, IMG yesterday made the following MIPS-related announcement regrading its University Programme (IUP):

 Imagination Technologies (IMG.L) announces a revolutionary new offering as part of its Imagination University Programme (IUP) called MIPSfpga. Through MIPSfpga, Imagination is transforming CPU architecture education in universities around the globe by offering them free and open access to a fully-validated, current generation MIPS CPU in a complete teaching package. 

CPU architecture is generally taught as part of electronic engineering, computer science and computer engineering courses, and is based on MIPS or one of the other two major CPU architectures. Until now, what’s been missing from all of these courses is access to real, un-obfuscated RTL code that will enable professors and students to study and explore a real CPU. Imagination is changing that with MIPSfpga, bringing a new CPU architecture education paradigm to universities around the world.

http://www.imgtec.com/news/detail.asp?ID=979

Imagination IMS

IMG announced the IMS today.

On the plus side, MIPS shipments are ahead of expectations and non-MIPS shipments are in-line thanks to iPhone 6. The strong dollar also helps, though IMG's hedging activities have partially offset this. The 30-40% operating margin is re-iterated by HY.
On the downside we have the 'a little muted' licensing activity, ie. no 10% gain, more likely to be in the 0-5% range. When you factor in a stronger dollar than last year, the reality is another decline in licensing revenues. This is the age-old problem with IMG, superb IP but unable to convert into strong licensing growth (which of course impacts the royalties 2 years down the line) - hopefully this repeated failure to execute is something the incoming chairman can objectively address?

Here it is:

Imagination Technologies Group plc ('Imagination', LSE: IMG, “the Group”), a leading multimedia, processor and communications technology company, is today issuing an Interim update for the period from 1 November 2014 to 17 March 2015.

Business update

The Group has continued to make good progress in its strategy of providing a comprehensive range of market-leading cores in the three key IP families of processor, multimedia and communications and enabling key IP platforms for existing and emerging markets.

Non-MIPS partner unit shipments increased strongly in Q4CY14, showing growth both sequentially and over the same quarter last year.

MIPS partner unit shipments were stronger than expected in Q4CY14 and, for a second quarter in a row, have reached a historic record level for that quarter.

Licensing activity has been a little muted during the period, due to timing rather than any fundamental change in demand for our products. Indeed the pipeline is good and growing with a large number of opportunities being pursued for closure this financial year. The pipeline is active across all areas of our IP.

The changes made to Pure in the last financial year are starting to deliver improved performance in its core markets.

Underlying operating costs continue to be tightly managed and are tracking in line with expectations.

The stronger dollar has had a positive impact on revenues which are mostly invoiced in dollars. This positive effect has been partially offset by the impact of FX on geographically-distributed operating costs and previous hedging activities.

Technology

Multimedia

Our multimedia business remains robust with new class-leading products launched across the full range of end markets.  The newly announced Series7XT continues to secure new design wins across key partners. We are also seeing a wide range of design wins for Series6XE and more recently the newly announced Series7XE at the lower-end complementing the Series6XT and Series7XT wins. The design wins are strong across mobile, automotive, TV and STB segments.

At this year’s Mobile World Congress (MWC) Imagination unveiled the PowerVR Rogue G6020 GPU that has been specially designed for graphics efficiency in ultra-compact silicon area and lowest power consumption, whilst delivering optimal device performance and full compatibility with the latest APIs. With the PowerVR GX5300 and G6020 GPUs, Imagination covers graphics and UIs from entry-level smartwatches to high-end wearables.

At the other end of the performance range the PowerVR Series7 GT7900 continues to lead the market, with 512 ALU cores, and is a super GPU for high-end graphics and compute delivering over 1.5 Teraflops. The PowerVR Series7 launched during the period includes many advanced features and uniquely provides virtualisation for ultimate multi-zone security, an area of growing market demand given the importance of data security and the programmability of modern GPUs. 

The new PowerVR Series5 video encoders for High Efficiency Video Coding (HEVC) are designed to provide the highest quality H.265 encoding, while optimizing silicon area and bandwidth usage. This multi-standard encoder also offers high-quality H.264 encoding for compatibility with the huge range of AVC (Advanced Video Coding) decoders available today.

CPU and processor cores

The growing unit shipments of MIPS cores is evidence of increasing customer confidence and the stronger engagement that we have begun to see with customers since MIPS was acquired in February 2013.

Interest in and licensing of the Warrior range of cores, which have been developed since the acquisition, as well as the previous generation Aptiv range, continue to be strong. Partners have been attracted by the inherent efficiency and performance benefits of the cores, together with the additional features of multi-threading and next generation security capabilities.

The use of hardware virtualisation in the Warrior cores to enable multi-zone security across the range, from microcontrollers to high-end, provides partners with solutions to the increasingly demanding challenges of SoC security. Our unique strategy in delivering CPU and GPU cores supporting multi-zone security is attracting industry attention and is the foundation for total SoC security. An announcement from the prpl Foundation yesterday on the formation of an Open Security working group with members from industry leading companies reinforces the importance of our approach.

The strong MIPS roadmap executed so far and being driven going forward, the investment in internal and third party supporting tools, and the growing momentum in the ecosystem through initiatives such as the prpl Foundation and the Creator family of boards, are recognised and supported by many in the industry. 

Overall we believe we are now at a stage that new and existing tier-one partners are beginning to consider MIPS offerings as both technically strong and strategically important to their plans.

Communications

Imagination’s Ensigma radio connectivity processors (RPUs) are vital to servicing the growing demand for communications IP cores in key markets including IoT, wireless home, mobile and wearables.

At MWC, Imagination demonstrated a new HDMI streaming device using Ensigma Explorer 802.11ac connectivity, and also highlighted its Ensigma Whisper IP that is designed to drive the next generation of wearables, the emerging IoT and other connected devices where ultra-low power consumption and low-cost design points are essential. Whisper RPUs, like their Ensigma Explorer counterparts, are aimed at providing multi-standard support in a single architecture, and are designed to enable customers to bring Wi-Fi, Bluetooth and in the future NFC, GNSS and other low-power connectivity technologies onto their SoCs.

A key platform that deploys Ensigma RPU and MIPS processor cores and combines them with the industry’s best and patented wireless synchronisation and lowest latency technologies is Imagination’s Caskeid audio platform. We have seen significant traction in this offering with major projects underway with key players for delivery during the second half of this calendar year. 

Cloud IoT technologies and initiatives 

As part of our market engagement and enablement of the emerging IoT opportunities we have developed the FlowCloud software technologies which can enable and accelerate easy and quick deployment of our processor and communications IP in these markets. FlowCloud, in conjunction with the Creator family of microcomputer and development systems and third party boards and modules, is enabling a diverse range of applications in the IoT space. Early projects in the areas of agriculture, health and energy are underway with partners. We are also working on industry initiatives on the key areas of security and interoperability which are gaining traction. 

Pure

The refocused Pure business has continued to drive improvement in its core DAB market as well as driving other areas of strategic significance for the Group including wireless audio, where strong partnerships are progressing and the Creator range, which is a key enabler for the developer community and ecosystem build-up.

Outlook

The licensing pipeline is good and is further strengthening across all three IP families with developing engagements with new and existing partners including several tier ones. Given the licenses signed so far this financial year and the pipeline of opportunities scheduled to close this quarter, we currently expect licensing revenue to be close to last year’s level with the potential of single digit growth dependent on exact closure timing of the remaining deals.

Non-MIPS unit shipments are expected to be in line with previous guidance and similar to last year’s levels. Given the continued strength of MIPS shipments we now expect MIPS units to grow by approximately 5-10% over last year’s levels.

The total unit expectation for the Group is in excess of 1.3bn units for the year.

Following the trends seen in the first half, Pure is expected to show a reduction in the underlying loss for the year. Because of the tighter focus on products and markets, this will be achieved from lower overall revenue than last year.

Underlying operating costs are expected to be in line with previous guidance of around 10% growth year on year. With the product lines now complete, this is consistent with our planned transition from a heavy investment phase to one where all product lines are generating a contribution.

Underlying operating costs are expected to be in line with previous guidance of around 10% growth year on year. With the product lines now complete, this is consistent with our planned transition from a heavy investment phase to one where all product lines are generating a contribution.

The overall 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:

“I am particularly pleased to note another strong performance from our partners using MIPS processor IP. Customer interest in this technology is now very strong and underpins our confidence in the value that this business will deliver.

"Our multimedia business remains robust with new class-leading products launched across the full range of end markets. We are seeing a wide range of design wins for both Series6 and Series7 families.

“Despite being at an earlier stage of market adoption, the traction for our Ensigma communications IP is real and continues to increase. This is opening up substantial opportunities in the IoT market.

“The progress across our three main IP families is a further step forward towards our longer term target of increasing our operating margins to 30-40%.”

Imagination at MWC 2015

IMG-related MWC announcements will be posted here:

MOBILE WORLD CONGRESS, Barcelona, Spain – 2^nd March, 2015 – Imagination Technologies (IMG.L) announces a new area-optimized PowerVR GPU designed to drive high-quality graphics with full OpenGL ES 3.0 functionality into low-cost and space-constrained devices.

http://www.imgtec.com/news/detail.asp?ID=965

MOBILE WORLD CONGRESS, Barcelona, Spain – 2^nd March, 2015 – Imagination Technologies (IMG.L) andAltair Semiconductor report growing market traction for Altair’s LTE chipsets that utilize MIPS CPUs. Altair’s LTE devices, including the FourGee-3100/6200 chipset, have been the communications engine inside millions of devices sold by more than 30 connected device manufacturers to-date

http://www.imgtec.com/news/detail.asp?ID=962

MOBILE WORLD CONGRESS, Barcelona, Spain – 2^nd March, 2015 – Imagination Technologies (IMG.L) announces that its MIPS CPU IP cores continue to gain traction in LTE devices through the latest designs from 4G chipmaker Sequans Communications. MIPS CPUs are at the heart of Sequans’ new Colibri and Calliope platforms for the LTE-enabled Internet of Things (IoT). In addition, Sequans’ chipsets and modules with MIPS inside are finding their way into an increasing number of end products.

http://www.imgtec.com/news/detail.asp?ID=963

MOBILE WORLD CONGRESS, Barcelona, Spain – 2^nd March, 2015 – Imagination Technologies (IMG.L) announces a new PowerVR High Efficiency Video Coding (HEVC) IP family designed to provide the highest quality H.265 encoding, while optimizing silicon area and bandwidth usage. This multi standard encoder also offers high-quality H.264 encoding for compatibility with the huge range of AVC (Advanced Video Coding) decoders available today.

http://www.imgtec.com/news/detail.asp?ID=964


http://www.mediatek.com/en/mobile-world-congress-2015/mediatek-to-redefine-the-android-tablet-industry-with-world-first-arm-cortex-a72-based-tablet-soc-mt8173/

Imagination PowerVR GX6250 GPU

• Supports OpenGL ES 3.1, OpenCL for future applications
• Delivers 350Mtri/s and 2.8 Gpix/s performance
• Provides uncompromised user experience for WQXGA display at 60fps

http://www.cavium.com/newsevents-Cavium-Introduces-OCTEON-Fusion-M.html

(New MIPS SoCs)

SAN JOSE, Calif., and BARCELONA, Spain, March 2, 2015 – Cavium, Inc., (NASDAQ: CAVM), a leading provider of semiconductor products that enable intelligent processing for enterprise, data center, cloud, wired and wireless networking, today announced the introduction of a family of highly integrated single chip solutions that enable a new category of Macrocells and Smart Radio Heads supporting a wide range of deployment scenarios and setting a new bar for cost, performance, power and footprint. The OCTEON Fusion-M family is a scalable architecture that ranges from the single chip CNF75xx macrocell to the single chip CNF74xx for use in Smart Radio Heads. 

http://finance.yahoo.com/news/moving-closer-automated-driving-mobileye-113000142.html

JERUSALEM, March 4, 2015 /PRNewswire/ -- Mobileye N.V. (MBLY), the global leader in the design and development of camera-based Advanced Driver Assistance Systems (ADAS) to the automotive industry, today introduced its 4th generation system-on-chip, the EyeQ4®.

Leveraging expertise in designing computer-vision specific cores for over 15 years, the EyeQ4® consists of 14 computing cores out of which 10 are specialized vector accelerators with extremely high utilization for visual processing and understanding. The first design win for EyeQ4® in series production has been secured for a global premium European car manufacturer for production to start in early 2018. The EyeQ4® would be part of a scalable camera system starting from monocular processing for collision avoidance applications, in compliance with EU NCAP, US NHSTA and other regulatory requirements, up to trifocal camera configuration supporting high-end customer functions including semi-autonomous driving. The EyeQ4® would support fusion with radars and scanning-beam lasers in the high-end customer functions.

"Supporting a camera centric approach for autonomous driving is essential as the camera provides the richest source of information at the lowest cost package. To reach affordable high-end functionality for autonomous driving requires a computing infrastructure capable of processing many cameras simultaneously while extracting from each camera high-level meaning such as location of multiple types of objects, lanes and drivable path information," said Prof. Amnon Shashua, cofounder, CTO and Chairman of Mobileye. "The EyeQ4® continues a legacy that began in 2004 with EyeQ1 where we leveraged deep understanding of computer vision processing to come up with highly optimized architectures to support extremely intensive computations at automotive compliant power consumption of 2-3 Watts."

http://www.imgtec.com/investors/detail.asp?ID=966

London, UK – 6 March, 2015 – Imagination Technologies (IMG.L) identifies six trends driving industry momentum and related technologies at the recent Mobile World Congress 2015 (MWC) focused on security, IoT interoperability, wearables, computer vision, communications infrastructure, and ultra-low power connectivity. These trends confirm Imagination’s vision for the future of mobile, and the technology roadmaps it is aggressively pursuing across its entire IP portfolio in anticipation of the needs of its customers and partners. 

Says Tony King-Smith, EVP marketing at Imagination: “Over the past decade, we’ve seen enormous changes and disruptions in the mobile landscape in everything from communications standards to smartphone functionality. However, this year’s MWC signaled the start of a new era that goes far beyond phones and infrastructure, as everything from IoT sensors and actuators to wearables to highly connected and increasingly automated cars become an integral part of MWC. What is clear to us is that security and interoperability together with software and system portability lie at the heart of bringing these latest visions of a connected world to life.”

Top six trends at MWC 2015 according to Imagination:

1. Highly integrated, ultra-low power communications are proliferating widely. At MWC, it was clear that the ‘mobile’ device category now includes a huge number of products beyond mobile phones and tablets – from wearables to automotive to the huge range of new and emerging IoT devices. Low-power Wi-Fi, Bluetooth Smart, Cat 1 and Cat 0 LTE and other short range wireless technologies are key to enabling these devices that are finding their way into every industry, every product category and everyday life.
2. Network infrastructure is expanding and virtualizing. To accommodate the ever increasing number of connected devices and expanding cloud infrastructure, 4G buildout continues around the globe. At MWC, 5G was a hot topic, despite the fact that it is yet to be defined. Companies are already looking to the advantages it will provide in the 2020 timeframe. The next generation of infrastructure will require advances in communications and also in embedded processing to support software defined networks (SDN) and network function virtualization (NFV).
3. Security is critical: In an increasingly connected world, any system is only as secure as its weakest link. Embedded security has become a critical issue for the next generation of connected devices. At MWC 2015, numerous companies announced initiatives and technologies around security, including secure payments, secure mobile operating systems, virtualized solutions for BYOD, encryption and key management technology, security enhanced phones and smartwatches, and even privacy glasses designed to protect against facial recognition technology.
4.  IoT interoperability is key: In the next generation, the number of connected IoT devices will not only continue to grow and be provided by an ever expanding number of vendors, but will also perform a wide array of functions. As such, high-volume success and consumer satisfaction will be dependent on a level of interoperability not previously seen in the industry.
5. Wearables are entering the mainstream: MWC 2015 made it clear that wearables are now an integral part of any OEM product lineup. Numerous smart bracelets, smartwatches, and specialized products such as fitness bands were introduced by new and emerging companies during the show. The next wave of wearables will be defined as electronics meets fashion.
6. Computer vision and VR/AR applications represent massive opportunities. Vision-aware technologies are increasingly incorporated in smartphones, IoT devices, automotive, robotics, and other products. MWC 2015 also confirmed the re-emergence of virtual reality (VR) and a growing interest in augmented reality (AR). To create devices that support computer vision, computational photography and new user and social experiences, companies need processing solutions that go beyond CPU/DSP cores to deliver sustained video-rate processing of HD content.

Continues King-Smith: “Imagination’s technology roadmaps anticipate and increasingly drive these trends, as we focus on providing not only the cutting-edge PowerVR GPUs and MIPS CPUs that we are known for, but also the communications engines, video and vision processing engines, and heterogeneous processing platforms that are all secure, and deliver interoperability through open standards. We’re excited to work with our partners to deliver the technologies that will form the backbone of tomorrow’s mobile society.”