One of Apple's UK partners is in full-blown crisis mode and shares are tanking
Getty/Justin Sullivan
On Monday, the company announced a huge overhaul of its business in a bid to reverse recent losses and adapt to a slowdown in the market. The changes include:
- CEO Sir Hossein Yassaie stepping down;
- The sale of Pure, Imagination's consumer technology business known for digital radios;
- A cost-cutting drive and restructuring to save £15 million by year-end April 2017;
- A full operational review, including R&D spending.
Sir Hossein has been CEO of Imagination Tech for 18 years. Non-executive director Andrew Heath is being parachuted in as the new turnaround CEO. Heath was previously CEO of chemicals group Alent and was also an executive at Rolls-Royce.
The panic button manoeuvres came as Imagination warned that the recovery in the market it had hoped for in the second half of its financial year had failed to materialise and it is now expecting to make a loss for the year.
Imagination's shares dropped 10% last year when it first announced it was set to make a first-half loss and shares are down over 12% on Monday's announcement, less than 10 minutes after trading began in London.
Google Finance
Imagination gets revenue from microchip licensing and royalties - earning cash from letting people build its microchip designs and then again when they are used in devices like phones and tablets. The company's share price rose the smartphone boom of the late 2000s, with its share price rocketing 600% between 2008 and its peak in 2012.
The company's share price rose in-line with the smartphone boom of the late 2000s, rocketing 600% between 2008 and its peak in 2012.
Google Finanace
The company says in Monday's update:
Since the Group published its half year results in December 2015, market conditions have not improved and the slow-down in the overall semiconductor sector has continued, reinforced by global uncertainty about future trading prospects with China.
- I spent $2,000 for 7 nights in a 179-square-foot room on one of the world's largest cruise ships. Take a look inside my cabin.
- Colon cancer rates are rising in young people. If you have two symptoms you should get a colonoscopy, a GI oncologist says.
- Saudi Arabia wants China to help fund its struggling $500 billion Neom megaproject. Investors may not be too excited.
- Catan adds climate change to the latest edition of the world-famous board game
- Tired of blatant misinformation in the media? This video game can help you and your family fight fake news!
- Tired of blatant misinformation in the media? This video game can help you and your family fight fake news!
- JNK India IPO allotment – How to check allotment, GMP, listing date and more
- Indian Army unveils selfie point at Hombotingla Pass ahead of 25th anniversary of Kargil Vijay Diwas