UPDATE: Imagination Technologies FY Pretax Profit Rises

(Adds detail, analyst, executive comments) By Tommy Stubbington Of DOW JONES NEWSWIRES LONDON (Dow Jones)--Semiconductor company Imagination Technologies Group PLC (IMG.LN) Wednesday posted a sharp rise in full-year pretax profit as higher chip volumes boosted revenue, and said it's confident sales growth will continue. Profit before tax for the year to end-April rose to GBP10.2 million from GBP2.7 million a year earlier, on revenue which climbed 26% to GBP80.9 million. Adjusted pretax profit, which excludes share-based remuneration expenses and investment gains, rose to GBP13.3 million from GBP5.0 million. The company, which makes chips for products including smartphones and digital radios, said it's on course to achieve significant growth as new applications for its technology emerge. Shipments by companies using Imagination's intellectual property--including Apple Inc. (AAPL) and Intel Corp. (INTC), both of which are shareholders--rose 47% to 126 million devices, and the firm said it's on course to meet its target of 200 million units for the current fiscal year. "The [target of] 200 million was stated four years ago, and since then the world has been turned upside-down with the recession," Chief Executive Hossein Yassaie told Dow Jones Newswires. "It shows the resilience of the business." The increased use of the type of embedded graphics seen in mobile handsets to a wider range of devices such as radios, cameras, printers, and televisions should further boost sales growth, Yassaie added. Panmure Gordon analyst Nick James said a disappointing performance from the company's Pure-branded digital radio business meant revenue was 2% short of expectations, but said adjusted pretax profit was ahead of Panmure's forecast GBP11.9 million. "The results adequately demonstrate Imagination's growth and future prospects in which we maintain high conviction," James added. Pure posted an adjusted operating loss of GBP0.3 million on revenue which was up 23% to GBP33.6 million. Yassaie said he was pleased with this performance in a "tough environment" for digital radio, adding he expects exports to fuel further sales growth for Pure. Imagination isn't paying a dividend. At 0855 GMT, its shares were down 4 pence, or 1.4%, at 296 pence in a broadly lower FTSE 250 market. -By Tommy Stubbington, Dow Jones Newswires; 44-20-7842-9268; tommy.stubbington@dowjones.com (END) Dow Jones Newswires June 23, 2010 05:04 ET (09:04 GMT)