Imagination Technologies plans more cost cuts

Reuters News
|
Posted: Mar 17, 2016 3:29 AM

LONDON (Reuters) - Imagination Technologies, a supplier of graphics technology to Apple, said it planned further cost cuts on top of those announced in February, in an acceleration of its restructuring.

The company, which licenses its graphics and video processing technology to semiconductor companies, has in recent years been struggling to ease its reliance on the iPhone and iPad maker.

Imagination said it would reduce its cost base by an additional 12.5 million pounds ($18 million) a year by 2017, on top of the 15 million pounds of cost cuts announced last month, by shedding 200 staff and shutting down or selling non-core units.

The company has already said it is planning to sell its loss-making digital radio business Pure.

For the current year, the company said revenues from royalties and licensing continued to be in line with expectations, and that the action announced on Thursday would help its recovery.

"This swift and decisive action will put us back on a sound financial footing and will enable us to have the necessary resources to further strengthen our three core businesses," interim Chief Executive Andrew Heath said in a statement.

(Reporting by Sarah Young; editing by Kate Holton)