Chip designer Imagination Tech says volatile economy hampers license deal


Reuters

LONDON — British chip designer Imagination Technologies said volatile economic conditions were leading to delays in the signing of some licenses with its semiconductor customers, particularly in Japan.

The company, whose graphics technology is likely to be in Samsung’s new Galaxy S4 smartphone, licenses its technology to semiconductor firms in exchange for a fee as well as royalties on sales.

“The licensing pipeline remains very active, although there are uncertainties over the timing of deal closures, particularly as some semiconductor companies in certain regions are undergoing structural and business changes,” it said in a trading update on Tuesday. The company did not give details on the number of affected deals, or the likely delay.