Imagination Technologies profits dip on chip licensing delays Pre-tax profit was £12.2m compared to £28.5m the previous year. The dip was expected following a warning last month. Imagination said the microchip makers who license its designs had put deals on hold while some shift their focus away from the fierce competitive smartphone sector and towards other gadgets. Consolidation in the Japanese microchip industry also caused delays. "It's purely a pause in the activities of some of the manufacturers," said Sir Hossein Yassaie, Imagination's chief executive. Not all of the issues are resolved yet but we're still on track to meet our targets. Total revenues for the year were up 19pc to £151.5m. While licensing revenues from the initial sales of designs to manufacturers were down, but royalty revenues from the inclusion of Imagination's technology in 700 million gadgets grew by 49pc. The year also saw Imagination's acquisition of MIPS, an American microchip designer, for $10m (£64m). It will drive move into the market for main processors in mobile devices that is currently dominated by ARM. Imagination has previously specialised on graphics and video microchip designs. Sir Hossein rejected analyst concerns that the market for high end smartphones is slowing down, arguing that Imagination is well-placed to capitalise on growth in the mid and low-end. "We're completely cool about it," he said. There is a lot of leg room in the market for us.