Imagination Technologies has begun restructuring plans in an effort to reduce operating costs, and the company has confirmed the Pure radio business is up for sale. The group says it expects to post a loss for this financial year, ending April 2016 - and clearly the Pure division is seen as part of the problem.
A statement released today by Imagination Technologies, said: "The Group believes there are potentially more appropriate owners for Pure, given the economies of scale in the consumer electronics market, who will be able to leverage its leading technologies and brand. Imagination will treat the Pure division as a discontinued operation with immediate effect.
"Imagination will also initiate a full operational review, including all R&D expenditure. This review, which is expected to last several months, will ensure investment is focused on core activities which are set to deliver attractive returns."
Paul Smith, Pure’s general manager, told What Hi-Fi?: "I can confirm that Pure is up for sale but from our customers’ point of view, it’s absolutely business as usual."Chief executive Sir Hossein Yassaie has stepped down with immediate effect, having been at the company since 1992 and overseen the company's move into new product categories with the launch of Pure digital radios and the Jongo multi-room audio range. The group now plans to reduce operating costs by £15 million over its next financial year.
The company blamed wider market conditions and the "slow-down in the overall semiconductor sector", as well as the uncertainly around trading prospects in China. Imagination says it does however have sufficient cash resources to meet its obligations going forward.
More after the break
Imagination plans to focus its investment on "core activities which are set to deliver attractive returns". And this doesn't look likely to include Pure.
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