Imagination Technologies posts profit as talks with potential buyers go on
British chip maker Imagination Technologies, which put itself up for sale last month, has swung into profit and said it remains locked in talks with potential buyers.
The firm posted a £2.4 million pre-tax profit in the year to April 30, which compares to a £29.4 million loss in 2016.
Group revenue was up 19% to £145.2 million and Imagination revealed it is in "preliminary discussions" with potential bidders.
Shares in Imagination plummeted more than 60% in April after it revealed Apple will no longer use its products, meaning it will no longer be eligible for royalty payments.
Apple's royalty payments and licence fees brought in £60.7 million in revenues in the year to April 30, accounting for half of Imagination's total sales.
The Hertfordshire-based group responded by launching a formal dispute against the US tech giant.
Boss Andrew Heath said: "We improved our financial performance across the business.
"We returned the business to profitability and saw good cash generation despite the outflow from the now discontinued businesses.
"However, Apple's unsubstantiated assertions and the resultant dispute have forced us to change our course, despite the clear progress we have been making."
It is concerned Apple's plans to replace Imagination's intellectual property - used in the graphics processor units for phones, tablets, iPods and TVs - with its own technology risks violating the company's patents.
"Dispute with Apple continues - no progress made. Options being reviewed," the company said.
Separately, Imagination put its MIPS and Ensigma operations up for sale in May, with the firm saying the process is progressing well and indicative proposals have been received for both businesses.