LONDON -- Imagination Technologies (ISE: IMG.L) slipped 6 pence, or 1%, to 604 pence in early London trading this morning after the embedded processor developer issued a trading statement covering the period from May 1.
The FTSE 250 group, whose designs are used by Apple, said the momentum in its business had continued following the strong performance reported in the last financial year.
Imagination said partner product launches in the second half of the last financial year, together with shipments starting for a number of customers for the first time this year, had both contributed to "strong growth in unit shipment volumes."
Imagination added volume growth had been driven across greater sales of mobile phones, tablets, and games consoles, with royalty revenue growth continuing to be strong and in line with City expectations.
Imagination also claimed further product launches from customers, including "a number of significant design wins reaching production" would continue to "drive strong growth in royalty volumes and revenue."
Hossein Yassaie, Imagination's chief executive, said, "Our 'smart' technologies are being adopted more widely across both new and existing partners, creating a wider base for continued momentum in future volume growth which maintains our stated goal of around 1 billion annual unit shipments by 2016 as a realistic objective."
In June, Imagination reported full-year results that showed sales up 30% to 128 million pounds and adjusted profits up 53% to 37 million pounds. Current City forecasts suggest earnings may advance from 11 pence to 17 pence per share by 2014 -- implying the group's upbeat progress can continue in the near term.
Just four years ago, these shares traded at just 32 pence. Smart investors who spotted Imagination's growth potential back have since earned a near 19-fold gain -- equivalent to an astonishing 108% annual compound average return.
If you are keen to earn such handsome profits from shares, this free Motley Fool report -- "10 Steps To Making A Million In The Market" -- could help you on your way.
The report explains how tracking down small, dynamic but overlooked companies -- such as Imagination in 2008 -- is a vital step on the path to the magic million milestone. You never know -- the next Imagination Technologies could be out there right now, ready to transform your wealth.
Investing is by no means easy in today's uncertain economy. That's why we've published "The Market's Top Sectors" -- our guide to three favorable industries. This free report will be dispatched immediately to your inbox.
Further Motley Fool investment opportunities:
The article 19-Bagger Imagination Technologies Confirms "Strong Performance" originally appeared on Fool.com.
Maynard Payton does not own any share mentioned in this article. The Motley Fool owns shares in Imagination Technologies and Apple.Motley Fool newsletter serviceshave recommended buying shares of and creating a bull call spread position in Apple. The Motley Fool has adisclosure policy.
We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. Try any of our Foolish newsletter servicesfree for 30 days.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.