Imagination Technologies, the British chipmaker that produces components for Apple as well as other companies, has posted the largest loss in its history.
The company posted a £61.5 million loss on revenue of £120 million, which is due to the slowdown in global smartphone sales, as well as a lack of growth in iPhone sales.
“During the first half of the financial year, we saw a significant slowdown in the semiconductor market,” the company said. “This was driven by weaker smartphone sales and the general economic slowdown and build-up of inventory in China.”
Apple is a shareholder in the company, and even confirmed that it once held talks to acquire it outright.
CEO Andrew Heath said that the company has “taken the necessary action to put Imagination back onto a sound financial footing … restructuring has required a number of difficult decisions. I am focused on swiftly and decisively restructuring Imagination to put us back on a sound financial footing.”
Imagination Technologies doesn’t just make chips, though. It’s also the company behind Pure digital radios. That unit is likely to be sold off as Imagination looks to return to profitability. Heath said that the sale of Pure was “attracting considerable interest.”
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