Feeds

R&D focus brings VideoLogic to profit

Dreamcast royalties have begun to rake in the cash

  • alert
  • submit to reddit

Intelligent flash storage arrays

VideoLogic Group has seen its first profitable year since flotation. The UK company posted preliminary results of £1.8 million profit for the year ended 31 March, against last year's loss of £2.3 million. Gross profit was £9.5 million, compared to last year's £6.5 million, according to a company statement. Gross margins increased to 83 per cent. Trevor Selby, VideoLogic finance director, told The Register the success lay in the move towards technology research and development. Technology sales grew in excess of 50 per cent, including royalties on one million chips sold by NEC to Sega for the Dreamcast console in Japan. The company has also changed its name to Imagination Technologies. Overall turnover was down from £12 million to £11.5 million, but Selby said the conversion from a systems based to technology model had driven profits growth. VideoLogic used to make graphics boards, using other companies’ silicon. Now it designs software and circuitry inside chips, raking in royalties from every chip sold. "This transition has caused the breakthrough in profit, we have converted from 30 per cent gross margin to 83 per cent. We are very heavily R&D oriented," said Selby. VideoLogic is based in Hertfordshire, and over 100 of its 136 staff are engineering specialists. It also has offices in the US and Germany. Sega Dreamcast sales will boost overall turnover in the future, said Selby. He predicted royalties would go through the roof upon the console's introduction to the UK and the US in September. The company will also be hoping that last month's alliance with STMicroelectronics will help it break into the PC market. ®

Choosing a cloud hosting partner with confidence

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
Big Content outs piracy hotbeds: São Paulo, Beijing ... TORONTO?
MPAA calls Canadians a bunch of bootlegging movie thieves
Google Glassholes are UNDATEABLE – HP exec
You need an emotional connection, says touchy-feely MD... We can do that
YARR! Pirates walk the plank: DMCA magnets sink in Google results
Spaffing copyrighted stuff over the web? No search ranking for you
Just don't blame Bono! Apple iTunes music sales PLUMMET
Cupertino revenue hit by cheapo downloads, says report
Hungary's internet tax cannot be allowed to set a precedent, says EC
More protests planned against giga-tariff for Tuesday evening
US court SHUTS DOWN 'scammers posing as Microsoft, Facebook support staff'
Netizens allegedly duped into paying for bogus tech advice
prev story

Whitepapers

Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Top 5 reasons to deploy VMware with Tegile
Data demand and the rise of virtualization is challenging IT teams to deliver storage performance, scalability and capacity that can keep up, while maximizing efficiency.
Mitigating web security risk with SSL certificates
Web-based systems are essential tools for running business processes and delivering services to customers.