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Imagination Technologies climbs 2% on Sony licensing win

Imagination Technologies has moved 2% higher on news of a new contract with Sony.

The chip designer’s shares are up 6.5p at 332p after it announced the Japanese group had signed a further licence to use its products for system-on-chip consumer products. But analyst Eoin Lambe at Liberum Capital repeated his sell advice to clients ahead of an expected trading update on Thursday, saying:

Sony is an existing Imagination licensee so this is not major news. Interestingly Sony only licensed Imagination’s older intellectual property (Series 5 not 6), which comes with a lower licence fee. [This is the] first license announcement since the year end – we don’t expect the licensing strength seen [last year] to continue in current environment.

But Mike Jeremy at Daniel Stewart was more positive:

Medium-term demand from new generations of 3D and mobile-related consumer products should underpin opportunities. © Guardian News & Media Limited 2011 | Use of this content is subject to our Terms & Conditions | More Feeds