VideoLogic Group Plc accompanied its maiden interim results with the announcement of a joint venture with NEC Corp to develop three-dimensional games. NEC will also become the exclusive distributor of VideoLogic’s multimedia products in Japan. The partnership will complete PowerVR, billed as a hitherto unannounced 3D games and virtual reality system, that VideoLogic has been working on for the last three years. NEC will make the chips and supply the memory and processor and sell it. PowerVR will be low-cost and scalable from handheld to arcade games. As to the results, the Kings Langley, Hertfordshire-based company remains in the development stage and this explains pre-tax losses up UKP1.2m at UKP3.7m, on turnover up 22.2% at UKP5.5m. Sales of VideoLogic’s earlier boards were down 11%, but this was more than made up for by the 928Movie. However, aggressive marketing of the 928Movie pushed down margins and UKP500,000 was added to sales overheads for its launch. On flotation in July (CI No 2,431), after demerging from Avesco Plc, VideoLogic raised UKP21.3m net. Of this UKP6.7m was used to repay Avesco loans, UKP900,000 to repay existing VideoLogic overdrafts and UKP2.7m for working capital and funding operating losses, leaving UKP11.0m. Since the results, Compaq Computer Corp has asked VideoLogic to develop and supply a customised version of PowerPlay 64 to interface with future Compaq graphics controllers and provide VESA Media Channel capabilities for its personal computers. And Intel Corp has recommended VideoLogic’s PCIMovie as an add-in graphics board. The markets liked the news and added 11 pence to VideoLogic’s share price to 50.5 pence; the shares were floated at 45 pence.