VideoLogic Plc, the UK-based graphic chip designer, says its PowerVR graphics technology is to be used in the next generation of Microsoft TV set-top box development platforms from STMicroelectronics NV, the Franco-Italian semiconductor manufacturer.
The news, hardly a surprise after VideoLogic announced it had licensed its PowerVR technology to ST in April (CI No 3,637), followed a feeding frenzy for the company’s shares after one financial commentator optimistically suggested it could become the new ARM Holdings Plc.
ST’s new development platform, code-named Orion-HD1, was announced earlier this month and is claimed to deliver cinema-quality audio and video for digital TV. It also offers 2D/3D graphics for interactive 3D gaming and internet applications.
If VideoLogic could produce a tiny fraction of ARM’s success, it would be a massive relief to investors. After a dismal run of results, the company finally produced a net profit of 1.8m pounds ($2.8m) for the year through March 31 up from a loss of 2.2m pounds ($3.5m) on revenue down 4% at 11.5m pounds ($18.4m) (CI No 3,670). While the shares ended the day up 13.5% at 58.75 pence, they are still down from a 12-month high of 80 pence.
