Shares in multimedia tech firm Imagination Technologies tumbled yesterday after it lowered expectations for revenue growth for 2015, it emerged yesterday.
Imagination technologies, founded in 1985, listed on the London Stock Exchange in 1994 and is a key provider of graphics technology to Apple.
The company said it expected revenue to be broadly flat on last year’s results as it lowered its forecasts for licensing growth on the back of “muted” growth in its second half so far.
Imagination Technologies said its expectations of single-figure growth was due to timing rather than fundamentals, saying its licensing pipeline was in good shape.
In its report, the firm raised its expectations of microprocessor shipments, estimating a growth range of five to 10 per cent compared to 2014.
The ongoing strength of the dollar was also proving to be a boon for company revenues. However, some of the benefits were mitigated by higher operating costs.
The company also said it would soon start to reap the benefits of changes it has implemented to its consumer electronics division, Pure. The firm said these improvements were starting to deliver improved performance in its core markets.
Imagination Technologies is set to rejoin the FTSE 250 next Monday. However, the downbeat expectations saw shares slump 10.84 per cent to close at 230.25p yesterday.