Imagination Technologies stock plummets due to order delays

IMAGINATION Technologies saw its market value fall by a quarter yesterday after a profit warning from the microchip designer shocked the City.

The British company, whose technology is used in smartphones and tablets from companies including Apple and Samsung, warned that some of its top customers had delayed orders.

“The closure timing of a number of deals has been subject to higher levels of uncertainty due to structural and organisational changes among a number of semiconductor partners in various regions,” the firm said.

“As a result, several agreements have been subject to short term delays, impacting [full-year] licensing revenues.”

Imagination Technologies added that Pure, the lossmaking digital radio arm that makes up about 20 per cent of its revenues, had continued to suffer.

The announcement sent shares in Imagination Technologies down by 26 per cent yesterday, to lows not seen since August 2011.