Imagination Tech warns on profit on licensing delays
LONDON May 2 (Reuters) - British chip designer Imagination Technologies warned on Thursday that its full-year profit would be below market expectations after delays in licensing its blueprints for graphics and video processors to chipmakers.
The firm, which licenses its designs to customers like Apple for the iPhone and MediaTek for lower-end smartphones, said that some deals were closing more slowly than it expected because of organisational changes at some of its semiconductor partners.
Imagination said that it was confident the issue would be a short term phenomenon related to the "lumpy" nature of licensing revenues.
It also said that difficult trading at Pure, the division that designs and manufactures digital radios, in a number of countries, including Britain, would hit full-year profits.
In a trading update covering the four months to end-April, firm said that it expects 2013 unit shipment growth to be in line with expectations.
Before the statement, analysts were forecasting the firm would make full year pre-tax profits of 41.75 million pounds, according to a Thomson Reuters I/B/E/S poll.
Shares in the firm are up 7.36 percent so far this year to 424.5 pence, giving it a market valuation of around 1.13 billion pounds.