Deal delays cost Imagination dear

Imagination Technologies saw its shares crash by a quarter yesterday after a shock profit warning from the chip designer, which makes the graphic-processing technology for Apple's iPhone and iPad.

Nearly £300m was wiped off Imagination's stock market value as the chief executive, Sir Hossein Yassaie, admitted that licensing revenues have been hit as several leading clients delayed deals. He said turnover has become "lumpy" – with peaks and troughs – but insisted it was a "short-term timing" problem.

The company did not reveal which customers had delayed work, but the house broker, JP Morgan Cazenove pointed the finger at Texas Instruments and ST-Ericsson.

The shares fell 109.1p to 315.4p.