(Adds shares, analyst reaction)
LONDON, March 18 (Reuters) - Imagination Technologies, which provides graphics technology to Apple has cut its outlook for licensing this year, saying activity hadbeen a "little muted" since November, sending its shares down 14percent.
It had looked for 10 percent growth in licensing in the yearto end-April, but now expects single-digit growth.
"We currently expect licensing revenue to be close to lastyear's level with the potential of single digit growth dependenton exact closure timing of the remaining deals," it said onWednesday.
Imagination receives revenue from selling licenses topartners that incorporate the technology in their chips, and aroyalty on every chip shipped.
The company said it expected its partners to ship more than1.3 billion chips based on its technology in this financialyear, up from 1.25 billion last year.
Shares in the group were down 10 percent at 232 pence by0820 GMT, after falling as much as 14 percent to a two-year lowof 222.5 pence.
Analyst Robert Lamb at Jefferies said the lower guidancecould drive cuts of 5-10 percent in market consensus foroperating profit and earnings per shares for this year and next.
"We think the market will now see increased risk tofinancial year 16 licensing and this will weigh on the stock inearly trading today," he said.
(Reporting by Paul Sandle; editing by Sarah Young and JaneMerriman)
