LONDON -- The shares of Imagination Technologies  slid 19 pence, or 4%, to 430 pence during early London trade this morning even though the embedded processor designer claimed its customers had performed "ahead of target."

The FTSE 250 mid cap said its partners had "shipped" 237 million chips based on the company's own designs during the six months to October. The performance was 90% up on last year and prompted Imagination to advance its full-year projection to 500 million chips.

Imagination also described its long-stated goal of its partners using a billion of its chips annually by 2016 as "a realistic objective."


Imagination's customers include AppleMotorola and Samsung, and its processor designs are used in a wide variety of mobile phones, tablets, game consoles, televisions, and set-top boxes.

The chip shipment details were announced alongside Imagination's half-year results, which showed turnover climbing 27% to 71 million pounds and adjusted profits gaining 10% to 17 million pounds. Royalty revenues jumped 66% to 39 million pounds, while net cash stood at 55 million pounds.

Hossein Yassaie, Imagination's chief executive, said:

Our 'smart' technologies continue to be adopted across new and existing partners, creating a solid base for continued momentum in future volume growth...We remain confident of our continued good progress given the growing demand across our IP families, the growth in design wins across a widening range of end user markets and the momentum in our partners' chip volume.

Prior to today, City experts that study Imagination reckoned current-year earnings were on their way to improving 13% to 12.4 pence per share. Such projections value the company at a racy 37 times potential profits.

Forecasts for 2014 suggest earnings of 17 pence per share.

Of course, whether today's shipment news and half-year results can justify the current valuation -- and signal Imagination as a "buy" -- remains your decision.

Still, only four years ago, these shares traded at just 32 pence. Smart investors who spotted Imagination's growth potential back then have since earned a 13-fold gain -- equivalent to an astonishing 91% annual compound average return.

If you are keen to earn such handsome profits from shares, requesting this free Motley Fool report could help you on your way.

The report explains how tracking down small, dynamic but overlooked companies -- such as Imagination in 2008 -- is a vital step on the path to becoming rich from shares. You never know, the next Imagination Technologies could be out there right now ready to transform your wealth.

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The article 13-Bagger Imagination Technologies 'Ahead Of Target' originally appeared on Fool.com.

Maynard Paton does not own any share mentioned in this article. The Motley Fool owns shares in Imagination Technologies. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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