Jan. 15 (Bloomberg) -- I-Mate Plc, the Dubai-based mobile- phone developer formed in 2001, fell to a two-year low in London trading after saying Qualcomm Inc. failed to supply enough chips, disrupting a planned roll-out of handsets in the U.S.

I-Mate plunged as much as 16.5 pence, or 49 percent, to 17 pence and traded at 18 pence at 9:58 a.m., the lowest value since the shares started trading in September 2005. The stock has dropped 89 percent in the past 12 months, valuing the phone maker at 21.3 million pounds ($41.8 million).

``Although we have devices which are not dependent on this chipset, it has a significant impact on the range of product we have to sell,'' Chief Executive Officer Jim Morrison said in a statement today. Full-year revenue for the year ending March 31 will be bellow analyst estimates, he said in a telephone interview.

I-Mate, which designs handsets and computers that use Microsoft Corp.'s Windows mobile software, expects the shortfall from the chip supplier, which Morrison identified as Qualcomm, to ``significantly disrupt'' its U.S. plans. Sales at the Americas unit, the smallest division, were $901,000 for the six months ended Sept. 30.

A spokesman for Qualcomm in London wasn't available for comment.

The shortage will affect two of seven models sold by I- Mate, Morrison said. The phone maker will be reviewing a strategy of using several chip suppliers, he said.

I-Mate said it's reviewing strategic options. The sale of the company isn't under consideration, Morrison said.

Revenue for the year is estimated at $65 million, Cazenove analyst Robert Owens said in a note to investors today. I-Mate needs sales of about $200 million to break even in the period, he said. Cazenove, the house broker for the handset supplier, has a ``neutral'' rating on the stock.

To contact the reporter on this story: Kari Lundgren in London at klundgren2@bloomberg.net

Last Updated: January 15, 2008 05:32 EST