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Cirrus Logic's stock slips on 4Q results

NEW YORK (AP) -- Chipmaker Cirrus Logic Inc.'s stock slumped Friday after investors appeared to be disappointed with the company's fiscal fourth-quarter results that were roughly in line Wall Street's revised forecasts.

Earlier this month, the company forecast disappointing quarterly income and revenue, saying sales of a particular chip had slowed down because one of its customers was switching to a newer component. The move was seen as bad news for Cirrus and for Apple Inc., which uses some of Cirrus' audio chips in the iPod and iPad.

The results issued late Thursday were in line with Cirrus' guidance from April 16, but they were well below Wall Street's initial expectations. The company also maintained its revenue forecast for the fiscal first quarter. Its shares fell $1.73, or 8.9 percent, to $17.90 in afternoon trading.

Cirrus said that its net income fell to $26.4 million, or 39 cents per share, for the three months ended March 30. A year ago the company earned $50.8 million, or 75 cents per share, boosted by a large tax benefit.

Cirrus said its income totaled 59 cents per share in the latest quarter if one-time charges are excluded. Its revenue nearly doubled to $206.9 million from $110.6 million

Analysts expected adjusted net income of 60 cents per share and $206.9 million, according to FactSet. However before Cirrus lowered its guidance they expected net income of 85 cents per share and $209.8 million in revenue.

Cirrus said revenue from chips used in audio products more than doubled to $196.1 million from $90.5 million. Revenue from energy product chips fell to $10.8 million from $20.1 million.

For the full fiscal year Cirrus said its net income rose 55 percent to $136.6 million, or $2 per share, from $88 million, or $1.29 per share. Revenue grew 90 percent, to $809.8 million from $426.8 million.

The Austin, Texas, company is still forecasting revenue of $150 million to $170 million in the first quarter. Analysts now expect $159 million on average, but on April 15 they expected $190.9 million.