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VLSI stock nose-dives

Shares of VLSI Technology plummet more than 20 percent following the integrated circuit chipmaker's warning that it will miss expectations.

Shares of VLSI Technology (VLSI) today plummeted 22 percent after the company said it would fall far short of Wall Street's expectations for its first quarter.

The maker of integrated circuit chips saw its shares fall to a close of 19-5/16, down 5-7/16 over yesterday.

The company said slow sales of its wireless communications and consumer entertainment products have taken a toll on its first quarter, as has the economic turmoil in Asia.

The latest financial results do not bode well for VLSI, which during the past two years has shifted its efforts from the PC electronic component business toward specializing in chips for products like cellular phones.

The company's revenues and earnings are expected to decline from year-ago figures, as well as from the previous quarter. As a result, VLSI is looking into taking measures to control costs.

The company posted revenues of $177.7 million a year ago, and $193 million for the previous quarter. Net profits were $22 million in the last quarter, and $9 million a year ago.

VLSI said it expects shipments to return to more "normal" levels during the second half of the year.