AP

SAN JOSE, Calif. (AP) - PortalPlayer Inc., a maker of chips for digital music players, said Thursday its fourth-quarter profit more than doubled on sharply higher sales during the period.

PortalPlayer, whose chips are used in Apple Computer Inc.`s iPod, also pegged its first-quarter revenue ahead of Wall Street estimates. Shares fell 95 cents to close at $27.27 on the Nasdaq, but jumped nearly 10 percent in after-hours trading.

The company`s earnings rose to $23.8 million, or 92 cents per share, from $10.5 million, or 50 cents, a year ago. Excluding stock-option costs and a tax-related benefit, earnings were 62 cents per share.

That surpassed the average view for profit of 48 cents per share from analysts surveyed by Thomson Financial.

Net revenue totaled $78.2 million, a 75 percent increase from $44.7 million a year earlier and topping analysts` consensus target of $73.7 million.

Full-year earnings were $48.2 million, or $1.90 per share, compared with $10.4 million, or 57 cents, in 2004. Without stock options and a tax break, earnings amounted to $1.65 per share, as revenue more than doubled to $225.2 million.

Looking forward, PortalPlayer forecast first-quarter profit of 28 cents to 38 cents per share, or 35 cents to 45 cents without stock-option costs, with revenue ranging from $70 million to $80 million.

Analysts currently predict the company`s quarterly income at 36 cents per share and $63.6 million in sales.