AMSTERDAM, Netherlands -- TomTom NV, Europe's largest maker of navigation devices, said Wednesday its first quarter earnings fell sharply due to a decline in average selling prices and because retailers stocked fewer of its devices. The Amsterdam-based company said net profit was 7.3 million euros ($12 million), down from 44 million euros in the same period a year ago. Sales fell 22 percent to 92 million euros ($147 million). The poor numbers had been expected after TomTom issued a profit warning earlier this month that caused its shares to slide. TomTom said Wednesday it would push ahead with its planned 2.9 billion euros ($4.6 billion) acquisition of digital mapmaker Tele Atlas NV and expects approval from the European Union Commission. The commission is reviewing the deal carefully and a decision is due by May 21. In the meanwhile TomTom has built up a 29.9 percent stake in Tele Atlas and booked a loss of 4.6 million euros ($7.4 million) on that stake this quarter. TomTom said it sold 2 million personal navigation devices in the quarter _ a 50 percent increase from a year ago. However, average selling prices were 117 euros ($187) per device _ a fall of 17 percent from the fourth quarter and down 43 percent from a year ago.
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