Shares in Diodes Inc. dipped 7 percent early Friday after the electronic component maker lowered its first quarter forecast because of a slump in subcontracting sales.

The Westlake Village-based company now expects sales of $95 million to $97 million for the first quarter slightly lower than last month’s projection of $95 million to $101 million. Wall Street analysts polled by Thomson Financial expected sales of $99 million.

Diodes said the cautious forecast reflects a seasonal slowdown made worse by the slowdown in the economy.

Last month, Diodes posted an 18 percent increase in fourth quarter profit as well as a 14 percent increase in sales.

Shares in Diodes were down 7.6 percent to $20.37 in early treading Friday.