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UPDATE 1-Infineon posts in-line results, confirms guidance

(Adds details on Q1, guidance)

BERLIN, Feb 5 (Reuters) - Germany's Infineon Technologies on Wednesday reported in-line revenue in the seasonally weak first quarter of its business year and confirmed its full-year outlook for revenue to grow by 5%.

The Munich-based supplier of automotive, power management and security chips also said it expected its $10 billion takeover of Silicon Valley-based Cypress Semiconductor to close around the end of the current quarter.

First-quarter revenue declined by 7% on a sequential basis while the segment margin - the key measure of operating profitability targeted by management - was boosted to 15.5% by one-off items.

After stripping out those effects, segment margin would have been 13.6% - slightly higher than earlier management guidance of around 13% for the quarter.

"Our well-diversified business performed robustly at the beginning of the fiscal year. Under difficult conditions, revenue fell in line with expectations," CEO Reinhard Ploss said in a statement.

"Our cost reduction measures are beginning to take effect. Those measures and several non-recurring factors caused the segment result to come in slightly better than expected."

Infineon confirmed its guidance for the full year, saying it was seeing dynamic growth in demand for its latest generation of silicon microphones and improvement in individual areas such as its server business.

"Overall, however, we do not expect to see a broad based recovery of demand before the second half of the fiscal year," added Ploss.

For the fiscal second quarter, Infineon forecast quarter-on-quarter revenue growth of 5%, plus or minus 2 percentage points, and a segment result margin of around 14%. The forecasts assume an exchange rate of $1.13 to the euro. (Reporting by Douglas Busvine Editing by Michelle Martin)