Agere reports results, fixes date for spin-off from Lucent
In addition, the company said that it would work closely with Lucent Technologies to complete its spin-off, which has now been scheduled for June 1, 2002.
"We are pleased to report our first quarter of sequential revenue growth in six quarters," said John Dickson, president and CEO. "We are also excited that we are now taking our final steps toward full separation from Lucent, which we believe will benefit our business, our employees and our customers. With the actions we are taking to improve our performance, we believe we are well positioned to take advantage of the opportunities ahead."
Reported net loss for the March quarter was $219 million or $0.13 per share, or a pro forma net loss (excluding items related to additional charges) of $246 million or $0.15 per share. This represented an improvement of $0.02 sequentially and exceeded the company s guidance by $0.02 per share, due to revenue growth as well as improvements in the company s cost and expense structure. In comparison, the loss during the December quarter was $375 million or $0.23 per share.
The Client Systems Group, which manufactures products for applications that include wireless local area networking and storage, represented about 60% of Agere s total revenues ($325 million). This was an increase of $51 million or 19% on the December quarter. The Infrastructure Systems Group had revenues of $226 million, down $37 million or 14% on the previous quarter. About half of the design wins were in the metro core and access areas, and Agere says the decline reflects the continued reduction in spending by telecommunications carriers and consequent deployment delays and lower demand by network equipment customers.
Agere says it is also making progress on the consolidation actions announced in January, which include combining a majority of its operations in Pennsylvania and New Jersey into the Allentown, PA campus and the intended sale of the Orlando, FL operations.
For the June quarter, Agere expects that both revenues and pro forma net loss per share will be flat to slightly better sequentially. Pro forma net loss per share includes certain costs related to consolidation of facilities.
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