Agere predicts weak third-quarter results
The company expects September revenues to be down 5%, reflecting lower sales in both wireless LAN equipment and telecommunications infrastructure components.
The net loss for the June quarter was $332 million or $0.20 per share, which included $127 million in net restructuring and separation charges and $10 million in amortization of goodwill and other acquired intangibles. The net loss for the March quarter was $219 million, or $0.13 per share, while in the year-ago period the net loss was $1.1 billion or $0.68 per share.
Agere announced several transactions in June, including the sale of its wireless LAN equipment business to Proxim for $65 million to focus on providing Wi-Fi chips, modules and cards. The company also announced plans to sell its analog line card IC business to Legerity for $70 million.
"The June quarter marked several significant milestones for Agere," said John Dickson, president and CEO. "We became a fully independent company, and despite a difficult market, were named the worldwide leader in communications components for the third consecutive year [by Dataquest]. With the completion of a convertible notes offering, we strengthened our balance sheet and increased liquidity. In addition, the announced sale of our wireless LAN equipment and analog line card businesses will allow us to sharpen our focus on delivering those solutions that best meet our customers needs and provide the highest growth opportunity for Agere."
Client Systems Group:Targeting end-user computing and wireless markets, the Client Systems Group reported revenues of $330 million during the June quarter, up $5 million or 1.5% from the March quarter. This business represents almost 60% of the company s total revenues, and the results compare with $335 million in the equivalent quarter one year ago.
Infrastructure Systems Group:The Infrastructure Systems Group, which serves the network equipment market, reported revenues of $230 million, up $4 million or 1.8% from the March quarter. One year ago Agere recorded revenues of $592 million in this sector.
Outlook
For the upcoming September quarter, Agere expects revenues to decrease about 5% sequentially, reflecting a partial quarter of revenues from the wireless LAN equipment business and lower sales in the telecommunications infrastructure area. The company expects pro forma net loss to be flat to slightly worse in the September quarter. Pro forma net loss includes certain costs related to the company s consolidation activities, and excludes any gain or loss from the sale of the two businesses.
