Product category:
Communications ICs (Wired)
News Release from: Agere Systems
Edited by the Electronicstalk Editorial
Team on 23 July 2004
Agere returns to profit - for now
Agere Systems has reported that revenues for the third quarter of fiscal 2004, ended 30th June, were $495 million, up 9% over the year-ago quarter, and 7% sequentially.
Agere Systems has reported that revenues for the third quarter of fiscal 2004, ended 30th June, were $495 million, up 9% over the year-ago quarter, and 7% sequentially, driven by growth in sales of chips for mobile phones and wireless infrastructure, as well as an increase in revenues from intellectual property licensing The company's Infrastructure Systems business reported revenues of $146 million, up 11% from the year-ago quarter and 14% sequentially
This article was originally published on Electronicstalk on 8 Mar 2007 at 8.00am (UK)
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The company's Client Systems business reported revenues of $349 million, up 8% from the year-ago quarter, and 4% sequentially.
The company reported a GAAP net income of $2 million or breakeven per share, compared with the year-ago net loss of $78 million or $0.05 per share.
March quarter net income was $74 million, or $0.04 per share, including an $82 million tax benefit.
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The company reported a pro forma net income of $12 million, or $0.01 per share, compared with a pro forma net loss of $74 million, or $0.04 per share in the year-ago quarter.
In the March quarter, the company reported a pro forma net income of $83 million, or $0.05 per share, including an $82 million tax benefit.
Pro forma net income excludes gain or loss from the sale of, and income or loss from, discontinued operations; net restructuring and other charges; purchased in-process research and development charges related to acquisitions; amortisation of acquired intangible assets; net gain or loss from the sale of operating assets and cumulative effect of an accounting change.
The company reported its fourth consecutive quarter of positive cash flow from operations, less capital expenditures, generating $8 million in the June quarter.
The company reduced its total debt by $15 million sequentially, while also improving cash and cash in trust by $6 million to $785 million.
"We grew our revenues, increased our gross margins and reported another quarter of profitability", said John Dickson, President and CEO, Agere Systems.
"We posted our strongest quarter of revenues from chips for mobile phones, and also saw good growth in chips for wireless infrastructure".
"As we had indicated previously, our storage sales were impacted by pricing and customer inventory issues; however, we remain the number one supplier of chips for hard disk drives and well-positioned to grow in both desktop and one-inch portable drives".
The company also announced it will simplify its organisation structure to focus more sharply on its four key markets: mobility, storage, enterprise and networking and telecommunications.
The four business divisions will report directly to Dickson, eliminating the Infrastructure Systems and Client Systems structure, which removes a layer of management.
The Mobility Division, which will include the company's mobile phone, Wi-Fi, voice over IP and mobile entertainment device ICs, will be led by Luc Seraphin, who has spearheaded the company's growth in mobile phones.
The Storage Division will continue to be led by Joe O'Hare, who has expanded Agere's storage IC leadership into 1in drives.
Enterprise and Networking will include custom solutions, modem ICs and computer I/O products and will be led by Necip Sayiner, who has successfully grown the company's custom silicon business.
Telecommunications, which will include all standard solutions for wireless and wireline infrastructure, will be led by Denis Regimbal, who has extensive experience in programmable devices and DSPs.
Concurrent with the organisation change, Sohail Khan, who led the Infrastructure Systems Group, will assume a new role as Chief Strategy and Development Officer.
His team will provide strategic support across the businesses, including identifying new business opportunities and developing technology platforms that can be leveraged across different applications.
Ron Black, who led the Client Systems Group, is leaving Agere to pursue other business interests.
"Simplifying our structure will ensure we are better aligned to pursue the market segments with the most growth potential", said Dickson.
"It also will improve how we engage with customers, develop technology platforms across applications and deliver products".
In the September quarter, the company expects to report revenues in the range of $420 million to $445 million.
The majority of the sequential decline is related to 3G chipsets, with some additional decreases in wireless infrastructure and intellectual property licensing revenues.
The company expects both GAAP and pro forma results to be in the range of breakeven to a loss of $0.02 per share.
"Our forecast for the September quarter is primarily linked to issues at three major customers", said Dickson.
"We firmly believe that the markets we are pursuing - storage, mobility, enterprise networking and wireless and wireline infrastructure - will drive growth for Agere moving forward".
"We are confident that we have the product leadership and customer relationships for success in these markets".
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