Product category:
Communications ICs (Wired)
News Release from: Agere Systems
Edited by the Electronicstalk Editorial
Team on 27 October 2005
Agere cuts its losses
Agere Systems has reported its financial results for the fourth quarter and fiscal year 2005.
Agere Systems has reported its financial results for the fourth quarter and fiscal year 2005 For the quarter ended on 30th September 2005 Agere posted net income of $7 million or $0.04 per share on a GAAP basis, compared with the year-ago net loss of $127 million or $0.74 per share, and net income of $120 million or $0.66 per share in the June quarter
This article was originally published on Electronicstalk on 8 Mar 2007 at 8.00am (UK)
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GAAP net income for the fourth quarter includes $31 million in net restructuring charges and related costs, and for the June quarter, included a $120 million benefit resulting from the reversal of a tax contingency.
The fourth quarter GAAP gross margin as a percentage of sales was 45%.
For the full fiscal year 2005, the company posted a GAAP net loss of $8 million or $0.04 per share, compared with a net loss of $90 million or $0.52 per share for fiscal year 2004.
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On a pro forma basis, the company reported net income of $38 million or $0.21 per share in the September quarter, compared with net income of $43 million, or $0.24 per share in the June quarter, and net income of $6 million or $0.04 per share in the year-ago quarter.
The company's pro forma gross margin was 52% in the September quarter, exceeding the company's long-term operating model.
For the fiscal year, the company posted pro forma net income of $72 million, or $0.41 per share, compared with pro forma net income of $49 million, or $0.28 per share in fiscal 2004.
Pro forma financial measures, which are non-GAAP measures, exclude gain or loss from the sale of, and income or loss from, discontinued operations; restructuring-related charges included in costs - primarily increased depreciation; certain other noncash charges including equity compensation; net restructuring and other charges; purchased in-process research and development charges; amortisation of acquired intangible assets; net gain or loss from the sale of operating assets; certain tax adjustments; cumulative effect of accounting changes; and certain nonrecurring charges.
The company's revenues for the fourth quarter were $416 million, compared with $433 million in the June quarter and $439 million in the year-ago quarter.
For the full fiscal year 2005, the company reported revenues of $1.68 billion, compared with $1.91 billion for fiscal year 2004.
"The company made great strides in fiscal 2005 by improving earnings per share, pro forma gross margin and the balance sheet", said Clemmer, President and CEO, Agere Systems.
"The key challenge for 2006 is driving revenue growth".
"We are absolutely committed to doing what it takes over the coming months to achieve growth and enhance shareholder value".
In addition, the company announced that its board of directors has authorised the repurchase of up to $200 million of its outstanding common stock.
Based on Agere's closing stock price on 25th October 2005, $200 million represents approximately 12% of the company's total outstanding shares.
As of 30th September, Agere had cash and cash equivalents of approximately $698 million.
In the December quarter, the company expects to report revenues in the range of $390 million to $410 million.
The company expects a GAAP net loss of $0.13 to $0.19 per share.
Pro forma net income is expected to be in the range of $0.03 to $0.09 per share.
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