Agere looks ahead to profitability

Agere Systems has reported revenues for the second quarter of fiscal 2006 of $397 million.

Agere Systems has reported that revenues for the second quarter of fiscal 2006, ended 31st March 2006, were $397 million, within the guidance range provided in January.

By comparison, Agere's revenues were $403 million in the December quarter and $417 million in the year-ago quarter.

For the March quarter, Agere reported a GAAP net loss of $21 million, or $0.11 per share, which included $40 million of net restructuring charges and related costs, and stock-based compensation expenses.

For the December quarter, Agere posted a GAAP net loss of $19 million, or $0.11 per share, including $39 million of net restructuring charges and stock-based compensation expenses.

In the year-ago quarter, the company reported a GAAP net loss of $68 million, or $0.38 per share, including purchased in-process R and D charges of $55 million, $33 million of net restructuring charges and related costs, and a $22 million benefit resulting from the reversal of a tax contingency.

"Our turnaround plan for Agere is well under way as we move from stabilising the business to addressing earnings growth through process improvements and focused investments", said Richard Clemmer, President and CEO of Agere Systems.

"We see strong underlying growth being driven by such areas as Edge wireless handset solutions, storage preamplifiers, storage area network ICs and traffic management, with overall revenue growth expected in the next fiscal year".

On a nonGAAP basis, Agere reported net income of $17 million or $0.10 per share in the March quarter, at the high end of guidance, compared with non-GAAP net income of $16 million, or $0.09 per share in the December quarter.

In the year-ago quarter, the company reported a non-GAAP net loss of $1 million, or break-even on a per-share basis.

Non-GAAP measures exclude gain or loss from the sale of, and income or loss from, discontinued operations; restructuring-related charges included in costs; 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.

In the June quarter, the company expects to report revenues in the range of $390 million to $410 million.

The company expects GAAP net income to be between break-even and a profit of $0.05 per share, including restructuring charges and related costs.

Non-GAAP net income is expected to be in the range of $0.13 to $0.18 per share.

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