Agere turns around before LSI merger

Agere Systems has reported GAAP net income of US $16 million, or $0.09 per share, for the first quarter of fiscal 2007 ended 31st December 2006.

Agere Systems has reported GAAP net income of US $16 million, or $0.09 per share, for the first quarter of fiscal 2007 ended 31st December 2006, compared with a GAAP net loss of $19 million, or $0.11 per share, in the year ago quarter.

Richard Clemmer, President and CEO of Agere, said: "Agere turned in solid bottom-line performance in the first quarter of fiscal 2007, reflecting a major turnaround from a year ago".

"During my 15 months as CEO, Agere has made tremendous strides as we executed on our three-phase turnaround plan".

"In phase one, we energised our three businesses through new leadership and developed a corporate vision and strategy".

"In phase two, we narrowed our investment areas, focused our resources on the markets where we have the technology and customers to win, and implemented and executed on a process to reduce costs throughout our business".

"As a result, we have improved profitability and have a solid baseline of products and design wins to generate future revenue growth for phase three and beyond, beginning in the June quarter".

On a nonGAAP basis, Agere's net income was $32 million, or $0.19 cents per share, compared with $16 million, or $0.09 cents per share, in the comparable period in fiscal 2006.

For the quarter ending 31st December 2006, Agere's revenues were $372 million.

Due to the pending merger with LSI Logic, Agere is not providing detailed guidance for the March quarter.

However, as a stand-alone entity, the company expects revenues and EPS in the March quarter to be roughly flat with the December quarter.

The company continues to expect to be on target for phase three of the Agere turnaround with revenue growth beginning in the June quarter.

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