(Logo: http://www.newscom.com/cgi-bin/prnh/20040618/AGERELOGO )
On a non-GAAP basis*, Agere reported net income of $37 million, or $0.22 per share, in the third quarter of fiscal 2006, compared to $43 million, or $0.23 per share, in the same period for fiscal 2005.
Richard Clemmer, President and CEO, said, "Agere Systems turned in a solid third quarter, demonstrating the leverage we have created in our business model and the clear progress we are making in our turnaround plan. Moreover, we expanded our customer base during the quarter, giving us a firm foundation for driving revenue growth.
"During the quarter," Clemmer added, "we completed a strategic plan that will drive success in our three businesses. Our vision for the company is captured in our new tagline, 'Perfecting the Connected Lifestyle.' By this, we mean that we will work to transform the performance of networks and consumer electronics to enable people to stay connected -- more reliably, in more places, and more often than ever before. We are confident in our plans and believe that Agere shares remain undervalued. Consequently, we have authorized a new $200 million share repurchase program."
The following chart shows quarterly revenue, including revenue from the licensing of intellectual property, by business segment:
Jun 30 Mar 31 Jun 30
2006 2006 2005
($ in millions)
Consumer segment:
Storage $135 $171 $146
Mobility 105 95 125
Consumer segment 240 266 271
Networking segment 142 131 162
Total $382 $397 $433
Product and Customer Highlights
Recent company highlights include:
Networking:
- TrueONE portfolio launched. These scaleable, turn-key solutions are
based on Agere's packet processing, switching, digital processing and
systems software capabilities. These solutions enable the delivery of
carrier-class voice, data, IPTV and HDTV services over a single
converged, broadband network and allow Agere to provide solutions for
the market.
- Ericsson selected Agere's packet processing technology for DSLAM
equipment.
- NEC chose Agere for its third-generation wireless infrastructure Node B
equipment.
- 3Com and Lenovo chose Agere's Ethernet solutions for their enterprise
switching applications.
Mobility:
- Agere delivered platform solutions for Samsung's ultra-thin X820 model,
marketed as the world's slimmest mobile phone, offering a 2-megapixel
digital video camera, document viewer and TV-output function, and
Bluetooth capability.
- The company finalized an agreement with u-Nav Microelectronics, a best-
in-class provider of Global Positioning System (GPS) solutions. This
agreement gives Agere the capability to offer proven GPS solutions along
with Agere's baseband solutions to enable value-added functionality like
Location Based Services and satisfy future regulatory requirements for
E-911 emergency services.
Storage:
- Agere expanded its customer base by providing technology for a new
2.5-inch HDD-Flash combo drive to a leading disk drive manufacturer,
beating a major competitor.
- The company sampled an ARM-based SoC for use in a production platform to
a lead customer, further building on Agere's significant experience in
developing ARM-based cores across the company's three businesses and
strengthening the customer relationship.
Outlook
In the September quarter, the company expects to report revenues in the range of $375 million to $400 million. The company expects GAAP net income to be in the range of $0.08 to $0.13 per share. Non-GAAP net income* is expected to be in the range of $0.21 to $0.26 per share.
Earnings Webcast
Agere Systems will host a conference call today at 8:30 a.m. EDT to discuss its financial results and outlook. To listen to the conference call via the Internet, visit http://www.agere.com/webcast. Subsequent to the conference call, a replay will be available at the same web address.
About Agere Systems
Agere Systems is a global leader in semiconductors and software solutions for storage, mobility and networking markets. The company's products enable a broad range of services and capabilities, from cell phones, PCs and hard disk drives to the world's most sophisticated wireless and wireline networks. Agere's customers include top manufacturers of consumer electronics, communications and computing equipment. Agere works to transform the performance of networks and consumer electronics by integrating systems knowledge and leading technology that enable people to stay connected -- perfecting the connected lifestyle.
About non-GAAP Financial Measures
* Non-GAAP financial 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 non-cash charges including equity compensation; net restructuring and other charges; purchased in-process research and development charges, amortization 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. Reconciliations of non-GAAP financial measures used in this press release to corresponding GAAP amounts are attached.
