Agere Systems Inc., the communications IC and optical module maker spun off from Lucent Technologies last month, today reported declining profits for its second fiscal quarter ended March 31, and projected losses for its third quarter.
It also announced plans to slash 2,000 jobs out of its headcount of 18,500 by the end of June.
Revenue for the second fiscal quarter was $1.2 billion, a decline of 13% compared with its first quarter revenue. Net income was $4 million, or approximately breakeven per share, compared to $83 million. or 5 cents per share. in the year-ago quarter.
Most of the workforce reduction will take place at Agere's sites in Allentown, Breinigsville, and Reading, Pa.; Irwindale, Calif.; and Orlando, Fla.
The company's optoelectronics business saw revenues of $379 million during the second quarter, up 42% over the year-ago quarter, driven by growth in the metro and submarine product lines, as well as strong demand for transponders. Revenue was down 11% sequentially, however, from the first fiscal quarter, which the company attributed to continuing softness in the high-speed long-haul product line.
Agere's IC business reported revenue of $812 million duringthe quarter, an increase of about 1% over the year-ago quarter and down 13% sequentially. The company said it saw a downturn in demand for all of its IC lines, except for its wireless LAN, which continued to report increased sales.
Agere also said expects revenues in the June quarter to be 14 to 20% lower than in the quarter ended March 31, resulting in revenue between $950 million and $1.025 billion.
Agere also said it expects pro forma earnings per share in its third quarter to be lower than in the second quarter, with a pro forma net loss of between 6 cents and 8 cents a share.