Agere Systems Inc.'s revenue fell in the latest quarter but improving margins helped the semiconductor company narrow its net loss even as it forecasts a return to profitability in the September quarter.
The company's results were also boosted by a gain of $41 million from the sale of its optoelectronics components business.
The Allentown, Pa., company said it expects to be profitable in the September quarter as demand for communication chips and storage applications boost revenue in the coming months.
Agere recorded a net loss of $125 million, or 8 cents a share, in the fiscal 2003 second quarter ended March 31, compared with a loss of $219 million, or 13 cents a share, in the year-ago quarter.
Revenue in the recently ended quarter dropped 9%, to $443 million from $489 million in the fiscal 2002 second quarter.
"We expect to accelerate revenue growth in the second half of the year, driven by GPRS and storage applications, as well as some strength in framing and traffic management products," said John Dickson, Agere's president and chief executive, in a statement.
"In addition, with continued benefits from our restructuring program, we expect to become cash flow positive, as well as achieve profitability on a GAAP basis, in the September quarter," Dickson said.
Agere's gross profit margin has steadily increased as the company slashed costs and sold unprofitable units.
In the just ended quarter, Agere's gross profit margin rose to 26.4% from 20.9% in the year-ago quarter and 25.9% in the prior quarter.
Sales in the June quarter will rise 4% from the preceding three-month period, the company said, although it expects to post a net loss of 4 cents to 5 cents per share for the quarter.