MANHASSET, N.Y. Semiconductor supplier Agere Corp. recorded net income of $120 million, or 66 cents per share, on sales of $433 million in its third 2005 fiscal quarter ended June, compared with a net loss of $68 million, or 38 cents per share on sales of $417 million the previous quarter.
Agere (Allentown, Pa.) said net earnings included a $120 million benefit resulting from the reversal of a tax contingency and $38 million in restructuring costs related to the impending closing of the company’s Orlando, Fla., facility Sept. 30.
“Our results this quarter are a significant step toward achieving our operating model goals as we achieved a quarterly pro forma gross margin of 52 percent and operating income margin of 11 percent,” said John Dickson, president and chief executive of Agere Systems, in a statement. “The closure of our facility in Orlando represents the last major step in the restructuring efforts we have undertaken.”
For the fourth fiscal 2005 quarter ending September, Agere expects revenue of $420 million to $445 million, with a GAAP loss per share of 21 to 27 cents.