ALLENTOWN, Pennsylvania -- Agere Systems Inc. reported Tuesday (October 28, 2003) that it made net income of $11 million on revenues of $504 million in its fourth quarter of fiscal 2003, ended September 30, 2003.
The profit was Agere's first and revenues were up 11 percent from revenues in the June quarter, and up 3 percent from revenues in the year-ago quarter. The profit compared with a loss of $78 million in the June quarter and a loss of $885 million in the year-ago quarter.
The revenue increase was driven by an 18 percent sequential growth in the company's client systems business, with strength in sales of chips for cell phones, hard disk drives and other PC-related applications, the company said.
For the full fiscal year 2003, Agere reported a net loss of $338 million on revenues of $1.84 billion compared with revenues in fiscal 2002 were $1.92 billion. The net loss for the year was considerably trimmed compared with the fiscal 2002 net loss of $1.81 billion.
"We are very pleased to report the strongest quarter in our history as a public company," said John Dickson, Agere's president and chief executive officer, in a statement. "We met or exceeded every financial target we set, including achieving profitability and positive cash flow. With the completion of our manufacturing consolidation, we significantly improved our gross margins, which exceeded 40 percent for the first time since our IPO."
The company is predicting a net loss in the December quarter on revenues in the range $500 million to $510 million. Sales increases of 5 percent in the client systems group are expected to be offset by lower revenues in the infrastructure systems group and a seasonal drop in intellectual property licensing, Agere said.
A pro forma breakeven is expected but turned into a net loss by the inclusion of restructuring costs related to the decommissioning of Agere's facilities in Pennsylvania.