Agere Systems Inc. today posted strong fiscal fourth quarter revenue and net income, beating analysts' consensus estimate on a surge in sales into the consumer and storage markets.
The communications and networking chip maker also announced fiscal 2006 results showing its first annual profit since being spun off from Lucent Technologies Inc. in 2002.
"Our results for fiscal 2006 mark Agere's first full-year profit as a public company," said Richard Clemmer, president and CEO of Agere, in a statement. "This milestone in financial performance demonstrates that we are executing on our turnaround strategy."
The company recorded net income of $13 million, or 8 cents a share, for the three months ended September 30, up from $7 million, or 4 cents per share, from the year-ago comparable quarter.
Revenue during the same period declined 7 percent, to $388 million compared with $416 million in the fourth quarter of fiscal 2005. Analysts had estimate Agere would report revenue of $387 million for the September quarter.
The company's revenue also dropped on an annual basis to $1.57 billion from $1.68 billion. Agere's fiscal 2006 gross profit margin improved dramatically to 48.5 percent from 39.6 percent, helping to propel Agere to it first yearly profit.
Agere estimated its revenue for the ongoing quarter would be in the range of $365 million to $390 million. Analysts are projecting the company would report revenue of $388.7 million during the same period.