Agere Systems Cuts Its Second-Quarter Forecast

March 16, 2004 by Jeff Shepard

Agere Systems Inc. (Allentown, PA) cut its forecast for its fiscal second quarter due to lower-than-expected shipments of third-generation chipsets for mobile phones. As a result, the company now expects GAAP earnings per share to be between $0.04 and $0.05 per share. Agere expects the quarter's revenue to be between $465 million and $475 million, which is about $50 million below the previous guidance announced in January.

The company blamed the lower revenue because of slower deployment of third-generation chipsets for mobile phones. Agere further said its infrastructure systems segment is strengthening, and is expected to grow more than 10 percent from the December quarter - better than its guidance - with strength across wireless, wireline and enterprise applications. The company expects shipments of third-generation chipsets to begin to recover in its third quarter with quarterly revenues exceeding $500 million.