Agere reduces Q2 outlook, blames 3G delays
Silicon Strategies
03/17/2004, 1:15 PM ET
ALLENTOWN, Pa.--Agere Systems Inc. today (March 17, 2004) reduced its outlook for the second quarter of fiscal 2004 as a result of lower-than-expected shipments of 3G chipsets for mobile phones.
Total company revenues in the second fiscal quarter are expected to be between $465-to-$475 million, below the previous guidance.
Agere now expects GAAP earnings to increase to approximately $0.04 to $0.05 per share, including a tax-related benefit of approximately $80 million. Pro forma earnings per share are expected to be $0.04 to $0.05 including the tax benefit, and breakeven to $0.01 excluding the tax benefit.
As indicated during the January earnings conference call, the company had expected delays in 3G deployment to impact sales of 3G chipsets in the March quarter. Based on recent customer input, the company now expects that shipments of 3G chipsets will be down approximately $50 million from the December quarter, significantly more than previously anticipated.
In the third fiscal quarter, ending June 30, the company expects revenues to increase to over $500 million, and expects shipments of 3G chipsets to begin to recover. The company will provide an updated revenue view and detailed guidance for the June quarter when it releases its second quarter financial results on April 27th. |
