Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: mitch-c who wrote (44670)	3/28/2001 4:22:19 PM
From: Proud_Infidel	Read Replies (2) \| Respond to of 70976

Only listed for seven hours and already they are warning: Agere Says Weakness Worse Than Originally Expected NEW YORK (Reuters) - Agere Systems Inc. (NYSE:AGRa - news), the optical component and circuit maker spun off from Lucent Technologies Inc. (NYSE:LU - news), said on Wednesday it may post a ''significant operating loss'' for fiscal 2001 due to lower order volumes, and delayed or canceled orders by customers. Agere, which launched its scaled-down initial public offering on Wednesday, had previously said it might post an operating loss in the second fiscal quarter after several large customers rescheduled or canceled orders. Now, the company said it may post a loss for the entire fiscal year. ``An increasing number of our other customers recently have rescheduled or canceled orders, and the level of orders we have received recently is generally lower than what we had previously anticipated,'' Agere said in a filing with the Securities and Exchange Commission (news - web sites). ``We believe this softening of demand from our customers is in response to weakness in our customers' markets as a result of the current economic slowdown,'' the company said. Agere, whose optoelectronic components send and receive light that carry data and voice traffic over optical networks, said it expects its revenues for fiscal 2001, which ends Sept. 30, to be about the same as the $4.7 billion in revenues it had in fiscal 2000. This may reduce operating income, which includes amortization of goodwill and other acquired intangibles, and may result in ``a significant operating loss'' for the fiscal year. It had a loss of $76 million in fiscal 2000. Agere is just one of several equipment makers hurt by a lagging economy and slower capital spending. Others include Nortel Networks Corp. (NYSE:NT - news) (Toronto:NT.TO - news), which on Tuesday warned it would post a wider first-quarter loss than earlier forecast, Motorola Inc. (NYSE:MOT - news), ADC Telecommunications Inc. (NasdaqNM:ADCT - news) and Cisco Systems Inc. (NasdaqNM:CSCO - news). Agere launched its IPO amid a bear market for technology stocks. After three price cuts and one postponement of the deal, Agere finally sold 600 million shares at the bottom of the reduced price range of $6 to $7 a share in an initial public offering (IPO) late on Tuesday. Wall Street firm Morgan Stanley Dean Witter & Co was the lead manager of the IPO, which raised $3.6 billion, about half of what Agere originally expected. The Agere IPO is still the largest of the year and the fifth-largest in U.S. history.