Profit Jumps at Agere

Agere Systems(AGR Quote) nearly doubled its earnings in its fiscal fourth quarter, marking the company's first profitable year.

The Allentown, Pa., chipmaker said Tuesday that it earned $13 million, or 8 cents a share, in the three months ended Sept. 30, compared with net income of $7 million, or 4 cents a share, at the same time last year.

Excluding stock option compensation expenses and various other charges, Agere said it earned 30 cents a share in the fourth quarter, soundly beating the average analyst forecast of 23 cents EPS.

Agere's $388 million in sales was slightly ahead of Wall Street expectations, but was down from the $416 million in revenue the company had a year ago.

Shares of Agere were up 5.2%, or 86 cents, at $17.14 in recent trading Tuesday.

For the full fiscal year, Agere posted a net income of $20 million, or 12 cents a share, compared to a net loss of $8 million, or 4 cents a share, in fiscal 2005, representing Agere's first full-year profit in its five years as a public company.

"This milestone in financial performance demonstrates that we are executing on our turnaround strategy," CEO Richard Clemmer said in a press release. "With our first profitable year behind us, we have established a firm foundation for Agere's future growth."