Agere Narrows Its Loss - TheStreet

Agere Narrows Its Loss

But the stock takes a tumble due to a cut in guidance.
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Agere Systems

(AGRA)

said Wednesday that it narrowed its fiscal third-quarter loss, but the stock took a tumble due to a cut in guidance.

The firm reported a loss of $78 million, or 5 cents a share, compared with a loss of $332 million, or 20 cents a share, the previous year. Revenue fell 8% to $456 million from $498 million. On a quarterly basis, revenue rose 3%.

Excluding one-time charges related to acquisitions, restructuring and accounting changes, Agere lost $74 million, or 4 cents a share, in line with analysts' estimates. In the year-ago period, the company had a loss of $108 million, or 7 cents a share.

"We have now essentially completed our manufacturing consolidation plan, and have reduced our net loss every quarter during the fiscal year," said President and Chief Executive John Dickson in a written statement.

In 2003, Agere predicted revenue will be $1.81 billion to $1.83 billion, down from its previous forecast of $1.85 billion. Analysts had also expected slightly stronger sales of $1.84 billion.

Class A shares of Agere were down 19 cents, or 6.7%, at $2.64 in afternoon trading Wednesday.