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Profit Jumps at Agere

The company beats earnings estimates.

Agere Systems

(AGR) - Get Avangrid, Inc. Report

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.

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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."

Agere projected that sales in the current quarter would range between $365 million and $390 million, with EPS excluding certain charges between 18 cents and 23 cents.

Analysts polled by Thomson Financial were looking for $387.7 million in sales with EPS of 22 cents.