Agere Cuts 2,000 Jobs, Posts 13 Percent Revenue Decline

Electronic News, April 30, 2001

        Agere Cuts 2,000 Jobs, Posts 13 Percent Revenue Decline
                    Agere Systems Inc. (nyse: AGR.A)
Quarter Ended  3/31/01  3/31/00  12/31/00
Earnings [*]   $4       $83      $102
EPS            $0.00    $0.05    $0.06
Revenues [*]   $1,200   $1,100   $1,400
(*.)Figures in millions

Allentown, Pa.-based Agere Systems Inc. will cut about 2,000 jobs following disappointing financial results for the second fiscal quarter ended March 31. Agere posted revenues of $1.2 billion, down 13 percent sequentially from first-quarter revenues of $1.4 billion, but up 12 percent over the second quarter of 2000. Pro forma net income was $4 million, or flat per share, a staggering sequential drop from the previous quarter's $102 million, or 6 cents earnings per share. For the second quarter of 2000, Agere reported net income of $83 million, or 5 cents per share.