Lucent completes Agere spin-off

July 1, 2002

After its initial public offering raised about USD3.6bn in March 2001, Lucent Technologies has finally spun off communications component maker Agere Systems (formerly its Microelectronics Group, with about 11,500 staff). Nearly 5m Lucent shareholders received about 945m shares of Agere common stock. Lucent's board chairman Henry Schacht and CFO Frank D'Amelio have therefore resigned from Agere's board.

The spin-off was delayed nine months by creditors until Lucent returned a quarterly pre-tax profit.

For fiscal Q2 (to end-March), Agere's net loss was USD219m. It plans to sell a wafer fab in Orlando, FL, USA and will close operations in Breinigsville and Reading, PA, and transfer staff to its HQ in Allentown, PA.

  • Lucent says fiscal Q3 sales will drop by 10-15% on Q2's USD3.516bn to below USD3bn. This is down on the expected USD3.517bn and their lowest revenue yet.

Lucent foresees its employee base down to near 50,000 by the end of the fiscal year and intends to reach profitability in fiscal 2003.

Sponsored Recommendations

April 9, 2025
As transceiver speeds increase, so do thermal challenges. Discover key insights into innovative cooling solutions that ensure optimal performance and reliability.
March 12, 2025
Join us for an engaging discussion with industry experts on the intersection of AI and optics. Moderated by Sean Buckley, editor-in-chief of Lightwave+BTR, this panel will explore...
March 7, 2025
In today’s hyperconnected world, rolling out and managing profitable, high-performance networks for access and transport will require innovative architectural approaches. The ...
March 25, 2025
Explore how government initiatives and industry innovations are transforming rural broadband deployments, overcoming cost and logistical challenges to connect underserved areas...