On Jan. 25, integrated circuit solutions provider Agere Systems (NYSE:AGR) released fourth-quarter earnings for the period ended Dec. 31.
- Agere Systems witnessed a total turnaround. Improved profitability and a solid baseline of products and design wins led it to a net profit of $16 million.
- Agere entered into a merger agreement with LSI Logic (NYSE:LSI), under which that company will receive 2.16 shares for every Agere share and operate under the LSI name.
- Only 27 of 45 investors believe that Agere Systems will outperform the S&P 500 in our community-intelligence database, CAPS. If you have an opinion, bring it to CAPS!
(Figures in millions, except per-share data)
Income Statement Highlights
|
Q4 2006 |
Q4 2005 |
Change | |
|---|---|---|---|
|
Sales |
$372 |
$403 |
(7.7%) |
|
Net Profit |
$16 |
($23) |
N/A |
|
EPS |
$0.09 |
($0.13) |
N/A |
|
Diluted Shares |
170 |
181 |
(6.1%) |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q4 2006 |
Q4 2005 |
Change* | |
|---|---|---|---|
|
Gross Margin |
46.8% |
47.9% |
(1.1) |
|
Operating Margin |
5.4% |
(4.5%) |
9.9 |
|
Net Margin |
4.3% |
(5.7%) |
10.0 |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
|
Assets |
Q4 2006 |
Q4 2005 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$456 |
$649 |
(29.7%) |
|
Accounts Rec. |
$242 |
$252 |
(4.0%) |
|
Inventory |
$81 |
$125 |
(35.2%) |
|
Liabilities |
Q4 2006 |
Q4 2005 |
Change |
|---|---|---|---|
|
Accounts Payable |
$127 |
$196 |
(35.2%) |
|
Long-Term Debt |
$362 |
$372 |
(2.7%) |
Learn the ways of the balance sheet.
Cash Flow Highlights
|
Q4 2006 |
Q4 2005 |
Change | |
|---|---|---|---|
|
Cash From Ops. |
$19 |
($7) |
N/A |
|
Capital Expenditures |
$10 |
$39 |
(74.4%) |
|
Free Cash Flow |
$9 |
($46) |
N/A |
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Related Companies:
- Conexant Systems (NASDAQ:CNXT)
- Atheros Communications (NASDAQ:ATHR)
- Broadcom (NASDAQ:BRCM)
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