Agere Stung by 3G (Again)

One thing's for sure: This is the wrong time for Agere Systems Inc. (NYSE: AGR.A) officials to book a trip to Vegas.

The company earnings report today met analysts' expectations for its June quarter. But three major customers are reporting temporary -- and unrelated -- problems that will cut into revenues for the September quarter, and a fourth is rejiggering its inventory methods, creating a $10 million shortfall for Agere.

Much of the blame rests with 3G chipset sales, which are expected to drop all the way to zero this quarter. "We have forecasted no 3G chipset revenues, a decrease of approximately $40 million from our June results," CFO John Gamble told analysts during a conference call this morning.

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— Craig Matsumoto, Senior Editor, Light Reading
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