July 26, 2001 – Allentown, PA – Agere Systems has signed a definitive agreement to sell its Madrid, Spain chip fabrication facility to BP, a leading global energy company. On July 4, 2001, BP announced it had agreed in principle to acquire the Agere facility as part of its expansion plans for solar photovoltaic cell manufacturing in Spain. The transaction is expected to be completed by the end of the year. Terms of the transaction were not disclosed.
Agere’s decision to discontinue manufacturing operations in Madrid and to sell the facility, which is located 20km north of Madrid in Tres Cantos, are part of a broader business restructuring effort focused on rationalizing manufacturing, reducing workforce, and writing down assets.
On June 29, Agere announced a work force reduction of 4,000 employees, expected to be completed by the end of the calendar year.
Sales for Agere?s 3Q01 totaled $927 million, slightly above the company?s earlier guidance of $920 million, but 22% lower than the $1.2 billion posted for the same period last year. Agere expects revenues in its September quarter to decrease 30 to 35% from the June quarter. The decline reflects continued low order levels for Agere as systems providers continue to manage their orders and inventory in light of reduced capital expenditures by carriers. The company forecasts a pro forma net loss per share, deferring recognition of tax benefits on losses, in the range of $0.30 to $0.33 per share in 4Q01.