Agere Systems is to exit its optoelectronics business, which represented about 10% of the company’s total revenues in the June quarter of fiscal 2002.
Agere is seeking a buyer for all or parts of the business, but will discontinue optoelectronics operations no later than June 30, 2003.
With the dramatic changes in the telecommunications industry, including capital spending constraints, excess capacity in the core network and significant delays in deployment of higher-speed technologies, demand for optoelectronics components has decreased considerably.
According to RHK, a market research firm, optoelectronics components industry revenues are expected to decline from approximately $7 billion in 2000 to about $2.3 billion in 2002, a 67% drop. This decrease was driven by weakness in the long-haul segment, an area where Agere’s optoelectronics solutions were primarily focused.
‘We are redefining Agere as a premier provider of integrated circuit solutions to target the communications and computing opportunities that present the best long-term potential,’ said John Dickson, president and CEO of Agere.
The company will continue to deliver advanced integrated circuits for wireless data and storage applications, as well as multi-service networking solutions for segments such as metro, access and enterprise.