S&P: Agere unaffected

Standard & Poor's said Agere Systems Inc.'s plans to take a $340 million to $360 million restructuring charge to reduce its headcount by 500 positions, reducing its quarterly expense level by $20 million-$25 million and shutter its Orlando, Fla., factory by the end of December 2005, if it does not sell the factory by then, and move Orlando's manufacturing to one of its foundry partners, will have no affect on its BB-/stable/-- ratings on the company.

S&P said Agere faces aggressive competition and rapid technological advances, while the company continues to have a good technology position.

With cash balances of $785 million on June 30 and no near-term debt maturities, the $90 million cash component of the restructuring charge is not expected to affect the company's operational liquidity, according to S&P.

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