So here goes. Agere makes optical components such as lasers, filters, and amplifiers, as well as semiconductors that are used to make communications equipment. Both areas have been growing extremely fast during the last couple of years, but the market has cooled considerably in the last six months.
Conditions are only slightly better for optical components.
Despite the focus on fast-growing areas, Agere's margins are still well below those of its competitors. Where Agere has an advantage is that it can integrate optical components and semiconductors, something almost none of its competitors can claim. Agere's parent, Lucent, can't seem to catch a break these days. Its main business, selling telecom equipment, is in a severe slump. On top of that, Lucent is burdened by debt.