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Agere to use Path 1 chip designs

Agere Systems will license intellectual property from Path 1 Network Technologies, the companies announced Thursday. Path 1 will furnish chip designs for Agere's networking chips, provide engineering services, and use Path 1 designs for media access control cores, the part of a chip that helps manage Ethernet traffic. Chipmakers often use outside technology in their products to cut costs and shave off time to market. Agere, a former subsidiary of Lucent Technologies, makes chips and components for telecommunications gear, an industry that has taken a beating over the past year. The Allentown, Pa.-based company reported Wednesday a first-quarter pro forma net loss of $282 million, or 17 cents a share, on revenue of $537 million. That compares with an income of $102 million, or 6 cents a share, on revenue of $1.36 billion for the year-ago quarter.

Agere Systems will license intellectual property from Path 1 Network Technologies, the companies announced Thursday. Path 1 will furnish chip designs for Agere's networking chips, provide engineering services, and use Path 1 designs for media access control cores, the part of a chip that helps manage Ethernet traffic. Chipmakers often use outside technology in their products to cut costs and shave off time to market.

Agere, a former subsidiary of Lucent Technologies, makes chips and components for telecommunications gear, an industry that has taken a beating over the past year. The Allentown, Pa.-based company reported Wednesday a first-quarter pro forma net loss of $282 million, or 17 cents a share, on revenue of $537 million. That compares with an income of $102 million, or 6 cents a share, on revenue of $1.36 billion for the year-ago quarter.