Shareholders approved the split at their annual meeting, which was held in North Branch, N.J., and broadcast over the Internet.

The Allentown, Pa., maker of communications chips asked shareholders to approve a reverse split to help satisfy the New York Stock Exchange's minimum stock price.

The board may announce a reverse split of 1-for-5, 1-for-10 or 1-for-15, but hasn't made a decision yet regarding when or if to execute one, an official said at the meeting.

Agere, which has struggled with financial losses and major layoffs, warned in a proxy statement that if shares traded at less than $1 for an extended period and it was delisted from the NYSE, it would have to repurchase $410 million of convertible debt, otherwise due in 2009.

A reverse stock split cuts the number of shares available to the public, and it boosts the price of the stock. Companies often use reverse splits to enable their stock price to meet regulatory listing requirements.

Agere's Class A shares closed Thursday at $1.58, up 10 cents, or 6.8 percent, on the New York Stock Exchange.

Agere Chief Executive John Dickson told shareholders that this fiscal year, which ends in September, will see a "turnaround" of the company. He said the company is on target to be profitable on a pro forma basis, which excludes some costs, in the fiscal fourth quarter.

That outlook did little to placate some shareholders.

One shareholder complained that he lost $68,000 in Agere and proposed that compensation of management and the board be reduced to reflect Agere's losses.

Dickson said he's taken a 20 percent salary cut and that other managers have taken pay cuts and foregone bonuses, as well.

Last month, the company had said it expected pro forma losses of 15 cents to 19 cents a share this fiscal year on revenue of $1.85 billion. Agere lost $1.11 a share in fiscal 2002.

Pro forma accounting excludes income from discontinued operations; net restructuring and other charges; impairment and amortization of goodwill and other acquired intangibles; net gain or loss from the sale of operating assets and cumulative effect of an accounting change.

The pro forma loss for the previous fiscal year was 52 cents a share.