Agilent Technologies Inc. (NYSE: A) today reported revenues of $1.77
billion for the fourth fiscal quarter ended Oct. 31, 2012, 2 percent
above one year ago. Fourth-quarter GAAP net income was $425 million, or
$1.20 per share. Last year's fourth-quarter GAAP net income was $289
million, or $0.82 per share.
During the fourth quarter, Agilent had intangible amortization of $52
million; acquisition, integration and transformation costs of $40
million; and a donation to the Agilent Technologies Foundation of $10
million. The company also recognized a tax benefit of $227 million.
Excluding these items and $3 million of other net charges, Agilent
reported fourth-quarter adjusted net income of $303 million, or $0.86
Agilent CEO Bill Sullivan said, "Agilent's performance in the fiscal
fourth quarter met our revenue guidance and exceeded EPS guidance.
Despite a very challenging economic environment, the strength of our
operating model was evident, with operating margins for the quarter and
the year at an all-time high."
Electronic Measurement fourth-quarter revenues declined 5 percent
compared to the prior year. Revenues declined across all key markets
with the exception of computer and semiconductor markets. Operating
margins were 23 percent.
Chemical Analysis revenues were down 3 percent compared to a year ago.
Environmental and chemical markets were down, offset by growth in the
food and forensics markets. Operating margins were 25 percent.
Life Sciences revenues were flat with last year. Growth in the pharma
and environmental markets was offset by a decline in academia and
government markets. Operating margins were 18 percent.
Diagnostics and Genomics, which includes the Dako acquisition, had
revenues of $156 million, up 125 percent over last year or 1 percent
excluding the effects of the Dako acquisition. Operating margins were 17
Agilent generated $485 million of cash from operations in the quarter.
Fourth-quarter ROIC was 19 percent(3).
Fiscal first-quarter 2013 revenues are expected to be in the range of
$1.68 billion to $1.70 billion. Fiscal first-quarter non-GAAP earnings
are expected to be in the range of $0.65 to $0.67 per share(2).
For the full fiscal year 2013, Agilent expects revenue of $7.0 billion
to $7.20 billion and non-GAAP earnings of $2.80 to $3.10 per share(2).
About Agilent Technologies
Agilent Technologies Inc. (NYSE: A) is the world's premier measurement
company and a technology leader in chemical analysis, life sciences,
diagnostics, electronics and communications. The company's 20,500
employees serve customers in more than 100 countries. Agilent had
revenues of $6.9 billion in fiscal 2012. Information about Agilent is
available at www.agilent.com.
Agilent's management will present more details about its fourth-quarter
FY2012 financial results on a conference call with investors today at
1:30 p.m. PST. This event will be webcast live in listen-only mode.
Listeners may log on at www.investor.agilent.com
and select "Q4 2012 Agilent Technologies Inc. Earnings Conference Call"
in the "News & Events Calendar of Events" section. The webcast will
remain available on the company's website for 90 days.
Additional information regarding financial results can be found at www.investor.agilent.com
by selecting "Financial Results" in the "Financial Information" section.
A telephone replay of the conference call will be available at 3:30 p.m.
PST today through Nov. 26. The replay number is +1 888 286-8010;
international callers may dial (617) 801-6888. The passcode is 72627474.
This news release contains forward-looking statements as defined in the
Securities Exchange Act of 1934 and is subject to the safe harbors
created therein. The forward-looking statements contained herein
include, but are not limited to, information regarding Agilent's future
revenues, earnings and profitability; the future demand for the
company's products and services; and revenue and non-GAAP earnings
guidance for the first quarter and full fiscal year 2013. These
forward-looking statements involve risks and uncertainties that could
cause Agilent's results to differ materially from management's current
expectations. Such risks and uncertainties include, but are not limited
to, unforeseen changes in the strength of our customers' businesses,
unforeseen changes in the demand for current and new products,
technologies, and services, and the risk that we are not able to realize
the savings expected from integration and restructuring activities.
In addition, other risks that Agilent faces in running its operations
include the ability to execute successfully through business cycles; the
ability to meet and achieve the benefits of its cost-reduction goals and
otherwise successfully adapt its cost structures to continuing changes
in business conditions; ongoing competitive, pricing and gross-margin
pressures; the risk that our cost-cutting initiatives will impair our
ability to develop products and remain competitive and to operate
effectively; the impact of geopolitical uncertainties and global
economic conditions on our operations, our markets and our ability to
conduct business; the ability to improve asset performance to adapt to
changes in demand; the ability of our supply chain to adapt to changes
in demand; the ability to successfully introduce new products at the
right time, price and mix; the ability of Agilent to successfully
integrate recent acquisitions; and other risks detailed in Agilent's
filings with the Securities and Exchange Commission, including our
Quarterly Report on Form 10-Q for the quarter ended July 31, 2012.
Forward-looking statements are based on the beliefs and assumptions of
Agilent's management and on currently available information. Agilent
undertakes no responsibility to publicly update or revise any
(1) Non-GAAP net income and non-GAAP net income per share
exclude primarily the impacts of acquisition and integration costs,
acquisition fair value adjustments, transformation initiatives and
restructuring costs, and non-cash intangibles amortization. We also
exclude any tax benefits that are not directly related to ongoing
operations and which are either isolated or cannot be expected to occur
again with any regularity or predictability. A reconciliation between
non-GAAP net income and GAAP net income is set forth on page 5 of the
attached tables along with additional information regarding the use of
this non-GAAP measure.
(2) Non-GAAP earnings per share as projected for Q1FY13 and
full fiscal year 2013 excludes primarily the impacts of acquisition and
integration costs, future restructuring costs, asset impairment charges,
and non-cash intangibles amortization. We also exclude any tax benefits
that are not directly related to ongoing operations and which are either
isolated or cannot be expected to occur again with any regularity or
predictability. Most of these excluded amounts pertain to events that
have not yet occurred and are not currently possible to estimate with a
reasonable degree of accuracy. Therefore, no reconciliation to GAAP
amounts has been provided. Future amortization of intangibles is
expected to be approximately $50 million per quarter.
(3) Return on invested capital (ROIC) is a non-GAAP measure
and is defined as income from operations less other (income) expense and
taxes, annualized, divided by the average of the two most recent
quarter-end balances of assets less net current liabilities. The
reconciliation of ROIC can be found on page 7 of the attached tables,
along with additional information regarding the use of this non-GAAP
NOTE TO EDITORS: Further technology, corporate citizenship and executive
news is available on the Agilent news site at www.agilent.com/go/news.
AGILENT TECHNOLOGIES, INC.
Preferred stock; $0.01 par value; 125 million shares authorized;
none issued and outstanding
Common stock; $0.01 par value; 2 billion shares authorized; 595 million
shares at October 31, 2012 and 591 million shares at October 31,
Treasury stock at cost; 249 million shares at October 31, 2012 and
244 million shares at October 31, 2011
(a) The adjustment for taxes excludes tax benefits that management
believes are not directly related to ongoing operations and which
are either isolated or cannot be expected to occur again with any
regularity or predictability. For the year ended October 31, 2012,
management uses a non-GAAP effective tax rate of 16% that we
believe to be indicative of on-going operations.
Return On Invested Capital (a), %
(a) Agilent return is equal to non-GAAP net income of
$303 million plus net interest expense after tax of $21 million
for Q4'12, and $296 million plus net interest expense after tax of
$17 million for Q4'11. Please see "Non-GAAP Net Income and Diluted
EPS Reconciliations" for a reconciliation of non-GAAP net income
to GAAP net income.
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