10-KPeriod: FY2001

AGILENT TECHNOLOGIES, INC. Annual Report, Year Ended Oct 31, 2001

Filed January 22, 2002For Securities:A

Summary

Agilent Technologies, Inc. reported total net revenue of $8.4 billion for the fiscal year ended October 31, 2001, a decrease of 10.3% from the prior year, reflecting a significant economic downturn impacting the communications, electronics, and semiconductor industries. The company experienced a net loss from continuing operations of $406 million, a stark contrast to the $672 million in earnings from continuing operations in fiscal year 2000. This downturn primarily affected the Test and Measurement and Semiconductor Products segments. Offsetting some of the operational challenges, Agilent completed the sale of its healthcare solutions business for $1.7 billion, resulting in a substantial after-tax gain of $646 million from discontinued operations. The company also took significant steps to manage costs, including workforce reductions and restructuring initiatives. Despite the challenging economic environment, Agilent maintained a strong liquidity position with $1.17 billion in cash and cash equivalents at year-end and secured additional financing through a $1.15 billion convertible debenture offering.

Key Highlights

  • 1Total net revenue decreased by 10.3% to $8.4 billion in FY2001, primarily due to a slowdown in the telecommunications, semiconductor, and electronics industries.
  • 2Agilent reported a net loss from continuing operations of $406 million for FY2001, compared to net earnings of $672 million in FY2000.
  • 3The company completed the sale of its healthcare solutions business for $1.7 billion, generating a significant after-tax gain of $646 million from discontinued operations.
  • 4Significant restructuring and cost-saving measures were implemented, including workforce reductions of approximately 8,000 employees and associated charges.
  • 5Cash and cash equivalents stood at $1.17 billion at October 31, 2001, and the company raised $1.15 billion through a senior convertible debenture offering to support working capital and potential acquisitions.
  • 6The Test and Measurement segment saw revenue decline 11.1%, and the Semiconductor Products segment experienced a 16.4% revenue decrease.
  • 7The Chemical Analysis segment showed resilience with a 7.1% increase in net revenue, driven by growth in the life sciences market.

Frequently Asked Questions

Agilent experienced a challenging fiscal year 2001, with total net revenue decreasing by 10.3% to $8.4 billion. The company reported a net loss from continuing operations of $406 million, a significant reversal from the profitability seen in the previous year. This was largely driven by a severe economic downturn impacting key industries.

The most significant event was the sale of Agilent's healthcare solutions business to Koninklijke Philips Electronics, N.V. for $1.7 billion, which resulted in a substantial after-tax gain of $646 million from discontinued operations. Additionally, Agilent initiated significant restructuring and cost-reduction measures, including workforce reductions totaling approximately 8,000 employees, to navigate the challenging economic climate.

The Test and Measurement segment's revenue declined by 11.1% and the Semiconductor Products segment saw a 16.4% decrease in revenue, both heavily impacted by the industry slowdown. The Chemical Analysis segment, however, demonstrated resilience, with revenue increasing by 7.1%, driven by growth in the life sciences market.

Agilent maintained a strong liquidity position, with cash and cash equivalents totaling $1.17 billion at October 31, 2001. The company also secured additional financing through a $1.15 billion offering of 3% senior convertible debentures due 2021, intended for working capital, general corporate purposes, and potential acquisitions and restructuring costs.