01—Abstract
Summary
Summary of the 10-K filed December 21, 2007. Cited figures are marked; the original filing is the authoritative source.
Agilent Technologies, Inc. reported a solid fiscal year 2007, with total net revenue increasing by 9% to $5.42 billiona, driven by strong performance in its Bio-analytical Measurement segment which saw a 20% revenue increase.
The Electronic Measurement segment also grew, albeit at a slower pace of 3%. The company generated $969 millionb in operating cash flow, ending the year with $1.83 billion in cash and cash equivalents.
Key strategic initiatives in fiscal 2007 included the acquisition of Stratagene Corporation to bolster its life sciences offerings and the completion of a $2.0 billionc stock repurchase program. Looking ahead, Agilent aims to outpace market growth through increased market share, new product introductions, and strategic acquisitions.
02—Key points
Key Highlights
- Total net revenue grew 9% to $5.42 billion in fiscal 2007.
- Bio-analytical Measurement segment revenue increased 20% year-over-year, driven by strong demand in life sciences and chemical analysis markets.
- Electronic Measurement segment revenue increased 3%, supported by growth in general-purpose test markets, though the communications test market saw a slight decline.
- Operating cash flow was robust at $969 million for the year.
- The company completed a $2.0 billion stock repurchase program.
- Acquisition of Stratagene Corporation for $252 million to enhance life sciences capabilities.
- Agilent entered into a $300 million unsecured credit facility.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2007, Agilent Technologies, Inc. kept $0.12.
- Revenue$5.42B100.0%
- Cost of revenue−$2.45B45.2%
- Gross profit$2.97B54.8%
- Operating costs−$2.38B44.0%
- Operating income$584.0M10.8%
- Interest, other & tax$54.0M1.0%
- Net income$638.0M11.8%
Where FY2007 revenue went
$5.42B- Cost of revenue: $2.45B, 45% of revenue
- SG&A: $1.70B, 31% of revenue
- R&D: $685.0M, 13% of revenue
- Operating income: $584.0M, 11% of revenue
Kept 11% as operating income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2007filed December 21, 2007Financial Statements
| Revenue | $5.42B |
| Cost of Revenue | $2.45B |
| Gross Profit | $2.97B |
| R&D Expenses | $685.00M |
| SG&A Expenses | $1.70B |
| Operating Income | $584.00M |
| Net Income | $638.00M |
| EPS (Basic) | $1.62 |
| EPS (Diluted) | $1.57 |
| Shares Outstanding (Basic) | 394 |
| Shares Outstanding (Diluted) | 406 |
05—Questions
Frequently Asked Questions
What were the key drivers of Agilent's revenue growth in fiscal 2007?
Revenue growth in fiscal 2007 was primarily driven by the strong performance of the Bio-analytical Measurement segment, which experienced a 20% revenue increase. This growth was fueled by demand from biotechnology and pharmaceutical customers for LC and LC/MS platforms, as well as microarrays, and robust sales in petrochemical, food, and environmental testing solutions within the chemical analysis business.
How did the divestitures of the semiconductor businesses impact the company's financial performance?
Agilent completed the divestiture of its semiconductor products business in December 2005 and spun off its semiconductor test solutions business (Verigy) in 2006. The results of these businesses are presented as discontinued operations for all periods presented in the 10-K. These divestitures allowed Agilent to focus on its core bio-analytical and electronic measurement businesses.
What is Agilent's strategy for future growth?
Agilent's strategy focuses on growing revenue at a faster rate than its target markets. This will be achieved through increasing market share, expanding its served market size with new products and channels, and pursuing complementary acquisitions. The company aims for profitable growth by expanding leadership in its core and adjacent markets.
What was Agilent's approach to managing its capital and shareholder returns in fiscal 2007?
In fiscal 2007, Agilent demonstrated a commitment to shareholder returns by completing a $2.0 billion stock repurchase program. Additionally, the company entered into a $300 million unsecured credit facility, providing financial flexibility. Agilent also issued $600 million in senior unsecured notes to manage its capital structure.
06—Continue