10-KPeriod: FY2007

AGILENT TECHNOLOGIES, INC. Annual Report, Year Ended Oct 31, 2007

Filed December 21, 2007For Securities:A

Summary

Agilent Technologies, Inc. reported a solid fiscal year 2007, with total net revenue increasing by 9% to $5.42 billion, 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 million 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 billion stock repurchase program. Looking ahead, Agilent aims to outpace market growth through increased market share, new product introductions, and strategic acquisitions.

Financial Highlights

31 data points
Beta

Revenue

$5.42B

54.8% Gross Margin

Net Income

$638.00M

11.8% Net Margin

EPS (Diluted)

$1.57

Cash & Equivalents

$1.83B

Free Cash Flow

$815.00M

Financial Statements
Beta
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

Key Highlights

  • 1Total net revenue grew 9% to $5.42 billion in fiscal 2007.
  • 2Bio-analytical Measurement segment revenue increased 20% year-over-year, driven by strong demand in life sciences and chemical analysis markets.
  • 3Electronic Measurement segment revenue increased 3%, supported by growth in general-purpose test markets, though the communications test market saw a slight decline.
  • 4Operating cash flow was robust at $969 million for the year.
  • 5The company completed a $2.0 billion stock repurchase program.
  • 6Acquisition of Stratagene Corporation for $252 million to enhance life sciences capabilities.
  • 7Agilent entered into a $300 million unsecured credit facility.

Frequently Asked Questions

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.

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.

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.

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.