01—Abstract
Summary
Summary of the 10-K filed December 19, 2008. Cited figures are marked; the original filing is the authoritative source.
Agilent Technologies, Inc. reported net revenue of $5.77 billiona for the fiscal year ended October 31, 2008, marking a 7% increase from the prior year, driven by strong performance in its bio-analytical measurement business, which saw a 14% revenue increase.
The electronic measurement business experienced a more modest 2% revenue growth, impacted by a slight decline in the general purpose test market due to weakness in computer and semiconductor sectors. Despite a challenging macroeconomic environment and financial market disruptions, the company demonstrated resilience, with net income from continuing operations at $693 millionb, up from $638 million in the previous year. Agilent maintained a solid financial position with $1.4 billion in cash and cash equivalents at year-end.
The company continued its strategic investments in R&D, totaling $704 millionc, to support innovation. Management highlighted ongoing efforts to manage costs and optimize operations, including headcount reductions and a focus on key growth markets like food safety and wireless technologies.
02—Key points
Key Highlights
- Net revenue increased by 7% to $5.77 billion in fiscal year 2008.
- Bio-analytical measurement business revenue grew by 14%, outperforming the electronic measurement business (2% growth).
- Net income from continuing operations increased to $693 million, up from $638 million in fiscal year 2007.
- The company maintained a healthy cash position with $1.4 billion in cash and cash equivalents as of October 31, 2008.
- Research and development expenditures remained significant at $704 million, reflecting a commitment to innovation.
- Agilent experienced some revenue weakness in the general purpose test market due to broader economic pressures on the computer and semiconductor industries.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2008, Agilent Technologies, Inc. kept $0.12.
- Revenue$5.77B100.0%
- Cost of revenue−$2.58B44.6%
- Gross profit$3.20B55.4%
- Operating costs−$2.40B41.6%
- Operating income$795.0M13.8%
- Interest, other & tax−$102.0M1.8%
- Net income$693.0M12.0%
Where FY2008 revenue went
$5.77B- Cost of revenue: $2.58B, 45% of revenue
- SG&A: $1.70B, 29% of revenue
- R&D: $704.0M, 12% of revenue
- Net income: $693.0M, 12% of revenue
- Interest, other & tax: $102.0M, 1.8% of revenue
Kept 12% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2008filed December 19, 2008Financial Statements
FY2008 against FY2007
| Line item | FY2008FY2007 | Change |
|---|---|---|
| Revenue | $5.77B$5.42B | +6.5% |
| Cost of Revenue | $2.58B$2.45B | +5.2% |
| Gross Profit | $3.20B$2.97B | +7.6% |
| R&D Expenses | $704.00M$685.00M | +2.8% |
| SG&A Expenses | $1.70B$1.70B | −0.2% |
| Operating Expenses | $4.98B— | — |
| Operating Income | $795.00M$584.00M | +36.1% |
| Interest Expense | $123.00M— | — |
| Net Income | $693.00M$638.00M | +8.6% |
| EPS (Basic) | $1.91$1.62 | +17.9% |
| EPS (Diluted) | $1.87$1.57 | +19.1% |
| Shares Outstanding (Basic) | 363.00M394 | +92131879.7% |
| Shares Outstanding (Diluted) | 371.00M406 | +91379210.3% |
05—Questions
Frequently Asked Questions
What were the main drivers of Agilent's revenue growth in fiscal year 2008?
Agilent's overall revenue growth was driven primarily by its bio-analytical measurement business, which saw a 14% increase. This was supported by strong demand in life sciences and chemical analysis markets, particularly in petrochemical and food safety. The electronic measurement business experienced modest growth, mainly from the communications test market, but faced headwinds in the general purpose test market due to broader economic conditions affecting the computer and semiconductor sectors.
How did the company manage its financial health amidst challenging economic conditions?
Despite global economic uncertainty, Agilent maintained a solid financial position. Net income from continuing operations increased year-over-year, and the company ended the fiscal year with $1.4 billion in cash and cash equivalents. Agilent also focused on cost management and operational efficiencies, including a recent targeted restructuring program to address the impact of the economic downturn.
What is Agilent's strategy for future growth and innovation?
Agilent continues to invest in research and development, spending $704 million in fiscal year 2008, to drive innovation in its core bio-analytical and electronic measurement solutions. The company is focusing on key growth areas such as advanced pharmaceuticals, food safety, and emerging wireless technologies, while also adapting to market shifts and economic challenges through strategic restructuring and operational optimization.
What is the outlook for Agilent's different business segments?
The company anticipates continued weakness in its electronic measurement business, particularly in the general purpose test market, due to the deteriorating global economic environment. Growth opportunities are expected in specific segments within the communications test market, such as wireless 3G and next-generation cellular technologies. The bio-analytical measurement business is expected to see modest growth, driven by investments in food safety and environmental testing globally, and expansion in life sciences through recent acquisitions and R&D in proteomics and metabolomics.
06—Continue