10-KPeriod: FY2008

AGILENT TECHNOLOGIES, INC. Annual Report, Year Ended Oct 31, 2008

Filed December 19, 2008For Securities:A

Summary

Agilent Technologies, Inc. reported net revenue of $5.77 billion 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 million, 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 million, 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.

Financial Highlights

54 data points
Beta

Revenue

$5.77B

55.4% Gross Margin

Net Income

$693.00M

12.0% Net Margin

EPS (Diluted)

$1.87

Total Assets

$7.01B

Cash & Equivalents

$1.41B

Free Cash Flow

$602.00M

Financial Statements
Beta
Revenue$5.77B
Cost of Revenue$2.58B
Gross Profit$3.20B
R&D Expenses$704.00M
SG&A Expenses$1.70B
Operating Expenses$4.98B
Operating Income$795.00M
Interest Expense$123.00M
Net Income$693.00M
EPS (Basic)$1.91
EPS (Diluted)$1.87
Shares Outstanding (Basic)363.00M
Shares Outstanding (Diluted)371.00M

Key Highlights

  • 1Net revenue increased by 7% to $5.77 billion in fiscal year 2008.
  • 2Bio-analytical measurement business revenue grew by 14%, outperforming the electronic measurement business (2% growth).
  • 3Net income from continuing operations increased to $693 million, up from $638 million in fiscal year 2007.
  • 4The company maintained a healthy cash position with $1.4 billion in cash and cash equivalents as of October 31, 2008.
  • 5Research and development expenditures remained significant at $704 million, reflecting a commitment to innovation.
  • 6Agilent experienced some revenue weakness in the general purpose test market due to broader economic pressures on the computer and semiconductor industries.

Frequently Asked Questions

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.

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.

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.

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.