Summary
Agilent Technologies, Inc. filed its 10-K for the fiscal year ended October 31, 2009, reporting a challenging year marked by a significant revenue decline of 22% to $4.48 billion, primarily due to the global economic downturn. This resulted in a net loss of $31 million, a reversal from the $693 million net income in the prior year. The company implemented substantial restructuring activities, including workforce reductions, aiming for annual savings of approximately $525 million. Despite the weak financial performance, Agilent continued its strategic initiatives, notably the planned $1.5 billion acquisition of Varian, Inc., which was approved by Varian shareholders and awaited regulatory approvals. The company's liquidity remained solid, with cash and cash equivalents increasing to $2.48 billion by year-end. Agilent operates across three main segments: Electronic Measurement, Bio-analytical Measurement, and Semiconductor and Board Test. All segments experienced revenue declines in fiscal year 2009. The Electronic Measurement segment saw a 30% revenue drop, Bio-analytical Measurement decreased by 6%, and Semiconductor and Board Test declined by a significant 54%. Management noted signs of market stabilization towards the end of the fiscal year but anticipated a gradual recovery. The company also announced changes to its reporting segments for fiscal year 2010, consolidating electronic measurement and semiconductor and board test into a single segment, and splitting the bio-analytical measurement segment into Life Sciences and Chemical Analysis.
Financial Highlights
57 data points| Revenue | $4.48B |
| Cost of Revenue | $2.19B |
| Gross Profit | $2.29B |
| R&D Expenses | $642.00M |
| SG&A Expenses | $1.60B |
| Operating Expenses | $4.43B |
| Operating Income | $47.00M |
| Interest Expense | $88.00M |
| Net Income | -$31.00M |
| EPS (Basic) | $-0.09 |
| EPS (Diluted) | $-0.09 |
| Shares Outstanding (Basic) | 346.00M |
| Shares Outstanding (Diluted) | 346.00M |
Key Highlights
- 1Revenue decreased by 22% to $4.48 billion in fiscal year 2009, impacted by the global economic downturn.
- 2Agilent reported a net loss of $31 million for fiscal year 2009, compared to a net income of $693 million in fiscal year 2008.
- 3The company initiated significant restructuring programs, leading to workforce reductions and expected annual savings of approximately $525 million.
- 4Agilent announced plans to acquire Varian, Inc. for an estimated $1.5 billion, a transaction subject to customary closing conditions and regulatory approvals.
- 5Cash and cash equivalents increased to $2.48 billion as of October 31, 2009, indicating a strong liquidity position.
- 6All three business segments—Electronic Measurement, Bio-analytical Measurement, and Semiconductor and Board Test—experienced revenue declines in fiscal year 2009.
- 7The company plans to reorganize its reporting segments starting in fiscal year 2010.