10-KPeriod: FY2010

AGILENT TECHNOLOGIES, INC. Annual Report, Year Ended Oct 31, 2010

Filed December 20, 2010For Securities:A

Summary

Agilent Technologies, Inc. reported strong revenue growth in fiscal year 2010, driven by the acquisition of Varian, Inc. and a recovery in its key markets following the economic downturn of 2009. The company's net revenue increased by 21% to $5.44 billion, with significant contributions from its Life Sciences and Chemical Analysis segments, bolstered by the Varian acquisition. Agilent also completed the divestiture of its Network Solutions Division and Hycor Biomedical, streamlining its business focus. The company ended the fiscal year with a healthy cash position of $2.65 billion, although it also carried approximately $2.19 billion in long-term debt, much of which was refinanced during the year with new senior notes. Despite the acquisition-related integration efforts and ongoing economic uncertainties, Agilent demonstrated improved profitability and operational efficiency, as reflected in a return to net income after a loss in the prior year.

Financial Highlights

59 data points
Beta

Revenue

$5.44B

53.8% Gross Margin

Net Income

$684.00M

12.6% Net Margin

EPS (Diluted)

$1.94

Total Assets

$9.70B

Cash & Equivalents

$2.65B

Free Cash Flow

$597.00M

Financial Statements
Beta
Revenue$5.44B
Cost of Revenue$2.51B
Gross Profit$2.93B
R&D Expenses$612.00M
SG&A Expenses$1.75B
Operating Expenses$4.88B
Operating Income$566.00M
Interest Expense$96.00M
Net Income$684.00M
EPS (Basic)$1.97
EPS (Diluted)$1.94
Shares Outstanding (Basic)347.00M
Shares Outstanding (Diluted)353.00M

Key Highlights

  • 1Revenue increased by 21% to $5.44 billion in fiscal year 2010, primarily due to the acquisition of Varian, Inc. and market recovery.
  • 2Agilent completed the acquisition of Varian, Inc. for approximately $1.5 billion, significantly expanding its presence in life sciences and chemical analysis markets.
  • 3The company divested its Network Solutions Division to JDS Uniphase Corporation for $160 million and its Hycor Biomedical subsidiary.
  • 4Net income turned positive in fiscal year 2010, reaching $684 million, a significant improvement from a net loss of $31 million in fiscal year 2009.
  • 5Operating cash flow improved substantially, reaching $718 million in fiscal year 2010, up from $408 million in fiscal year 2009.
  • 6The company's backlog increased across all three business segments (Life Sciences, Chemical Analysis, and Electronic Measurement) by the end of fiscal year 2010.
  • 7Agilent ended the fiscal year with $2.65 billion in cash and cash equivalents, while managing approximately $2.19 billion in long-term debt, much of which was refinanced.

Frequently Asked Questions

Agilent's revenue growth in fiscal year 2010 was primarily driven by the acquisition of Varian, Inc., which closed in May 2010, and a general recovery in its key markets, including life sciences, chemical analysis, and electronic measurement, following the economic downturn of the previous year. The company also saw strength in product sales and services across its segments.

The acquisition of Varian, Inc. for approximately $1.5 billion significantly expanded Agilent's product portfolio and market reach, particularly in spectroscopy, nuclear magnetic resonance, and vacuum technologies within its life sciences and chemical analysis businesses. The integration of Varian is expected to yield operational and cost synergies. Varian's results were included in Agilent's financial statements from the date of the merger, contributing to the overall revenue growth.

At the end of fiscal year 2010, Agilent Technologies had a strong financial position with $2.65 billion in cash and cash equivalents. The company also had approximately $2.19 billion in long-term debt. Operating cash flow improved significantly to $718 million, reflecting improved business performance.

Yes, Agilent divested its Network Solutions Division to JDS Uniphase Corporation for $160 million and its Hycor Biomedical subsidiary to Linden LLC. These divestitures were part of a strategy to streamline its business operations and focus on core areas.