01—Abstract
Summary
Summary of the 10-K filed December 20, 2010. Cited figures are marked; the original filing is the authoritative source.
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 billiona, 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 billionb, 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.
02—Key points
Key Highlights
- Revenue increased by 21% to $5.44 billion in fiscal year 2010, primarily due to the acquisition of Varian, Inc. and market recovery.
- Agilent completed the acquisition of Varian, Inc. for approximately $1.5 billion, significantly expanding its presence in life sciences and chemical analysis markets.
- The company divested its Network Solutions Division to JDS Uniphase Corporation for $160 million and its Hycor Biomedical subsidiary.
- Net income turned positive in fiscal year 2010, reaching $684 million, a significant improvement from a net loss of $31 million in fiscal year 2009.
- Operating cash flow improved substantially, reaching $718 million in fiscal year 2010, up from $408 million in fiscal year 2009.
- The company's backlog increased across all three business segments (Life Sciences, Chemical Analysis, and Electronic Measurement) by the end of fiscal year 2010.
- Agilent 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.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2010, Agilent Technologies, Inc. kept $0.13.
- Revenue$5.44B100.0%
- Cost of revenue−$2.51B46.2%
- Gross profit$2.93B53.8%
- Operating costs−$2.36B43.4%
- Operating income$566.0M10.4%
- Interest, other & tax$118.0M2.2%
- Net income$684.0M12.6%
Where FY2010 revenue went
$5.44B- Cost of revenue: $2.51B, 46% of revenue
- SG&A: $1.75B, 32% of revenue
- Operating income: $566.0M, 10% of revenue
- R&D: $612.0M, 11% of revenue
Kept 10% as operating income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2010filed December 20, 2010Financial Statements
FY2010 against FY2009
| Line item | FY2010FY2009 | Change |
|---|---|---|
| Revenue | $5.44B$4.48B | +21.5% |
| Cost of Revenue | $2.51B$2.19B | +14.8% |
| Gross Profit | $2.93B$2.29B | +27.8% |
| R&D Expenses | $612.00M$642.00M | −4.7% |
| SG&A Expenses | $1.75B$1.60B | +9.3% |
| Operating Expenses | $4.88B$4.43B | +10.0% |
| Operating Income | $566.00M$47.00M | +1104.3% |
| Interest Expense | $96.00M$88.00M | +9.1% |
| Net Income | $684.00M-$31.00M | +2306.5% |
| EPS (Basic) | $1.97$-0.09 | +2288.9% |
| EPS (Diluted) | $1.94$-0.09 | +2255.6% |
| Shares Outstanding (Basic) | 347.00M346.00M | +0.3% |
| Shares Outstanding (Diluted) | 353.00M346.00M | +2.0% |
05—Questions
Frequently Asked Questions
What were the main drivers of Agilent's revenue growth in fiscal year 2010?
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.
How did the Varian acquisition impact Agilent's financial performance and business structure?
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.
What was Agilent's financial position at the end of fiscal year 2010?
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.
Did Agilent undertake any significant divestitures during fiscal year 2010?
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.
06—Continue