01—Abstract
Summary
Summary of the 10-K filed December 20, 2012. Cited figures are marked; the original filing is the authoritative source.
Agilent Technologies, Inc. (Agilent) has reported its fiscal year 2012 results, showcasing a company actively pursuing growth through strategic acquisitions and organic development.
The company has expanded its operational segments to four: Life Sciences, Chemical Analysis, Diagnostics and Genomics, and Electronic Measurement. A significant event during the year was the acquisition of Dako A/S for approximately $2.143 billiona, which is expected to bolster Agilent's presence in the diagnostics market, particularly in cancer diagnostics and molecular diagnostics. Financially, Agilent demonstrated revenue growth, driven largely by the Dako acquisition, with total net revenue reaching $6.858 billion.
Net income also saw an increase to $1.153 billionb. The company maintains a strong liquidity position with substantial cash and cash equivalents.
Despite the challenging global economic environment, Agilent continues to invest in research and development to foster innovation and maintain its competitive edge across its diverse business segments. The company is strategically positioned to leverage its broad portfolio and global infrastructure to drive future growth, with a stated focus on optimizing operations and introducing new technologies.
02—Key points
Key Highlights
- Acquisition of Dako A/S for approximately $2.143 billion significantly expanded the Diagnostics and Genomics segment.
- Total net revenue for fiscal year 2012 was $6.858 billion, a 4% increase over fiscal year 2011.
- Net income increased to $1.153 billion in fiscal year 2012 from $1.012 billion in fiscal year 2011.
- The company operates across four key segments: Life Sciences, Chemical Analysis, Diagnostics and Genomics, and Electronic Measurement.
- Agilent continues to invest heavily in R&D, with expenditures of $668 million in fiscal year 2012 to drive innovation.
- The company maintains a strong balance sheet with $2.351 billion in cash and cash equivalents as of October 31, 2012.
- Global operations are significant, with 68% of net revenue generated outside the U.S. in fiscal year 2012.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2012, Agilent Technologies, Inc. kept $0.17.
- Revenue$6.86B100.0%
- Cost of revenue−$3.25B47.4%
- Gross profit$3.60B52.6%
- Operating costs−$2.48B36.2%
- Operating income$1.12B16.3%
- Interest, other & tax$34.0M0.5%
- Net income$1.15B16.8%
Where FY2012 revenue went
$6.86B- Cost of revenue: $3.25B, 47% of revenue
- SG&A: $1.82B, 26% of revenue
- Operating income: $1.12B, 16% of revenue
- R&D: $668.0M, 9.7% of revenue
Kept 16% as operating income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2012filed December 20, 2012Financial Statements
FY2012 against FY2011
| Line item | FY2012FY2011 | Change |
|---|---|---|
| Revenue | $6.86B$6.62B | +3.7% |
| Cost of Revenue | $3.25B$3.09B | +5.4% |
| Gross Profit | $3.60B$3.53B | +2.1% |
| R&D Expenses | $668.00M$649.00M | +2.9% |
| SG&A Expenses | $1.82B$1.81B | +0.4% |
| Operating Expenses | $5.74B$5.54B | +3.5% |
| Operating Income | $1.12B$1.07B | +4.5% |
| Interest Expense | $101.00M$86.00M | +17.4% |
| Net Income | $1.15B$1.01B | +13.9% |
| EPS (Basic) | $3.31$2.92 | +13.4% |
| EPS (Diluted) | $3.27$2.85 | +14.7% |
| Shares Outstanding (Basic) | 348.00M347.00M | +0.3% |
| Shares Outstanding (Diluted) | 353.00M355.00M | −0.6% |
05—Questions
Frequently Asked Questions
What was the primary strategic driver for Agilent in fiscal year 2012?
The primary strategic driver was the significant acquisition of Dako A/S for approximately $2.143 billion, which was completed on June 21, 2012. This acquisition aimed to strengthen and expand Agilent's presence in the rapidly growing diagnostics market, particularly in areas like anatomic pathology and molecular diagnostics, with a focus on cancer diagnostics.
How did the Dako acquisition impact Agilent's financial performance?
The Dako acquisition contributed approximately 2 percentage points to Agilent's 4% revenue growth in fiscal year 2012. It also drove significant growth in the newly formed Diagnostics and Genomics segment, which saw a 44% increase in orders and a 45% increase in net revenue compared to the prior year, largely due to the inclusion of Dako's results.
What is Agilent's approach to research and development (R&D)?
Agilent demonstrates a strong commitment to R&D, investing $668 million in fiscal year 2012, which represents about 10% of its revenues. The company focuses its R&D efforts on developing new products and technologies across its four business segments to maintain its competitive position and drive future growth. This investment covers basic research, foundational technologies, and specific product development across electronics, software, life sciences, and photonics.
How does Agilent manage its global operations and revenue generation?
Agilent has a significant global presence, with 68% of its net revenue generated outside the United States in fiscal year 2012. The company sells its products through a multi-channel approach, including direct sales, distributors, and resellers. Its operations span numerous manufacturing and R&D facilities worldwide, with a strategy to leverage its global infrastructure and diversity to stabilize operations against adverse economic changes in any single country.
06—Continue