10-KPeriod: FY2013

AGILENT TECHNOLOGIES, INC. Annual Report, Year Ended Oct 31, 2013

Filed December 19, 2013For Securities:A

Summary

Agilent Technologies, Inc. reported a decrease in net revenue for fiscal year 2013 to $6.78 billion from $6.86 billion in fiscal year 2012. This decline was primarily driven by a significant 13% drop in revenue from the Electronic Measurement segment, impacted by the loss of a key customer and soft demand in general purpose markets. The Life Sciences and Diagnostics segment showed resilience with 16% revenue growth, largely attributed to the acquisition of Dako, while the Chemical Analysis segment saw a modest 2% increase. A major strategic development announced in September 2013 was the plan to separate into two publicly traded companies: one retaining the Agilent name for life sciences, diagnostics, and chemical analysis businesses, and the other comprising the electronic measurement business, expected to be completed by early November 2014. The company also reported a decrease in net income to $724 million in fiscal 2013 from $1.15 billion in fiscal 2012. This was influenced by higher operating expenses, including those related to the Dako acquisition and restructuring costs. Despite these challenges, Agilent maintained a strong cash position, with cash and cash equivalents at $2.68 billion as of October 31, 2013. The company continues to focus on innovation and operational efficiency, with R&D expenditures remaining significant.

Financial Statements
Beta
Revenue$3.89B
Cost of Revenue$1.99B
Gross Profit$1.91B
R&D Expenses$337.00M
SG&A Expenses$1.18B
Operating Expenses$3.51B
Operating Income$386.00M
Interest Expense$107.00M
Net Income$734.00M
EPS (Basic)$2.15
EPS (Diluted)$2.13
Shares Outstanding (Basic)341.00M
Shares Outstanding (Diluted)345.00M

Key Highlights

  • 1Agilent announced plans to spin off its Electronic Measurement (EM) business into a separate publicly traded company, expected to be completed in early November 2014.
  • 2Total net revenue for fiscal year 2013 was $6.78 billion, a 1% decrease compared to fiscal year 2012 ($6.86 billion).
  • 3The Life Sciences and Diagnostics segment revenue grew 16% to $2.30 billion, significantly boosted by the acquisition of Dako.
  • 4The Electronic Measurement segment experienced a 13% decline in revenue to $2.89 billion, impacted by weak demand and the loss of a major customer.
  • 5Net income decreased to $724 million in fiscal 2013 from $1.15 billion in fiscal 2012.
  • 6The company ended fiscal year 2013 with $2.68 billion in cash and cash equivalents.
  • 7Agilent incurred $100 million in pre-separation expenses for fiscal year 2014 related to the planned spin-off.

Frequently Asked Questions

Agilent announced plans to separate into two independent publicly traded companies. The Life Sciences, Diagnostics, and Chemical Analysis businesses will retain the Agilent name, while the Electronic Measurement business will form a new, separate entity. This separation is expected to be completed in early November 2014 and is structured as a tax-free spin-off.

The acquisition of Dako in June 2012 significantly contributed to the growth of the Life Sciences and Diagnostics segment, accounting for approximately 13-17 percentage points of the revenue growth in fiscal 2013. This acquisition aimed to strengthen Agilent's position in diagnostics, particularly in areas like anatomic pathology and molecular diagnostics.

Net revenue slightly decreased by 1% to $6.78 billion, driven by a significant decline in the Electronic Measurement segment which was partially offset by strong growth in the Life Sciences and Diagnostics segment. Net income also decreased by approximately 37% to $724 million, influenced by increased operating expenses and restructuring costs.

Agilent maintained a strong liquidity position with $2.68 billion in cash and cash equivalents as of October 31, 2013. The company had $2.7 billion in long-term debt, including various senior notes issued throughout previous years. Agilent also has access to a $400 million unsecured credit facility.