Summary
Agilent Technologies, Inc. reported flat net revenue of $4.038 billion for the fiscal year ended October 31, 2015, compared to the prior year. This performance was significantly impacted by an unfavorable foreign currency movement of approximately 6 percentage points. The company experienced a decrease in revenue for its Life Sciences and Applied Markets segment due to softness in chemical and energy markets and a decline in the life sciences research market, partially offset by growth in the pharmaceutical and biotechnology sectors. The Diagnostics and Genomics segment revenue remained flat, despite strong demand in nucleic acid solutions and genomics, due to an unfavorable currency impact. Agilent CrossLab, its consumables and services segment, saw a 2% revenue increase, driven by aftermarket services and consumables, though also affected by currency headwinds. Despite flat revenue, Agilent reported a significant increase in net income from continuing operations to $438 million in 2015, up from $232 million in 2014. This improvement was driven by higher gross margins, resulting from factors like favorable product mix and operational efficiencies, and reduced R&D and SG&A expenses (excluding certain items). The company also completed the separation of its electronic measurement business, Keysight Technologies, Inc., on November 1, 2014. Agilent continued its capital return program by repurchasing shares and declaring dividends. However, the company disclosed a material weakness in internal controls over financial reporting related to the accounting for income taxes.
Financial Highlights
57 data points| Revenue | $4.04B |
| Cost of Revenue | $2.00B |
| Gross Profit | $2.04B |
| R&D Expenses | $330.00M |
| SG&A Expenses | $1.19B |
| Operating Expenses | $3.52B |
| Operating Income | $522.00M |
| Interest Expense | $66.00M |
| Net Income | $401.00M |
| EPS (Basic) | $1.20 |
| EPS (Diluted) | $1.20 |
| Shares Outstanding (Basic) | 333.00M |
| Shares Outstanding (Diluted) | 335.00M |
Key Highlights
- 1Net revenue remained flat at $4.038 billion for fiscal year 2015, impacted by a 6% unfavorable foreign currency movement.
- 2Net income from continuing operations significantly increased to $438 million in fiscal 2015, up from $232 million in fiscal 2014.
- 3The Life Sciences and Applied Markets segment experienced a 2% revenue decline, influenced by weaker chemical/energy markets and reduced life sciences research spending, though the pharmaceutical/biotech segments showed growth.
- 4The Diagnostics and Genomics segment reported flat revenue, with strong performance in nucleic acid solutions and genomics offset by currency impacts.
- 5Agilent CrossLab segment revenue grew 2%, driven by services and consumables, despite currency headwinds.
- 6Agilent completed the separation of its electronic measurement business (Keysight Technologies, Inc.) on November 1, 2014.
- 7The company reported a material weakness in internal controls over financial reporting related to accounting for income taxes.