10-Q/APeriod: Q1 FY2002

AGILENT TECHNOLOGIES, INC. Quarterly Report (Amendment) for Q1 Ended Jan 31, 2002

Filed May 24, 2002For Securities:A

Summary

Agilent Technologies, Inc. reported a significant decline in net revenue for the three months ended January 31, 2002, down to $1.426 billion from $2.565 billion in the prior year's comparable period. This revenue drop, particularly pronounced in the Products segment, led to a substantial net loss of $315 million ($0.68 per share) compared to a net earning of $100 million ($0.21 per share) in the prior year. The company is actively undergoing restructuring, announcing further workforce reductions and incurring significant restructuring and asset impairment charges. Despite the challenging financial performance, Agilent strengthened its balance sheet by issuing $1.15 billion in senior convertible debentures, increasing its cash and cash equivalents substantially.

Key Highlights

  • 1Net revenue decreased by approximately 44% to $1.426 billion for the three months ended January 31, 2002, compared to $2.565 billion in the prior year.
  • 2The company reported a net loss of $315 million ($0.68 per diluted share) for the quarter, a sharp contrast to a net earning of $100 million ($0.21 per diluted share) in the prior year.
  • 3Operating loss widened significantly to $442 million from an operating profit of $294 million year-over-year.
  • 4Agilent announced further workforce reductions of approximately 4,000 employees, in addition to previous cuts, incurring $105 million in restructuring and asset impairment charges during the quarter.
  • 5The company issued $1.15 billion in 3% senior convertible debentures, substantially increasing its cash position to $2.188 billion from $1.170 billion.
  • 6Discontinued operations, specifically the healthcare solutions business sold to Philips, contributed a gain of $2 million in the current quarter.

Frequently Asked Questions

The significant drop in revenue was primarily due to a challenging economic downturn impacting the markets Agilent serves, leading to a substantial decrease in product sales. This revenue decline, coupled with ongoing restructuring costs, resulted in a widened operating loss and a net loss for the quarter.

Agilent's cash and cash equivalents increased significantly to $2.188 billion as of January 31, 2002, up from $1.170 billion at October 31, 2001. This was largely driven by the issuance of $1.15 billion in senior convertible debentures. These debentures provide immediate liquidity and financial flexibility, though they also represent future conversion obligations.

Agilent is undertaking significant restructuring initiatives, including substantial workforce reductions (approximately 8,000 jobs eliminated or planned) and associated restructuring and asset impairment charges. The company is also adjusting its accounting policies, such as for depreciation, to align with industry practices.

In the first quarter of 2002, the Life Sciences and Chemical business segment reported revenue of $822 million and an operating loss of $229 million. The Test and Measurement segment had revenue of $327 million and an operating loss of $50 million. The Semiconductor Products segment saw revenue of $277 million with an operating gain of $38 million. The company notes that segment results are before certain corporate expenses and one-time items.