10-QPeriod: Q1 FY2009

AGILENT TECHNOLOGIES, INC. Quarterly Report for Q1 Ended Jan 31, 2009

Filed March 12, 2009For Securities:A

Summary

Agilent Technologies, Inc. reported net revenue of $1.166 billion for the three months ended January 31, 2009, a decrease of 16% compared to the same period last year. This decline is attributed to the adverse effects of the worldwide economic downturn across all business segments, with notable weakness in electronic measurement and semiconductor/board test markets, and a slowing in demand for bio-analytical measurement products. Net income also decreased to $64 million ($0.18 per diluted share) from $120 million ($0.31 per diluted share) in the prior year quarter. The company is implementing restructuring plans to reduce operating expenses and is managing its cost structure in response to the challenging economic environment. Despite the revenue decline, the company generated $17 million in cash from operations and is focused on strategic opportunities and cost management.

Financial Highlights

28 data points
Beta

Revenue

$1.17B

50.5% Gross Margin

Net Income

$64.00M

5.5% Net Margin

EPS (Diluted)

$0.18

Cash & Equivalents

$1.36B

Free Cash Flow

-$17.00M

Financial Statements
Beta
Revenue$1.17B
Cost of Revenue$577.00M
Gross Profit$589.00M
R&D Expenses$169.00M
SG&A Expenses$396.00M
Operating Income$24.00M
Net Income$64.00M
EPS (Basic)$0.18
EPS (Diluted)$0.18
Shares Outstanding (Basic)351
Shares Outstanding (Diluted)352

Key Highlights

  • 1Net revenue decreased by 16% to $1.166 billion for the quarter ended January 31, 2009, reflecting a challenging global economic environment.
  • 2Net income significantly decreased to $64 million from $120 million in the prior year quarter, with diluted EPS at $0.18.
  • 3Orders also saw a substantial decline of 20% year-over-year, with the semiconductor and board test segment experiencing the sharpest drop (66%).
  • 4The company is actively engaged in restructuring efforts, including workforce reductions and exiting certain business lines, aiming for significant annual operating savings.
  • 5Agilent generated $17 million in cash from operating activities, an improvement from the $4 million in the prior year quarter.
  • 6The company maintained a strong liquidity position with $1.362 billion in cash and cash equivalents at the end of the quarter.
  • 7Restructuring and other special charges of $48 million were recognized in the quarter, with further charges expected due to ongoing economic adjustments.

Frequently Asked Questions

For the three months ended January 31, 2009, Agilent reported net revenue of $1.166 billion, a 16% decrease from the prior year quarter. Net income was $64 million, down from $120 million in the same period last year, resulting in diluted earnings per share of $0.18.

The decline is primarily attributed to the adverse effects of the worldwide economic downturn, which has impacted all of Agilent's business segments. This has led to reduced demand, particularly in the electronic measurement and semiconductor and board test markets, as well as a slowing in the bio-analytical measurement markets.

Agilent has announced and is implementing restructuring plans, including workforce reductions and exiting certain business lines, to reduce operating expenses and enhance efficiency. The company is also focusing on cost management and strategic opportunities to navigate the challenging economic environment.

The company generated $17 million in cash from operating activities during the quarter, an improvement from the prior year. Agilent maintained a strong liquidity position with $1.362 billion in cash and cash equivalents as of January 31, 2009.