10-QPeriod: Q1 FY2010

AGILENT TECHNOLOGIES, INC. Quarterly Report for Q1 Ended Jan 31, 2010

Filed March 10, 2010For Securities:A

Summary

Agilent Technologies, Inc. reported positive revenue and net income growth for the quarter ended January 31, 2010, signaling a potential recovery from the economic downturn. Total net revenue increased by 4% year-over-year to $1,213 million, driven by strong performance in the Life Sciences and Chemical Analysis segments. Net income rose to $79 million from $64 million in the prior year period. The company is actively managing its portfolio through strategic initiatives, including the pending acquisition of Varian, Inc. for approximately $1.5 billion, which is progressing through regulatory approvals. Agilent also announced the sale of its Network Solutions Division for $165 million. These strategic moves, coupled with ongoing restructuring efforts aimed at cost reduction, position Agilent for future growth and operational efficiency.

Financial Highlights

55 data points
Beta

Revenue

$1.21B

54.4% Gross Margin

Net Income

$79.00M

6.5% Net Margin

EPS (Diluted)

$0.22

Total Assets

$7.57B

Cash & Equivalents

$2.48B

Free Cash Flow

$5.00M

Financial Statements
Beta
Revenue$1.21B
Cost of Revenue$553.00M
Gross Profit$660.00M
R&D Expenses$149.00M
SG&A Expenses$417.00M
Operating Expenses$1.12B
Operating Income$94.00M
Interest Expense-$23.00M
Net Income$79.00M
EPS (Basic)$0.23
EPS (Diluted)$0.22
Shares Outstanding (Basic)348
Shares Outstanding (Diluted)354

Key Highlights

  • 1Total net revenue increased by 4% to $1,213 million for the quarter ended January 31, 2010, compared to the prior year period.
  • 2Net income grew to $79 million ($0.22 per diluted share) from $64 million ($0.18 per diluted share) in the comparable prior year period.
  • 3Orders increased by 9% year-over-year, indicating improving market conditions across key segments.
  • 4Life Sciences and Chemical Analysis segments showed robust revenue growth of 10% and 13% respectively, with positive contributions from foreign currency movements.
  • 5The company is proceeding with the proposed $1.5 billion acquisition of Varian, Inc., having received conditional antitrust clearance from the European Commission.
  • 6Agilent continues to implement restructuring programs aimed at reducing operating expenses and improving efficiency, with remaining actions expected by Q2 2010.
  • 7The company reported $30 million in cash from operations, an improvement from $17 million in the prior year quarter.

Frequently Asked Questions

Agilent Technologies reported a 4% increase in total net revenue to $1,213 million and a 23% increase in net income to $79 million for the quarter ended January 31, 2010, compared to the same period in the prior year. Orders also saw a 9% increase, indicating signs of market recovery.

The company is actively pursuing the acquisition of Varian, Inc., which is subject to regulatory approvals. Additionally, Agilent has agreed to sell its Network Solutions Division and is continuing with its restructuring programs to reduce operating expenses and enhance efficiency.

The acquisition of Varian, Inc. for an estimated $1.5 billion is progressing. The European Commission has granted conditional antitrust clearance, and Agilent has committed to divest certain businesses as part of this clearance. Clearance from the U.S. Federal Trade Commission is still pending.

Agilent's management observes signs of recovery in key markets, supported by the increase in orders and revenue. The company expects this recovery trend to continue, particularly in the Life Sciences and Chemical Analysis segments.