10-QPeriod: Q1 FY2012

AGILENT TECHNOLOGIES, INC. Quarterly Report for Q1 Ended Jan 31, 2012

Filed March 5, 2012For Securities:A

Summary

Agilent Technologies, Inc. reported strong revenue growth for the three months ended January 31, 2012, with total net revenue increasing by 8% year-over-year to $1.635 billion. This growth was driven primarily by robust performance in the Life Sciences and Chemical Analysis segments. Net income also saw a significant increase, rising to $230 million from $193 million in the prior year period, reflecting improved operational efficiency and revenue growth. The company generated $150 million in cash from operations, demonstrating solid cash flow generation. Key strategic developments include the declaration of Agilent's first quarterly dividend of $0.10 per share, signaling a commitment to returning value to shareholders. The company continues to focus on integrating the Varian acquisition, expecting to achieve $100 million in net cost savings, with a significant portion already realized. Looking ahead, Agilent remains focused on delivering market-leading products, optimizing operations, and leveraging opportunities in emerging markets and through strategic acquisitions to drive future growth.

Financial Highlights

57 data points
Beta

Revenue

$1.64B

53.5% Gross Margin

Net Income

$230.00M

14.1% Net Margin

EPS (Diluted)

$0.65

Total Assets

$9.10B

Cash & Equivalents

$3.66B

Free Cash Flow

$104.00M

Financial Statements
Beta
Revenue$1.64B
Cost of Revenue$761.00M
Gross Profit$874.00M
R&D Expenses$162.00M
SG&A Expenses$441.00M
Operating Expenses$1.36B
Operating Income$271.00M
Interest Expense$26.00M
Net Income$230.00M
EPS (Basic)$0.66
EPS (Diluted)$0.65
Shares Outstanding (Basic)348.00M
Shares Outstanding (Diluted)352.00M

Key Highlights

  • 1Total net revenue increased 8% to $1.635 billion for the three months ended January 31, 2012.
  • 2Net income rose to $230 million ($0.65 diluted EPS) from $193 million ($0.54 diluted EPS) in the prior year period.
  • 3Operating margin improved to 16.6% from 13.9% year-over-year.
  • 4Net cash provided by operating activities was $150 million.
  • 5Agilent declared its first quarterly cash dividend of $0.10 per share.
  • 6Goodwill increased by $39 million primarily due to acquisitions.
  • 7The company reported strong revenue growth in Life Sciences (14%) and Chemical Analysis (14%) segments, while Electronic Measurement saw a more modest 1% increase.

Frequently Asked Questions

Agilent's revenue growth was primarily driven by strong performance in its Life Sciences and Chemical Analysis segments. Specifically, revenue from life sciences products in pharmaceutical markets increased strongly, and demand within academic and government markets also grew. For the Chemical Analysis segment, revenue from all end-markets grew, with particular strength in spectroscopy, consumables, and services.

Profitability improved significantly. Net income increased to $230 million from $193 million in the same period last year. This improvement was supported by an increase in operating margin to 16.6% from 13.9%, attributed to higher revenue and a reduction in variable and incentive pay.

The declaration of Agilent's first quarterly cash dividend of $0.10 per share on January 17, 2012, signifies a commitment by the company to return capital to its shareholders. This marks a new phase for the company, indicating financial stability and confidence in future performance.

Agilent is actively integrating the Varian acquisition, focusing on revenue and cost synergies. The company expects to achieve $100 million in net cost savings, with approximately one-third already realized by the end of fiscal 2011. Further savings are expected within cost of products and services by 2014. The integration is also aimed at increasing technology sharing between the businesses.