01—Abstract
Summary
Summary of the 10-Q filed September 5, 2012. Cited figures are marked; the original filing is the authoritative source.
Agilent Technologies, Inc. reported its financial results for the nine months ended July 31, 2012.
The company experienced a modest increase in total net revenue, up 4% year-over-year to $5,091 milliona. This growth was primarily driven by the strategic acquisition of Dako A/S, which significantly boosted the Diagnostics and Genomics segment. While overall revenue saw growth, the company noted a challenging economic environment impacting some segments like Chemical Analysis and Electronic Measurement, which experienced slight revenue declines or flat performance.
Net income for the nine-month period was $728 millionb, slightly up from $723 million in the prior year. The company generated $743 million in cash from operating activities, demonstrating solid operational cash flow.
Agilent continued its focus on innovation and market leadership while navigating economic uncertainties. The company also initiated a quarterly cash dividend, returning value to shareholders.
02—Key points
Key Highlights
- Total net revenue increased by 4% to $5.09 billion for the nine months ended July 31, 2012, compared to the same period last year.
- Net income for the nine months ended July 31, 2012, was $728 million, a slight increase from $723 million in the prior year.
- The acquisition of Dako A/S on June 21, 2012, significantly contributed to revenue growth, particularly in the Diagnostics and Genomics segment.
- Cash flow from operations remained strong, providing $743 million for the nine months ended July 31, 2012.
- Agilent initiated quarterly cash dividends, with $0.20 per share declared and paid for the nine-month period.
- The Electronic Measurement and Chemical Analysis segments faced some headwinds, with mixed or declining revenue performance in certain sub-segments due to economic conditions.
- Goodwill increased substantially, primarily due to the Dako acquisition, reflecting significant investment in growth areas.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2012, Agilent Technologies, Inc. kept $0.14.
- Revenue$1.72B100.0%
- Cost of revenue−$833.0M48.3%
- Gross profit$890.0M51.7%
- Operating costs−$620.0M36.0%
- Operating income$270.0M15.7%
- Interest, other & tax−$27.0M1.6%
- Net income$243.0M14.1%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2012filed September 5, 2012Financial Statements
Q3 FY2012 against Q3 FY2011
| Line item | Q3 FY2012Q3 FY2011 | Change |
|---|---|---|
| Revenue | $1.72B$1.69B | +1.9% |
| Cost of Revenue | $833.00M$799.00M | +4.3% |
| Gross Profit | $890.00M$892.00M | −0.2% |
| R&D Expenses | $162.00M$162.00M | 0.0% |
| SG&A Expenses | $458.00M$449.00M | +2.0% |
| Operating Expenses | $1.45B$1.41B | +3.0% |
| Operating Income | $270.00M$281.00M | −3.9% |
| Interest Expense | $24.00M$20.00M | +20.0% |
| Net Income | $243.00M$330.00M | −26.4% |
| EPS (Basic) | $0.70$0.95 | −26.3% |
| EPS (Diluted) | $0.69$0.92 | −25.0% |
| Shares Outstanding (Basic) | 348.00M348.00M | 0.0% |
| Shares Outstanding (Diluted) | 353.00M357.00M | −1.1% |
05—Questions
Frequently Asked Questions
What was the primary driver of revenue growth in the nine months ended July 31, 2012?
The primary driver of revenue growth was the acquisition of Dako A/S, which closed on June 21, 2012. This acquisition significantly boosted the Diagnostics and Genomics segment and contributed to the overall increase in total net revenue.
How did the economic environment impact Agilent's different business segments?
The company noted a challenging economic environment. While Life Sciences and Diagnostics and Genomics showed growth (partly due to Dako), the Chemical Analysis segment was flat, and the Electronic Measurement segment saw a slight revenue decrease for the nine-month period. Weakness in academic/government research, industrial markets, and aerospace/defense were cited as contributing factors.
What is the company's cash position and how is it being utilized?
Agilent maintained a strong liquidity position with $1,923 million in cash and cash equivalents as of July 31, 2012. The company generated $743 million from operations and funded the Dako acquisition using existing cash. Dividends were paid, and the company continued to manage its debt and capital structure.
Has Agilent started paying dividends to shareholders?
Yes, Agilent initiated quarterly cash dividends. For the nine months ended July 31, 2012, $0.20 per share was declared and paid, totaling $70 million.
06—Continue