10-QPeriod: Q3 FY2012

AGILENT TECHNOLOGIES, INC. Quarterly Report for Q3 Ended Jul 31, 2012

Filed September 5, 2012For Securities:A

Summary

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 million. 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 million, 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.

Financial Highlights

58 data points
Beta

Revenue

$1.72B

51.7% Gross Margin

Net Income

$243.00M

14.1% Net Margin

EPS (Diluted)

$0.69

Total Assets

$9.76B

Cash & Equivalents

$1.92B

Free Cash Flow

$191.00M

Financial Statements
Beta
Revenue$1.72B
Cost of Revenue$833.00M
Gross Profit$890.00M
R&D Expenses$162.00M
SG&A Expenses$458.00M
Operating Expenses$1.45B
Operating Income$270.00M
Interest Expense$24.00M
Net Income$243.00M
EPS (Basic)$0.70
EPS (Diluted)$0.69
Shares Outstanding (Basic)348.00M
Shares Outstanding (Diluted)353.00M

Key Highlights

  • 1Total net revenue increased by 4% to $5.09 billion for the nine months ended July 31, 2012, compared to the same period last year.
  • 2Net income for the nine months ended July 31, 2012, was $728 million, a slight increase from $723 million in the prior year.
  • 3The acquisition of Dako A/S on June 21, 2012, significantly contributed to revenue growth, particularly in the Diagnostics and Genomics segment.
  • 4Cash flow from operations remained strong, providing $743 million for the nine months ended July 31, 2012.
  • 5Agilent initiated quarterly cash dividends, with $0.20 per share declared and paid for the nine-month period.
  • 6The Electronic Measurement and Chemical Analysis segments faced some headwinds, with mixed or declining revenue performance in certain sub-segments due to economic conditions.
  • 7Goodwill increased substantially, primarily due to the Dako acquisition, reflecting significant investment in growth areas.

Frequently Asked Questions

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.

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.

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.

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.