01—Abstract
Summary
Summary of the 10-Q filed March 6, 2013. Cited figures are marked; the original filing is the authoritative source.
Agilent Technologies, Inc. reported a net revenue of $1,680 milliona for the three months ended January 31, 2013, a 3% increase compared to the prior year.
This growth was significantly driven by the acquisition of Dako A/S, which contributed 6 percentage points to revenue growth. While overall revenue increased, net income decreased to $179 millionb from $230 million in the comparable prior period, impacted by increased operating expenses related to the Dako acquisition and other factors. The company generated $245 million in cash from operations, a notable improvement from $150 million in the prior year.
The company's segment performance showed mixed results. The Diagnostics and Genomics segment experienced substantial growth of 145%c, largely due to the Dako acquisition. Conversely, the Electronic Measurement segment saw a 7% revenue decrease, and Chemical Analysis revenue declined by 1%.
Life Sciences revenue grew by 2%d. Agilent continues to navigate a slow-growth economic environment, with management focused on product innovation and operational optimization to achieve cost savings.
02—Key points
Key Highlights
- Net revenue increased by 3% to $1,680 million, driven significantly by the Dako acquisition (6% contribution).
- Net income decreased by 22% to $179 million, impacted by increased operating expenses related to the Dako acquisition.
- Cash flow from operations improved significantly, reaching $245 million compared to $150 million in the prior year's quarter.
- The Diagnostics and Genomics segment showed robust growth of 145%, primarily due to the Dako acquisition.
- The Electronic Measurement segment experienced a revenue decline of 7%, indicating a challenging market in that area.
- Agilent's Board of Directors approved a 20% increase in the quarterly dividend, signaling confidence in future performance and a commitment to shareholder returns.
- The company repurchased $79 million of its stock during the quarter, alongside a new $500 million repurchase program authorized in January 2013.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2013, Agilent Technologies, Inc. kept $0.11.
- Revenue$1.68B100.0%
- Cost of revenue−$800.0M47.6%
- Gross profit$880.0M52.4%
- Operating costs−$663.0M39.5%
- Operating income$217.0M12.9%
- Interest, other & tax−$38.0M2.3%
- Net income$179.0M10.7%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2013filed March 6, 2013Financial Statements
Q1 FY2013 against Q1 FY2012
| Line item | Q1 FY2013Q1 FY2012 | Change |
|---|---|---|
| Revenue | $1.68B$1.64B | +2.8% |
| Cost of Revenue | $800.00M$761.00M | +5.1% |
| Gross Profit | $880.00M$874.00M | +0.7% |
| R&D Expenses | $179.00M$162.00M | +10.5% |
| SG&A Expenses | $484.00M$441.00M | +9.8% |
| Operating Expenses | $1.46B$1.36B | +7.3% |
| Operating Income | $217.00M$271.00M | −19.9% |
| Interest Expense | $25.00M$26.00M | −3.8% |
| Net Income | $179.00M$230.00M | −22.2% |
| EPS (Basic) | $0.52$0.66 | −21.2% |
| EPS (Diluted) | $0.51$0.65 | −21.5% |
| Shares Outstanding (Basic) | 347.00M348.00M | −0.3% |
| Shares Outstanding (Diluted) | 352.00M352.00M | 0.0% |
05—Questions
Frequently Asked Questions
What was the primary driver of Agilent's revenue growth in this quarter?
The primary driver of Agilent's revenue growth was the acquisition of Dako A/S, which contributed 6 percentage points to the overall 3% revenue increase. This acquisition significantly boosted the Diagnostics and Genomics segment.
Why did net income decrease despite revenue growth?
Net income decreased from $230 million to $179 million due to increased operating expenses. These increases were largely attributed to the Dako acquisition, including higher intangible amortization, and other operational costs, which outpaced the revenue growth in the period.
How did the company's cash flow from operations perform?
Cash flow from operating activities showed a significant improvement, generating $245 million in the quarter ended January 31, 2013, compared to $150 million in the same period last year. This indicates a stronger ability to generate cash from the core business operations.
What is the outlook for the company given the current economic environment?
Management anticipates continued uncertainty and a slow-growth environment, which may dampen demand. However, the company plans to focus on introducing innovative technologies, delivering market-leading products, and optimizing operations to achieve cost savings.
06—Continue