10-QPeriod: Q1 FY2013

AGILENT TECHNOLOGIES, INC. Quarterly Report for Q1 Ended Jan 31, 2013

Filed March 6, 2013For Securities:A

Summary

Agilent Technologies, Inc. reported a net revenue of $1,680 million 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 million 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%, 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%. Agilent continues to navigate a slow-growth economic environment, with management focused on product innovation and operational optimization to achieve cost savings.

Financial Highlights

57 data points
Beta

Revenue

$1.68B

52.4% Gross Margin

Net Income

$179.00M

10.7% Net Margin

EPS (Diluted)

$0.51

Total Assets

$10.65B

Cash & Equivalents

$2.45B

Free Cash Flow

$186.00M

Financial Statements
Beta
Revenue$1.68B
Cost of Revenue$800.00M
Gross Profit$880.00M
R&D Expenses$179.00M
SG&A Expenses$484.00M
Operating Expenses$1.46B
Operating Income$217.00M
Interest Expense$25.00M
Net Income$179.00M
EPS (Basic)$0.52
EPS (Diluted)$0.51
Shares Outstanding (Basic)347.00M
Shares Outstanding (Diluted)352.00M

Key Highlights

  • 1Net revenue increased by 3% to $1,680 million, driven significantly by the Dako acquisition (6% contribution).
  • 2Net income decreased by 22% to $179 million, impacted by increased operating expenses related to the Dako acquisition.
  • 3Cash flow from operations improved significantly, reaching $245 million compared to $150 million in the prior year's quarter.
  • 4The Diagnostics and Genomics segment showed robust growth of 145%, primarily due to the Dako acquisition.
  • 5The Electronic Measurement segment experienced a revenue decline of 7%, indicating a challenging market in that area.
  • 6Agilent's Board of Directors approved a 20% increase in the quarterly dividend, signaling confidence in future performance and a commitment to shareholder returns.
  • 7The company repurchased $79 million of its stock during the quarter, alongside a new $500 million repurchase program authorized in January 2013.

Frequently Asked Questions

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.

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.

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.

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.