01—Abstract
Summary
Summary of the 10-Q filed June 4, 2014. Cited figures are marked; the original filing is the authoritative source.
Agilent Technologies, Inc. reported flat total net revenue of $1.73 billiona for the third quarter of fiscal year 2014, consistent with the prior year's period.
Net income for the quarter was $139 millionb, a decrease from $166 million in the same period last year. The company is actively managing its portfolio, including the planned separation of its electronic measurement business into Keysight Technologies, expected in early November 2014, and has initiated restructuring programs.
Despite stable overall revenue, performance varied across segments, with growth in Life Sciences and Diagnostics and Chemical Analysis offset by a decline in Electronic Measurement. The company generated $519 millionc in operating cash flow for the first six months of fiscal year 2014.
02—Key points
Key Highlights
- Total net revenue remained flat at $1.73 billion for the three months ended April 30, 2014, compared to $1.73 billion in the prior year.
- Net income decreased to $139 million from $166 million in the same quarter last year.
- The company is actively preparing for the separation of its electronic measurement business into a new entity, Keysight Technologies, expected in early November 2014.
- Life Sciences and Diagnostics revenue grew 1% and Chemical Analysis revenue grew 3% year-over-year for the quarter, while Electronic Measurement revenue declined 2%.
- Operating cash flow for the six months ended April 30, 2014 was $519 million, down from $560 million in the prior year's comparable period.
- Agilent continued its share repurchase program, buying back 3 million shares for $150 million in the first six months of the fiscal year.
- The company declared a quarterly cash dividend of $0.132 per share, payable in July 2014.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2014, Agilent Technologies, Inc. kept $0.14.
- Revenue$988.0M100.0%
- Cost of revenue−$503.0M50.9%
- Gross profit$485.0M49.1%
- Operating costs−$391.0M39.6%
- Operating income$94.0M9.5%
- Interest, other & tax$45.0M4.6%
- Net income$139.0M14.1%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2014filed June 4, 2014Financial Statements
Q2 FY2014 against Q2 FY2013
| Line item | Q2 FY2014Q2 FY2013 | Change |
|---|---|---|
| Revenue | $988.00M$1.73B | −43.0% |
| Cost of Revenue | $503.00M$841.00M | −40.2% |
| Gross Profit | $485.00M$891.00M | −45.6% |
| R&D Expenses | $87.00M$181.00M | −51.9% |
| SG&A Expenses | $304.00M$497.00M | −38.8% |
| Operating Expenses | $894.00M$1.52B | −41.1% |
| Operating Income | $94.00M$213.00M | −55.9% |
| Interest Expense | $30.00M$25.00M | +20.0% |
| Net Income | $139.00M$166.00M | −16.3% |
| EPS (Basic) | $0.42$0.48 | −12.5% |
| EPS (Diluted) | $0.41$0.48 | −14.6% |
| Shares Outstanding (Basic) | 333.00M345.00M | −3.5% |
| Shares Outstanding (Diluted) | 337.00M349.00M | −3.4% |
05—Questions
Frequently Asked Questions
What is the financial performance of Agilent Technologies for the quarter ending April 30, 2014?
For the quarter ended April 30, 2014, Agilent Technologies reported flat total net revenue of $1.73 billion, identical to the prior year's period. Net income decreased to $139 million from $166 million in the comparable period last year. Operating cash flow for the first six months of the fiscal year was $519 million.
What is the status of the planned separation of the electronic measurement business?
Agilent announced plans to separate its electronic measurement business into a new public company, Keysight Technologies, Inc. This separation is expected to be completed in early November 2014 through a tax-free pro rata distribution of Keysight shares to Agilent shareholders. The company has incurred pre-separation expenses and is actively working towards this strategic move.
How did the different business segments perform during the quarter?
Performance varied across segments. The Life Sciences and Diagnostics segment saw a 1% revenue increase, and the Chemical Analysis segment reported a 3% revenue increase. However, the Electronic Measurement segment experienced a 2% revenue decrease year-over-year for the quarter.
What is Agilent's approach to returning capital to shareholders?
Agilent continues to return capital to shareholders through its share repurchase program and cash dividends. In the first six months of fiscal year 2014, the company repurchased 3 million shares for $150 million. Additionally, Agilent declared a quarterly cash dividend of $0.132 per share, which was expected to be paid in July 2014.
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