10-QPeriod: Q2 FY2014

AGILENT TECHNOLOGIES, INC. Quarterly Report for Q2 Ended Apr 30, 2014

Filed June 4, 2014For Securities:A

Summary

Agilent Technologies, Inc. reported flat total net revenue of $1.73 billion for the third quarter of fiscal year 2014, consistent with the prior year's period. Net income for the quarter was $139 million, 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 million in operating cash flow for the first six months of fiscal year 2014.

Financial Highlights

56 data points
Beta

Revenue

$988.00M

49.1% Gross Margin

Net Income

$139.00M

14.1% Net Margin

EPS (Diluted)

$0.41

Total Assets

$11.03B

Cash & Equivalents

$2.95B

Free Cash Flow

$272.00M

Financial Statements
Beta
Revenue$988.00M
Cost of Revenue$503.00M
Gross Profit$485.00M
R&D Expenses$87.00M
SG&A Expenses$304.00M
Operating Expenses$894.00M
Operating Income$94.00M
Interest Expense$30.00M
Net Income$139.00M
EPS (Basic)$0.42
EPS (Diluted)$0.41
Shares Outstanding (Basic)333.00M
Shares Outstanding (Diluted)337.00M

Key Highlights

  • 1Total 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.
  • 2Net income decreased to $139 million from $166 million in the same quarter last year.
  • 3The company is actively preparing for the separation of its electronic measurement business into a new entity, Keysight Technologies, expected in early November 2014.
  • 4Life Sciences and Diagnostics revenue grew 1% and Chemical Analysis revenue grew 3% year-over-year for the quarter, while Electronic Measurement revenue declined 2%.
  • 5Operating cash flow for the six months ended April 30, 2014 was $519 million, down from $560 million in the prior year's comparable period.
  • 6Agilent continued its share repurchase program, buying back 3 million shares for $150 million in the first six months of the fiscal year.
  • 7The company declared a quarterly cash dividend of $0.132 per share, payable in July 2014.

Frequently Asked Questions

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.

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.

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.

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.