01—Abstract
Summary
Summary of the 10-Q filed June 5, 2015. Cited figures are marked; the original filing is the authoritative source.
Agilent Technologies, Inc. reported its fiscal second-quarter 2015 results, with total net revenue of $963 milliona, a slight decrease of 3% year-over-year, impacted by unfavorable foreign currency movements.
Net income was $83 millionb ($0.25 per diluted share). The company continues to navigate the post-Keysight separation landscape, with Keysight's historical results now reported as discontinued operations. Agilent has also realigned its business segments into Life Sciences and Applied Markets, Diagnostics and Genomics, and Agilent CrossLab.
While overall revenue saw a modest decline, the company highlighted efforts to drive organic growth through innovation and expanded services. Management expressed confidence in future growth opportunities, particularly in the Life Sciences and Applied Markets and Diagnostics and Genomics segments, driven by demand in pharmaceutical and biotechnology sectors. The company also announced a new $1.14 billionc share repurchase program, underscoring a commitment to shareholder returns.
02—Key points
Key Highlights
- Total net revenue for the quarter was $963 million, down 3% year-over-year.
- Net income was $83 million, or $0.25 per diluted share.
- The company completed the separation of Keysight Technologies, Inc., with Keysight's historical results reported as discontinued operations.
- Agilent reorganized its business into three segments: Life Sciences and Applied Markets, Diagnostics and Genomics, and Agilent CrossLab.
- Unfavorable foreign currency exchange rates had a significant negative impact on revenue.
- A new share repurchase program of up to $1.14 billion was authorized, demonstrating a commitment to returning capital to shareholders.
- The company expects continued growth opportunities driven by innovation and expansion in key market segments.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2015, Agilent Technologies, Inc. kept $0.09.
- Revenue$963.0M100.0%
- Cost of revenue−$483.0M50.2%
- Gross profit$480.0M49.8%
- Operating costs−$373.0M38.7%
- Operating income$107.0M11.1%
- Interest, other & tax−$20.0M2.1%
- Net income$87.0M9.0%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2015filed June 5, 2015Financial Statements
Q2 FY2015 against Q2 FY2014
| Line item | Q2 FY2015Q2 FY2014 | Change |
|---|---|---|
| Revenue | $963.00M$988.00M | −2.5% |
| Cost of Revenue | $483.00M$503.00M | −4.0% |
| Gross Profit | $480.00M$485.00M | −1.0% |
| R&D Expenses | $81.00M$87.00M | −6.9% |
| SG&A Expenses | $292.00M$304.00M | −3.9% |
| Operating Expenses | $856.00M$894.00M | −4.3% |
| Operating Income | $107.00M$94.00M | +13.8% |
| Interest Expense | $17.00M$30.00M | −43.3% |
| Net Income | $87.00M$139.00M | −37.4% |
| EPS (Basic) | $0.26$0.42 | −38.1% |
| EPS (Diluted) | $0.26$0.41 | −36.6% |
| Shares Outstanding (Basic) | 334.00M333.00M | +0.3% |
| Shares Outstanding (Diluted) | 337.00M337.00M | 0.0% |
05—Questions
Frequently Asked Questions
What is the impact of the Keysight separation on Agilent's financial statements?
The historical results of operations and financial position of Keysight Technologies, Inc. are included in Agilent's consolidated financial statements but are reported as discontinued operations. This presentation allows investors to better assess Agilent's ongoing business performance.
How did foreign currency fluctuations affect Agilent's performance?
Foreign currency movements had an unfavorable impact on Agilent's revenue, decreasing it by approximately 7 percentage points for the quarter. This is primarily attributed to the strength of the U.S. dollar relative to other currencies.
What is the outlook for Agilent's business segments?
Agilent sees strong growth opportunities in its Life Sciences and Applied Markets and Diagnostics and Genomics segments, driven by demand in the pharmaceutical and biotechnology sectors. The Agilent CrossLab segment is expected to see growth offset by weakness in chemical and energy markets.
What is the company doing to return value to shareholders?
Agilent announced a new share repurchase program authorizing the purchase of up to $1.14 billion of its common stock through November 1, 2018. The company also continues to pay quarterly cash dividends.
06—Continue