10-QPeriod: Q2 FY2015

AGILENT TECHNOLOGIES, INC. Quarterly Report for Q2 Ended Apr 30, 2015

Filed June 5, 2015For Securities:A

Summary

Agilent Technologies, Inc. reported its fiscal second-quarter 2015 results, with total net revenue of $963 million, a slight decrease of 3% year-over-year, impacted by unfavorable foreign currency movements. Net income was $83 million ($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 billion share repurchase program, underscoring a commitment to shareholder returns.

Financial Highlights

56 data points
Beta

Revenue

$963.00M

49.8% Gross Margin

Net Income

$87.00M

9.0% Net Margin

EPS (Diluted)

$0.26

Total Assets

$7.41B

Cash & Equivalents

$2.20B

Free Cash Flow

$163.00M

Financial Statements
Beta
Revenue$963.00M
Cost of Revenue$483.00M
Gross Profit$480.00M
R&D Expenses$81.00M
SG&A Expenses$292.00M
Operating Expenses$856.00M
Operating Income$107.00M
Interest Expense$17.00M
Net Income$87.00M
EPS (Basic)$0.26
EPS (Diluted)$0.26
Shares Outstanding (Basic)334.00M
Shares Outstanding (Diluted)337.00M

Key Highlights

  • 1Total net revenue for the quarter was $963 million, down 3% year-over-year.
  • 2Net income was $83 million, or $0.25 per diluted share.
  • 3The company completed the separation of Keysight Technologies, Inc., with Keysight's historical results reported as discontinued operations.
  • 4Agilent reorganized its business into three segments: Life Sciences and Applied Markets, Diagnostics and Genomics, and Agilent CrossLab.
  • 5Unfavorable foreign currency exchange rates had a significant negative impact on revenue.
  • 6A new share repurchase program of up to $1.14 billion was authorized, demonstrating a commitment to returning capital to shareholders.
  • 7The company expects continued growth opportunities driven by innovation and expansion in key market segments.

Frequently Asked Questions

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.

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.

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.

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.