Summary
Agilent Technologies, Inc. reported total net revenue of $1,357 million for the three months ended January 31, 2020, a 6% increase year-over-year. This growth was driven by increases across all three business segments: Life Sciences and Applied Markets, Diagnostics and Genomics, and Agilent CrossLab. Despite the revenue growth, net income saw a significant decrease to $197 million from $504 million in the prior year period, largely due to a substantial tax benefit recognized in the prior year. The company experienced a net cash outflow from operating activities of $59 million, primarily impacted by a one-time tax payment of $226 million related to an intellectual property transfer, a notable shift from the $213 million cash inflow in the prior year. Agilent continues to return capital to shareholders through dividends and share repurchases.
Financial Highlights
55 data points| Revenue | $1.36B |
| Cost of Revenue | $634.00M |
| Gross Profit | $723.00M |
| R&D Expenses | $104.00M |
| SG&A Expenses | $404.00M |
| Operating Expenses | $1.14B |
| Operating Income | $215.00M |
| Interest Expense | $20.00M |
| Net Income | $197.00M |
| EPS (Basic) | $0.64 |
| EPS (Diluted) | $0.63 |
| Shares Outstanding (Basic) | 310.00M |
| Shares Outstanding (Diluted) | 313.00M |
Key Highlights
- 1Total net revenue increased by 6% to $1,357 million, with growth observed across all three business segments.
- 2Net income significantly decreased to $197 million from $504 million in the prior year, primarily due to a large discrete tax benefit recorded in Q1 2019 ($299 million related to Singapore tax incentive).
- 3Operating margin decreased by 4 percentage points to 15.9% due to increased expenses in R&D, SG&A (including acquisition/integration costs and legal costs), and a lower gross margin.
- 4Net cash used in operating activities was $59 million, a reversal from $213 million generated in the prior year, heavily influenced by a one-time $226 million tax payment for IP transfer.
- 5The company continues its capital return program, paying $56 million in dividends and repurchasing $60 million of its stock during the quarter.
- 6A settlement with Twist Bioscience Corporation for $22.5 million regarding intellectual property claims was reached in February 2020, resolving all litigation.
- 7The company notes that the public health crisis in China impacted revenue in January 2020 and expects it to reduce business results in the first half of fiscal year 2020, though remains optimistic about long-term growth.