8-KEarnings & ResultsFinancial EventsExhibits & Filings

AGILENT TECHNOLOGIES, INC. 8-K Report, Financial Results (Feb 17, 2009)

Filed February 17, 2009For Securities:A

Summary

Agilent Technologies, Inc. filed this Form 8-K on February 17, 2009, to report its financial results for the first fiscal quarter ended January 31, 2009, and to announce significant updates to its previously disclosed restructuring program. The company is providing non-GAAP financial information to offer investors a clearer view of its operational performance, excluding items such as restructuring and amortization, which management uses for internal comparisons and performance assessment. This reporting approach aims to enhance investor understanding of core financial performance and future prospects. Crucially, Agilent detailed a revised restructuring plan, which includes exiting its inspection businesses within the Semiconductor and Board Test segment. This, along with other infrastructure restructuring, is a direct response to deteriorating economic conditions. The company expects to reduce its global workforce by an additional 600 employees, bringing the total reduction to approximately 1,100 people under the overall restructuring program. Significant pre-tax charges are anticipated, totaling approximately $155 million, which will largely result in cash expenditures and are expected to be completed by October 31, 2009.

Key Highlights

  • 1Agilent Technologies announced its first fiscal quarter 2009 financial results on February 17, 2009.
  • 2The company is providing non-GAAP financial information to supplement GAAP results for better investor understanding of operational performance.
  • 3Agilent is implementing a revised restructuring plan due to worsening economic conditions.
  • 4The revised plan includes exiting the inspection businesses in the Semiconductor and Board Test segment.
  • 5Total workforce reductions under the expanded restructuring program are expected to reach approximately 1,100 employees.
  • 6Agilent anticipates recording approximately $155 million in pre-tax restructuring and other charges, largely impacting cash.
  • 7Most restructuring activities are expected to be completed by July 31, 2009, with the remainder by October 31, 2009.

Frequently Asked Questions

The main purpose of this 8-K filing is to report Agilent Technologies' financial results for the first fiscal quarter ended January 31, 2009, and to announce an updated and expanded restructuring plan in response to challenging economic conditions.

Agilent is implementing a revised restructuring plan that includes exiting its automated optical inspection and automated X-ray inspection businesses within the Semiconductor and Board Test segment, as well as restructuring its global infrastructure. This plan is expected to result in a further reduction of approximately 600 employees, bringing the total headcount reduction under the program to approximately 1,100 people.

Agilent expects to record approximately $155 million in pre-tax restructuring and other related charges due to the revised plan. These charges include costs for employee severance, excess inventory, lease agreements, and contract terminations, with substantially all of these charges expected to result in cash expenditures.

Agilent provides non-GAAP financial information to offer investors supplemental insights into its operational performance and to enhance their understanding of the company's core financial performance and future prospects. This allows investors to see results 'through the eyes' of management, excluding items like restructuring and amortization that may impact GAAP earnings but are not used by management to measure ongoing operating performance.