Nov 12 2010
Agilent Technologies Inc. (NYSE:A) today reported revenues of $1.58 billion for the fourth fiscal quarter ended Oct. 31, 2010, 35 percent above one year ago, or 26 percent excluding the effects of the Varian acquisition and recent divestitures. Fourth-quarter GAAP net income was $232 million, or $0.66 per diluted share. Last year's fourth-quarter GAAP net income was $25 million, or $0.07 per share.
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During the fourth quarter, Agilent had Varian-related integration costs of $43 million, intangible amortization of $30 million and restructuring charges of $18 million. It also recognized a tax benefit of $42 million and a $54 million gain from the closure of pre-Agilent spin-off income tax audits. Excluding these items and $1 million of other net charges, Agilent reported fourth-quarter adjusted net income of $228 million, or $0.65 per share.
Bill Sullivan, Agilent president and CEO, said, "This past quarter marked the completion of Agilent's transformation, a milestone in our company's history. We saw continued organic growth performance and strength across all Agilent platforms and regions. I am pleased to report that the Varian integration continues to go very smoothly."
Chemical Analysis revenues were up 73 percent above one year ago, or 17 percent on an organic basis. Growth continued to be strong across Agilent's applied markets. Environmental, petrochemical, food and forensics markets all reflected double-digit organic growth.
Life Sciences revenues grew 35 percent over last year, or 17 percent on an organic basis. Double-digit organic growth was seen across academia and government markets, as well as from pharmaceutical and biotech customers.
Electronic Measurement revenues were up 23 percent over a year ago, or 35 percent excluding the effects of the Network Solutions divestiture. All of Agilent's electronic measurement end markets - communications, aerospace and defense, industrial, computers and semiconductor - posted strong double-digit organic growth in the quarter.
Fourth-quarter ROIC was 24 percent, compared with 18 percent one year ago. Inventory Days on Hand decreased by five days to 92 days. Receivables Days Sales Outstanding, at 49, grew three days compared with a year ago, due to the Varian acquisition. Agilent generated $367 million of cash from operations during the fourth quarter. Net cash at the end of the fourth quarter was $598 million.
Looking ahead, Sullivan said, "Our business outlook for 2011 remains strong. We are starting the new fiscal year with an industry-leading product portfolio and expect to continue the momentum with strong organic growth and great market opportunities created by the Varian product portfolio."
Fiscal first-quarter 2011 revenues are expected to be in the range of $1.53 billion to $1.55 billion. Fiscal first-quarter non-GAAP earnings are expected to be in the range of $0.55 to $0.57 per share.
For the full fiscal year 2011, Agilent expects revenues of $6.1 billion to $6.3 billion. Non-GAAP earnings are expected to be in the range of $2.30 to $2.50 per share.
SOURCE Agilent Technologies