PALO ALTO, Calif.--(BUSINESS WIRE)--Aug. 14, 2006--Agilent
Technologies Inc. (NYSE:A) today reported orders of $1.42 billion for
the third fiscal quarter ended July 31, 2006, 10 percent above one
year ago. Revenues during the quarter were $1.45 billion, 17 percent
above last year. Third quarter GAAP income from continuing operations
was $233 million, or $0.55 per diluted share, compared with $54
million, or $0.10 per share, in last year's third quarter.
Included in GAAP results are $86 million of charges related
principally to the spinoff of Verigy Ltd. and the reduction of
Agilent's infrastructure costs. Excluding these charges, $21 million
of non-cash stock compensation expenses, and $145 million of net gains
from the sale of assets and other items, Agilent reported third
quarter adjusted net income of $195 million, or $0.46 per share. On a
comparable basis, the company earned $95 million, or $0.19 per share,
one year ago.(1)
"Agilent performed well in the third quarter of 2006," said Bill
Sullivan, Agilent president and chief executive officer. "Revenues
were above expectations because of 10 percent year-to-year growth in
the continuing operations of Agilent and the sustained strength of
Verigy. Adjusted earnings per share were four cents above the high end
of our guidance, and more than double last year's results, because of
higher-than-expected revenues and great operating discipline across
the businesses."
Sullivan noted that gross margins reached record levels during the
quarter, and that the company's 27 percent Return on Invested
Capital(2) also represented a new high. "During the quarter, we also
brought Verigy to market via an initial public offering, and
preparations for a fiscal year-end spinoff of Verigy are on schedule."
Sullivan added, "While remaining vigilant about the economic
environment, Agilent's focus going forward is to leverage the robust
operating model we've built through higher sustainable growth."
Looking ahead, Agilent (including Verigy) expects fourth quarter
fiscal 2006 revenues of $1.48 billion to $1.53 billion, up 5 to 9
percent from last year. Adjusted net income is expected to be in the
range of $0.50 to $0.55 per share(3), nearly double last year's
comparable earnings.
Segment Results
Bio-Analytical Measurement(4)
($ millions except where noted)
Q3:F06 Q3:F05 Q2:F06
------ ------ ------
Orders 387 348 401
Revenues 391 341 372
Gross Margin, % 54% 49% 50%
Income from Operations 60 42 45
Segment Assets 901 734 925
Return On Invested Capital(2), % 26% 27% 21%
Bio-Analytical Measurement gained momentum during the third
quarter, reflecting the strength of its new product portfolio and a
diversified, global customer base. Orders of $387 million were 11
percent above last year, and up about 10 percent in local currency
terms. Life Sciences orders were up 13 percent, while Chemical
Analysis orders were 10 percent above one year ago. Geographically,
robust growth in Asia and Europe was balanced by single-digit growth
in the Americas due to ongoing weakness from traditional large
pharmaceutical customers. Revenues of $391 million were 15 percent
above last year as new product deliveries accelerated.
Segment income from operations of $60 million was $18 million
above last year. Gross margins improved by 5 points, while operating
expenses for acquisitions, new product introductions and incremental
investments grew slightly ahead of revenues. The third quarter's 15
percent operating margin was about 3 points better than last year and
a new third-quarter high. Segment Return On Invested Capital(2) was
about the same as last year due to the impact of acquisitions.
Electronic Measurement(4)
($ millions except where noted)
Q3:F06 Q3:F05 Q2:F06
------ ------ ------
Orders 838 807 875
Revenues 848 783 867
Gross Margin, % 58% 53% 55%
Income from Operations 125 77 120
Segment Assets 2,175 2,192 2,213
Return On Invested Capital(2), % 24% 15% 23%
Third quarter Electronic Measurement orders of $838 million were
up 4 percent from last year. Communications test orders were up 2
percent, with wireless test up 5 percent due to strength in Asia /
Pacific and in R&D test demand. Wireline test orders were down 13
percent due to continued softness in router test and operations
support solutions. General purpose test orders were up 7 percent from
one year ago, with particular strength across the oscilloscopes
product line and in electronic manufacturing test. Revenues of $848
million were 8 percent above last year.
Third quarter income from operations of $125 million was up $48
million on a $65 million increase in revenues. Gross margins improved
5 points to 58 percent, while segment operating expenses moved in line
with revenues. Segment operating margin of 15 percent was 5 points
above last year while ROIC(2) improved 9 points to 24 percent based on
better operating margins and reductions in working capital.
Verigy Ltd.
($ millions except where noted)
Q3:F06 Q3:F05 Q2:F06
------ ------ ------
Orders 199 145 312
Revenues 214 117 192
Gross Margin, % 50% 32% 48%
Income from Operations 44 (18) 29
Note: In the third quarter, Verigy, a subsidiary of Agilent
comprised of its semiconductor test systems business, completed the
initial public offering of a minority interest of 15 percent. Agilent
intends to distribute the remaining 85 percent of Verigy shares to
Agilent stockholders immediately prior to the close of its current
fiscal year. After distribution, the related operating results of
Verigy will be reflected as discontinued operations. For additional
information on Verigy's standalone results, which differ in certain
respects from Agilent's presentation of Verigy as one of its segments,
see Verigy's third quarter 2006 press release issued today at
http://investor.verigy.com.
About Agilent Technologies
Agilent Technologies Inc. (NYSE:A) is the world's premier
measurement company and a technology leader in communications,
electronics, life sciences and chemical analysis. The company's 20,000
employees serve customers in more than 110 countries. Agilent had net
revenue of $5.1 billion in fiscal 2005. Information about Agilent is
available on the Web at www.agilent.com.
Agilent's management will present more details on its third
quarter FY2006 financial results on a conference call with investors
beginning at 1:30 p.m. (Pacific). This event will be webcast live in
listen-only mode. Listeners may log on at www.investor.agilent.com and
select "Q3 2006 Agilent Technologies Inc. Earnings Conference Call" in
the "News & Events -- Calendar of Events" section. The webcast will
remain available on the company's Web site for 90 days.
A telephone replay of the conference call will be available from
3:30 p.m. (Pacific) today through August 21, 2006. The replay number
is +1 888 286 8010, or international callers may dial +1 617 801 6888;
enter pass code 24627398.
Forward-Looking Statements
This news release contains forward-looking statements as defined
in the Securities Exchange Act of 1934 and is subject to the safe
harbors created therein. The forward-looking statements contained
herein include, but are not limited to, information regarding
Agilent's future revenues, earnings and profitability (on a segment
and consolidated basis); the pace of new product introductions and
future demand for the Company's products and services; the completion
of the spinoff of the Company's Semiconductor Test Solutions business,
Verigy Ltd.; and guidance for the fourth quarter of fiscal year 2006.
These forward-looking statements involve risks and uncertainties that
could cause Agilent's results to differ materially from management's
current expectations. Such risks and uncertainties include, but are
not limited to, unforeseen changes in the strength of our customers'
businesses; unforeseen changes in the demand for current and new
products and technologies; and changes in the planned spinoff of
Verigy.
In addition, other risks that Agilent faces in running its
operations include the ability to execute successfully through
business cycles while it continues to implement cost reductions; the
ability to meet and achieve the benefits of its cost-reduction goals
and otherwise successfully adapt its cost structures to continuing
changes in business conditions; ongoing competitive, pricing and gross
margin pressures; the risk that our cost-cutting initiatives will
impair our ability to develop products and remain competitive and to
operate effectively; the impact of geopolitical uncertainties on our
operations, our markets and our ability to conduct business, the
ability to improve asset performance to adapt to changes in demand;
the ability to successfully introduce new products at the right time,
price and mix, and other risks detailed in Agilent's filings with the
Securities and Exchange Commission, including our Annual Report on
Form 10-K for the year ended Oct. 31, 2005. Forward-looking statements
are based on the beliefs and assumptions of Agilent's management and
on currently available information. Agilent undertakes no
responsibility to publicly update or revise any forward-looking
statement.
(1) Adjusted net income and adjusted net income per share are
non-GAAP measures. Adjusted net income is defined to exclude primarily
the impacts of restructuring and asset impairment charges, business
separation costs, non-cash stock-based compensation, retirement plan
curtailment gains, intangible amortization as well as gains and losses
from the sale of investments and disposals of businesses net of their
tax effects. A reconciliation between adjusted net income and GAAP net
income is set forth on page 5 of the attached tables along with
additional information regarding the use of this non-GAAP measure.
(2) Return On Invested Capital is a non-GAAP measure and is
defined as income (loss) from operations less other (income) expense
and taxes, annualized, divided by the average of the two most recent
quarter-end balances of assets less net current liabilities. The
reconciliation of ROIC can be found on page 6 of the attached tables,
along with additional information regarding the use of this non-GAAP
measure.
(3) Adjusted net income per share as projected for Q406 is a
non-GAAP measure which excludes primarily the impacts of future
restructuring and asset impairment charges, non-cash stock-based
compensation, and intangibles amortization. Most of these excluded
amounts pertain to events that have not yet occurred and are not
currently possible to estimate with a reasonable degree of accuracy.
Therefore, no reconciliation to GAAP amounts has been provided. Future
amortization of intangibles is expected to be approximately $10
million per quarter.
(4) Historical segment data have been restated to correspond to
current presentation.
NOTE TO EDITORS: Further technology, corporate citizenship and
executive news is available on the Agilent news site at
www.agilent.com/go/news.
Page 1
AGILENT TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(In millions, except per share amounts)
(Unaudited)
PRELIMINARY
Three Months Ended
July 31,
--------------------- Percent
2006 2005 Inc/(Dec)
---------- ---------- ----------
Orders $1,424 $1,300 10%
Net revenue $1,453 $1,242 17%
Costs and expenses:
Cost of products and services 662 646 2%
Research and development 186 183 2%
Selling, general and administrative 463 378 22%
Gain on sale of Palo Alto
headquarters (65) - (100%)
---------- ----------
Total costs and expenses 1,246 1,207 3%
---------- ----------
Income from continuing operations 207 35 491%
Other income (expense), net 44 25 76%
---------- ----------
Income from continuing operations
before taxes and equity income 251 60 318%
Provision for taxes 18 19 (5%)
---------- ----------
Income from continuing operations
before equity income 233 41 468%
Equity income from Lumileds - 13 (100%)
---------- ----------
Income from continuing operations 233 54 331%
Income from and gain (loss) on sale of
discontinued operations, net (6) 50 (112%)
---------- ----------
Net income $227 $104 118%
========== ==========
Net income per share -- basic:
Income from continuing operations $0.57 $0.11
Income from and gain on sale of
discontinued operations, net (0.02) 0.10
---------- ----------
Net income per share --
basic $0.55 $0.21
Net income per share -- diluted:
Income from continuing operations $0.55 $0.10
Income from and gain on sale of
discontinued operations, net (0.01) 0.10
---------- ----------
Net income per share --
diluted $0.54 $0.20
Weighted average shares used in
computing net income (loss) per
share:
Basic 412 494
Diluted 421 499
Historical amounts were reclassified to conform with current period
presentation.
Income from continuing operations for the third quarter of fiscal 2006
includes pre-tax share-based compensation expense under SFAS No. 123R
of $21 million related to employee stock options and employee stock
purchases.
The preliminary income statement is estimated based on our current
information.
Page 2
AGILENT TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(In millions, except per share amounts)
(Unaudited)
PRELIMINARY
Nine Months Ended
July 31,
--------------------- Percent
2006 2005 Inc/(Dec)
---------- ---------- ----------
Orders $4,365 $3,791 15%
Net revenue $4,220 $3,732 13%
Costs and expenses:
Cost of products and services 2,018 1,905 6%
Research and development 572 547 5%
Selling, general and administrative 1,387 1,165 19%
Gain on sale of Palo Alto
headquarters and San Jose site (121) - (100%)
---------- ----------
Total costs and expenses 3,856 3,617 7%
---------- ----------
Income from operations 364 115 217%
Other income (expense), net 139 60 132%
---------- ----------
Income from continuing operations
before taxes and equity income 503 175 187%
Provision for taxes 61 53 15%
---------- ----------
Income from continuing operations
before equity income 442 122 262%
Equity income from and gain on sale of
Lumileds 901 36 2403%
---------- ----------
Income from continuing operations 1,343 158 750%
Income from and gain on sale of
discontinued operations, net 1,815 144 1160%
---------- ----------
Net income $3,158 $302 946%
========== ==========
Net income per share -- basic:
Income from continuing operations $3.07 $0.32
Income from and gain on sale of
discontinued operations, net 4.14 0.29
---------- ----------
Net income per share --
basic $7.21 $0.61
Net income per share -- diluted:
Income from continuing operations $3.00 $0.32
Income from and gain on sale of
discontinued operations, net 4.05 0.29
---------- ----------
Net income per share --
diluted $7.05 $0.61
Weighted average shares used in
computing net income per share:
Basic 438 492
Diluted 448 497
Historical amounts were reclassified to conform with current period
presentation.
Income from continuing operations for the first nine months of fiscal
2006 includes pre-tax share-based compensation expense under SFAS No.
123R of $82 million related to employee stock options and employee
stock purchases.
The preliminary income statement is estimated based on our current
information.
Page 3
AGILENT TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEET
(In millions, except par value and share amounts)
(Unaudited)
PRELIMINARY
July 31, October 31,
2006 2005
----------- -----------
ASSETS
Current assets:
Cash and cash equivalents $2,249 $2,226
Short term investments - 25
Accounts receivable, net 853 753
Inventory 705 722
Other current assets 412 298
Current assets of discontinued operations - 423
----------- -----------
Total current assets 4,219 4,447
Property, plant and equipment, net 822 873
Goodwill and other intangible assets, net 481 362
Other assets 602 628
Restricted cash and cash equivalents 1,605 22
Non-current assets of discontinued operations - 419
----------- -----------
Total assets $7,729 $6,751
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $425 $344
Employee compensation and benefits 422 542
Deferred revenue 292 247
Income and other taxes payable 381 474
Other accrued liabilities 159 179
Current liabilities of discontinued
operations - 150
----------- -----------
Total current liabilities 1,679 1,936
----------- -----------
Long-term debt 1,500 -
Retirement and post-retirement benefits 266 383
Other long-term liabilities 492 351
----------- -----------
Total liabilities 3,937 2,670
----------- -----------
Commitments and contingencies - -
Stockholders' equity:
Preferred stock; $0.01 par value; 125
million shares authorized; none issued
and outstanding - -
Common stock; $0.01 par value; 2 billion
shares authorized; 534 million shares
at July 31, 2006 and 512 million shares
at October 31, 2005 issued 5 5
Treasury stock at cost; 125 million
shares at July 31, 2006 and 9 million
shares at October 31, 2005 (4,469) (290)
Additional paid-in capital 6,543 5,878
Retained earnings (accumulated deficit) 1,695 (1,463)
Accumulated other comprehensive income
(loss) 18 (49)
----------- -----------
Total stockholders' equity 3,792 4,081
----------- -----------
Total liabilities and
stockholders' equity $7,729 $6,751
=========== ===========
The preliminary balance sheet is estimated based on our current
information.
Page 4
AGILENT TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(In millions)
(Unaudited)
PRELIMINARY
Nine Three
months months
ended ended
July 31, July 31,
2006 2006
----------- -----------
Cash flows from operating activities:
Net income $3,158 $227
Less : Income from and gain (loss) on sale
of discontinued operations, net 1,815 (6)
----------- -----------
Income from continuing operations 1,343 233
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 134 45
Deferred taxes (9) 10
Excess and obsolete inventory-related
charges 44 9
Asset impairment charges 26 4
Net gain on sale of investments (9) -
Gain on sale and undistributed equity in
net income of Lumileds (901) -
Net gain on sale of assets (111) (60)
Share based compensation 82 21
Pension curtailment and settlements (28) (28)
In process R&D 2 -
Changes in assets and liabilities:
Accounts receivable (90) (8)
Inventory (27) (2)
Accounts payable 89 5
Employee compensation and benefits (119) (87)
Income taxes and other taxes payable (80) (8)
Other current assets and liabilities (23) (30)
Other long-term assets and
liabilities (97) (39)
----------- -----------
Net cash provided by operating activities of
continuing operations (a): 226 65
Net cash provided by operating activities of
discontinued operations 7 -
----------- -----------
Net cash provided by operating activities 233 65
Cash flows from investing activities:
Investments in property, plant and
equipment (165) (60)
Proceeds from the sale of property, plant
and equipment 205 116
Investment in equity securities (5) (1)
Proceeds from sale of Lumileds and other
investments 966 6
Increase in restricted cash and cash
equivalents (1,583) (3)
Payment of loan receivable 50 -
Net proceeds from sale of discontinued
operations 2,509 (6)
Proceeds from sale of short-term
investments 25 -
Purchase of minority interest, primarily
Yokogawa Analytical Systems (104) (6)
Acquisition of businesses and intangible
assets, net of cash acquired (30) (6)
----------- -----------
Net cash provided by investing activities of
continuing operations: 1,868 40
Net cash used in investing activities of
discontinued operations: (6) -
----------- -----------
Net cash provided by investing activities 1,862 40
Cash flows from financing activities:
Issuance of common stock under employee
stock plans 513 65
Treasury stock repurchases (4,179) (701)
Net proceeds from sale of subsidiary stock 121 121
Proceeds from term facility 700 -
Repayment of term facility (700) -
Debt issuance costs (25) -
Cash distribution to minority interest in
consolidated joint venture (16) -
Long-term debt 1,500 -
----------- -----------
Net cash used in financing activities of
continuing operations: (2,086) (515)
Effect of exchange rate movements 14 2
Net increase (decrease) in cash and cash
equivalents 23 (408)
Cash and cash equivalents at beginning of
period 2,226 2,657
----------- -----------
Cash and cash equivalents at end of period $2,249 $2,249
=========== ===========
(a) Cash payments included in operating
activities:
Restructuring 136 43
Income tax payments 143 18
The preliminary cash flow statement is estimated based on our current
information.
Page 5
AGILENT TECHNOLOGIES, INC.
ADJUSTED NET INCOME AND EPS RECONCILIATIONS
(In millions, except per share amounts)
(Unaudited)
PRELIMINARY
Three Months Ended
July 31,
2006 EPS 2005 EPS
-------------- --------------
Net income per GAAP $227 $0.54 $104 $0.20
Less income from and gain (loss) on sale
of discontinued operations (6) (0.01) 50 0.10
-------------- --------------
Income from continuing operations $233 $0.55 $54 $0.10
Non-GAAP adjustments:
Restructuring and asset impairment 40 0.10 35 0.07
Business disposal and infrastructure
reduction costs 46 0.10 - -
Gain on sale of Palo Alto
headquarters and San Jose site (65) (0.15) - -
Retirement plans curtailment gains (28) (0.07) - -
Gain on sale of assets - - - -
Equity income from and gain on sale
of Lumileds - - (13) (0.02)
Share-based compensation expense 21 0.05 - -
Donation to Agilent foundation - - - -
Income from Foreign Sales Corporation
Tax Study (13) (0.03) - -
Unallocated SPG corporate charges - - 32 0.06
Other, principally other intangibles 8 0.02 (1) -
Adjustment for taxes (47) (0.11) (12) (0.02)
-------------- --------------
Adjusted net income $195 $0.46 $95 $0.19
============== ==============
Nine Months Ended
July 31,
2006 EPS 2005 EPS
-------------- --------------
Net income per GAAP $3,158 $7.05 $302 $0.61
Less income from and gain (loss) on sale
of discontinued operations 1,815 4.05 144 0.29
-------------- --------------
Income from continuing operations $1,343 $3.00 $158 $0.32
Non-GAAP adjustments:
Restructuring and asset impairment 144 0.32 42 0.08
Business disposal and infrastructure
reduction costs 111 0.25 - -
Gain on sale of Palo Alto
headquarters and San Jose site (121) (0.27) - -
Retirement plans curtailment gains (28) (0.06) - -
Gain on sale of assets - - (10) (0.02)
Equity income from and gain on sale
of Lumileds (901) (2.01) (36) (0.07)
Share-based compensation expense 82 0.18 - -
Donation to Agilent foundation - - 10 0.02
Income from Foreign Sales Corporation
Tax Study (13) (0.03) - -
Unallocated SPG corporate charges 13 0.03 100 0.20
Other, principally other intangibles 11 0.02 12 0.02
Adjustment for taxes (114) (0.25) (26) (0.05)
-------------- --------------
Adjusted net income $527 $1.18 $250 $0.50
============== ==============
We provide adjusted net income and adjusted net income per share
amounts in order to provide meaningful supplemental information
regarding our operational performance and our prospects for the
future. These supplemental measures exclude, among other things, the
impact of the sale of our businesses and investments from the results
of the sales of our products. Some of the exclusions, such as
impairments, may be beyond the control of management. Further, some
may be less predictable than revenue derived from our core businesses
(the day to day business of selling our products and services). These
reasons provide the basis for management's belief that the measures
are useful.
Our management uses non-GAAP measures to evaluate the performance of
our core businesses, to estimate future core performance and to
compensate employees. Since management finds this measure to be
useful, we believe that our investors benefit from seeing our results
"through the eyes" of management in addition to seeing our GAAP
results. This information facilitates our management's internal
comparisons to our historical operating results as well as to the
operating results of our competitors.
Our management recognizes that items such as restructuring charges and
sales of investments can have a material impact on our cash flows and
net income. Our GAAP financial statements including our statement of
cash flows portray those effects. Although we believe it is useful for
investors to see core performance free of special items, investors
should understand that the excluded items are actual expenses that
impact the cash available to us for other uses. To gain a complete
picture of all effects on the Company's profit and loss from any and
all events, management does (and investors should) rely upon the GAAP
income statement. The non-GAAP numbers focus instead upon the core
business of the company, which is only a subset, albeit a critical
one, of the Company's performance.
Readers are reminded that non-GAAP numbers are merely a supplement to,
and not a replacement for, GAAP financial measures. They should be
read in conjunction with the GAAP financial measures. It should be
noted as well that our non-GAAP information may be different from the
non-GAAP information provided by other companies.
The preliminary adjusted net income and EPS reconciliation is
estimated based on our current information.
Page 6
AGILENT TECHNOLOGIES, INC.
Reconciliation of ROIC
(In millions)
(Unaudited)
Preliminary
BAM EM Agilent
Numerator: Q3'06 Q3'06 Q3'06
------------------------------
Adjusted income from operations $60 $125 $231
Less:
Taxes and Other (income)/expense 16 27 56
------------------------------
Segment return 44 98 175
------------------------------
Segment return annualized $176 $392 $700
==============================
Denominator:
Segment assets (a) $901 $2,175 $3,429
Less:
Net current liabilities (b) $239 $543 $847
------------------------------
Invested capital $662 $1,632 $2,582
------------------------------
Average invested capital $673 $1,640 $2,577
ROIC 26% 24% 27%
BAM EM BAM EM
Numerator: Q2'06 Q2'06 Q3'05 Q3'05
-------------------- --------------------
Adjusted income from
operations $45 $120 $42 $77
Less:
Taxes and Other
(income)/expense 12 24 6 10
-------------------- --------------------
Segment return 33 96 36 67
-------------------- --------------------
Segment return annualized $132 $384 $144 $268
==================== ====================
Denominator:
Segment assets (a) $925 $2,213 $734 $2,192
Less:
Net current liabilities
(b) 242 565 188 430
-------------------- --------------------
Invested capital $683 $1,648 $546 $1,762
-------------------- --------------------
Average invested capital $633 $1,682 $532 $1,841
ROIC 21% 23% 27% 15%
ROIC calculation:(annualized current quarter segment return)/(average
of the two most recent quarter-end balances of Segment Invested
Capital)
(a) Segment assets consist of inventory, accounts receivable, property
plant and equipment, gross goodwill and other intangibles,
deferred taxes and allocated corporate assets.
(b) Includes accounts payable, employee compensation and benefits,
other accrued liabilities and allocated corporate liabilities.
Note: For Agilent's total return, see reconciliation between GAAP net
income and adjusted net income on Page 5.
Historical amounts were reclassified to conform with current period
presentation.
Return on invested capital (ROIC) is a non-GAAP measure that
management believes provides useful supplemental information for
management and the investor. ROIC is a tool by which we track how
much value we are creating for our shareholders. Management uses ROIC
as a performance measure for our businesses, and our senior managers'
compensation is linked to ROIC improvements as well as other
performance criteria. We believe that ROIC provides our management
with a means to analyze and improve their business, measuring segment
profitability in relation to net asset investments. We acknowledge
that ROIC may not be calculated the same way by every company. We
compensate for this limitation by monitoring and providing to the
reader a full GAAP income statement and balance sheet.
Readers are reminded that non-GAAP numbers are merely a supplement to,
and not a replacement for, GAAP financial measures. They should be
read in conjunction with the GAAP financial measures. It should be
noted as well that our non-GAAP information may be different from the
non-GAAP information provided by other companies.
The preliminary reconciliation of ROIC is estimated based on our
current information.
CONTACT: Agilent Technologies Inc.
Amy Flores, 650-752-5303
amy_flores@agilent.com
Jorgen Tesselaar, +31 20 547 2825 (Europe and Asia)
jorgen_tesselaar@agilent.com
Hilliard Terry, 650-752-5329 (Investors)
hilliard_terry@agilent.com
SOURCE: Agilent Technologies Inc.