SANTA CLARA, Calif.--(BUSINESS WIRE)--Jun. 4, 2014--
Agilent Technologies Inc. (NYSE:A) today announced that the company’s
second-quarter 2014 GAAP net income was $139 million, or $0.41 per
share, a change from the second-quarter GAAP net income of $150 million,
or $0.45 per share, previously announced May 14, 2014.
As disclosed in the company’s quarterly report on Form 10-Q filed today,
this change was made as a result of an out-of-period adjustment for tax
expense. There have been no changes to the second-quarter 2014 non-GAAP
net income of $244 million, or $0.72 per share(1), previously
announced by the company May 14.
About Agilent Technologies
Agilent Technologies Inc. (NYSE:A) is the world’s premier measurement
company and a technology leader in chemical analysis, life sciences,
diagnostics, electronics and communications. The company’s 20,600
employees serve customers in more than 100 countries. Agilent had
revenues of $6.8 billion in fiscal 2013. Information about Agilent is
available at www.agilent.com.
On Sept. 19, 2013, Agilent announced plans to separate into two publicly
traded companies through a tax-free spinoff of its electronic
measurement business. The new company is named Keysight Technologies,
Inc. The separation is expected to be completed in early November 2014.
Additional information regarding financial results can be found at www.investor.agilent.com
by selecting “Financial Results” in the “Financial Information” section.
(1) Non-GAAP net income and non-GAAP net income per share
exclude primarily the impacts of acquisition and integration costs,
pre-separation costs, transformation initiatives and restructuring
costs, and non-cash intangibles amortization. Agilent also excludes any
tax benefits that are not directly related to ongoing operations and
which are either isolated or cannot be expected to occur again with any
regularity or predictability. A reconciliation between non-GAAP net
income and GAAP net income is set forth in the attached table.
NOTE TO EDITORS: Further technology, corporate citizenship and executive
news is available on the Agilent news site at www.agilent.com/go/news.
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AGILENT TECHNOLOGIES, INC.
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NON-GAAP NET INCOME AND DILUTED EPS RECONCILIATIONS
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(In millions, except per share amounts)
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(Unaudited)
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PRELIMINARY
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Three Months Ended
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April 30,
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2014
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Diluted
EPS
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GAAP Net income
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$
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139
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$
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0.41
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Non-GAAP adjustments:
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Restructuring and other related costs
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—
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—
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Asset impairments and write-downs
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—
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—
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Intangible amortization
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51
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0.15
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Transformational initiatives
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8
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0.02
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Acquisition and integration costs
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2
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0.01
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Pre-separation costs
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41
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0.12
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Other
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2
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0.01
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Adjustment for taxes (a) |
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1
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—
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Non-GAAP Net income
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$
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244
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$
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0.72
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(a) The adjustment for taxes excludes tax benefits that
management believes are not directly related to ongoing operations
and which are either isolated or cannot be expected to occur again
with any regularity or predictability. For the three months ended
April 30, 2014, management uses a non-GAAP effective tax rate of 16%
that we believe to be indicative of on-going operations.
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Historical amounts are reclassified to conform with current
presentation.
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We provide non-GAAP net income and non-GAAP 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,
charges related to the amortization of intangibles, the impact of
restructuring charges, acquisition and integration costs and
pre-separation costs. 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.
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Pre-separation costs include all incremental expenses incurred by
Agilent in order to effect the separation, through the planned
early November distribution date. They also include the cost of
all the new FY14 hires required to operate two separate companies.
The intent is to only include in non-GAAP expenses what would have
been incurred if we had no plan to spin-off Keysight.
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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.
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Our management recognizes that items such as amortization of
intangibles and restructuring charges can have a material impact on
our cash flows and/or our 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 may 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.
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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.
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The preliminary non-GAAP net income and diluted EPS reconciliation
is estimated based on our current information.
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Source: Agilent Technologies Inc.
Agilent Technologies Inc.
Alicia Rodriguez, +1 408-345-8948
alicia_rodriguez@agilent.com