Highlights:
-
GAAP net income of $195 million, or $0.58 per share
-
Non-GAAP net income of $226 million, or $0.67 per share(1)
-
Orders of $1.68 billion and revenues of $1.68 billion
-
Second-quarter fiscal year 2014 revenue guidance of $1.72 billion to
$1.74 billion, and non-GAAP earnings guidance of $0.71 to $0.73 per
share(2)
-
Fiscal year 2014 revenue guidance of $6.90 billion to $7.10 billion.
Non-GAAP earnings guidance at $2.96 to $3.16 per share(2)
-
Announced Keysight Technologies as the name of the electronic
measurement spinoff
SANTA CLARA, Calif.--(BUSINESS WIRE)--Feb. 13, 2014--
Agilent Technologies Inc. (NYSE:A) today reported orders of $1.68
billion, down 2 percent over one year ago, for the first fiscal quarter
ended Jan. 31, 2014, and revenues of $1.68 billion, flat compared with
one year ago. First-quarter GAAP net income was $195 million, or $0.58
per share. Last year’s first-quarter GAAP net income was $179 million,
or $0.51 per share.
During the first quarter, Agilent had intangible amortization of $51
million, integration and transformation costs of $10 million,
pre-separation costs of $20 million and a tax benefit of $47 million.
Excluding these items and $3 million of other net benefits, Agilent
reported first-quarter adjusted net income of $226 million, or $0.67 per
share(1).
Agilent President and CEO Bill Sullivan said, “Our life sciences,
diagnostics and applied market businesses got off to a solid start in
the quarter. Electronic measurement, however, faced challenges in the
aerospace/defense market. Our plans to separate into two companies are
on track, and we expect the transaction to be completed in early
November 2014.”
Electronic Measurement first-quarter revenues were down 7 percent
compared with the prior year. Operating margins were 15 percent.
Chemical Analysis revenues were up 6 percent compared with a year ago,
driven by food and forensics markets. Operating margins were 23 percent.
Life Sciences and Diagnostics revenues were up 5 percent over a year
ago, reflecting strength in pharma and diagnostics/clinical markets.
Operating margins were 17 percent.
Agilent generated $194 million of cash from operations in the quarter.
First-quarter ROIC was 15 percent(3).
Second-quarter 2014 revenues are expected to be in the range of $1.72
billion to $1.74 billion. Second-quarter non-GAAP earnings are expected
to be in the range of $0.71 to $0.73 per share(2).
For the full fiscal year 2014, Agilent expects revenue of $6.90 billion
to $7.10 billion and non-GAAP earnings of $2.96 to $3.16 per share(2).
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.
Agilent’s management will present more details about its first-quarter
FY2014 financial results on a conference call with investors today at
1:30 p.m. PT. This event will be webcast live in listen-only mode.
Listeners may log on at www.investor.agilent.com
and select “Q1 2014 Agilent Technologies Inc. Earnings Conference Call”
in the “News & Events Calendar of Events” section. The webcast will
remain available on the company’s website for 90 days.
Additional information regarding financial results can be found at www.investor.agilent.com
by selecting “Financial Results” in the “Financial Information” section.
A telephone replay of the conference call will be available at 4:30 p.m.
(Pacific Time) after the call through Feb. 20. The replay number is
(855) 859-2056, or for international, dial (404) 537-3406; enter
passcode 31478615.
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; the future demand for the
company’s products and services; customer expectations; and revenue and
non-GAAP earnings guidance for the second quarter and full fiscal year
2014. 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, technologies, and services; customer purchasing decisions
and timing, and the risk that we are not able to realize the savings
expected from integration and restructuring activities.
In addition, other risks that Agilent faces in running its operations
include the ability to execute successfully through business cycles; 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 and global
economic conditions 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 of our supply chain to adapt to changes
in demand; the ability to successfully introduce new products at the
right time, price and mix; the ability of Agilent to successfully
integrate recent acquisitions; 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, 2013.
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) 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. We also exclude 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 on page 5 of the attached tables
along with additional information regarding the use of this non-GAAP
measure.
(2) Non-GAAP earnings per share as projected for Q2FY14 and
full fiscal year 2014 excludes primarily the impacts of acquisition and
integration costs, pre-separation costs, future restructuring costs,
asset impairment charges, and non-cash intangibles amortization. We also
exclude 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. 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 $50 million
per quarter.
(3) Return on invested capital (ROIC) is a non-GAAP measure
and is defined as income 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 7 of the attached tables,
along with additional information regarding the use of this non-GAAP
measure.
NOTE TO EDITORS: Further technology, corporate citizenship and executive
news is available on the Agilent news site at www.agilent.com/go/news.
|
|
|
AGILENT TECHNOLOGIES, INC.
|
|
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
|
|
(In millions, except per share amounts)
|
|
(Unaudited)
|
|
PRELIMINARY
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
January 31,
|
|
Percent
|
|
|
|
2014
|
|
2013
|
|
Inc/(Dec)
|
|
|
|
|
|
|
|
|
|
Orders
|
|
$
|
1,678
|
|
|
$
|
1,710
|
|
|
(2
|
%)
|
|
|
|
|
|
|
|
|
|
Net revenue
|
|
$
|
1,679
|
|
|
$
|
1,680
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
Costs and expenses:
|
|
|
|
|
|
|
|
Cost of products and services
|
|
|
796
|
|
|
|
800
|
|
|
(1
|
%)
|
|
Research and development
|
|
|
177
|
|
|
|
179
|
|
|
(1
|
%)
|
|
Selling, general and administrative
|
|
|
488
|
|
|
|
484
|
|
|
1
|
%
|
|
Total costs and expenses
|
|
|
1,461
|
|
|
|
1,463
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
Income from operations
|
|
|
218
|
|
|
|
217
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
|
2
|
|
|
|
2
|
|
|
—
|
|
|
Interest expense
|
|
|
(29
|
)
|
|
|
(25
|
)
|
|
16
|
%
|
|
Other income (expense), net
|
|
|
-
|
|
|
|
1
|
|
|
(100
|
%)
|
|
|
|
|
|
|
|
|
|
Income before taxes
|
|
|
191
|
|
|
|
195
|
|
|
(2
|
%)
|
|
|
|
|
|
|
|
|
|
Provision (benefit) for income taxes
|
|
|
(4
|
)
|
|
|
16
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
195
|
|
|
$
|
179
|
|
|
9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share:
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.59
|
|
|
$
|
0.52
|
|
|
|
|
Diluted
|
|
$
|
0.58
|
|
|
$
|
0.51
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares used in computing net income per share:
|
|
|
|
|
|
|
|
Basic
|
|
|
333
|
|
|
|
347
|
|
|
|
|
Diluted
|
|
|
338
|
|
|
|
352
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends declared per common share
|
|
$
|
0.13
|
|
|
$
|
0.22
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The preliminary income statement is estimated based on our current
information.
|
|
|
|
Page 1
|
|
|
|
|
|
AGILENT TECHNOLOGIES, INC.
|
|
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
|
|
(In millions)
|
|
(Unaudited)
|
|
PRELIMINARY
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
January 31,
|
|
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
Net income
|
|
$
|
195
|
|
|
$
|
179
|
|
|
|
|
|
|
|
|
Other comprehensive income (loss), net of tax:
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized gain (loss) on investments
|
|
|
(3
|
)
|
|
|
3
|
|
|
Unrealized gain (loss) on derivative instruments
|
|
|
(2
|
)
|
|
|
6
|
|
|
Amounts reclassified into earnings related to derivative instruments
|
|
|
—
|
|
|
|
(1
|
)
|
|
Foreign currency translation
|
|
|
(55
|
)
|
|
|
56
|
|
|
Net defined benefit pension cost and post retirement plan costs:
|
|
|
|
|
|
Amortization of actuarial net loss
|
|
|
13
|
|
|
|
14
|
|
|
Amortization of prior service benefit
|
|
|
(8
|
)
|
|
|
(8
|
)
|
|
Other comprehensive income (loss)
|
|
|
(55
|
)
|
|
|
70
|
|
|
|
|
|
|
|
|
Total comprehensive income
|
|
$
|
140
|
|
|
$
|
249
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The preliminary statement of comprehensive income is estimated based
on our current information.
|
|
|
|
Page 2
|
|
|
|
|
|
AGILENT TECHNOLOGIES, INC.
|
|
CONDENSED CONSOLIDATED BALANCE SHEET
|
|
(In millions, except par value and share amounts)
|
|
(Unaudited)
|
|
PRELIMINARY
|
|
|
|
|
|
|
|
January 31,
|
|
October 31,
|
|
|
|
2014
|
|
2013
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
2,742
|
|
|
$
|
2,675
|
|
|
Accounts receivable, net
|
|
|
849
|
|
|
|
899
|
|
|
Inventory
|
|
|
1,088
|
|
|
|
1,066
|
|
|
Other current assets
|
|
|
394
|
|
|
|
343
|
|
|
Total current assets
|
|
|
5,073
|
|
|
|
4,983
|
|
|
|
|
|
|
|
|
Property, plant and equipment, net
|
|
|
1,129
|
|
|
|
1,134
|
|
|
Goodwill
|
|
|
3,017
|
|
|
|
3,047
|
|
|
Other intangible assets, net
|
|
|
859
|
|
|
|
916
|
|
|
Long-term investments
|
|
|
129
|
|
|
|
139
|
|
|
Other assets
|
|
|
431
|
|
|
|
467
|
|
|
Total assets
|
|
$
|
10,638
|
|
|
$
|
10,686
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
Accounts payable
|
|
$
|
430
|
|
|
$
|
432
|
|
|
Employee compensation and benefits
|
|
|
335
|
|
|
|
401
|
|
|
Deferred revenue
|
|
|
459
|
|
|
|
439
|
|
|
Other accrued liabilities
|
|
|
325
|
|
|
|
330
|
|
|
Total current liabilities
|
|
|
1,549
|
|
|
|
1,602
|
|
|
|
|
|
|
|
|
Long-term debt
|
|
|
2,695
|
|
|
|
2,699
|
|
|
Retirement and post-retirement benefits
|
|
|
274
|
|
|
|
294
|
|
|
Other long-term liabilities
|
|
|
673
|
|
|
|
802
|
|
|
Total liabilities
|
|
|
5,191
|
|
|
|
5,397
|
|
|
|
|
|
|
|
|
Total Equity:
|
|
|
|
|
|
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; 605
million shares at January 31, 2014 and 602 million shares at
October 31, 2013, issued
|
|
|
6
|
|
|
|
6
|
|
|
Treasury stock at cost; 271 million shares at January 31, 2014 and
269 million shares at October 31, 2013
|
|
|
(9,707
|
)
|
|
|
(9,607
|
)
|
|
Additional paid-in-capital
|
|
|
8,820
|
|
|
|
8,723
|
|
|
Retained earnings
|
|
|
6,289
|
|
|
|
6,073
|
|
|
Accumulated other comprehensive income
|
|
|
36
|
|
|
|
91
|
|
|
Total stockholders' equity
|
|
|
5,444
|
|
|
|
5,286
|
|
|
Non-controlling interest
|
|
|
3
|
|
|
|
3
|
|
|
Total equity
|
|
|
5,447
|
|
|
|
5,289
|
|
|
Total liabilities and equity
|
|
$
|
10,638
|
|
|
$
|
10,686
|
|
|
|
|
|
|
The preliminary balance sheet is estimated based on our current
information.
|
|
|
|
Page 3
|
|
|
|
|
|
AGILENT TECHNOLOGIES, INC.
|
|
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
|
|
(In millions)
|
|
(Unaudited)
|
|
PRELIMINARY
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
|
|
|
|
Ended
|
|
|
|
January 31,
|
|
|
|
2014
|
|
Cash flows from operating activities:
|
|
|
|
Net income
|
|
$
|
195
|
|
|
|
|
|
|
Adjustments to reconcile net income to net cash provided by (used
in) operating activities:
|
|
|
|
Depreciation and amortization
|
|
|
96
|
|
|
Share-based compensation
|
|
|
36
|
|
|
Excess tax benefit from share-based plans
|
|
|
(3
|
)
|
|
Excess and obsolete inventory and inventory related charges
|
|
|
11
|
|
|
Other non-cash expenses, net
|
|
|
6
|
|
|
Changes in assets and liabilities:
|
|
|
|
Accounts receivable
|
|
|
40
|
|
|
Inventory
|
|
|
(33
|
)
|
|
Accounts payable
|
|
|
(1
|
)
|
|
Employee compensation and benefits
|
|
|
(62
|
)
|
|
Other assets and liabilities
|
|
|
(91
|
)
|
|
Net cash provided by operating activities (a) |
|
|
194
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
Investments in property, plant and equipment
|
|
|
(45
|
)
|
|
Acquisition of businesses and intangible assets, net of cash acquired
|
|
|
(2
|
)
|
|
Net cash used in investing activities
|
|
|
(47
|
)
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
Issuance of common stock under employee stock plans
|
|
|
73
|
|
|
Treasury stock repurchases
|
|
|
(100
|
)
|
|
Payment of dividends
|
|
|
(44
|
)
|
|
Excess tax benefit from share-based plans
|
|
|
3
|
|
|
Net cash used in financing activities
|
|
|
(68
|
)
|
|
|
|
|
|
Effect of exchange rate movements
|
|
|
(12
|
)
|
|
|
|
|
|
Net increase in cash and cash equivalents
|
|
|
67
|
|
|
|
|
|
|
Cash and cash equivalents at beginning of period
|
|
|
2,675
|
|
|
|
|
|
|
Cash and cash equivalents at end of period
|
|
$
|
2,742
|
|
|
|
|
|
|
(a) Cash payments included in operating activities:
|
|
|
|
Restructuring payments
|
|
|
11
|
|
|
Income tax payments, net
|
|
|
26
|
|
|
|
|
|
|
|
|
|
|
The preliminary cash flow is estimated based on our current
information.
|
|
|
|
|
|
|
|
Page 4
|
|
|
|
|
|
|
|
AGILENT TECHNOLOGIES, INC.
|
|
NON-GAAP NET INCOME AND DILUTED EPS RECONCILIATIONS
|
|
(In millions, except per share amounts)
|
|
(Unaudited)
|
|
PRELIMINARY
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
January 31,
|
|
|
|
|
|
|
|
2014
|
|
Diluted EPS
|
|
2013
|
|
Diluted EPS
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Net income
|
|
$
|
195
|
|
|
$
|
0.58
|
|
|
$
|
179
|
|
|
$
|
0.51
|
|
|
Non-GAAP adjustments:
|
|
|
|
|
|
|
|
|
|
Restructuring and other related costs
|
|
|
(4
|
)
|
|
|
(0.01
|
)
|
|
|
—
|
|
|
|
—
|
|
|
Asset impairments and write-downs
|
|
|
—
|
|
|
|
—
|
|
|
|
1
|
|
|
|
—
|
|
|
Intangible amortization
|
|
|
51
|
|
|
|
0.15
|
|
|
|
52
|
|
|
|
0.15
|
|
|
Transformational initiatives
|
|
|
3
|
|
|
|
0.01
|
|
|
|
3
|
|
|
|
0.01
|
|
|
Acquisition and integration costs
|
|
|
7
|
|
|
|
0.02
|
|
|
|
10
|
|
|
|
0.03
|
|
|
Pre-separation costs
|
|
|
20
|
|
|
|
0.06
|
|
|
|
—
|
|
|
|
—
|
|
|
Other
|
|
|
1
|
|
|
|
—
|
|
|
|
4
|
|
|
|
0.01
|
|
|
Adjustment for taxes (a) |
|
|
(47
|
)
|
|
|
(0.14
|
)
|
|
|
(27
|
)
|
|
|
(0.08
|
)
|
|
Non-GAAP Net income
|
|
$
|
226
|
|
|
$
|
0.67
|
|
|
$
|
222
|
|
|
$
|
0.63
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
January 31, 2014, management uses a non-GAAP effective tax rate of
16%, respectively, that we believe to be indicative of on-going
operations.
|
|
|
|
Historical amounts are reclassified to conform with current
presentation.
|
|
|
|
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.
|
|
|
|
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 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.
|
|
|
|
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 non-GAAP net income and diluted EPS reconciliation
is estimated based on our current information.
|
|
|
|
Page 5
|
|
|
|
|
|
AGILENT TECHNOLOGIES, INC.
|
|
SEGMENT INFORMATION
|
|
(In millions, except where noted)
|
|
(Unaudited)
|
|
PRELIMINARY
|
|
|
|
|
|
|
|
|
|
Life Sciences and Diagnostics
|
|
|
|
|
|
Q1'14
|
|
Q1'13
|
|
Q4'13
|
|
Orders
|
|
$
|
564
|
|
|
$
|
562
|
|
|
$
|
642
|
|
|
Revenue
|
|
$
|
591
|
|
|
$
|
564
|
|
|
$
|
601
|
|
|
Gross Margin, %
|
|
|
56
|
%
|
|
|
54
|
%
|
|
|
55
|
%
|
|
Income from Operations
|
|
$
|
100
|
|
|
$
|
82
|
|
|
$
|
115
|
|
|
Segment Assets
|
|
$
|
4,287
|
|
|
$
|
4,233
|
|
|
$
|
4,291
|
|
|
Return On Invested Capital (a), %
|
|
|
9
|
%
|
|
|
7
|
%
|
|
|
10
|
%
|
|
|
|
|
|
|
|
|
|
Chemical Analysis
|
|
|
|
|
|
Q1'14
|
|
Q1'13
|
|
Q4'13
|
|
Orders
|
|
$
|
415
|
|
|
$
|
399
|
|
|
$
|
445
|
|
|
Revenue
|
|
$
|
417
|
|
|
$
|
394
|
|
|
$
|
412
|
|
|
Gross Margin, %
|
|
|
52
|
%
|
|
|
51
|
%
|
|
|
53
|
%
|
|
Income from Operations
|
|
$
|
94
|
|
|
$
|
81
|
|
|
$
|
102
|
|
|
Segment Assets
|
|
$
|
1,757
|
|
|
$
|
1,721
|
|
|
$
|
1,756
|
|
|
Return On Invested Capital (a), %
|
|
|
21
|
%
|
|
|
18
|
%
|
|
|
23
|
%
|
|
|
|
|
|
|
|
|
|
Electronic Measurement
|
|
|
|
|
|
Q1'14
|
|
Q1'13
|
|
Q4'13
|
|
Orders
|
|
$
|
699
|
|
|
$
|
749
|
|
|
$
|
742
|
|
|
Revenue
|
|
$
|
671
|
|
|
$
|
722
|
|
|
$
|
705
|
|
|
Gross Margin, %
|
|
|
56
|
%
|
|
|
57
|
%
|
|
|
56
|
%
|
|
Income from Operations
|
|
$
|
102
|
|
|
$
|
125
|
|
|
$
|
134
|
|
|
Segment Assets
|
|
$
|
1,929
|
|
|
$
|
1,962
|
|
|
$
|
1,997
|
|
|
Return On Invested Capital (a), %
|
|
|
24
|
%
|
|
|
28
|
%
|
|
|
30
|
%
|
|
|
|
|
|
|
|
|
|
Income from operations reflect the results of our reportable
segments under Agilent's management reporting system which are not
necessarily in conformity with GAAP financial measures. Income from
operations of our reporting segments exclude, among other things,
charges related to the amortization of intangibles, the impact of
restructuring charges, acquisition and integration costs and
pre-separation costs.
|
|
|
|
|
|
In general, recorded orders represent firm purchase commitments from
our customers with established terms and conditions for products and
services that will be delivered within six months.
|
|
|
|
|
|
(a) Return On Invested Capital is a non-GAAP measure
and is defined as income 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 7 of
these tables, along with additional information regarding the use
of this non-GAAP measure.
|
|
|
|
|
|
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 segment information is estimated based on our
current information.
|
|
|
|
|
|
Page 6
|
|
|
|
|
|
|
|
AGILENT TECHNOLOGIES, INC.
|
|
RECONCILIATION OF ROIC
|
|
(In millions)
|
|
(Unaudited)
|
|
PRELIMINARY
|
|
|
|
|
|
|
|
LDG
|
|
CAG
|
|
EMG
|
|
AGILENT
|
|
|
LDG
|
|
CAG
|
|
EMG
|
|
AGILENT
|
|
|
LDG
|
|
CAG
|
|
EMG
|
|
Numerator:
|
|
Q1'14
|
|
Q1'14
|
|
Q1'14
|
|
Q1'14
|
|
|
Q1'13
|
|
Q1'13
|
|
Q1'13
|
|
Q1'13
|
|
|
Q4'13
|
|
Q4'13
|
|
Q4'13
|
|
Non-GAAP income from operations
|
|
$
|
100
|
|
|
$
|
94
|
|
|
$
|
102
|
|
|
$
|
296
|
|
|
|
$
|
82
|
|
|
$
|
81
|
|
|
$
|
125
|
|
|
$
|
288
|
|
|
|
$
|
115
|
|
|
$
|
102
|
|
|
$
|
134
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxes and Other (income)/expense
|
|
|
16
|
|
|
|
15
|
|
|
|
16
|
|
|
|
47
|
|
|
|
|
13
|
|
|
|
13
|
|
|
|
20
|
|
|
|
46
|
|
|
|
|
18
|
|
|
|
17
|
|
|
|
22
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment return
|
|
|
84
|
|
|
|
79
|
|
|
|
86
|
|
|
|
249
|
|
(a) |
|
|
69
|
|
|
|
68
|
|
|
|
105
|
|
|
|
242
|
|
(a) |
|
|
97
|
|
|
|
85
|
|
|
|
112
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment return annualized
|
|
$
|
336
|
|
|
$
|
316
|
|
|
$
|
344
|
|
|
$
|
996
|
|
|
|
$
|
276
|
|
|
$
|
272
|
|
|
$
|
420
|
|
|
$
|
968
|
|
|
|
$
|
388
|
|
|
$
|
340
|
|
|
$
|
448
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Denominator:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment assets (b) |
|
$
|
4,287
|
|
|
$
|
1,757
|
|
|
$
|
1,929
|
|
|
$
|
7,973
|
|
|
|
$
|
4,233
|
|
|
$
|
1,721
|
|
|
$
|
1,962
|
|
|
$
|
7,915
|
|
|
|
$
|
4,291
|
|
|
$
|
1,756
|
|
|
$
|
1,997
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net current liabilities (c) |
|
|
413
|
|
|
|
249
|
|
|
|
508
|
|
|
|
1,172
|
|
|
|
|
396
|
|
|
|
238
|
|
|
|
550
|
|
|
|
1,175
|
|
|
|
|
437
|
|
|
|
258
|
|
|
|
536
|
|
|
Invested capital
|
|
$
|
3,874
|
|
|
$
|
1,508
|
|
|
$
|
1,421
|
|
|
$
|
6,801
|
|
|
|
$
|
3,837
|
|
|
$
|
1,483
|
|
|
$
|
1,412
|
|
|
$
|
6,740
|
|
|
|
$
|
3,854
|
|
|
$
|
1,498
|
|
|
$
|
1,461
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average invested capital
|
|
$
|
3,864
|
|
|
$
|
1,503
|
|
|
$
|
1,441
|
|
|
$
|
6,804
|
|
|
|
$
|
3,753
|
|
|
$
|
1,502
|
|
|
$
|
1,493
|
|
|
$
|
6,752
|
|
|
|
$
|
3,847
|
|
|
$
|
1,497
|
|
|
$
|
1,473
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ROIC
|
|
|
9
|
%
|
|
|
21
|
%
|
|
|
24
|
%
|
|
|
15
|
%
|
|
|
|
7
|
%
|
|
|
18
|
%
|
|
|
28
|
%
|
|
|
14
|
%
|
|
|
|
10
|
%
|
|
|
23
|
%
|
|
|
30
|
%
|
|
|
|
|
|
ROIC calculation:(annualized current quarter segment
return)/(average of the two most recent quarter-end balances of
Segment Invested Capital)
|
|
|
|
(a) Agilent return is equal to non-GAAP net income of $226 million
plus net interest expense after tax of $23 million for Q1'14 and
$222 million plus net interest expense after tax of $20 million
for Q1'13. Please see "Non-GAAP Net Income and Diluted EPS
Reconciliations" for a reconciliation of non-GAAP net income to
GAAP net income.
|
|
|
|
(b) Segment assets consist of inventory, accounts receivable,
property plant and equipment, gross goodwill and other intangibles,
deferred taxes and allocated corporate assets.
|
|
|
|
(c) Includes accounts payable, employee compensation and benefits,
deferred revenue, certain other accrued liabilities and allocated
corporate liabilities.
|
|
|
|
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. When we complete a major acquisition, we may
adjust invested capital for the relevant segment in the quarter when
the acquisition occurred. 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 based on our current
information.
|
|
|
|
Page 7
|
|
|
Source: Agilent Technologies Inc.
Agilent Technologies Inc.
EDITORIAL CONTACT:
Amy Flores, +1
408-345-8194
amy_flores@agilent.com
INVESTOR
CONTACT:
Alicia Rodriguez, +1 408-345-8948
alicia_rodriguez@agilent.com