Highlights:
-
GAAP net income of $16 million, or $0.05 per share
-
Non-GAAP net income of $297 million, or $0.88 per share(1)
-
Orders of $1.91 billion and revenues of $1.81 billion
-
Agilent successfully completed the spinoff of its electronic
measurement business, now Keysight Technologies, on Nov. 1, 2014.
-
In FY15, Agilent plans to return approximately $500 million in capital
to shareholders.
-
First-quarter fiscal year 2015 revenue guidance of $1.02 billion to
$1.04 billion, and non-GAAP earnings guidance of $0.39 to $0.43 per
share(2)
-
Fiscal year 2015 revenue guidance of $4.12 billion to $4.18 billion,
and non-GAAP earnings guidance at $1.68 to $1.78 per share(2)
SANTA CLARA, Calif.--(BUSINESS WIRE)--Nov. 17, 2014--
Agilent Technologies Inc. (NYSE: A) today reported orders of $1.91
billion, up 4 percent over one year ago, for the fourth fiscal quarter
ended Oct. 31, 2014, and revenues of $1.81 billion, up 5 percent
compared with one year ago. Fourth-quarter GAAP net income was $16
million, or $0.05 per share. Last year’s fourth-quarter GAAP net income
was $211 million, or $0.63 per share.
These results include Keysight Technologies, formerly Agilent’s
electronic measurement business. Agilent completed the spinoff of
Keysight on Nov. 1 by distributing Keysight common stock to Agilent
shareholders. Keysight financial results will be reported by Keysight as
a separate, publicly traded company.
During the fourth quarter, Agilent had pre-separation costs of $70
million, intangible amortization of $47 million, a net loss on
extinguishment of debt of $68 million, mostly non-cash charges of $68
million related to exiting the Nuclear Magnetic Resonance business, and
a tax expense of $13 million. Excluding these items and $15 million of
other net costs, Agilent reported fourth-quarter adjusted net income of
$297 million, or $0.88 per share(1).
Agilent’s Life Sciences, Diagnostics and Applied Chemical Markets (LDA)
revenues were $1.04 billion, up 3 percent over last year, reflecting
growth across all key end markets. Orders of $1.15 billion were up 5
percent compared with last year. LDA operating margin was 20.4 percent.
“Our LDA business finished the year strong, with record revenues and
orders,” said Agilent CEO Bill Sullivan. “During the quarter, while
generating these record numbers, we completed the company separation
flawlessly, without business disruption to either company.”
“We are excited about Agilent’s future as a company focused one hundred
percent on the life sciences, diagnostics and applied markets, with
innovative new product rollouts planned for this year and market trends
looking positive,” he added.
In FY15, Agilent plans to return approximately $500 million in capital
to shareholders, including approximately $135 million in dividends and
approximately $365 million in stock buybacks. The repurchases will occur
from time to time, in the open market, with consideration given to
Agilent’s stock price.
Agilent’s first-quarter 2015 revenues are expected to be in the range of
$1.02 billion to $1.04 billion. First-quarter non-GAAP earnings are
expected to be in the range of $0.39 to $0.43 per share(2).
For the full fiscal year 2015, Agilent expects revenue of $4.12 billion
to $4.18 billion and non-GAAP earnings of $1.68 to $1.78 per share(2).
About Agilent Technologies
Agilent Technologies Inc. (NYSE: A), a global leader in life sciences,
diagnostics and applied chemical markets, is the premier laboratory
partner for a better world. Agilent works with customers in more than
100 countries, providing instruments, software, services and consumables
for the entire laboratory workflow. Agilent generated revenues of $4.0
billion in fiscal 2014. The company employs about 12,000 people
worldwide. Information about Agilent is available at www.agilent.com.
Agilent’s management will present more details about its fourth-quarter
FY2014 financial results on a conference call with investors today at
2:30 p.m. PT. This event will be webcast live in listen-only mode.
Listeners may log on at www.investor.agilent.com
and select “Q4 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
approximately 5:30 p.m. PT today through Nov. 24. The replay number is
+1 855 859-2056, or from outside the United States, +1 404 537-3406;
enter passcode 5848337.
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; planned new products; market
trends; the future demand for the company’s products and services;
customer expectations; plans regarding the company’s dividend program
and stock repurchase program; and revenue and non-GAAP earnings guidance
for the first quarter and full fiscal year 2015. 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
Quarterly Report on Form 10-Q for the quarter ended July 31, 2014.
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, net loss on debt extinguishment, NMR business exit, 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 6 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 Q1 FY15 and
full fiscal year 2015 excludes primarily the impacts of acquisition and
integration costs, post-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 $45 million
per quarter.
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
|
|
|
|
|
|
October 31,
|
|
Percent
|
|
|
|
|
2014
|
|
|
|
2013
|
|
|
Inc/(Dec)
|
|
|
|
|
|
|
|
|
|
Orders
|
|
$
|
1,905
|
|
|
$
|
1,829
|
|
|
4
|
%
|
|
|
|
|
|
|
|
|
|
Net revenue
|
|
$
|
1,805
|
|
|
$
|
1,718
|
|
|
5
|
%
|
|
|
|
|
|
|
|
|
|
Costs and expenses:
|
|
|
|
|
|
|
|
Cost of products and services
|
|
|
908
|
|
|
|
810
|
|
|
12
|
%
|
|
Research and development
|
|
|
189
|
|
|
|
173
|
|
|
9
|
%
|
|
Selling, general and administrative
|
|
|
534
|
|
|
|
450
|
|
|
19
|
%
|
|
Total costs and expenses
|
|
|
1,631
|
|
|
|
1,433
|
|
|
14
|
%
|
|
|
|
|
|
|
|
|
|
Income from operations
|
|
|
174
|
|
|
|
285
|
|
|
(39
|
%)
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
|
2
|
|
|
|
2
|
|
|
—
|
|
|
Interest expense
|
|
|
(26
|
)
|
|
|
(30
|
)
|
|
(13
|
%)
|
|
Other income (expense), net
|
|
|
(65
|
)
|
|
|
(3
|
)
|
|
—
|
|
|
|
|
|
|
|
|
|
|
Income before taxes
|
|
|
85
|
|
|
|
254
|
|
|
(67
|
%)
|
|
|
|
|
|
|
|
|
|
Provision for income taxes
|
|
|
69
|
|
|
|
43
|
|
|
60
|
%
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
16
|
|
|
$
|
211
|
|
|
(92
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share:
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.05
|
|
|
$
|
0.64
|
|
|
|
|
Diluted
|
|
$
|
0.05
|
|
|
$
|
0.63
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares used in computing net income per share:
|
|
|
|
|
|
|
|
Basic
|
|
|
334
|
|
|
|
331
|
|
|
|
|
Diluted
|
|
|
338
|
|
|
|
336
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends declared per common share
|
|
$
|
0.132
|
|
|
$
|
0.120
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The preliminary income statement is estimated based on our current
information.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Page 1
|
|
|
|
AGILENT TECHNOLOGIES, INC.
|
|
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
|
|
(In millions, except per share amounts)
|
|
(Unaudited)
|
|
PRELIMINARY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
|
|
|
|
|
|
October 31,
|
|
Percent
|
|
|
|
2014
|
|
2013
|
|
Inc/(Dec)
|
|
|
|
|
|
|
|
|
|
Orders
|
|
$
|
7,134
|
|
|
$
|
6,827
|
|
|
4
|
%
|
|
|
|
|
|
|
|
|
|
Net revenue
|
|
$
|
6,981
|
|
|
$
|
6,782
|
|
|
3
|
%
|
|
|
|
|
|
|
|
|
|
Costs and expenses:
|
|
|
|
|
|
|
|
Cost of products and services
|
|
|
3,388
|
|
|
|
3,247
|
|
|
4
|
%
|
|
Research and development
|
|
|
719
|
|
|
|
704
|
|
|
2
|
%
|
|
Selling, general and administrative
|
|
|
2,043
|
|
|
|
1,880
|
|
|
9
|
%
|
|
Total costs and expenses
|
|
|
6,150
|
|
|
|
5,831
|
|
|
5
|
%
|
|
|
|
|
|
|
|
|
|
Income from operations
|
|
|
831
|
|
|
|
951
|
|
|
(13
|
%)
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
|
9
|
|
|
|
7
|
|
|
29
|
%
|
|
Interest expense
|
|
|
(113
|
)
|
|
|
(107
|
)
|
|
6
|
%
|
|
Other income (expense), net
|
|
|
(81
|
)
|
|
|
8
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
Income before taxes
|
|
|
646
|
|
|
|
859
|
|
|
(25
|
%)
|
|
|
|
|
|
|
|
|
|
Provision for income taxes
|
|
|
149
|
|
|
|
135
|
|
|
10
|
%
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
497
|
|
|
$
|
724
|
|
|
(31
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share:
|
|
|
|
|
|
|
|
Basic
|
|
$
|
1.49
|
|
|
$
|
2.12
|
|
|
|
|
Diluted
|
|
$
|
1.47
|
|
|
$
|
2.10
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares used in computing net income per share:
|
|
|
|
|
|
|
|
Basic
|
|
|
333
|
|
|
|
341
|
|
|
|
|
Diluted
|
|
|
338
|
|
|
|
345
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends declared per common share
|
|
$
|
0.528
|
|
|
$
|
0.460
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The preliminary income statement is estimated based on our current
information.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Page 2
|
|
|
|
AGILENT TECHNOLOGIES, INC.
|
|
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
|
|
(In millions)
|
|
(Unaudited)
|
|
PRELIMINARY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Year Ended
|
|
|
October 31,
|
|
October 31,
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$
|
16
|
|
|
$
|
211
|
|
|
$
|
497
|
|
|
$
|
724
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income (loss), net of tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized gain on investments
|
|
3
|
|
|
|
2
|
|
|
|
11
|
|
|
|
7
|
|
|
Amounts reclassified into earnings related to investments
|
|
—
|
|
|
|
—
|
|
|
|
(1
|
)
|
|
|
—
|
|
|
Unrealized gain on derivative instruments
|
|
7
|
|
|
|
1
|
|
|
|
8
|
|
|
|
8
|
|
|
Amounts reclassified into earnings related to derivative instruments
|
|
—
|
|
|
|
(2
|
)
|
|
|
1
|
|
|
|
(10
|
)
|
|
Foreign currency translation
|
|
(216
|
)
|
|
|
88
|
|
|
|
(275
|
)
|
|
|
1
|
|
|
Net defined benefit pension cost and post retirement plan costs:
|
|
|
|
|
|
|
|
|
Change in actuarial net loss
|
|
(179
|
)
|
|
|
183
|
|
|
|
(143
|
)
|
|
|
228
|
|
|
Change in net prior service benefit
|
|
(8
|
)
|
|
|
(8
|
)
|
|
|
(32
|
)
|
|
|
(32
|
)
|
|
Other comprehensive income (loss)
|
|
(393
|
)
|
|
|
264
|
|
|
|
(431
|
)
|
|
|
202
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income (loss)
|
$
|
(377
|
)
|
|
$
|
475
|
|
|
$
|
66
|
|
|
$
|
926
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The preliminary statement of comprehensive income 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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
October 31,
|
|
October 31,
|
|
|
|
2014
|
|
|
2013
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
3,028
|
|
|
$
|
2,675
|
|
|
Accounts receivable, net
|
|
|
983
|
|
|
|
899
|
|
|
Inventory
|
|
|
1,072
|
|
|
|
1,066
|
|
|
Other current assets
|
|
|
376
|
|
|
|
343
|
|
|
Total current assets
|
|
|
5,459
|
|
|
|
4,983
|
|
|
|
|
|
|
|
|
Property, plant and equipment, net
|
|
|
1,101
|
|
|
|
1,134
|
|
|
Goodwill
|
|
|
2,899
|
|
|
|
3,047
|
|
|
Other intangible assets, net
|
|
|
667
|
|
|
|
916
|
|
|
Long-term investments
|
|
|
159
|
|
|
|
139
|
|
|
Other assets
|
|
|
475
|
|
|
|
467
|
|
|
Total assets
|
|
$
|
10,760
|
|
|
$
|
10,686
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
Accounts payable
|
|
$
|
475
|
|
|
$
|
432
|
|
|
Employee compensation and benefits
|
|
|
395
|
|
|
|
401
|
|
|
Deferred revenue
|
|
|
435
|
|
|
|
439
|
|
|
Other accrued liabilities
|
|
|
346
|
|
|
|
330
|
|
|
Total current liabilities
|
|
|
1,651
|
|
|
|
1,602
|
|
|
|
|
|
|
|
|
Long-term debt
|
|
|
2,762
|
|
|
|
2,699
|
|
|
Retirement and post-retirement benefits
|
|
|
422
|
|
|
|
294
|
|
|
Other long-term liabilities
|
|
|
638
|
|
|
|
802
|
|
|
Total liabilities
|
|
|
5,473
|
|
|
|
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; 608 million shares at October 31, 2014
|
|
|
|
|
|
and 602 million shares at October 31, 2013, issued
|
|
|
6
|
|
|
|
6
|
|
|
Treasury stock at cost; 273 million shares at October 31, 2014 and
|
|
|
|
|
|
269 million shares at October 31, 2013
|
|
|
(9,807
|
)
|
|
|
(9,607
|
)
|
|
Additional paid-in-capital
|
|
|
8,966
|
|
|
|
8,723
|
|
|
Retained earnings
|
|
|
6,459
|
|
|
|
6,073
|
|
|
Accumulated other comprehensive income (loss)
|
|
|
(340
|
)
|
|
|
91
|
|
|
Total stockholders' equity
|
|
|
5,284
|
|
|
|
5,286
|
|
|
Non-controlling interest
|
|
|
3
|
|
|
|
3
|
|
|
Total equity
|
|
|
5,287
|
|
|
|
5,289
|
|
|
Total liabilities and equity
|
|
$
|
10,760
|
|
|
$
|
10,686
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
|
|
Year
|
|
|
|
Ended
|
|
Ended
|
|
|
|
October 31,
|
|
October 31,
|
|
|
|
|
2014
|
|
|
|
2014
|
|
|
Cash flows from operating activities:
|
|
|
|
|
|
Net income
|
|
$
|
16
|
|
|
$
|
497
|
|
|
|
|
|
|
|
|
Adjustments to reconcile net income to net cash provided by (used
in) operating activities:
|
|
|
|
|
|
Depreciation and amortization
|
|
|
92
|
|
|
|
383
|
|
|
Accelerated amortization of interest rate swap gain (due to early
redemption of debt)
|
|
|
(14
|
)
|
|
|
(22
|
)
|
|
Share-based compensation
|
|
|
19
|
|
|
|
96
|
|
|
Excess tax benefit from share-based plans
|
|
|
2
|
|
|
|
(1
|
)
|
|
Excess and obsolete inventory related charges
|
|
|
40
|
|
|
|
79
|
|
|
Other non-cash expenses, net
|
|
|
28
|
|
|
|
22
|
|
|
Changes in assets and liabilities:
|
|
|
|
|
|
Accounts receivable
|
|
|
(119
|
)
|
|
|
(119
|
)
|
|
Inventory
|
|
|
(26
|
)
|
|
|
(99
|
)
|
|
Accounts payable
|
|
|
79
|
|
|
|
50
|
|
|
Employee compensation and benefits
|
|
|
41
|
|
|
|
9
|
|
|
Other assets and liabilities
|
|
|
8
|
|
|
|
(182
|
)
|
|
Net cash provided by operating activities (a) |
|
|
166
|
|
|
|
713
|
|
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
Investments in property, plant and equipment
|
|
|
(45
|
)
|
|
|
(207
|
)
|
|
Proceeds from sale of property, plant and equipment
|
|
|
—
|
|
|
|
14
|
|
|
Payment to acquire equity method investment
|
|
|
—
|
|
|
|
(25
|
)
|
|
Change in restricted cash and cash equivalents, net
|
|
|
(5
|
)
|
|
|
(4
|
)
|
|
Proceeds from divestiture
|
|
|
—
|
|
|
|
2
|
|
|
Proceeds from sale of investment securities
|
|
|
—
|
|
|
|
1
|
|
|
Acquisition of businesses and intangible assets, net of cash
acquired
|
|
|
(10
|
)
|
|
|
(13
|
)
|
|
Net cash used in investing activities
|
|
|
(60
|
)
|
|
|
(232
|
)
|
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
Issuance of common stock under employee stock plans
|
|
|
52
|
|
|
|
188
|
|
|
Treasury stock repurchases
|
|
|
—
|
|
|
|
(200
|
)
|
|
Issuance of senior notes
|
|
|
1,099
|
|
|
|
1,099
|
|
|
Debt issuance costs
|
|
|
(9
|
)
|
|
|
(9
|
)
|
|
Prepayment of senior notes
|
|
|
(500
|
)
|
|
|
(1,000
|
)
|
|
Payment of dividends
|
|
|
(44
|
)
|
|
|
(176
|
)
|
|
Proceeds from short-term borrowings
|
|
|
2
|
|
|
|
37
|
|
|
Repayment of short-term borrowings
|
|
|
(37
|
)
|
|
|
(37
|
)
|
|
Proceeds from revolving credit facility
|
|
|
—
|
|
|
|
50
|
|
|
Repayment of revolving credit facility
|
|
|
—
|
|
|
|
(50
|
)
|
|
Excess tax benefit from share-based plans
|
|
|
(2
|
)
|
|
|
1
|
|
|
Net cash provided by (used in) financing activities
|
|
|
561
|
|
|
|
(97
|
)
|
|
|
|
|
|
|
|
Effect of exchange rate movements
|
|
|
(30
|
)
|
|
|
(31
|
)
|
|
|
|
|
|
|
|
Net increase in cash and cash equivalents
|
|
|
637
|
|
|
|
353
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at beginning of period
|
|
|
2,391
|
|
|
|
2,675
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at end of period
|
|
$
|
3,028
|
|
|
$
|
3,028
|
|
|
|
|
|
|
|
|
(a) Cash payments included in operating activities:
|
|
|
|
|
|
Restructuring payments
|
|
|
6
|
|
|
|
29
|
|
|
Income tax payments, net
|
|
|
60
|
|
|
|
131
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The preliminary cash flow is estimated based on our current
information.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Page 5
|
|
|
|
AGILENT TECHNOLOGIES, INC.
|
|
NON-GAAP NET INCOME AND DILUTED EPS RECONCILIATIONS
|
|
(In millions, except per share amounts)
|
|
(Unaudited)
|
|
PRELIMINARY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Year Ended
|
|
|
|
October 31,
|
|
October 31,
|
|
|
|
2014
|
|
Diluted EPS
|
|
2013
|
|
Diluted EPS
|
|
2014
|
|
Diluted EPS
|
|
2013
|
|
Diluted EPS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Net income
|
|
$
|
16
|
|
$
|
0.05
|
|
|
|
$
|
211
|
|
$
|
0.63
|
|
|
|
$
|
497
|
|
$
|
1.47
|
|
|
$
|
|
724
|
|
$
|
2.10
|
|
|
Non-GAAP adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring and other related costs
|
|
|
—
|
|
|
—
|
|
|
|
|
(3
|
)
|
|
(0.01
|
)
|
|
|
|
(4
|
)
|
|
(0.01
|
)
|
|
|
|
53
|
|
|
0.15
|
|
|
Asset impairments and write-downs
|
|
|
4
|
|
|
0.01
|
|
|
|
|
—
|
|
|
—
|
|
|
|
|
4
|
|
|
0.01
|
|
|
|
|
3
|
|
|
0.01
|
|
|
Acceleration of share-based compensation related to workforce
reduction
|
|
|
1
|
|
|
—
|
|
|
|
|
3
|
|
|
0.01
|
|
|
|
|
1
|
|
|
—
|
|
|
|
|
3
|
|
|
0.01
|
|
|
Intangible amortization
|
|
|
47
|
|
|
0.14
|
|
|
|
|
48
|
|
|
0.15
|
|
|
|
|
197
|
|
|
0.58
|
|
|
|
|
199
|
|
|
0.58
|
|
|
Transformational initiatives
|
|
|
11
|
|
|
0.03
|
|
|
|
|
5
|
|
|
0.01
|
|
|
|
|
29
|
|
|
0.09
|
|
|
|
|
19
|
|
|
0.06
|
|
|
Acquisition and integration costs
|
|
|
1
|
|
|
—
|
|
|
|
|
7
|
|
|
0.02
|
|
|
|
|
12
|
|
|
0.04
|
|
|
|
|
29
|
|
|
0.08
|
|
|
Pre-separation costs
|
|
|
70
|
|
|
0.21
|
|
|
|
|
5
|
|
|
0.01
|
|
|
|
|
192
|
|
|
0.57
|
|
|
|
|
5
|
|
|
0.01
|
|
|
Net loss on extinguishment of debt
|
|
|
68
|
|
|
0.20
|
|
|
|
|
—
|
|
|
—
|
|
|
|
|
89
|
|
|
0.26
|
|
|
|
|
—
|
|
|
—
|
|
|
Nuclear Magnetic Resonance (NMR) business exit
|
|
|
68
|
|
|
0.20
|
|
|
|
|
—
|
|
|
—
|
|
|
|
|
68
|
|
|
0.20
|
|
|
|
|
—
|
|
|
—
|
|
|
Other
|
|
|
(2
|
)
|
|
(0.01
|
)
|
|
|
|
4
|
|
|
0.01
|
|
|
|
|
(9
|
)
|
|
(0.03
|
)
|
|
|
|
15
|
|
|
0.04
|
|
|
Adjustment for taxes (a)
|
|
|
13
|
|
|
0.05
|
|
|
|
|
(9
|
)
|
|
(0.02
|
)
|
|
|
|
(47
|
)
|
|
(0.14
|
)
|
|
|
|
(55
|
)
|
|
(0.16
|
)
|
|
Non-GAAP Net income
|
|
$
|
297
|
|
$
|
0.88
|
|
|
|
$
|
271
|
|
$
|
0.81
|
|
|
|
$
|
1,029
|
|
$
|
3.04
|
|
|
$
|
|
995
|
|
$
|
2.88
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 and year
ended October 31, 2014, management uses a non-GAAP effective tax
rate of 16% 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, NMR
business exit, net loss on debt extinguishment 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.
|
|
|
|
Restructuring costs include incremental expenses incurred
in the period associated with publicly announced major
restructuring programs, usually aimed at material changes in
business and/or cost structure. Such costs may include one-time
termination benefits, asset impairments, facility-related costs
and contract termination fees.
|
|
|
|
Asset impairments and write-downs include assets that have
been written-down to their fair value.
|
|
|
|
Transformational initiatives include expenses incurred in the
period associated with targeted cost reduction activities such as
manufacturing transfers, small site consolidations, reorganizations,
insourcing or outsourcing of activities. Such costs may include move
and relocation costs, one-time termination benefits and other
one-time reorganization costs.
|
|
|
|
Acquisition and Integration costs include all incremental
expenses incurred to effect a business combination which have been
expensed during the period. Such acquisition costs may include
advisory, legal, accounting, valuation, and other professional or
consulting fees. Such integration costs may include expenses
directly related to integration of business and facility operations,
information technology systems and infrastructure and other
employee-related costs.
|
|
|
|
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 not have been incurred if we had no plan to spin-off our
Electronic Measurement Group.
|
|
|
|
Net loss on extinguishment of debt relates to the early
redemption of some of our senior notes.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, net loss on debt extinguishment 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 6
|
|
|
|
AGILENT TECHNOLOGIES, INC.
|
|
SEGMENT INFORMATION
|
|
(In millions, except where noted)
|
|
(Unaudited)
|
|
PRELIMINARY
|
|
|
|
|
|
|
|
|
|
Life Sciences and Diagnostics
|
|
|
|
Q4'14
|
|
Q4'13
|
|
Q3'14
|
|
Orders
|
|
$
|
665
|
|
|
$
|
642
|
|
|
$
|
597
|
|
|
Revenue
|
|
$
|
612
|
|
|
$
|
601
|
|
|
$
|
592
|
|
|
Gross Margin, %
|
|
|
54.2
|
%
|
|
|
55.1
|
%
|
|
|
53.6
|
%
|
|
Income from Operations
|
|
$
|
107
|
|
|
$
|
115
|
|
|
$
|
93
|
|
|
Segment Assets
|
|
$
|
4,312
|
|
|
$
|
4,291
|
|
|
$
|
4,305
|
|
|
Return On Invested Capital (a), %
|
|
|
9
|
%
|
|
|
10
|
%
|
|
|
8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Chemical Analysis
|
|
|
|
|
|
|
|
|
|
Q4'14
|
|
Q4'13
|
|
Q3'14
|
|
Orders
|
|
$
|
480
|
|
|
$
|
445
|
|
|
$
|
420
|
|
|
Revenue
|
|
$
|
431
|
|
|
$
|
412
|
|
|
$
|
417
|
|
|
Gross Margin, %
|
|
|
53.2
|
%
|
|
|
52.9
|
%
|
|
|
52.7
|
%
|
|
Income from Operations
|
|
$
|
106
|
|
|
$
|
102
|
|
|
$
|
97
|
|
|
Segment Assets
|
|
$
|
1,815
|
|
|
$
|
1,756
|
|
|
$
|
1,791
|
|
|
Return On Invested Capital (a), %
|
|
|
23
|
%
|
|
|
23
|
%
|
|
|
21
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Electronic Measurement
|
|
|
|
|
|
|
|
|
|
Q4'14
|
|
Q4'13
|
|
Q3'14
|
|
Orders
|
|
$
|
760
|
|
|
$
|
742
|
|
|
$
|
722
|
|
|
Revenue
|
|
$
|
762
|
|
|
$
|
705
|
|
|
$
|
757
|
|
|
Gross Margin, %
|
|
|
55.7
|
%
|
|
|
56.4
|
%
|
|
|
55.3
|
%
|
|
Income from Operations
|
|
$
|
160
|
|
|
$
|
134
|
|
|
$
|
149
|
|
|
Segment Assets
|
|
$
|
1,976
|
|
|
$
|
1,997
|
|
|
$
|
1,963
|
|
|
Return On Invested Capital (a), %
|
|
|
37
|
%
|
|
|
30
|
%
|
|
|
35
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, NMR business exit 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 8 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 7
|
|
|
|
AGILENT TECHNOLOGIES, INC.
|
|
RECONCILIATION OF ROIC
|
|
(In millions)
|
|
(Unaudited)
|
|
PRELIMINARY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LDG
|
|
CAG
|
|
EMG
|
|
AGILENT
|
|
LDG
|
|
CAG
|
|
EMG
|
|
AGILENT
|
|
LDG
|
|
CAG
|
|
EMG
|
|
Numerator:
|
|
Q4'14
|
|
Q4'14
|
|
Q4'14
|
|
Q4'14
|
|
Q4'13
|
|
Q4'13
|
|
Q4'13
|
|
Q4'13
|
|
Q3'14
|
|
Q3'14
|
|
Q3'14
|
|
Non-GAAP income from operations
|
|
$
|
107
|
|
|
$
|
106
|
|
|
$
|
160
|
|
|
$
|
373
|
|
|
$
|
115
|
|
|
$
|
102
|
|
|
$
|
134
|
|
|
$
|
351
|
|
|
$
|
93
|
|
|
$
|
97
|
|
|
$
|
149
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxes and Other (income)/expense
|
|
|
17
|
|
|
|
16
|
|
|
|
24
|
|
|
|
57
|
|
|
|
18
|
|
|
|
17
|
|
|
|
22
|
|
|
|
56
|
|
|
|
15
|
|
|
|
15
|
|
|
|
23
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment return
|
|
|
90
|
|
|
|
90
|
|
|
|
136
|
|
|
|
316
|
|
(a) |
|
97
|
|
|
|
85
|
|
|
|
112
|
|
|
|
295
|
|
(a) |
|
78
|
|
|
|
82
|
|
|
|
126
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment return annualized
|
|
$
|
360
|
|
|
$
|
360
|
|
|
$
|
544
|
|
|
$
|
1,264
|
|
|
$
|
388
|
|
|
$
|
340
|
|
|
$
|
448
|
|
|
$
|
1,180
|
|
|
$
|
312
|
|
|
$
|
328
|
|
|
$
|
504
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Denominator:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment assets (b) |
|
$
|
4,312
|
|
|
$
|
1,815
|
|
|
$
|
1,976
|
|
|
$
|
8,098
|
|
|
$
|
4,291
|
|
|
$
|
1,756
|
|
|
$
|
1,997
|
|
|
$
|
8,044
|
|
|
$
|
4,305
|
|
|
$
|
1,791
|
|
|
$
|
1,963
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net current liabilities (c) |
|
|
477
|
|
|
|
290
|
|
|
|
498
|
|
|
|
1,262
|
|
|
|
437
|
|
|
|
258
|
|
|
|
536
|
|
|
|
1,237
|
|
|
|
416
|
|
|
|
249
|
|
|
|
503
|
|
|
Invested capital
|
|
$
|
3,835
|
|
|
$
|
1,525
|
|
|
$
|
1,478
|
|
|
$
|
6,836
|
|
|
$
|
3,854
|
|
|
$
|
1,498
|
|
|
$
|
1,461
|
|
|
$
|
6,807
|
|
|
$
|
3,889
|
|
|
$
|
1,542
|
|
|
$
|
1,460
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average invested capital
|
|
$
|
3,862
|
|
|
$
|
1,533
|
|
|
$
|
1,469
|
|
|
$
|
6,863
|
|
|
$
|
3,847
|
|
|
$
|
1,497
|
|
|
$
|
1,473
|
|
|
$
|
6,817
|
|
|
$
|
3,866
|
|
|
$
|
1,520
|
|
|
$
|
1,431
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ROIC
|
|
|
9
|
%
|
|
|
23
|
%
|
|
|
37
|
%
|
|
|
18
|
%
|
|
|
10
|
%
|
|
|
23
|
%
|
|
|
30
|
%
|
|
|
17
|
%
|
|
|
8
|
%
|
|
|
21
|
%
|
|
|
35
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 $297 million
plus net interest expense after tax of $19 million for Q4'14 and
$271 million plus net interest expense after tax of $24 million for
Q4'13. 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 8
|
|
|
Source: Agilent Technologies Inc.
Agilent Technologies Inc.
EDITORIAL CONTACT:
Michele Drake,
+1-408-345-8396
michele_drake@agilent.com
INVESTOR
CONTACT:
Alicia Rodriguez, +1-408-345-8948
alicia_rodriguez@agilent.com