SANTA CLARA, Calif.--(BUSINESS WIRE)--Oct. 14, 2014--
Agilent Technologies Inc. (NYSE:A) today announced it is exiting its
Nuclear Magnetic Resonance business. Agilent entered the NMR business in
2010, with the acquisition of Varian. Since then, the business has not
met growth and profitability objectives.
“Today’s announcement represents a difficult decision necessary to drive
improved profitability,” said Mike McMullen, president and chief
operating officer, and CEO-elect. “The NMR team has been extremely
dedicated and has made many excellent contributions. However, this
action is a step in ensuring that our investments are placed on
higher-value life sciences, applied markets and diagnostics solutions
that will continue to drive growth across the company.”
Agilent will stop taking new NMR system orders immediately, but the
company will continue to meet customer commitments for orders in
progress and for ongoing support contracts. Agilent will continue to
provide service on all installed NMR systems.
The company expects that this decision will eliminate about 300 jobs,
mostly within the next 12 months. The majority of the affected positions
are located in Yarnton, U.K., and Santa Clara, California.
Today’s announcement is part of Agilent’s strategy to address the
business shortfalls of its Research Products Division. In early 2013
Agilent announced its exit of the OEM and Specialty Magnet business and
later the MRI business to focus resources on the core NMR portfolio.
Despite these adjustments, the NMR business has continued to fall short
of growth and profitability objectives.
To cover the cost of exiting this business, Agilent will take an
approximate $72 million restructuring charge in the fourth quarter. It
expects a $20 million to $30 million decline in revenues in fiscal year
2015 due to the NMR business closure, but a positive impact of about $10
million in operating profit in FY15.
For the fourth quarter of 2014, Agilent anticipates non-GAAP earnings
per share of $0.87 to $0.91, and projects revenues to be negatively
affected by currency at about $13 million, and lower NMR-related
revenues by about $12 million.
Keysight has posted its investor roadshow slide deck on its website at www.investor.keysight.com.
“New Agilent” will post its investor roadshow slide deck on Friday, Oct.
17, after the market closes at www.investor.agilent.com.
About NMR
Nuclear magnetic resonance (NMR) spectroscopy is an analytical chemistry
technique used in quality control and research for determining the
content and purity of a sample as well as its molecular structure. It is
used primarily in academia and government, the pharmaceutical, biotech
and chemical industries.
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.
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 the separation of
Agilent’s electronic measurement business; future revenues, earnings and
profitability; the future demand for the company’s products and
services; and customer expectations. 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 include those detailed in
Agilent’s filings with the Securities and Exchange Commission, including
our latest Form 10-K and Form 10-Q. 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.
NOTE TO EDITORS: Further technology, corporate citizenship and executive
news is available at www.agilent.com/go/news.
Source: Agilent Technologies Inc.
Agilent Technologies Inc.
EDITORIAL CONTACTS:
Michele Drake,
+1-408-345-8396
michele_drake@agilent.com
or
Neil
Rees, +44 186 529 1472 (U.K.)
neil_rees@agilent.com
or
INVESTOR
CONTACT:
Alicia Rodriguez, +1-408-345-8948
alicia_rodriguez@agilent.com