CIMdata PLM Industry Summary Online Archive
15 May 2009
Financial News
Agilent Technologies Reports Second Quarter 2009 Results
Highlights:
GAAP net loss of $101 million, or ($0.29) per share
Non-GAAP earnings of $44 million, or $0.13 per share(1)
Positive operating cash flow of $137 million in quarter
Revenue of $1.09 billion, down 25 percent from last year, orders down 33 percent from one year earlier
Restructuring actions on track to achieve $525 million of annualized savings by mid-2010
Agilent Technologies Inc. reported revenues of $1.09 billion for the second fiscal quarter ended April 30, 2009, 25 percent below one year ago. Second quarter GAAP net loss was $101 million, or ($0.29) per diluted share. Last year’s second quarter GAAP net income was $173 million, or $0.47 per share.
During the second quarter, Agilent had restructuring and asset impairment charges of $98 million and $12 million of non-cash amortization. It also recognized a quarter-to-date tax adjustment of $31 million and had $4 million of other net charges. Excluding these items, Agilent reported second quarter adjusted net income of $44 million, or $0.13 per share. On a comparable basis, the company earned $172 million, or $0.46 per share, one year ago.
“In the second quarter, Agilent continued to deal aggressively with the effects of the severe global economic downturn,” said Bill Sullivan, Agilent president and chief executive officer. “Total revenues of $1.09 billion were 25 percent below last year despite the relative outperformance of our Bio-Analytical Segment, which was off 6 percent.
“The global collapse of electronics production caused severe declines in our Electronic Measurement and Semiconductor & Board Test segments, where revenues were off by 33 percent and 63 percent, respectively, from one year ago. As previously announced, we are moving very quickly to restructure these businesses to achieve double-digit profitability even at these severely depressed activity levels.”
Second quarter Return On Invested Capital(2) fell to 8 percent compared to 24 percent one year ago because of lower earnings. Net working capital was reduced by $228 million from last year, and cash generated from operations during the second quarter was $137 million. The company ended the quarter with net cash of $922 million.
Looking ahead, Sullivan noted that there are some tentative signs that the global downturn may be nearing a trough. Said Sullivan, “If these early signals of a bottoming in global electronics markets continue, we could anticipate a bottoming in our electronic measurement business in the next few months. There are also some indications that bio-analytical markets could begin to benefit from the global stimulus packages by year-end. Based on these indicators, we would expect full year fiscal 2009 revenues to be down roughly 25 percent from 2008.
“Our restructuring of corporate infrastructure and the businesses is on track to achieve $525 million of annualized savings by mid-FY2010. Regardless of the economic environment, our commitment is to remain cash-flow positive, to keep employees focused on customers, products and technologies, and to deliver performance consistent with Agilent’s operating model.”
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