+44 (0)24 7671 8970
More publications     •     Advertise with us     •     Contact us
 
News Article

Agilent Technologies Reports Strong First-Year Results

Source: Agilent Technologies Inc.

- Revenue of $10.8 Billion Up 29 Percent - Net Earnings Up 48 Percent - Fourth-Quarter EPS 13 Cents Over Company Guidance

Palo Alto, CA. Agilent Technologies Inc. (NYSE:A), a leading provider of innovative technologies for communications and life sciences, today reported record net revenue of $10.8 billion for fiscal 2000, an increase of 29 percent compared with fiscal 1999. Net earnings increased 48 percent for the year, and pro forma diluted net earnings per share were $1.63. Orders rose 35 percent for fiscal 2000, which ended Oct. 31.

"Our fourth quarter was a very strong finish to a great first year for Agilent," said Ned Barnholt, president and chief executive officer of Agilent. "Our revenue and profitability for the year were well ahead of our original plan and midyear guidance. We achieved these results because of the hard work and dedication of Agilent s people worldwide. Our products and services are helping our customers drive innovation in communications and life sciences.

"We achieved these results despite some real challenges," said Barnholt. "Our healthcare solutions business had a very tough year, and we experienced parts shortages because of industrywide capacity constraints and unprecedented demand for our communications products.

"I couldn t be more proud of what our people accomplished this past year. We completed the separation from Hewlett-Packard Company; turned in great financial results; brought out a lot of innovative new products; and launched companywide initiatives to align our systems, processes and rewards with our long-term business objectives. In the fourth quarter, we continued to build a very strong foundation for future growth in our strategic markets: communications and life sciences."

For the fourth quarter, diluted net earnings per share grew 69 percent to 66 cents. This includes the benefit of 17 cents from the sale of a portfolio of leased assets to The CIT Group Inc., offset by the 3-cent impact of the restructuring of the Healthcare Solutions Group announced in August. Compared to last year s fourth quarter, orders increased 24 percent; net revenue increased 38 percent, and net earnings rose 109 percent. Excluding the impact of the CIT sale and restructuring, net revenue increased 29 percent, and net earnings rose 63 percent for the quarter.

"We re very pleased with our results in our fourth quarter," said Barnholt. "We achieved strong order and revenue growth overall, especially in our businesses that serve the communications market. We were well ahead of the consensus estimates and guidance, even before the benefit of the CIT transaction. This quarter we made excellent progress on addressing parts shortages and increasing our capacity."

During the fourth quarter, orders from Agilent s communications and electronics businesses rose 32 percent. Net revenue for these businesses increased 59 percent compared to same period last year. These businesses comprise about 80 percent of the company s orders and revenue.

Growth in communications and electronics was driven by the continuing progress of network-equipment manufacturers, component manufacturers and service providers to build the next-generation communications infrastructure. Revenue growth was very strong for electronic-manufacturing test, optical-component test, system-on-a-chip test, wireless and fiber-optics test, and communications-test solutions. Revenue growth also was strong for components in wireless, fiber optics, networking and imaging.

The company s bioscience products are gaining strong market acceptance, and Agilent continues to increase investments for the life-sciences market. The healthcare solutions business achieved record order performance in the fourth quarter, with orders strong across all geographies. On Nov. 17, Agilent and Royal Philips Electronics announced that Philips will acquire Agilent s Healthcare Solutions Group. Agilent believes that the combination of its business with Philips will create a broad product offering necessary for success in the healthcare market.

"We re now more focused on achieving strong, profitable growth in communications and life sciences," said Barnholt. "We ve added manufacturing capacity in both areas to address the extremely strong demand for our products. We ll continue to emphasize product innovation to stay in leadership positions in our businesses.

"Going forward, our top priority is to execute our plans to achieve our growth and performance goals. For fiscal 2001, we re still comfortable with our guidance of at least 20 percent growth in net revenue, and net earnings about 8 percent of net revenue. For the first quarter of 2001, we believe that the EPS consensus estimate of about 45 cents is realistic."

The guidance for fiscal 2001 and the first quarter of 2001 takes into account the transactions with CIT and assumes the existing company structure that includes the Healthcare Solutions Group.

About Agilent Technologies

Agilent Technologies, Inc. (NYSE:A) is a diversified technology company, resulting from Hewlett-Packard Company s plan to strategically realign itself into two fully independent companies.

With approximately 47,000 employees serving customers in more than 120 countries, Agilent Technologies is a global leader in designing and manufacturing test, measurement and monitoring instruments, systems and solutions, and semiconductor and optical components. The company serves markets that include communications, electronics, life sciences and healthcare. In fiscal year 2000, the businesses comprising Agilent had net revenue of $10.8 billion.

Information about Agilent Technologies can be found on the Web at www.agilent.com.

More financial information about this quarter s earnings is available at http://www.investor.agilent.com. Agilent will host a live webcast in listen-only mode at: http://www.nyse.com/agilent/ and http://www.investor.agilent.com/medialist2.cfm The webcast will remain available on the company s Web site. A telephone replay of the conference call will be available at 4:00 P.M. (PST) on Nov. 20 through 4:00 P.M. (PST) Nov. 27. The replay number is (719) 457-0820, and pass-code is 576046.

This news release contains forward-looking statements (including, without limitation, information regarding projected net revenue, net earnings and net earnings per share) that involve risks and uncertainties that could cause the results of Agilent Technologies to differ materially from management s current expectations.

In addition, other risks that Agilent faces in running its operations include: the ability to identify and execute successfully through industry business cycles; shortages of critical parts; the timely ability to ramp manufacturing capacity to meet order demand; the ability to quickly adapt cost structures to changing conditions, including absorption of the fixed costs allocated to the Healthcare Solutions Group; the successful completion of the sale and transition of its Healthcare Solutions Group to Royal Philips Electronics; the economic, political and other risks associated with international sales and operations; the successful redesign and implementation of the company s business process and systems; and other risks detailed in Agilent s Annual Report on Form 10-K for the year ended October 31, 1999, and its Quarterly Report on Form 10-Q for the quarter ended July 31, 2000, as filed with the Securities and Exchange Commission.

Contact: Agilent Technologies Inc. Steve Beitler Tel: 650/752-5246 steve_beitler@agilent.com or Mary Lou Simmermacher Tel: 650/752-5283 marylou_simmermacher@agilent.com or Hilliard Terry Tel; 650/752-5329, (Analyst) hilliard_terry@agilent.com

Agilent Technologies Inc.
Steve Beitler
Tel: 650/752-5246
steve_beitler@agilent.com
or
Mary Lou Simmermacher
Tel: 650/752-5283
marylou_simmermacher@agilent.com
or
Hilliard Terry
Tel; 650/752-5329, (Analyst)
hilliard_terry@agilent.com
E-mail: hilliard_terry@agilent.com
Web site: http://www.investor.agilent.com/medialist2.cfm
×
Search the news archive

To close this popup you can press escape or click the close icon.
×
Logo
×
Register - Step 1

You may choose to subscribe to the Compound Semiconductor Magazine, the Compound Semiconductor Newsletter, or both. You may also request additional information if required, before submitting your application.


Please subscribe me to:

 

You chose the industry type of "Other"

Please enter the industry that you work in:
Please enter the industry that you work in: