Agilent Technologies Reports Second Quarter 2010 Results

During the second quarter, Agilent had restructuring charges of $22 million, Varian-related acquisition costs of $10 million, and $9 million of non-cash amortization. Excluding these items and $3 million of other net charges, Agilent reported second quarter adjusted net income of $152 million, or $0.43 per share.(1) On a comparable basis, the company earned $44 million, or $0.13 per share(1), one year ago.

Bill Sullivan, Agilent president and CEO, said, Overall, Agilent had a very solid second quarter. From a market perspective, we saw year-over-year revenue growth in every region and most of the key markets that we serve. All of our businesses performed well.

Chemical Analysis revenues were up 19 percent above one year ago as demand continued to improve in applied markets. Food safety, petrochemical and environmental markets all reflected double-digit growth. Consumables, services and support businesses also remained strong.

Life Sciences revenues were 12 percent ahead of last year. Demand was solid from academia and government customers. Reductions in pharmaceutical R&D were offset by growth in developing countries, as well as biotech spending.

Second quarter Electronic Measurement revenues were up 18 percent from one year ago, rebounding to almost $700 million. Agilent's general purpose markets continued to strengthen, led by an overall improvement in the economy and demand in electronics and semiconductors. On May 1, the divestiture of the Network Services business was completed.

Second quarter ROIC of 23 percent(3) compared with 8 percent(3) one year ago. Inventory Days on Hand decreased by 16 days to 91 days, while Receivables Days Sales Outstanding, at 47, remained the same compared with a year ago. Agilent generated $224 million of cash from operations during the second quarter, ending the quarter with $1.4 billion of net cash.

Looking ahead, Sullivan said, As the economic recovery continues to gain momentum, we believe that Agilent is in an excellent position to respond to the opportunities of its markets around the world.

Agilent's acquisition of Varian, Inc. closed on May 14, 2010. Varian is expected to add about $370 million of additional revenue in the second half of Agilent's fiscal year 2010, as well increase earnings per share by 8 cents.

Excluding the impact of the Varian acquisition, fiscal third quarter revenues are expected to be about 16 to19 percent above last year, while non-GAAP earnings are expected to be in the range of $0.43 to $0.45 per share(2) compared with $0.15 one year ago. For the full fiscal year 2010, excluding the impact of the Varian acquisition, Agilent expects stand-alone revenues to be up roughly 12 percent and non-GAAP earnings to be in the range of $1.70 to $1.75 per share.(2)