During the third quarter, Agilent had net gains from divestitures of $123 million, Varian-related acquisition and integration costs of $83 million, intangible amortization of $28 million and restructuring charges of $6 million. Excluding these items and $8 million of other net benefits, Agilent reported third quarter adjusted net income of $191 million, or $0.54 per share.(1) On a comparable basis, the company earned $53 million, or $0.15 per share(1), one year ago.
Bill Sullivan, Agilent president and CEO, said, We are pleased with a very solid quarter. The Varian integration is going well, and we had excellent organic growth across all of our instrument platforms and geographies.
Chemical Analysis revenues were up 62 percent above one year ago, or 13 percent on an organic basis. Growth continued across Agilent’s applied markets. Environmental, petrochemical and forensics markets all reflected double-digit growth.
Life Sciences revenues grew 28 percent over last year, or 15 percent on an organic basis. Strong demand was seen from academia and government customers. Growth in pharmaceutical R&D continued, with emerging markets driving demand.
Electronic Measurement revenues were up 24 percent over a year ago, or 34 percent excluding the Network Solutions divestiture. There was solid growth across all of Agilent’s markets – communications, aerospace and defense, industrial and semiconductor.
Third quarter ROIC was 20 percent(4), compared with 9 percent(4) one year ago. Inventory Days on Hand decreased by nine days to 97 days. Receivables Days Sales Outstanding, at 50, grew four days compared with a year ago, due to the Varian acquisition. Agilent generated $90 million of cash from operations during the third quarter. Net cash at the end of the third quarter was $267 million (5).
Looking ahead, Sullivan said, Our business outlook remains strong and we have raised guidance for the remainder of the fiscal year. We are excited about our robust pipeline of new product introductions and expect to take advantage of the many opportunities across our broad range of markets.
Fiscal fourth quarter revenues are expected to be approximately $1.52 billion, roughly 30 percent above last year. Fiscal fourth quarter non-GAAP earnings are expected to be in the range of $0.58 to $0.59 per share (3).
For the full fiscal year 2010, Agilent expects revenues of $5.4 billion, roughly 20 percent above last year. Non-GAAP earnings are expected to be in the range of $1.94 to $1.95 per share (3) .