Agilent Technologies Files 10-Q for Quarter Ended April 30, 2001 Showing Discontinued Operations.Business Editors PALO ALTO Palo Alto, city, California Palo Alto (păl`ō ăl`tō), city (1990 pop. 55,900), Santa Clara co., W Calif.; inc. 1894. Although primarily residential, Palo Alto has aerospace, electronics, and advanced research industries. , Calif.--(BUSINESS WIRE)--June 14, 2001 Restated Financials Show Healthcare Solutions Business as Discontinued Operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. in Anticipation The performance of an act or obligation before it is legally due. In patent law, the publication of the existence of an invention that has already been patented or has a patent pending, of Finalizing Sale Agilent Technologies This article needs sources or references that appear in reliable, third-party publications. Alone, primary sources and sources affiliated with the subject of this article are not sufficient for an accurate encyclopedia article. Inc. (NYSE NYSE See: New York Stock Exchange : A) today filed its Form 10-Q Form 10-Q See 10-Q. with the U.S. Securities and Exchange Commission for the quarter ended April 30, 2001. The Form 10-Q includes restated consolidated financial statements Consolidated Financial Statements The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge , which show "discontinued operations" resulting from the pending sale of Agilent's Healthcare Solutions Group to Royal Philips (company) Philips - A Dutch multinational electronics company. It produces washing machines, consumer electronics, integrated circuits and light bulbs. Together with Sony they set the Compact Disc standard, especially Green Book CD-ROM. Electronics. The parties are working to close the transaction as soon as possible. Reporting results for Agilent's healthcare solutions business as discontinued operations is consistent with accounting standards for reporting the effects of a planned divestiture The breakup of AT&T. By federal court order, AT&T divested itself on January 1, 1984 of its 23 operating companies, which became known as the Regional Bell Operating Companies (RBOCs). . In the attached financial tables, information has been restated for the fiscal 2000 and 2001 three- and six-month periods that ended April 30. The restatements include the reallocation Noun 1. reallocation - a share that has been allocated again allocation, allotment - a share set aside for a specific purpose 2. reallocation of general overhead charges previously charged to the healthcare solutions business to Agilent's remaining business segments. These charges were $88 million in the first half of fiscal 2001. The just-filed 10-Q and restated consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: financial tables can be found on the Web at www.investor.agilent (Agilent Technologies, Santa Clara, CA, www.agilent.com) The test and measurement subsidiary of HP. In 1999, HP split off the division that started the company into an independent subsidiary named Agilent Technologies. At the time, the $2. .com. The company also plans to provide quarterly and segment information for the last two years within 30 days. Agilent announced plans to sell its healthcare solutions business to Philips on Nov. 17, 2000. The sale received antitrust Antitrust The antitrust laws apply to virtually all industries and to every level of business, including manufacturing, transportation, distribution, and marketing. They prohibit a variety of practices that restrain trade. clearance CLEARANCE, com. law. The name of a certificate given by the collector of a port, in which is stated the master or commander (naming him) of a ship or vessel named and described, bound for a port, named, and having on board goods described, has entered and cleared his ship or vessel from the European Commission European Commission, branch of the governing body of the European Union (EU) invested with executive and some legislative powers. Located in Brussels, Belgium, it was founded in 1967 when the three treaty organizations comprising what was then the European Community in March of this year and from the U.S. Department of Justice earlier this month. About Agilent Technologies Agilent Technologies Inc. (NYSE: A) is a global technology leader in communications, electronics, life sciences and healthcare. With 48,000 employees serving customers in more than 120 countries, Agilent had net revenue of $10.8 billion in fiscal year 2000. Information about Agilent Technologies can be found on the Web at www.agilent.com. This news release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. (including, without limitation, statements regarding the timing of the closure of the sale of Agilent's healthcare solutions business to Philips) that involve risks and uncertainties that could cause results of Agilent Technologies to differ materially from management's current expectations. These and other risks are detailed in Agilent's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended Oct. 31, 2000, and its Quarterly Report on Form 10-Q for the quarter ended April 30, 2001, as filed with the Securities and Exchange Commission.
AGILENT TECHNOLOGIES, INC.
PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF EARNINGS
Excluding Amortization of Goodwill and Other Intangibles,
Acquisition Related Items, Discontinued Operations and
Other One-Time and Non-Operational Items
(Unaudited)
(In millions, except per share amounts)
Three Months Ended
April 30, Percent
2001 2000 Inc/(Dec)
------- ------- -------
Orders $ 1,397 $ 2,635 (47%)
Net revenue $ 2,382 $ 2,142 11%
Costs and expenses:
Cost of products
and services 1,404 1,069 31%
Research and development 347 263 32%
Selling, general
and administrative 605 616 (2%)
------- -------
Total costs & expenses 2,356 1,948 21%
------- -------
Earnings from continuing
operations 26 194 (87%)
Other income (expense), net (9) 15 (160%)
------- -------
Earnings from continuing
operations before taxes 17 209 (92%)
Provision for taxes 6 69 (91%)
------- -------
Pro forma net earnings from
continuing operations $ 11 $ 140 (92%)
======= =======
Pro forma net earnings
per share - Basic $ 0.02 $ 0.31
======= =======
Pro forma net earnings
per share - Diluted $ 0.02 $ 0.30
======= =======
Average shares
used in computing
pro forma net
earnings per share:
Basic 456 452
Diluted 461 465
The above pro forma condensed consolidated statement of earnings
has been adjusted to exclude the following one-time and
non-operational items and reconcile to GAAP net earnings:
Net earnings per GAAP $ 96 $ 166
Pro forma adjustments:
Goodwill & other intangibles 88 10
Gain on land sale (269) --
Gain relating to sale of securities -- (13)
Discontinued operations (pre-tax) (25) (44)
Adjustment for income taxes 121 21
------- -------
Pro forma net earnings $ 11 $ 140
======= =======
AGILENT TECHNOLOGIES, INC.
PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF EARNINGS
Excluding Amortization of Goodwill and Other Intangibles,
Acquisition Related Items, Discontinued Operations and
Other One-Time and Non-Operational Items
(Unaudited)
(In millions, except per share amounts)
Six Months Ended
April 30, Percent
2001 2000 Inc/(Dec)
------- ------- -------
Orders $ 3,869 $ 4,970 (22%)
Net revenue $ 4,930 $ 3,993 23%
Costs and expenses:
Cost of products and services 2,679 2,024 32%
Research and development 689 522 32%
Selling, general and
administrative 1,211 1,141 6%
------- ------- -------
Total costs & expenses 4,579 3,687 24%
------- ------- -------
Earnings from continuing
operations 351 306 15%
Other income (expense), net 2 45 (96%)
------- -------
Earnings from continuing
operations before taxes 353 351 1%
Provision for taxes 116 116 %
------- -------
Pro forma net earnings from
continuing operations $ 237 $ 235 1%
======= =======
Pro forma net earnings
per share - Basic $ 0.52 $ 0.52
======= =======
Pro forma net earnings
per share - Diluted $ 0.51 $ 0.51
======= =======
Average shares
used in computing
pro forma net
earnings per share:
Basic 455 452
Diluted 464 462
The above pro forma condensed consolidated statement of earnings
has been adjusted to exclude the following one-time and
non-operational items and reconcile to GAAP net earnings:
Net earnings per GAAP $ 250 $ 297
Pro forma adjustments:
Goodwill & other intangibles 129 18
FAS 133 adoption 41 --
Gain on land sale (269) --
Gain relating to sale of securities (6) (13)
Discontinued operations (pre-tax) (22) (112)
Adjustment for income taxes 114 45
------- -------
Pro forma net earnings $ 237 $ 235
======= =======
AGILENT TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENT OF EARNINGS
(Unaudited)
(In millions, except per share amounts)
Three Months Ended
April 30, Percent
2001 2000 Inc/(Dec)
------- ------- -------
Orders $ 1,397 $ 2,635 (47%)
Net revenue $ 2,382 $ 2,142 11%
Costs and expenses:
Cost of products
and services 1,406 1,069 32%
Research and development 349 263 33%
Selling, general
and administrative 689 626 10%
------- -------
Total costs & expenses 2,444 1,958 25%
------- -------
(Loss)/earnings from
continuing operations (62) 184 (134%)
Other income (expense), net 260 28 829%
------- -------
Earnings from continuing
operations before taxes 198 212 (7%)
Provision for taxes 115 72 60%
------- -------
Net earnings from continuing
operations 83 140 (41%)
Net earnings from discontinued
operations, net of taxes 13 26 (50%)
------- -------
Net earnings $ 96 $ 166 (42%)
======= =======
Net earnings per share - Basic:
Continuing operations $ 0.18 $ 0.31
Discontinued operations $ 0.03 $ 0.06
Net earnings per share $ 0.21 $ 0.37
Net earnings per share - Diluted:
Continuing operations $ 0.18 $ 0.31
Discontinued operations $ 0.03 $ 0.06
Net earnings per share $ 0.21 $ 0.36
Average shares
used in computing
net earnings per share:
Basic 456 452
Diluted 461 457
AGILENT TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENT OF EARNINGS
(Unaudited)
(In millions, except per share amounts)
Six Months Ended
April 30,
------------------- Percent
2001 2000 Inc/(Dec)
------- ------- --------
Orders $ 3,869 $ 4,970 (22%)
Net revenue $ 4,930 $ 3,993 23%
Costs and expenses:
Cost of products and services 2,683 2,024 33%
Research and development 691 522 32%
Selling, general and administrative 1,334 1,159 15%
------- -------
Total costs & expenses 4,708 3,705 27%
------- -------
Earnings from continuing operations 222 288 (23%)
Other income (expense), net 277 58 378%
------- -------
Earnings from continuing operations
before taxes and cumulative effect
of a change in accounting principle 499 346 44%
Provision for taxes 235 118 99%
------- -------
Net earnings from continuing operations
before cumulative effect of a change
in accounting principle 264 228 16%
Cumulative effect of adopting FAS 133
(net of tax benefit of $16 million) (25) -
Net earnings from discontinued
operations, net of taxes 11 69 (84%)
------- -------
Net earnings $ 250 $ 297 (16%)
======= =======
Net earnings per share - Basic:
Continuing operations $ 0.58 $ 0.51
Cumulative effect of adopting
SFAS No. 133 $ (0.05) $ -
Discontinued operations $ 0.02 $ 0.16
Net earnings per share $ 0.55 $ 0.67
Net earnings per share - Diluted:
Continuing operations $ 0.57 $ 0.51
Cumulative effect of adopting
SFAS No. 133 $ (0.05) $ -
Discontinued operations $ 0.02 $ 0.15
Net earnings per share $ 0.54 $ 0.66
Average shares used in computing net
earnings per share:
Basic 455 445
Diluted 464 448
AGILENT TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEET
(Unaudited)
(In millions, except par value and share amounts)
April 30, October 31,
-------------------
2001 2000
------- -------
ASSETS
Current assets:
Cash and cash equivalents $ 809 $ 996
Accounts receivable, net 1,573 1,938
Inventory 1,791 1,610
Other current assets 825 595
------- -------
Total current assets 4,998 5,139
Property, plant and equipment, net 1,848 1,685
Goodwill and other intangible
assets, net 1,238 467
Other assets 383 442
Net investment in
discontinued operations 613 597
------- -------
Total assets $ 9,080 $ 8,330
======= =======
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 653 $ 857
Notes payable and short-term
borrowings 773 110
Employee compensation and benefits 657 679
Deferred revenue 377 322
Accrued taxes and other
accrued liabilities 638 695
------- -------
Total current liabilities 3,098 2,663
------- -------
Other liabilities 366 402
Commitments and contingencies
Stockholders' equity:
Preferred stock; $0.01 par value;
125,000,000 shares authorized; none
issued and outstanding
Common stock; $0.01 par value;
2,000,000,000 shares authorized;
457,073,000 shares at April 30, 2001 5 5
and 453,976,000 shares at October 31,
2000 issued and outstanding
Additional paid-in capital 4,589 4,508
Retained earnings 1,007 757
Other comprehensive income (loss) 15 (5)
------- -------
Total stockholders' equity 5,616 5,265
------- -------
Total liabilities and
stockholders' equity $ 9,080 $ 8,330
======= =======
AGILENT TECHNOLOGIES, INC.
EARNINGS (LOSS) FROM CONTINUING OPERATIONS
BY BUSINESS SEGMENT
(Unaudited)
(In Millions)
For the three months ended April 30
Yr vs.Yr Sequential
2001 2000 %change %change
------------------------------------------
EARNINGS (LOSS) FROM CONTINUING OPERATIONS
Test and measurement $ 10 $ 130 (92%) (95%)
Semiconductor products (97) 54 (280%) (283%)
Chemical analysis 25 0 n/m 79%
----- ----- ---- ----
Total $ (62) $ 184 (134%) (122%)
===== ===== ==== ====
PRO FORMA EARNINGS (LOSS) FROM CONTINUING OPERATIONS
Test and measurement $ 89 $ 136 (35%) (64%)
Semiconductor products (92) 55 (267%) (261%)
Chemical analysis 29 3 867% 61%
----- ----- ---- ----
Total $ 26 $ 194 (87%) (92%)
===== ===== ==== ====
AGILENT TECHNOLOGIES, INC.
EARNINGS (LOSS) FROM CONTINUING OPERATIONS
BY BUSINESS SEGMENT
(Unaudited)
(In Millions)
For the six months ended April 30
Yr vs.Yr
2001 2000 %change
----------------------------
EARNINGS (LOSS) FROM CONTINUING OPERATIONS
Test and measurement $ 227 $ 202 12%
Semiconductor products (44) 77 (157%)
Chemical analysis 39 9 333%
----- ----- -----
Total $ 222 $ 288 (23%)
===== ===== =====
PRO FORMA EARNINGS (LOSS) FROM CONTINUING OPERATIONS
Test and measurement $ 339 $ 213 59%
Semiconductor products (35) 79 (144%)
Chemical analysis 47 14 236%
----- ----- -----
Total $ 351 $ 306 15%
===== ===== =====
AGILENT TECHNOLOGIES, INC.
ORDERS AND REVENUE
FROM CONTINUING OPERATIONS
BY BUSINESS SEGMENT
(Unaudited)
(In Millions)
For the three months ended April 30
Yr vs.Yr Sequential
2001 2000 %change %change
-------------------------------------
ORDERS
Test and measurement $ 932 $1,768 (47%) (42%)
Semiconductor products 200 626 (68%) (64%)
Chemical analysis 265 241 10% (11%)
------ ------ ------ ------
Total $1,397 $2,635 (47%) (43%)
====== ====== ====== ======
NET REVENUE
Test and measurement $1,648 $1,385 19% (2%)
Semiconductor products 443 497 (11%) (26%)
Chemical analysis 291 260 12% 9%
------ ------ ------ ------
Total $2,382 $2,142 11% (7%)
====== ====== ====== ======
In general, recorded orders represent firm purchase commitments from
our customers with established terms and conditions for products and
services that will be delivered within six months.
AGILENT TECHNOLOGIES, INC.
ORDERS AND REVENUE
FROM CONTINUING OPERATIONS
BY BUSINESS SEGMENT
(Unaudited)
(In Millions)
For the six months ended April 30 Yr vs.Yr
2001 2000 %change
--------------------------
ORDERS
Test and measurement $2,552 $3,281 (22%)
Semiconductor products 753 1,188 (37%)
Chemical analysis 564 501 13%
------ ------ ------
Total $3,869 $4,970 (22%)
====== ====== ======
NET REVENUE
Test and measurement $3,333 $2,546 31%
Semiconductor products 1,038 944 10%
Chemical analysis 559 503 11%
------ ------ ------
Total $4,930 $3,993 23%
====== ====== ======
In general, recorded orders represent firm purchase commitments from
our customers with established terms and conditions for products and
services that will be delivered within six months.
AGILENT TECHNOLOGIES, INC.
PERCENT CHANGE IN Q2 ORDERS AND NET REVENUE BY MARKET SEGMENT
YEAR VERSUS YEAR COMPARISON
Q2 FY01 versus Q2 FY00
(Unaudited)
Orders
------------------------------
Q2 FY01 % Change % of
$ Amount Y/Y Segment
------------------------------
Test and measurement
---------------------------------
Communications test $ 676 (36%) 73%
Semiconductor test 28 (91%) 3%
General purpose test 228 (43%) 24%
------- ------- -------
$ 932 (47%) 100%
======= ======= =======
Semiconductor products
---------------------------------
Networking and computing $ 20 (92%) 10%
Wireless 13 (88%) 7%
Imaging 105 (39%) 52%
Core opto business 62 (43%) 31%
------- ------- -------
$ 200 (68%) 100%
======= ======= =======
Revenue
------------------------------
Q2 FY01 % Change % of
$ Amount Y/Y Segment
------------------------------
Test and measurement
---------------------------------
Communications test $ 1,100 37% 67%
Semiconductor test 186 (16%) 11%
General purpose test 362 0% 22%
------- ------- -------
$ 1,648 19% 100%
======= ======= =======
Semiconductor products
----------------------------
Networking and computing $ 208 7% 47%
Wireless 54 (35%) 12%
Imaging 112 (8%) 25%
Core opto business 69 (31%) 16%
------- ------- -------
$ 443 (11%) 100%
======= ======= =======
AGILENT TECHNOLOGIES, INC.
PERCENT CHANGE IN Q2 ORDERS AND NET REVENUE BY MARKET SEGMENT
SEQUENTIAL COMPARISON
Q2 FY01 versus Q1 FY01
(Unaudited)
Orders
------------------------------
Q2 FY01 % Change % of
$ Amount Y/Y Segment
------------------------------
Test and measurement
---------------------------------
Communications test $ 676 (38%) 73%
Semiconductor test 28 (83%) 3%
General purpose test 228 (36%) 24%
------- ------- -------
$ 932 (42%) 100%
======= ======= =======
Semiconductor products
---------------------------------
Networking and computing $ 20 (93%) 10%
Wireless 13 (85%) 7%
Imaging 105 (10%) 52%
Core opto business 62 (17%) 31%
------- ------- -------
$ 200 (64%) 100%
======= ======= =======
Revenue
------------------------------
Q2 FY01 % Change % of
$ Amount Y/Y Segment
------------------------------
Test and measurement
---------------------------------
Communications test $ 1,100 3% 67%
Semiconductor test 186 (16%) 11%
General purpose test 362 (9%) 22%
------- ------- -------
$ 1,648 (2%) 100%
======= ======= =======
Semiconductor products
---------------------------------
Networking and computing $ 208 (22%) 47%
Wireless 54 (45%) 12%
Imaging 112 (23%) 25%
Core opto business 69 (20%) 16%
------- ------- -------
$ 443 (26%) 100%
======= ======= =======
AGILENT TECHNOLOGIES, INC.
ORDERS AND NET REVENUE FROM CONTINUING OPERATIONS
BY GEOGRAPHY
For The Three Months Ended April 30
(Unaudited)
(In millions)
------- ------
2001 2000 Inc / (Dec)
------- ------ -----------
ORDERS
United States $ 508 $1,137 (55%)
Europe 344 577 (40%)
Asia Pacific 487 776 (37%)
Latin America 26 61 (57%)
Canada 32 84 (62%)
------ ------
Total $1,397 $2,635 (47%)
====== ======
NET REVENUE
United States $ 892 $ 868 3%
Europe 499 469 6%
Asia Pacific 788 674 17%
Latin America 58 60 (3%)
Canada 145 71 104%
------ ------
Total $2,382 $2,142 11%
====== ======
In general, recorded orders represent firm purchase commitments
from our customers with established terms and conditions for products
and services that will be delivered within six months.
AGILENT TECHNOLOGIES, INC.
ORDERS AND NET REVENUE FROM CONTINUING OPERATIONS
BY GEOGRAPHY
For The Six Months Ended April 30
(Unaudited)
(In millions)
------ ------
2001 2000 Inc / (Dec)
------ ------ -----------
ORDERS
United States $1,481 $2,028 (27%)
Europe 870 1,092 (20%)
Asia Pacific 1,328 1,549 (14%)
Latin America 79 115 (31%)
Canada 111 186 (40%)
Total $3,869 $4,970 (22%)
====== ======
NET REVENUE
United States $2,017 $1,612 25%
Europe 1,038 884 17%
Asia Pacific 1,514 1,250 21%
Latin America 130 122 7%
Canada 231 125 85%
------ ------
Total $4,930 $3,993 23%
====== ======
In general, recorded orders represent firm purchase commitments
from our customers with established terms and conditions for products
and services that will be delivered within six months.
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