Agilent Technologies Reports Third-Quarter 2003 Results; Company on Track to Achieve Profitability in Fourth Quarter.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)--Aug. 18, 2003 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 reported orders of $1.47 billion and revenue of $1.50 billion for the fiscal third quarter ended July July: see month. 31, 2003. During the quarter, the company recognized a $1.4 billion non-cash charge Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. required under Statement of Financial Accounting Standards No. 109, "Accounting for Income Taxes," and reported a GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). net loss of $1.56 billion, or $3.28 per share. Excluding that charge, the company would have reported a loss from operations of $110 million, or $0.23 per share, which compares to a GAAP loss of $223 million, or $0.48 per share, one year ago. Also excluding $99 million of net restructuring charges restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. and intangibles Property that is a "right" such as a patent, Copyright, or trademark, or one that is lacking physical existence, such as good will. amortization, 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. reported a net loss for the third quarter of $11 million, or $0.02 per share, versus a loss on a comparable basis of $0.31 per share one year ago. "We are encouraged by our third-quarter operating results," said Ned Barnholt, Agilent chairman, president and chief executive officer. "Orders and revenues came in at expectations, with earnings from operations near the top end of expectations. We are confident that we'll we'll Contraction of we will. we'll we will or we shall we'll will ~shall meet our commitment to achieve an operating breakeven breakeven 1. The level of output or sales necessary to cover fixed expenses. Companies in industries that have high fixed costs and, consequently, high breakevens, such as automobile and steel manufacturing, are likely to exhibit large fluctuations cost structure of $1.45 billion and return to profitability in the fourth quarter of this year."(1) Agilent saw a continued rebound rebound (rē´bownd), n/v 1. a recovery from illness. n 2. an outbreak of fresh reflex activity after withdrawal of a stimulus rebound adjective this quarter in semiconductor equipment orders, which reached their highest level in three years. Activity in the company's other segments remained roughly flat compared to the prior year. "We made good progress in continuing to reduce our structural costs," Barnholt said. "These costs were reduced by nearly $100 million during the quarter, while worldwide headcount head count or head·count n. 1. The act of counting people in a particular group. 2. The number of people counted in this way. Noun 1. fell by an additional 2,400 during the last three months." Continued progress was also reflected on the balance sheet. The company generated $38 million cash from working capital during the quarter despite sequentially se·quen·tial adj. 1. Forming or characterized by a sequence, as of units or musical notes. 2. Sequent. se·quen higher revenues. Capital spending capital spending Spending for long-term assets such as factories, equipment, machinery, and buildings that permits the production of more goods and services in future years. , at $62 million, remained below depreciation expense of $77 million. Net cash consumption was only $103 million despite $121 million of cash restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). payments. The company ended the quarter with over $1.4 billion in cash and equivalents. Looking ahead, Barnholt said, "We are seeing more evidence of a sustainable upturn in semiconductor capital equipment, and in the underlying semiconductor markets." Overall, the company anticipates a normal seasonal increase during the fiscal fourth quarter, with revenues in the range of $1.50 billion to $1.60 billion. Earnings before restructuring and amortization charges are expected to be in a range of an operating breakeven to $0.10 per share.(1) "Our fourth-quarter priority remains firmly focused on achieving a $1.45 billion operating breakeven cost structure, which will lay the foundation for sustained profitability in 2004," Barnholt said.(1) "I am confident we will achieve this milestone “Milemarker” redirects here. For the American indie rock band, see Milemarker (band). A milestone or kilometre sign is one of a series of numbered markers placed along a road at regular intervals, typically at the side of the road or in a median. while continuing to deliver the innovative new products to our customers that will ensure their, and our, long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. success."
Segment Results
Test and Measurement
(in millions)
Q3:F03 Q2:F03 Q3:F02
Orders 566 608 590
Revenues 613 652 521
Operating Profit(2) (69) (103) (260)
Third-quarter Test and Measurement orders were down 4 percent from one year ago and were off 7 percent from the seasonally strong second quarter. By market segment, communications test orders were down 9 percent from last year largely because of continued weakness in wireline test coupled with a modest decline in wireless test. General purpose test orders were up 8 percent compared to last year because of renewed re·new v. re·newed, re·new·ing, re·news v.tr. 1. To make new or as if new again; restore: renewed the antique chair. 2. strength in aerospace and defense markets and rising demand for the new oscilloscope oscilloscope (əsĭl`əskōp'), electronic device used to produce visual displays corresponding to electrical signals. Displays of such nonelectrical phenomena as the variations of a sound's intensity can be made if the phenomena are product line. Third-quarter revenues of $613 million were 18 percent above last year, when implementation of a new ERP (Enterprise Resource Planning) An integrated information system that serves all departments within an enterprise. Evolving out of the manufacturing industry, ERP implies the use of packaged software rather than proprietary software written by or for one customer. system interrupted in·ter·rupt v. in·ter·rupt·ed, in·ter·rupt·ing, in·ter·rupts v.tr. 1. To break the continuity or uniformity of: Rain interrupted our baseball game. 2. shipments. Sequentially, revenues were down 6 percent. The cumulative benefits of aggressive restructuring were clearly evident in the operating results of this segment. The third-quarter operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. of $69 million was improved by $34 million from three months earlier despite $39 million lower revenues. Compared to last year, the operating loss was reduced by $191 million on $92 million of increased revenues. It is anticipated that this segment will return to profitability in the fourth quarter of this year.
Automated Test
(in millions)
Q3:F03 Q2:F03 Q3:F02
Orders 251 219 212
Revenues 206 153 194
Operating Profit(2) 6 (37) (5)
The rebound in the Automated au·to·mate v. au·to·mat·ed, au·to·mat·ing, au·to·mates v.tr. 1. To convert to automatic operation: automate a factory. 2. Test segment continued in the third quarter, with orders of $251 million up 18 percent from last year to the highest levels since the fourth quarter of 2000. Sequentially, orders were up 15 percent, with both semiconductor test and manufacturing test participating in the increase. Revenues of $206 million were 6 percent above last year and up 35 percent sequentially. Semiconductor Test's third-quarter book-to-bill ratio Book-to-Bill Ratio The technology industry's demand-to-supply ratio for orders on a "firm's book" to number of orders filled. Notes: This ratio tells whether the company has more orders than it can deliver (if greater than 1), has the same amount of orders that it can of 1.29 was well ahead of the industry's June June: see month. reading of 1.19. In the third quarter, this segment returned to profitability, with operating profits Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. of $6 million compared to an operating loss of $5 million one year earlier and a loss of $37 million during the second quarter of this year.
Semiconductor Products
(in millions)
Q3:F03 Q2:F03 Q3:F02
Orders 358 420 383
Revenues 380 376 390
Operating Profit(2) (8) (43) (38)
Semiconductor Products' third-quarter orders of $358 million were down 7 percent from last year because of the continued sharp drop in the hardcopy (jargon) hardcopy - A paper printout of data displayed on a screen. Contrast softcopy. ASIC (Application Specific Integrated Circuit) Pronounced "a-sick." A chip that is custom designed for a specific application rather than a general-purpose chip such as a microprocessor. business. Excluding hardcopy ASICs, segment orders were up 8 percent from one year ago. Total segment orders were off 15 percent from the seasonally strong second quarter. Revenues of $380 million were down 3 percent from last year and up 1 percent sequentially. Excluding the hardcopy ASIC business, revenues were up 10 percent, consistent with the year-to-year increase in worldwide semiconductor industry sales. Segment operating results benefited from better yields on new products, the shutdown shut·down n. A cessation of operations or activity, as at a factory. shutdown Noun the closing of a factory, shop, or other business Verb shut down of a facility and restructuring actions. The third-quarter segment loss of $8 million represented a $35 million improvement over second-quarter results on essentially flat revenues. Compared to last year, the operating loss was reduced by $30 million despite $10 million lower sales.
Life Sciences and Chemical Analysis
(millions)
Q3:F03 Q2:F03 Q3:F02
Orders 293 280 271
Revenues 303 286 286
Operating Profit(2) 41 20 42
Life Sciences and Chemical Analysis orders and revenues showed some improvement from the generally flat trend of the past several quarters. Third-quarter orders of $293 million were up 8 percent from last year and up 5 percent sequentially. Life Sciences showed the most strength, with orders up 14 percent from last year and 10 percent sequentially while Chemical Analysis orders rose 4 percent from last year and were 1 percent ahead of the second quarter. Revenues of $303 million were 6 percent ahead of one year ago and the second quarter. Segment profits were about equal to one year ago. Compared to the second quarter, when spending is seasonally higher, operating profits were improved by $21 million on $17 million higher revenues. Note on Non-Cash Charge Related to SFAS SFAS Statement of Financial Accounting Standards SFAS Special Forces Assessment and Selection SFAS Student Financial Aid Services SFAS Sport Fishing Association of Singapore SFAS Safety Features Actuation System SFAS Statewide Fixed Assets System 109 In accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with the Statement of Financial Accounting Standards No. 109, "Accounting for Income Taxes," Agilent recorded a non-cash charge of $1.4 billion to establish a valuation allowance, which essentially eliminates its net deferred tax assets. This adjustment will impact both GAAP tax expense and shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. on Agilent's financial statements but has no impact on the company's cash flow, liquidity or future prospects. In large part because of Agilent's cumulative losses over the past few years in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and the United Kingdom, SFAS No. 109 requires that "greater weight be given to previous cumulative losses than the outlook for future profitability when determining whether deferred tax assets can be used." In essence, the company is now unable to reference forecasts of future operating profits to value its deferred tax assets for GAAP purposes. The company emphasized em·pha·size tr.v. em·pha·sized, em·pha·siz·ing, em·pha·siz·es To give emphasis to; stress. [From emphasis.] Adj. 1. that the establishment of this allowance was done strictly for purposes of conformance con·for·mance n. Conformity. Noun 1. conformance - correspondence in form or appearance conformity agreement, correspondence - compatibility of observations; "there was no agreement between theory and with GAAP, and does not in any way reflect reduced confidence in its future prospects. In fact, the company remains confident it will be able to use the entirety The whole, in contradistinction to a moiety or part only. When land is conveyed to Husband and Wife, they do not take by moieties, but both are seised of the entirety. of its deferred tax assets before expiration dates Expiration Date The day on which an options or futures contract is no longer valid and, therefore, ceases to exist. Notes: The expiration date for all listed stock options in the U.S. that range from 5 to 20 years. This valuation allowance will be reviewed periodically after the company has achieved positive retained earnings Retained Earnings The percentage of net earnings not paid out in dividends, but retained by the company to be reinvested in its core business or to pay debt. It is recorded under shareholders equity on the balance sheet. , and could be reversed, partially or totally, when business results have sufficiently improved to support recognition of the deferred tax assets for GAAP purposes. Until that point, Agilent will record a near zero tax rate for GAAP reporting purposes. About Agilent Technologies Agilent Technologies Inc. (NYSE: A) is a global technology leader in communications, electronics, life sciences and chemical analysis. The company's 30,000 employees serve customers in more than 110 countries. Agilent had net revenue of $6 billion in fiscal year 2002. Information about Agilent is available on the Web at www.agilent.com. More financial information about this quarter's earnings is available at www.investor.agilent.com. Agilent management will host a live webcast of its quarterly conference call with the investment community in listen-only mode today at 1:30 p.m. (PT). Listeners may log on at www.investor.agilent.com and select "conference calls." The webcast will remain on the company site for seven days. A telephone replay of the conference call will be available starting at 4:30 p.m. (PT) on Aug. 18 through Aug. 26 by dialing + 719 457 0820 and entering pass code 607246. 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. This news release contains forward-looking statements (including, without limitation, information regarding projected revenue, earnings, breakeven and profitability, delivery of new innovative products, the outlook for the markets that Agilent serves, deferred tax assets, valuation allowance and GAAP tax rate) that involve risks and uncertainties that could cause results of Agilent to differ materially from management's current expectations. In addition, other risks that Agilent faces in running its operations include: the ability to execute To run a program, which causes the computer to carry out its instructions. See executable code, instruction and EXE file. execute - execution successfully through the current economic downturn Downturn The transition point between a rising, expanding economy to a falling, contracting one. downturn A decline in security prices or economic activity following a period of rising or stable prices or activity. and an upturn while it continues to implement significant workforce and other cost reductions; the ability to meet and achieve the benefits of its cost reduction goals and otherwise successfully adapt its cost structures to continuing changes in business conditions; increasing competitive, pricing and gross margin pressures; the risk that our cost-cutting initiatives will impair im·pair tr.v. im·paired, im·pair·ing, im·pairs To cause to diminish, as in strength, value, or quality: an injury that impaired my hearing; a severe storm impairing communications. our ability to develop products and remain competitive and to operate effectively; the risk that we may not be able to use a portion of deferred tax assets before their expiration dates; the impact of geopolitical ge·o·pol·i·tics n. (used with a sing. verb) 1. The study of the relationship among politics and geography, demography, and economics, especially with respect to the foreign policy of a nation. 2. a. uncertainties on our markets and our ability to conduct business; the successful implementation of Agilent's ERP and other information systems and the ability to realize the benefits from these and other IT systems investments; the ability to improve asset performance to adapt to the current economic slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. and other changes in demand; the ability to successfully introduce new products at the right time, price and mix, and other risks detailed in the company's filings with the Securities and Exchange Commission, including its 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, 2002, its Quarterly Report on Form 10-Q Form 10-Q See 10-Q. for the quarter ended April 30, 2003 and its Current Report on Form 8-K Form 8-K The form required by the SEC when a publicly held company incurs any event that might affect its financial situation or the share value of its stock. Form 8-K See 8-K. filed July 17, 2003. The company assumes no obligation to update the information in this press release. (1) Agilent's goal of achieving an operating breakeven cost structure of $1.45 billion in the fourth quarter and the company's guidance range for the fourth quarter do not include restructuring costs and intangibles amortization. The $1.45 billion goal also excludes roughly $45 million of temporarily increased programmatic pro·gram·mat·ic adj. 1. Of, relating to, or having a program. 2. Following an overall plan or schedule: a step-by-step, programmatic approach to problem solving. 3. IT costs associated with its ERP and CRM (Customer Relationship Management) An integrated information system that is used to plan, schedule and control the presales and postsales activities in an organization. implementations. Restructuring costs for the fourth quarter cannot be reliably estimated and may be significant. Amortization of intangibles is expected to be about $9 million quarterly. Pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma tax rate is assumed to be 50 percent. (2) Before restructuring charges in all periods. NOTE TO EDITORS: Further technology, corporate citizenship Corporate Citizenship The extent to which businesses are socially responsible in meeting legal, ethical and economic responsibilities placed on them by shareholders. The aim it to create higher standards of living and quality of life in the community in which it operates, while and executive news is available on the Agilent news site at www.agilent.com/go/news.
AGILENT TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(In millions, except per share amounts)
(Unaudited)
Three Months Ended
July 31, Percent
2003 2002 Inc/(Dec)
------- ------ ---------
Orders $ 1,468 $1,456 1%
======= ======
Net revenue $ 1,502 $1,391 8%
Costs and expenses:
Cost of products and services 954 897 6%
Research and development 257 304 (15%)
Selling, general and administrative 481 619 (22%)
------- ------
Total costs and expenses 1,692 1,820 (7%)
------- ------
Loss from operations (190) (429) 56%
Other income (expense), net (1) 6 (117%)
------- ------
Loss from continuing operations
before taxes (191) (423) 55%
Benefit for taxes (81) (200) (60%)
------- ------
Loss from continuing operations before
tax valuation allowance (110) (223) 51%
Tax valuation allowance 1,435 -
------- ------
Loss from continuing operations (1,545) (223) (593%)
Loss from sale of discontinued
operations, net of taxes - (5)
------- ------
Loss before cumulative effect of
accounting changes (1,545) (228) (578%)
Tax adjustment for cumulative effect of
adopting SFAS No. 142 (11) -
------- ------
Net loss $(1,556) $ (228) (582%)
======= ======
Net loss per share - Basic and diluted:
Loss from continuing operations $ (3.25) $(0.48)
Loss from sale of discontinued
operations, net - (0.01)
Tax adjustment for cumulative effect of
adopting SFAS No. 142 (0.03) -
------- ------
Net loss $ (3.28) $(0.49)
======= ======
Weighted average shares used in
computing loss per share:
Basic and diluted 475 466
Historical amounts were reclassified to conform with current period
presentation.
AGILENT TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(In millions, except per share amounts)
(Unaudited)
Nine Months Ended
July 31, Percent
2003 2002 Inc/(Dec)
------- ------- ---------
Orders $ 4,353 $ 4,518 (4%)
======= =======
Net revenue $ 4,381 $ 4,274 3%
Costs and expenses:
Cost of products and services 2,798 2,711 3%
Research and development 830 928 (11%)
Selling, general and administrative 1,534 1,855 (17%)
------- -------
Total costs and expenses 5,162 5,494 (6%)
------- -------
Loss from operations (781) (1,220) 36%
Other income (expense), net 14 47 (70%)
------- -------
Loss from continuing operations
before taxes (767) (1,173) 35%
Benefit for taxes (399) (386) 3%
------- -------
Loss from continuing operations before
tax valuation allowance (368) (787) 53%
Tax valuation allowance 1,435 -
------- -------
Loss from continuing operations (1,803) (787) (129%)
Loss from sale of discontinued
operations, net of taxes - (9)
------- -------
Loss before cumulative effect of
accounting changes (1,803) (796) (127%)
Cumulative effect of adopting
SFAS No. 142 (268) -
------- -------
Net loss $(2,071) $ (796) (160%)
======= =======
Net loss per share - Basic and diluted:
Loss from continuing operations $ (3.82) $ (1.69)
Loss from sale of discontinued
operations, net - (0.02)
Cumulative effect of adopting
SFAS No. 142, net (0.57) -
------- -------
Net loss $ (4.39) $ (1.71)
======= =======
Weighted average shares used in
computing loss per share:
Basic and diluted 472 465
Loss from sale of discontinued operations, net of taxes relate to
the sale of our Healthcare Solutions group.
Historical amounts were reclassified to conform with current
period presentation.
AGILENT TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
Excluding Restructuring, Amortization of Intangibles,
Tax Valuation Allowance and Non-Operational Items
(Unaudited)
(In millions, except per share amounts)
Three Months Ended
July 31, Percent
2003 2002 Inc/(Dec)
------- ------ ---------
Orders $ 1,468 $1,456 1%
======= ======
Net revenue $ 1,502 $1,391 8%
Costs and expenses:
Cost of products and services 896 880 2%
Research and development 225 289 (22%)
Selling, general and administrative 408 483 (16%)
------- ------
Total costs and expenses 1,529 1,652 (7%)
------- ------
Loss from operations (27) (261) 90%
Other income (expense), net 5 10 (50%)
------- ------
Loss before taxes (22) (251) 91%
Benefit for taxes (11) (108) (90%)
-------- -------
Non-GAAP net loss $ (11) $ (143) 92%
======= ======
Non-GAAP net loss per share:
Basic and diluted $ (0.02) $(0.31)
Weighted average shares used in computing
non-GAAP net loss per share:
Basic and diluted 475 466
The above non-GAAP condensed consolidated
statement of operations has been adjusted
to exclude the following non-operational
items and reconcile to GAAP net loss:
Net loss per GAAP $(1,556) $ (228)
Non-GAAP adjustments:
Goodwill - 82
Other intangibles 22 13
Asset impairments 7 18
Retirement plans curtailment
loss (gain) 5 (19)
Discontinued operations - 8
Restructuring 141 78
Gain on sale of assets (1) -
Other (5) -
Tax valuation allowance 1,446 -
Adjustment for income taxes (70) (95)
------- ------
Non-GAAP net loss $ (11) $ (143)
======= ======
We provide non-GAAP financial information in order to provide
meaningful supplemental information regarding our operational
performance and to enhance our investors' overall understanding of our
core current financial performance and our prospects for the future.
We believe that our investors benefit from seeing our results "through
the eyes" of management in addition to the GAAP presentation.
Management measures segment and enterprise performance using measures
such as are disclosed in this release. This information facilitates
management's internal comparisons to the company's historical
operating results and comparisons to competitors operating results.
Non-GAAP information allows for greater transparency to
supplemental information used by management in its financial and
operational decision making. Historically, we have reported similar
non-GAAP information to our investors and believe that the inclusion
of comparative numbers provides consistency in our financial
reporting.
This information is not in accordance with, or an alternative for,
generally accepted accounting principles in the United States and may
be different from the non- GAAP information provided by other
companies.
Historical amounts were reclassified to conform with current
period presentation.
AGILENT TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
Excluding Restructuring, Amortization of Intangibles, Tax Valuation
Allowance and Non-Operational Items
(Unaudited)
(In millions, except per share amounts)
Nine Months Ended
July 31, Percent
2003 2002 Inc/(Dec)
------- ------ ---------
Orders $ 4,353 $4,518 (4%)
======= ======
Net revenue $ 4,381 $4,274 3%
Costs and expenses:
Cost of products and services 2,658 2,621 1%
Research and development 766 897 (15%)
Selling, general and administrative 1,368 1,477 (7%)
------- ------
Total costs and expenses 4,792 4,995 (4%)
------- ------
Loss from operations (411) (721) 43%
Other income (expense), net 26 38 (32%)
------- ------
Loss before taxes (385) (683) 44%
Benefit for taxes (193) (294) (34%)
-------- -------
Non-GAAP net loss $ (192) $ (389) 51%
======= ======
Non-GAAP net loss per share:
Basic and diluted $ (0.41) $(0.84)
Weighted average shares used in computing
non-GAAP net loss per share:
Basic and diluted 472 465
The above non-GAAP condensed consolidated
statement of operations has been adjusted to
exclude the following non-operational items and
reconcile to GAAP net loss:
Net loss per GAAP $(2,071) $ (796)
Non-GAAP adjustments:
Goodwill - 247
Other intangibles 46 39
Restructuring 314 218
Asset impairment 15 18
Retirement plans curtailment
loss (gain) 5 (19)
SFAS No. 142 adoption 268 -
Discontinued operations - 15
Gain on sale of assets (3) (13)
Other 5 -
Tax valuation allowance 1,446 -
Adjustment for income taxes (217) (98)
------- ------
Non-GAAP net loss $ (192) $ (389)
======= ======
We provide non-GAAP financial information in order to provide
meaningful supplemental information regarding our operational
performance and to enhance our investors' overall understanding of our
core current financial performance and our prospects for the future.
We believe that our investors benefit from seeing our results "through
the eyes" of management in addition to the GAAP presentation.
Management measures segment and enterprise performance using measures
such as are disclosed in this release. This information facilitates
management's internal comparisons to the company's historical
operating results and comparisons to competitors operating results.
Non-GAAP information allows for greater transparency to
supplemental information used by management in its financial and
operational decision making. Historically, we have reported similar
non-GAAP information to our investors and believe that the inclusion
of comparative numbers provides consistency in our financial
reporting.
This information is not in accordance with, or an alternative for,
generally accepted accounting principles in the United States and may
be different from the non- GAAP information provided by other
companies.
Historical amounts were reclassified to conform with current
period presentation.
AGILENT TECHNOLOGIES, INC
RECONCILIATION FROM GAAP TO NON-GAAP
NET LOSS
THREE MONTHS ENDED JULY 31, 2003
(Unaudited)
Non-GAAP Adjustments
(In millions, Gain on Retirement
except per share Sale Plans
amounts) Other Re- of Curtailment
GAAP Intangibles structuring Assets Loss
-------- ----------- ---------- ------- -----------
Orders $ 1,468 $ - $ - $ - $ -
======== ========= ========== ======= ===========
Net revenue $ 1,502 $ - $ - $ - $ -
Costs and
expenses:
Cost of
products and
services 954 (18) (44) - (1)
Research and
development 257 - (31) - (1)
Selling,
general and
administrative 481 (4) (66) - (3)
-------- ----------- ---------- ------- -----------
Total costs
and expenses 1,692 (22) (141) - (5)
-------- ----------- ---------- ------- -----------
Loss from
operations (190) 22 141 - 5
Other income
(expense), net (1) - - (1) -
-------- ----------- ---------- ------- -----------
Loss from
operations
before taxes (191) 22 141 (1) 5
Benefit for
taxes (81) - - - -
------- -------- --------- ------ ----------
Loss from
operations
before tax
valuation
allowance (110) 22 141 (1) 5
Tax valuation
allowance 1,435 - - - -
-------- ----------- ---------- ------- -----------
Loss before
cumulative
effect of
accounting
changes (1,545) 22 141 (1) 5
Tax adjustment
for cumulative
effect of
adopting SFAS
No. 142 (11) - - - -
-------- ----------- ---------- ------- -----------
Net loss $(1,556) $ 22 $ 141 $ (1) $ 5
======== ========= ========== ======= ===========
Net loss per share -
Basic and Diluted:
Loss before
cumulative
effect of
accounting
changes $ (3.25) $ 0.05 $ 0.30 $ - $ 0.01
Tax adjustment
for cumulative
effect of
adopting SFAS
No. 142 (0.03) - - - -
-------- ----------- ---------- ------- -----------
Net loss $ (3.28) $ 0.05 $ 0.30 $ - $ 0.01
======== ========= ========== ======= ===========
Weighted average shares used in
computing net loss per share:
Basic and
diluted 475 475 475 475 475
Non-GAAP Adjustments
Adjustment
Tax for
(In millions, except Asset Valuation Income Non-
per share amounts) Impairment Other Allowance Taxes GAAP
----------- ------- ---------- --------- -------
Orders $ - $ - $ - $ - $1,468
=========== ======= ========== ========= =======
Net revenue $ - $ - $ - $ - $1,502
Costs and expenses:
Cost of products and
services - 5 - - 896
Research and
development - - - - 225
Selling, general and
administrative - - - - 408
----------- ------- ---------- --------- -------
Total costs and
expenses - 5 - - 1,529
----------- ------- ---------- --------- -------
Loss from operations - (5) - - (27)
Other income
(expense), net 7 - - - 5
----------- ------- ---------- --------- -------
Loss from operations
before taxes 7 (5) - - (22)
Benefit for taxes - - - 70 (11)
----------- ------- ---------- --------- -------
Loss from operations
before tax valuation
allowance 7 (5) - (70) (11)
Tax valuation
allowance - - (1,435) - -
----------- ------- ---------- --------- -------
Loss before cumulative
effect of accounting
changes 7 (5) 1,435 (70) (11)
Tax adjustment for
cumulative effect of
adopting SFAS No. 142 - - 11 - -
----------- ------- ---------- --------- -------
Net loss $ 7 $ (5) $ 1,446 $ (70) $ (11)
=========== ======= ========== ========= =======
Net loss per share -
Basic and Diluted:
Loss before cumulative
effect of accounting
changes $ 0.01 $(0.01) $ 3.02 $(0.15) $(0.02)
Tax adjustment for
cumulative effect of
adopting SFAS No. 142 - - 0.03 - -
----------- ------- ---------- --------- -------
Net loss $ 0.01 $(0.01) $ 3.05 $(0.15) $(0.02)
=========== ======= ========== ========= =======
Weighted average shares used in
computing net loss per share:
Basic and diluted 475 475 475 475 475
We provide non-GAAP financial information in order to provide
meaningful supplemental information regarding our operational
performance and to enhance our investors' overall understanding of our
core current financial performance and our prospects for the future.
We believe that our investors benefit from seeing our results "through
the eyes" of management in addition to the GAAP presentation.
Management measures segment and enterprise performance using measures
such as those that are disclosed in this release. This information
facilitates management's internal comparisons to the company's
historical operating results and comparisons to competitors' operating
results.
Non-GAAP information allows for greater transparency to supplemental
information used by management in its financial and operational
decision making. Historically, we have reported similar non-GAAP
information to our investors and believe that the inclusion of
comparative numbers provides consistency in our financial reporting.
This information is not in accordance with, or an alternative for,
generally accepted accounting principles in the United States and may
be different from the non-GAAP information provided by other
companies.
AGILENT TECHNOLOGIES, INC
RECONCILIATION FROM GAAP TO NON-GAAP
NET LOSS
NINE MONTHS ENDED JULY 31, 2003
(Unaudited)
Non-GAAP Adjustments
Gain on
(In millions, Sale
except per share Other Re- Asset of
amounts) GAAP Intangibles structuring Impairment Assets
-------- ----------- ----------- --------- -------
Orders $ 4,353 $ - $ - $ - $ -
======== ========== ========== ========= =======
Net revenue $ 4,381 $ - $ - $ - $ -
Costs and expenses:
Cost of products
and services 2,798 (38) (96) - -
Research and
development 830 - (63) - -
Selling, general
and
administrative 1,534 (8) (155) - -
-------- ----------- ----------- --------- -------
Total costs and
expenses 5,162 (46) (314) - -
-------- ----------- ----------- --------- -------
Loss from
operations (781) 46 314 - -
Other income
(expense), net 14 - - 15 (3)
-------- ----------- ----------- --------- -------
Loss from
operations before
taxes (767) 46 314 15 (3)
Benefit for taxes (399) - - - -
-------- ----------- ----------- --------- -------
Loss from
operations before
tax valuation
allowance (368) 46 314 15 (3)
Tax valuation
allowance 1,435 - - - -
-------- ----------- ----------- --------- -------
Net loss before
cumulative effect
of accounting
changes (1,803) 46 314 15 (3)
Cumulative effect
of adopting SFAS
No. 142 (268) - - - -
-------- ----------- ----------- --------- -------
Net loss $(2,071) $ 46 $ 314 $ 15 $ (3)
======== ========== ========== ========= =======
Net loss per share
- Basic and Diluted:
Loss from
operations and
before cumulative
effect of
accounting changes$ (3.82) $ 0.10 $ 0.67 $ 0.03 $(0.01)
Cumulative effect
of adopting SFAS
No. 142 (0.57) - - - -
-------- ----------- ----------- --------- -------
Net loss $ (4.39) $ 0.10 $ 0.67 $ 0.03 $(0.01)
======== ========== ========== ========= =======
Weighted average shares used in
computing net loss per share:
Basic and
diluted 472 472 472 472 472
Non-GAAP Adjustments
Retirement Adjust-
(In millions, Plans SFAS Tax ment for
except Curtailment No. Valuation Income Non-
per share amounts) Loss 142 Other Allowance Taxes GAAP
----------- ------ ------ -------- ------- -------
Orders $ - $ - $ - $ - $ - $4,353
=========== ====== ====== ======== ======= =======
Net revenue $ - $ - $ - $ - $ - $4,381
Costs and expenses:
Cost of products
and services (1) - (5) - - 2,658
Research and
development (1) - - - - 766
Selling, general
and
administrative (3) - - - - 1,368
----------- ------ ------ -------- ------- -------
Total costs and
expenses (5) - (5) - - 4,792
----------- ------ ------ -------- ------- -------
Loss from
operations 5 - 5 - - (411)
Other income
(expense), net - - - - - 26
----------- ------ ------ -------- ------- -------
Loss from
operations before
taxes 5 - 5 - - (385)
Benefit for taxes - - - - 206 (193)
----------- ------ ------ -------- ------- -------
Loss from operations
before tax
valuation allowance 5 - 5 - (206) (192)
Tax valuation
allowance - - - (1,435) - -
----------- ------ ------ -------- ------- -------
Net loss before
cumulative effect
of accounting
changes 5 - 5 1,435 (206) (192)
Cumulative effect of
adopting SFAS No.
142 - 268 - 11 (11) -
----------- ------ ------ -------- ------- -------
Net loss $ 5 $ 268 $ 5 $ 1,446 $ (217) $ (192)
=========== ====== ====== ======== ======= =======
Net loss per share
- Basic and Diluted:
Loss from operations
and before
cumulative effect
of accounting
changes $ 0.01 $ - $0.01 $ 3.04 $(0.44) $(0.41)
Cumulative effect of
adopting SFAS No.
142 - 0.57 - 0.02 (0.02) -
----------- ------ ------ -------- ------- -------
Net loss $ 0.01 $0.57 $0.01 $ 3.06 $(0.46) $(0.41)
=========== ====== ====== ======== ======= =======
Weighted average
shares used in
computing net loss
per share:
Basic and
diluted 472 472 472 472 472 472
We provide non-GAAP financial information in order to provide
meaningful supplemental information regarding our operational
performance and to enhance our investors' overall understanding of our
core current financial performance and our prospects for the future.
We believe that our investors benefit from seeing our results "through
the eyes" of management in addition to the GAAP presentation.
Management measures segment and enterprise performance using measures
such as those that are disclosed in this release. This information
facilitates management's internal comparisons to the company's
historical operating results and comparisons to competitors' operating
results.
Non-GAAP information allows for greater transparency to supplemental
information used by management in its financial and operational
decision making. Historically, we have reported similar non-GAAP
information to our investors and believe that the inclusion of
comparative numbers provides consistency in our financial reporting.
This information is not in accordance with, or an alternative for,
generally accepted accounting principles in the United States and may
be different from the non-GAAP information provided by other
companies.
AGILENT TECHNOLOGIES, INC
RECONCILIATION FROM GAAP TO NON-GAAP
NET LOSS
THREE MONTHS ENDED JULY 31, 2002
(Unaudited)
Non-GAAP Adjustments
(In millions, except per Other
share amounts) GAAP Goodwill Intangibles Restructuring
------- -------- ----------- -------------
Orders $1,456 $ - $ - $ -
======= ======== ========= ============
Net revenue $1,391 $ - $ - $ -
Costs and expenses:
Cost of products and
services 897 - (10) (16)
Research and development 304 - - (16)
Selling, general and
administrative 619 (82) (3) (46)
------- -------- ----------- -------------
Total costs and expenses 1,820 (82) (13) (78)
------- -------- ----------- -------------
Loss from operations (429) 82 13 78
Other income (expense), net 6 - - -
------- -------- ----------- -------------
Loss from continuing
operations before taxes (423) 82 13 78
Benefit for taxes (200) - - -
------- -------- ----------- -------------
Loss from continuing
operations (223) 82 13 78
Loss from sale of
discontinued operations,
net of taxes (5) - - -
------- -------- ----------- -------------
Net loss $ (228) $ 82 $ 13 $ 78
======= ======== ========= ============
Net loss per share - Basic
and Diluted:
Loss from continuing
operations $(0.48) $ 0.18 $ 0.03 $ 0.17
Loss from sale of
discontinued operations,
net of taxes $(0.01) $ - $ - $ -
------- -------- ----------- -------------
Net loss $(0.49) $ 0.18 $ 0.03 $ 0.17
======= ======== ========= ============
Weighted average shares used in computing
net loss per share:
Basic and diluted 466 466 466 466
Non-GAAP Adjustments
Adjustment Retirement
(In millions, for Plans
except per share Discontinued Asset Income Curtailment Non-
amounts) Operations Impairment Taxes Gains GAAP
----------- ---------- --------- ---------- -------
Orders $ - $ - $ - $ - $1,456
=========== ========== ========= ========== =======
Net revenue $ - $ - $ - $ - $1,391
Costs and
expenses:
Cost of products
and services - (2) - 11 880
Research and
development - (2) - 3 289
Selling, general
and
administrative - (10) - 5 483
----------- ---------- --------- ---------- -------
Total costs and
expenses - (14) - 19 1,652
----------- ---------- --------- ---------- -------
Loss from
operations - 14 - (19) (261)
Other income
(expense), net - 4 - - 10
----------- ---------- --------- ---------- -------
Loss from
continuing
operations before
taxes - 18 - (19) (251)
Benefit for taxes (3) - 95 - (108)
----------- ---------- --------- ---------- -------
Loss from
continuing
operations 3 18 (95) (19) (143)
Loss from sale of
discontinued
operations, net of
taxes 5 - - - -
----------- ---------- --------- ---------- -------
Net loss $ 8 $ 18 $ (95) $ (19) $ (143)
=========== ========== ========= ========== =======
Net loss per share
- Basic and Diluted:
Loss from
continuing
operations $ 0.01 $ 0.04 $ (0.21) $ (0.05) $(0.31)
Loss from sale of
discontinued
operations, net of
taxes $ 0.01 $ - $ - $ - $ -
----------- ---------- --------- ---------- -------
Net loss $ 0.02 $ 0.04 $ (0.21) $ (0.05) $(0.31)
=========== ========== ========= ========== =======
Weighted average shares used
in computing net loss per
share:
Basic and
diluted 466 466 466 466 466
We provide non-GAAP financial information in order to provide
meaningful supplemental information regarding our operational
performance and to enhance our investors' overall understanding of our
core current financial performance and our prospects for the future.
We believe that our investors benefit from seeing our results "through
the eyes" of management in addition to the GAAP presentation.
Management measures segment and enterprise performance using measures
such as those that are disclosed in this release. This information
facilitates management's internal comparisons to the company's
historical operating results and comparisons to competitors' operating
results.
Non-GAAP information allows for greater transparency to supplemental
information used by management in its financial and operational
decision making. Historically, we have reported similar non-GAAP
information to our investors and believe that the inclusion of
comparative numbers provides consistency in our financial reporting.
This information is not in accordance with, or an alternative for,
generally accepted accounting principles in the United States and may
be different from the non-GAAP information provided by other
companies.
AGILENT TECHNOLOGIES, INC
RECONCILIATION FROM GAAP TO NON-GAAP
NET LOSS
NINE MONTHS ENDED JULY 31, 2002
(Unaudited)
Non-GAAP Adjustments
(In millions,
except per Other Re- Discontinued
share amounts) GAAP Goodwill Intangibles structuring Operations
-------- -------- ---------- ---------- ------------
Orders $ 4,518 $ - $ - $ - $ -
======== ======== ========== ========== ============
Net revenue $ 4,274 $ - $ - $ - $ -
Costs and expenses:
Cost of products
and services 2,711 - (30) (69) -
Research and
development 928 - - (32) -
Selling, general
and
administrative 1,855 (247) (9) (117) -
-------- -------- ---------- ---------- ------------
Total costs and
expenses 5,494 (247) (39) (218) -
-------- -------- ---------- ---------- ------------
Loss from
operations (1,220) 247 39 218 -
Other income
(expense), net 47 - - - -
-------- -------- ---------- ---------- ------------
Loss from
continuing
operations before
taxes (1,173) 247 39 218 -
Benefit for taxes (386) - - - (6)
-------- -------- ---------- ---------- ------------
Loss from
continuing
operations (787) 247 39 218 6
Loss from sale of
discontinued
operations, net
of taxes (9) - - - 9
-------- -------- ---------- ---------- ------------
Net loss $ (796) $ 247 $ 39 $ 218 $ 15
======== ======== ========== ========== ============
Net loss per share -
Basic and Diluted:
Loss from
continuing
operations $ (1.69) $ 0.53 $ 0.08 $ 0.47 $ 0.01
Loss from sale of
discontinued
operations, net
of taxes $ (0.02) $ - $ - $ - $ 0.02
-------- -------- ---------- ---------- ------------
Net loss $ (1.71) $ 0.53 $ 0.08 $ 0.47 $ 0.03
======== ======== ========== ========== ============
Weighted average shares used in
computing net loss per share:
Basic and
diluted 465 465 465 465 465
Non-GAAP Adjustments
Gain on Adjustment Retirement
(In millions, Sale for Plans
except per share Asset of Income Curtailment Non-
amounts) Impairment Assets Taxes Gains GAAP
--------- ------- --------- --------- -------
Orders $ - $ - $ - $ - $4,518
========= ======= ========= ========= =======
Net revenue $ - $ - $ - $ - $4,274
Costs and expenses:
Cost of products and
services (2) - - 11 2,621
Research and
development (2) - - 3 897
Selling, general and
administrative (10) - - 5 1,477
--------- ------- --------- --------- -------
Total costs and
expenses (14) - - 19 4,995
--------- ------- --------- --------- -------
Loss from operations 14 - - (19) (721)
Other income (expense),
net 4 (13) - - 38
--------- ------- --------- --------- -------
Loss from continuing
operations before taxes 18 (13) - (19) (683)
-
Benefit for taxes - - 98 - (294)
--------- ------- --------- --------- -------
Loss from continuing
operations 18 (13) (98) (19) (389)
Loss from sale of
discontinued
operations, net of
taxes - - - - -
--------- ------- --------- --------- -------
Net loss $ 18 $ (13) $ (98) $ (19) $ (389)
========= ======= ========= ========= =======
Net loss per share -
Basic and Diluted:
Loss from continuing
operations $ 0.04 $(0.03) $ (0.21) $ (0.04) $(0.84)
Loss from sale of
discontinued
operations, net of
taxes $ - $ - $ - $ - -
--------- ------- --------- --------- -------
Net loss $ 0.04 $(0.03) $ (0.21) $ (0.04) $(0.84)
========= ======= ========= ========= =======
Weighted average shares used in
computing net loss per share:
Basic and diluted 465 465 465 465 465
We provide non-GAAP financial information in order to provide
meaningful supplemental information regarding our operational
performance and to enhance our investors' overall understanding of our
core current financial performance and our prospects for the future.
We believe that our investors benefit from seeing our results "through
the eyes" of management in addition to the GAAP presentation.
Management measures segment and enterprise performance using measures
such as those that are disclosed in this release. This information
facilitates management's internal comparisons to the company's
historical operating results and comparisons to competitors' operating
results.
Non-GAAP information allows for greater transparency to supplemental
information used by management in its financial and operational
decision making. Historically, we have reported similar non-GAAP
information to our investors and believe that the inclusion of
comparative numbers provides consistency in our financial reporting.
This information is not in accordance with, or an alternative for,
generally accepted accounting principles in the United States and may
be different from the non-GAAP information provided by other
companies.
AGILENT TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEET
(in millions, except par value and share amounts)
(Unaudited)
July 31, October 31,
2003 2002
------- ------
ASSETS
Current assets:
Cash and cash equivalents $ 1,430 $1,844
Accounts receivable, net 967 1,118
Inventory 1,051 1,184
Current deferred tax assets 13 462
Other current assets 289 272
------- ------
Total current assets 3,750 4,880
Property, plant and equipment, net 1,449 1,579
Goodwill and other intangible assets, net 391 685
Long-term deferred tax assets 14 635
Other assets 386 424
------- ------
Total assets $ 5,990 $8,203
======= ======
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 274 $ 305
Employee compensation and benefits 550 533
Deferred revenue 259 244
Income and other taxes payable 295 325
Other accrued liabilities 410 574
------- ------
Total current liabilities 1,788 1,981
------- ------
Senior convertible debentures 1,150 1,150
Other liabilities 332 445
------- ------
Total liabilities 3,270 3,576
------- ------
Commitments and contingencies - -
Stockholders' equity:
Preferred stock; $0.01 par value; 125 million
shares authorized; none issued and outstanding - -
Common stock; $0.01 par value; 2 billion
shares authorized; 467 million shares at
October 31, 2002 and 475 million shares
at July 31, 2003 issued and outstanding 5 5
Additional paid-in capital 4,976 4,872
Accumulated deficit (2,172) (101)
Accumulated comprehensive loss (89) (149)
------- ------
Total stockholders' equity 2,720 4,627
------- ------
Total liabilities and stockholders' equity $ 5,990 $8,203
======= ======
Historical amounts were reclassified to conform with current
period presentation.
AGILENT TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(In millions)
(Unaudited)
Nine Three
months months
ended ended
July 31, July 31,
2003 2003
------- -------
Cash flows from operating activities:
Net loss $(2,071) $(1,556)
Adjustments to reconcile net loss to
net cash used in operating activities:
Depreciation 233 77
Amortization 40 14
Inventory-related charges 11 5
Deferred taxes 1,085 1,402
Asset impairment charges 89 62
Net gain on sale of assets (5) (3)
Adoption of SFAS No. 142 268 -
Changes in assets and liabilities:
Accounts receivable 169 (24)
Inventory 112 68
Accounts payable (15) (6)
Employee compensation and benefits (183) (127)
Income taxes (98) (37)
Other current assets and liabilities (83) (39)
Other long-term assets and liabilities 75 73
------- -------
Net cash used in operating activities(1): (373) (91)
Cash flows from investing activities:
Investments in property, plant and equipment (148) (62)
Dispositions of property, plant and equipment 6 (1)
Purchase of equity investments (4) (2)
------- -------
Net cash used in investing activities: (146) (65)
Cash flows from financing activities:
Issuance of common stock under
employee stock plans 104 53
Net payments to notes payable and short-term
borrowings 1 -
------- -------
Net cash provided by financing activities: 105 53
Change in cash and cash equivalents (414) (103)
Cash and cash equivalents at beginning of period 1,844 1,533
-------- --------
Cash and cash equivalents at end of period $ 1,430 $ 1,430
======= =======
(1) Cash payments (receipts) included
in operating activities:
Restructuring 297 121
Income tax (refunds) payments (26) 13
Pension trust fund contributions 182 28
AGILENT TECHNOLOGIES, INC.
TEST AND MEASUREMENT INFORMATION
(In millions, except percent changes)
(Unaudited)
Three Three Three
months months Yr months
ended ended vs. ended
July 31, July 31, Yr April 30, Sequential
2003 2002 % change 2003 % change
-----------------------------------------------
Orders $ 566 $ 590 (4%) $ 608 (7%)
Net Revenue $ 613 $ 521 18% $ 652 (6%)
Loss from operations $ (69) $ (260) 73% $ (103) 33%
------------------------------------------------
Nine Nine
months months
ended ended
July 31, July 31, Yr vs. Yr
2003 2002 % change
---------------------------------------
Orders $1,768 $1,876 (6%)
Net Revenue $1,898 $1,865 2%
Loss from operations $ (304) $ (603) 50%
----------------------------------------
Q3 FY03 vs Q2 FY03 BY MARKET SEGMENT
Orders
--------------------------------
Q3 FY03 Sequential % of
$ Amount % change Segment
---------------------------------
Communications test $ 380 (8%) 67%
General purpose test 186 (4%) 33%
------ ------
$ 566 (7%) 100%
====== ======
Net Revenue
--------------------------------
Q3 FY03 Sequential % of
$ Amount % change Segment
---------------------------------
Communications test $ 413 (10%) 67%
General purpose test 200 4% 33%
--------- ------
$ 613 (6%) 100%
========= ======
-----------------------------------------------------------------
Q3 FY03 vs Q3 FY02 BY MARKET SEGMENT
Orders Net Revenue
------------------- ---------------------
Q3 FY03 Yr vs.Yr Q3 FY03 Yr vs.Yr
$ Amount % change $ Amount % change
------------------- ----------------------
Communications test $ 380 (9%) $ 413 16%
General purpose test 186 8% 200 21%
------ ---------
$ 566 (4%) $ 613 18%
====== =========
Loss from operations reflect the results of our reportable
segments under Agilent's management reporting system which are not
necessarily in conformity with accounting principles generally
accepted in the United States (GAAP). Loss from operations of our
reporting segments excludes restructuring, amortization of
intangibles, non-operational charges and some residual corporate
charges.
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.
Historical amounts have been reclassified to conform with current
period presentation.
AGILENT TECHNOLOGIES, INC.
AUTOMATED TEST INFORMATION
(In millions, except percent changes)
(Unaudited)
Three Three Three
months months Yr months
ended ended vs. ended
July 31, July 31, Yr April 30, Sequential
2003 2002 % change 2003 % change
-----------------------------------------------
Orders $ 251 $ 212 18% $ 219 15%
Net Revenue $ 206 $ 194 6% $ 153 35%
Earnings (loss) from
operations $ 6 $ (5) N/M $ (37) N/M
---------------------------------------------------------------------
Nine months Nine months
ended ended
July 31, July 31, Yr vs. Yr
2003 2002 % change
----------------------------------------
Orders $ 585 $ 594 (2%)
Net Revenue $ 495 $ 486 2%
Loss from operations $ (79) $ (79) - %
-----------------------------------------
--------------------------------------------------------------------
Q3 FY03 vs Q2 FY03 BY MARKET SEGMENT
Orders
--------------------------------
Q3 FY03 Sequential % of
$ Amount % change Segment
---------------------------------
Semiconductor test $ 215 15% 86%
Manufacturing test(1) 36 13% 14%
------ ------
$ 251 15% 100%
====== ======
Net Revenue
--------------------------------
Q3 FY03 Sequential % of
$ Amount % change Segment
---------------------------------
Semiconductor test $ 167 38% 81%
Manufacturing test(1) 39 22% 19%
------ ------
$ 206 35% 100%
====== ======
---------------------------------------------------------------------
Q3 FY03 vs Q3 FY02 BY MARKET SEGMENT
Orders Net Revenue
------------------- ----------------------
Q3 FY03 Yr vs.Yr Q3 FY03 Yr vs.Yr
$ Amount % change $ Amount % change
------------------- ---------------------
Semiconductor test $ 215 20% $ 167 4%
Manufacturing test(1) 36 9% 39 15%
------ ---------
$ 251 18% $ 206 6%
====== =========
(1) Amounts presented as manufacturing test were previously
included in test and measurement's general purpose test.
Earnings (loss) from operations reflect the results of our
reportable segments under Agilent's management reporting system which
are not necessarily in conformity with accounting principles generally
accepted in the United States (GAAP). Earnings (loss) from operations
of our reporting segments excludes restructuring, amortization of
intangibles, non-operational charges and some residual corporate
charges.
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.
Historical amounts have been reclassified to conform with current
period presentation.
AGILENT TECHNOLOGIES, INC.
SEMICONDUCTOR PRODUCTS INFORMATION
(In millions, except percent changes)
(Unaudited)
Three Three Three
months months Yr months
ended ended vs. ended
July 31, July 31, Yr April 30, Sequential
2003 2002 % change 2003 % change
-----------------------------------------------
Orders $ 358 $ 383 (7%) $ 420 (15%)
Net Revenue $ 380 $ 390 (3%) $ 376 1%
Loss from operations $ (8) $ (38) 79% $ (43) 81%
----------------------------------------------------------------------
Nine Nine
months months
ended ended
July July
31, 31, Yr vs.Yr
2003 2002 % change
------------------ ------- ---------
Orders $1,159 $1,205 (4%)
Net Revenue $1,123 $1,088 3%
Loss from operations $ (99) $ (136) 27%
------------------------------------
---------------------------------------------------------------------
Q3 FY03 vs Q2 FY03 BY MARKET SEGMENT
Orders Net Revenue
----------------- -------------------------------------
Q3 FY03 Sequential % of Q3 FY03 Sequential % of
$ Amount % change Segment $ Amount % change Segment
-------------------------- -----------------------------
Networking $ 118 (9%) 33% $ 125 8% 33%
Personal
systems 240 (17%) 67% 255 (2%) 67%
------ ------ --------- ------
$ 358 (15%) 100% $ 380 1% 100%
====== ====== ========= ======
----------------------------------------------------------------------
Q3 FY03 vs Q3 FY02 BY MARKET SEGMENT
Orders Net Revenue
------------------- ----------------------
Q3 FY03 Yr vs.Yr Q3 FY03 Yr vs.Yr
$ Amount % change $ Amount % change
------------------- ----------------------
Networking $ 118 3% $ 125 (4%)
Personal
systems 240 (10%) 255 (2%)
------ ---------
$ 358 (7%) $ 380 (3%)
====== =========
----------------------------------------------------------------------
Loss from operations reflect the results of our reportable
segments under Agilent's management reporting system which are not
necessarily in conformity with accounting principles generally
accepted in the United States (GAAP). Loss from operations of our
reporting segments excludes restructuring, amortization of
intangibles, non-operational charges and some residual corporate
charges.
In general, recorded orders represent firm purchase commitments
from our customers with established terms and conditions for products
that will be delivered within six months.
Historical amounts have been reclassified to
conform with current period presentation.
AGILENT TECHNOLOGIES, INC.
LIFE SCIENCES AND
CHEMICAL ANALYSIS
INFORMATION
(In millions, except
percent changes)
(Unaudited)
-------------------------------------------------------------------
Three Three Three
months months months
ended ended ended
July July Yr April Sequential
31, 31, vs.Yr 30,
2003 2002 % change 2003 % change
------ ---------------- ------------------
Orders $ 293 $ 271 8% $ 280 5%
Net Revenue $ 303 $ 286 6% $ 286 6%
Earnings from operations $ 41 $ 42 (2%) $ 20 105%
Nine Nine
months months
ended ended
July July Yr
31, 31, vs.Yr
2003 2002 % change
------ ---------------
Orders $ 841 $ 843 - %
Net Revenue $ 865 $ 835 4%
Earnings from operations $ 95 $ 97 (2%)
-----------------------
Earnings from operations reflect the results of our reportable
segments under Agilent's management reporting system which are not
necessarily in conformity with accounting principles generally
accepted in the United States (GAAP). Earnings from operations of
our reporting segments excludes restructuring, amortization of
intangibles, non-operational charges and some residual corporate
charges.
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.
Historical amounts have been reclassified to conform with current
period presentation.
AGILENT TECHNOLOGIES, INC.
Segment Earnings (Loss) from Operations
Reconciliation of Reporting Segments to
Agilent Non-GAAP Loss
(In millions)
(Unaudited)
Three Three
months months
ended ended
July April
31, 30,
------- ------ -------
2003 2002 2003
------ ------ -------
Test and Measurement $(69) $(260) $(103)
Semiconductor Products (8) (38) (43)
Automated Test 6 (5) (37)
Life Sciences and Chemical Analysis 41 42 20
Residual corporate charges 3 - (19)
------ ------ -------
Non-GAAP Loss from operations - Agilent $(27) $(261) $(182)
====== ====== =======
Earnings (loss) from operations reflect the results of our reportable
segments under Agilent's management reporting system which are not
necessarily in conformity with accounting principles generally
accepted in the United States (GAAP). Earnings (loss) from
operations of our reporting segments excludes restructuring,
amortization of intangibles, non-operational charges and residual
corporate charges.
Historical amounts were reclassified to conform with
current period presentation.
AGILENT TECHNOLOGIES, INC.
ORDERS AND NET REVENUE FROM OPERATIONS
BY GEOGRAPHY
(In millions, except percent changes)
(Unaudited)
--------------------------------------- -------- -------- -----------
Three
Months
Ended Percent
July Inc/(Dec)
31,
------- ------- ----------
2003 2002
------ ------ ----------
ORDERS
Americas $ 553 $ 623 (11%)
Europe 312 246 27%
Asia Pacific 603 587 3%
------- -------
Total $1,468 $1,456 1%
====== ======
NET REVENUE
Americas $ 578 $ 612 (6%)
Europe 298 252 18%
Asia Pacific 626 527 19%
------- -------
Total $1,502 $1,391 8%
====== ======
--------------------------------------- -------- -------- -----------
Nine
Months
Ended Percent
July Inc/(Dec)
31,
------- ------- ----------
2003 2002
------ ------ ----------
ORDERS
Americas $1,638 $1,910 (14%)
Europe 911 858 6%
Asia Pacific 1,804 1,750 3%
------- -------
Total $4,353 $4,518 (4%)
====== ======
NET REVENUE
Americas $1,687 $1,840 (8%)
Europe 891 834 7%
Asia Pacific 1,803 1,600 13%
------- -------
Total $4,381 $4,274 3%
====== ======
--------------------------------------- -------- -------- -----------
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.
Historical amounts were reclassified to conform with current
period presentation.
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