Agilent Technologies Returns to Profitability in Fourth Quarter 2003; Company Exceeds Fourth-Quarter Expectations.Business Editors/High-Tech Writers 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)--Nov. 17, 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 $1.73 billion and revenue of $1.68 billion for the fiscal fourth quarter ended Oct. 31, 2003. During the quarter, the company reported GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). net earnings of $13 million, or $0.03 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share. This compares to a GAAP loss of $236 million, or $0.51 per share, in last year's fourth quarter. Excluding $58 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 operating net income of $71 million, or $0.15 per share, versus a loss on a comparable basis of $2 million, or $0.00 per share, one year ago. "We had a very good finish to a very tough year," said Ned Barnholt, Agilent chairman, president and chief executive officer. "Orders, revenues and earnings all came in above expectations. We met 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 earned an attractive profit on the additional revenue we realized."(1) "We also met our commitment to generate positive free cash flow(2)," said Barnholt. The company ended the quarter with about $1.6 billion in cash and equivalents, up $177 million from the prior quarter. Despite $82 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). costs, operations generated free cash flow of about $170 million. In the fourth quarter, inventories improved to below 100 days on hand for the first time in Agilent's history. 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. of $57 million was $21 million below the level of depreciation. During the fourth quarter, Agilent saw evidence of stronger economic activity reflected in several of its markets. Semiconductor Products orders were up 36 percent from one year ago to the highest level since early 2001. 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 orders were higher for the third consecutive quarter, reaching the highest level in three years. Life Sciences and Chemical Analysis orders were at record levels, 8 percent ahead of one year earlier. Activity in the Test and Measurement segment was somewhat weaker than the prior year because of continued softness in wireline telecom markets. Overall, the company's 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 was 1.03 compared to 0.98 in the prior quarter and 0.86 one year ago. Looking ahead, Barnholt said, "About 40 percent of Agilent's revenues today are tied to consumer electronics. As such, the first quarter of fiscal 2004 will be seasonally weaker. But, we believe Agilent now has the cost structure as well as the innovative new products to take full advantage of the recovery in our markets." For the first quarter, the company anticipates revenues in the range of $1.55 billion to $1.65 billion. Earnings before restructuring and amortization charges are expected to be in a range of $0.05 to $0.15 per share.(3)
Segment Results
Test and Measurement
(in millions)
Q4:F03 Q4:F02 Q3:F03
Orders 645 673 566
Revenues 631 747 613
Operating Profit(4) (11) (107) (69)
Fourth-quarter Test and Measurement orders were 4 percent below one year ago and up 14 percent from the seasonally weak third quarter. By market segment, communications test orders were about flat from last year with continued weakness in wireline test offsetting a modest rise in wireless test. General purpose test orders were off about 6 percent from one year ago because of relative weakness in services and support. Revenues of $631 million were 16 percent below last year; adjusting for last year's surge See power surge. SURGE - Sorter, Updater, Report Generator, Etc. IBM 704, 1959. Sammet 1969, p.8. in shipments following the 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, revenues were off about 8 percent. Aggressive restructuring continued to improve the operating performance of this segment. The fourth-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 $11 million was $96 million better than one year ago despite $116 million lower revenues. Compared to the third quarter, profits were improved by $58 million on only $18 million higher revenues.
Automated Test
(in millions)
Q4:F03 Q4:F02 Q3:F03
Orders 260 151 251
Revenues 260 220 206
Operating Profit(4) 45 9 6
The Automated Test segment had another strong performance in the fourth quarter, with orders of $260 million up 72 percent from last year to the highest levels since the fourth quarter of 2000. Sequentially se·quen·tial adj. 1. Forming or characterized by a sequence, as of units or musical notes. 2. Sequent. se·quen , orders were up 4 percent from already strong third quarter levels, with both semiconductor test and manufacturing test participating in the increase for the third consecutive quarter. Revenues of $260 million were 18 percent above last year and up 26 percent sequentially. The segment showed excellent operating performance during the quarter, reaching nearly 20 percent return on invested capital (ROIC ROIC Return On Invested Capital ROIC Return On Investment Capital ROIC Readout Integrated Circuit ROIC Resident Officer In Charge ROIC Regional Office Implementation Committee ).(5) 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 $45 million, or 17 percent of revenues, compared to profits of $9 million one year ago and $6 million in the prior quarter.
Semiconductor Products
(in millions)
Q4:F03 Q4:F02 Q3:F03
Orders 493 363 358
Revenues 463 471 380
Operating Profit(4) 40 21 (8)
Semiconductor Products saw an unexpected fourth-quarter surge in demand, with orders reaching $493 million, 36 percent above last year to the highest levels since early 2001. Sequentially, orders were up 38 percent. The strength was almost across the board, with personal systems orders up 35 percent from last year and networking systems up 37 percent. Fourth-quarter revenues of $463 million were down 2 percent from last year because of a 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, revenues were up 13 percent from one year ago. Semiconductor Products' book-to-bill ratio of 1.06 compares to 0.77 last year and 0.94 in the third quarter. Segment operating performance continued to reflect the benefits of restructuring actions, better yields on new products, and higher volumes, achieving a 20 percent ROIC.(5) Operating profits in the quarter reached $40 million, essentially double last year on $8 million lower volume. Sequentially, profits were up $48 million on $83 million higher volume.
Life Sciences and Chemical Analysis
(in millions)
Q4:F03 Q4:F02 Q3:F03
Orders 333 308 293
Revenues 321 298 303
Operating Profit(4) 53 43 41
Life Sciences and Chemical Analysis orders and revenues were at record levels in the fourth quarter, showing the second consecutive quarterly improvement after several quarters of relatively flat activity. Fourth-quarter orders of $333 million were up 8 percent from one year ago and up 14 percent sequentially. Revenues of $321 million were also 8 percent ahead of one year ago and 6 percent ahead of the third quarter. Segment profits of $53 million were also at record levels, $10 million above last year on $23 million higher volume and $12 million above the third quarter on $18 million higher volume. During the quarter, the segment operated at a 42 percent ROIC.(5) About Agilent Technologies Agilent Technologies Inc. (NYSE:A) is a global technology leader in communications, electronics, life sciences and chemical analysis. The company's 29,000 employees serve customers in more than 110 countries. Agilent had net revenue of $6 billion in fiscal year 2003. 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" in the "Recent News and Events" box. The webcast will remain on the company site for 90 days. A telephone replay of the conference call will be available starting at 4:30 p.m. (PT) today through Nov. 24 by dialing + 719 457 0820 and entering pass code 618758. 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 seasonality of the first quarter, the ability of Agilent to take full advantage of recovery in its markets with its cost structure and new products, and projected revenue and earnings) 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 business cycles while it continues to implement 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; ongoing 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 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. ; 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, and its Quarterly Report on Form 10-Q Form 10-Q See 10-Q. for the quarter ended July July: see month. 31, 2003. The company assumes no obligation to update the information in this press release. (1) Agilent's operating breakeven cost structure of $1.45 billion can be reconciled rec·on·cile v. rec·on·ciled, rec·on·cil·ing, rec·on·ciles v.tr. 1. To reestablish a close relationship between. 2. To settle or resolve. 3. to GAAP breakeven cost structure as follows: Total GAAP costs and expenses: $1.6 billion less restructuring of $.06 billion, less cost of sales decrement To subtract a number from another number. Decrementing a counter means to subtract 1 or some other number from its current value. of $.08 billion (35% x $225 million), less IT projects of $.02 billion. (2) Free cash flow is defined as Net Cash provided by operating activities less Investments in property, plant and equipment. (3) Agilent's expected range of EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. for Q104 excludes restructuring, which cannot be estimated, and amortization of intangibles, which is expected to be $9 million per quarter. Non-GAAP tax rate is assumed to be 31 percent. (4) Before restructuring charges in all periods. (5) Refer to financial results tables for ROIC. 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
October 31,
---------------- Percent
2003 2002 Inc/(Dec)
------ ------ ---------
Orders $1,731 $1,495 16%
====== ======
Net revenue $1,675 $1,736 (4%)
Costs and expenses:
Cost of products and services 964 1,164 (17%)
Research and development 221 322 (31%)
Selling, general and administrative 434 637 (32%)
------ ------
Total costs and expenses 1,619 2,123 (24%)
------ ------
Income (loss) from operations 56 (387) 114%
Other income (expense), net 21 13 62%
------ ------
Income (loss) from continuing operations
before taxes 77 (374) 121%
Provision (benefit) for taxes 64 (139) (146%)
------ ------
Income (loss) from continuing operations 13 (235) 106%
Loss from sale of discontinued
operations, net of taxes - (1)
------ ------
Net income (loss) $ 13 $ (236) 106%
====== ======
Net income (loss) per share -
Basic and diluted:
Income (loss) from
continuing operations $ 0.03 $(0.51)
Loss from sale of discontinued
operations, net - (0.00)
------ ------
Net income (loss) $ 0.03 $(0.51)
====== ======
Weighted average shares used in
computing net income (loss) per share:
Basic 476 467
Diluted 481 467
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
(In millions, except per share amounts)
(Unaudited)
Twelve Months Ended
October 31,
---------------- Percent
2003 2002 Inc/(Dec)
------ ------ ---------
Orders $ 6,084 $ 6,013 1%
======= =======
Net revenue $ 6,056 $ 6,010 1%
Costs and expenses:
Cost of products and services 3,762 3,875 (3%)
Research and development 1,051 1,250 (16%)
Selling, general and administrative 1,968 2,492 (21%)
------- -------
Total costs and expenses 6,781 7,617 (11%)
------- -------
Loss from operations (725) (1,607) 55%
Other income (expense), net 35 60 (42%)
------- -------
Loss from continuing operations
before taxes (690) (1,547) 55%
Provision (benefit) for taxes 1,100 (525) (310%)
------- -------
Loss from continuing operations (1,790) (1,022) (75%)
Loss from sale of discontinued
operations, net of taxes - (10)
------- -------
Loss before cumulative effect of
accounting changes (1,790) (1,032) (73%)
Cumulative effect of adopting
SFAS No. 142 (268) -
------- -------
Net loss $(2,058) $(1,032) (99%)
======= =======
Net loss per share -
Basic and diluted:
Loss from continuing operations $ (3.78) $ (2.20)
Loss from sale of discontinued
operations, net - (0.02)
Cumulative effect of adopting
SFAS No. 142, net (0.57) -
------- -------
Net loss $ (4.35) $ (2.22)
======= =======
Weighted average shares used in
computing net loss per share:
Basic and diluted 473 465
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
October 31,
---------------- Percent
2003 2002 Inc/(Dec)
------ ------ ---------
Orders $1,731 $1,495 16%
====== ======
Net revenue $1,675 $1,736 (4%)
Costs and expenses:
Cost of products and services 941 1,007 (7%)
Research and development 218 298 (27%)
Selling, general and administrative 394 465 (15%)
------ ------
Total costs and expenses 1,553 1,770 (12%)
------ ------
Income (loss) from operations 122 (34) 459%
Other income (expense), net 21 19 11%
------ ------
Income (loss) before taxes 143 (15) 1053%
Provision (benefit) for taxes 72 (13) (654%)
------- -------
Non-GAAP net income (loss) $ 71 $ (2) 3650%
====== ======
Non-GAAP net income (loss) per share:
Basic and diluted $ 0.15 $(0.00)
Weighted average shares used in computing non-GAAP
net income (loss) per share:
Basic 476 467
Diluted 481 467
The above non-GAAP condensed consolidated statement of operations has
been adjusted to exclude the following items and reconcile to GAAP net
income (loss):
Net income (loss) per GAAP $ 13 $ (236)
Non-GAAP adjustments:
Goodwill - 79
Other intangibles 9 13
Restructuring 58 256
Discontinued operations - 1
Asset impairment - 6
Gain on sale of assets (2) -
Other 1 6
Adjustment for income taxes (8) (127)
------ ------
Non-GAAP net income (loss) $ 71 $ (2)
====== ======
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)
Twelve Months Ended
October 31,
---------------- Percent
2003 2002 Inc/(Dec)
------ ------ ---------
Orders $ 6,084 $ 6,013 1%
======= =======
Net revenue $ 6,056 $ 6,010 1%
Costs and expenses:
Cost of products and services 3,599 3,628 (1%)
Research and development 984 1,195 (18%)
Selling, general and administrative 1,762 1,942 (9%)
------- -------
Total costs and expenses 6,345 6,765 (6%)
------- -------
Loss from operations (289) (755) 62%
Other income (expense), net 47 57 (18%)
------- -------
Loss before taxes (242) (698) 65%
Benefit for taxes (121) (307) (61%)
-------- --------
Non-GAAP net loss $ (121) $ (391) 69%
======= =======
Non-GAAP net loss per share:
Basic and diluted $ (0.26) $ (0.84)
Weighted average shares used in computing
non-GAAP net loss per share:
Basic and diluted 473 465
The above non-GAAP condensed consolidated statement of operations has
been adjusted to exclude the following items and reconcile to GAAP net
loss:
Net loss per GAAP $(2,058) $(1,032)
Non-GAAP adjustments:
Goodwill - 326
Other intangibles 55 52
Restructuring 372 474
Asset impairment 15 24
Retirement plans curtailment
loss (gain) 5 (19)
SFAS No. 142 adoption 268 -
Discontinued operations - 16
Gain on sale of assets (5) (13)
Other 6 6
Adjustment for income taxes 1,221 (225)
------- -------
Non-GAAP net loss $ (121) $ (391)
======= =======
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 INCOME
THREE MONTHS ENDED OCTOBER 31, 2003
(Unaudited) Non-GAAP Adjustments
Other
(In millions, except per share GAAP Intangibles Restructuring
amounts) ------ ---------- ---------------
Orders $1,731 $ - $ -
====== ===== =====
Net revenue $1,675 $ - $ -
Costs and expenses:
Cost of products and services 964 (8) (15)
Research and development 221 - (3)
Selling, general and
administrative 434 (1) (40)
------ ----- -----
Total costs and expenses 1,619 (9) (58)
------ ----- -----
Income from operations 56 9 58
Other income (expense), net 21 - -
------ ----- -----
Income from operations before taxes 77 9 58
Provision for taxes 64 - -
------ ----- -----
Net income $ 13 $ 9 $ 58
====== ===== ======
Net income per share -
Basic and Diluted:
Basic $ 0.03 $0.02 $0.12
====== ===== =====
Diluted $ 0.03 $0.02 $0.12
====== ===== =====
Weighted average shares used in computing net
income per share:
Basic 476 476 476
Diluted 481 481 481
Non-GAAP Adjustments
Adjust-
Gain on ment
Sale for
(In millions, except of Income Non-
per share amounts) Assets Other Taxes GAAP
-------- ------- ------- -------
Orders $ - $ - $ - $1,731
===== ===== ====== ======
Net revenue $ - $ - $ - $1,675
Costs and expenses:
Cost of products and services - - - 941
Research and development - - - 218
Selling, general and administrative 2 (1) - 394
----- ----- ------ ------
Total costs and expenses 2 (1) - 1,553
----- ----- ------ ------
Income from operations (2) 1 - 122
Other income (expense), net - - - 21
----- ----- ------ ------
Income from operations before taxes (2) 1 - 143
Provision for taxes - - 8 72
----- ----- ------ ------
Net income $ (2) $ 1 $ (8) $ 71
===== ===== ====== ======
Net income per share -
Basic and Diluted:
Basic $ - $ - $(0.02) $ 0.15
===== ===== ====== ======
Diluted $ - $ - $(0.02) $ 0.15
===== ===== ====== ======
Weighted average shares used in computing net
income per share:
Basic 476 476 476 476
Diluted 481 481 481 481
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
TWELVE MONTHS ENDED OCTOBER 31, 2003
(Unaudited)
Non-GAAP Adjustments
Gain on
Other Asset Sale
(In millions, except GAAP Intangibles Restructur- Impairment of
per share amounts) ing Assets
------- ----------- ----------- ---------- -------
Orders $ 6,084 $ - $ - $ - $ -
======= ===== ===== ===== ======
Net revenue $ 6,056 $ - $ - $ - $ -
Costs and expenses:
Cost of products
and services 3,762 (46) (111) - -
Research and
development 1,051 - (66) - -
Selling,
general and
administrative 1,968 (9) (195) - 2
------- ----- ----- ----- ------
Total costs
and expenses 6,781 (55) (372) - 2
------- ----- ----- ----- ------
Loss from
operations (725) 55 372 - (2)
Other income
(expense), net 35 - - 15 (3)
------- ----- ----- ----- ------
Loss from
operations before
taxes (690) 55 372 15 (5)
Provision for taxes 1,100 - - - -
------- ----- ----- ----- ------
Net loss before
cumulative effect
of accounting
changes (1,790) 55 372 15 (5)
Cumulative effect
of adopting SFAS
No. 142 (268) - - - -
------- ----- ----- ----- ------
Net loss $(2,058) $ 55 $ 372 $ 15 $ (5)
======= ===== ===== ===== ======
Net loss per share-
Basic and Diluted:
Loss from operations
and before cumulative
effect of
accounting
changes $ (3.78) $0.11 $0.79 $0.03 $(0.01)
Cumulative effect
of adopting SFAS
No. 142 (0.57) - - - -
------- ----- ----- ----- ------
Net loss $ (4.35) $0.11 $0.79 $0.03 $(0.01)
======= ===== ===== ===== ======
Weighted average shares used in
computing net loss per share:
Basic and diluted 473 473 473 473 473
Non-GAAP Adjustments
Retirement
Plans Adjustment
(In millions, Curtailment SFAS for Non-
except per Loss No. 142 Other Income Taxes GAAP
share ------- ----------- ------- ---------- -------
amounts)
Orders $ - $ - $ - $ - $6,084
===== ===== ===== ======= ======
Net revenue $ - $ - $ - $ - $6,056
Costs and expenses:
Cost of products
and services (1) - (5) - 3,599
Research and
development (1) - - - 984
Selling, general
and
administrative (3) - (1) - 1,762
----- ----- ----- ------- ------
Total costs
and expenses (5) - (6) - 6,345
----- ----- ----- ------- ------
Loss from operations 5 - 6 - (289)
Other income
(expense), net - - - - 47
----- ----- ----- ------- ------
Loss from operations
before taxes 5 - 6 - (242)
Provision for taxes - - - (1,221) (121)
----- ----- ----- ------- ------
Net loss
before cumulative
effect of accounting
changes 5 - 6 1,221 (121)
Cumulative effect of
adopting
SFAS No. 142 - 268 - - -
----- ----- ----- ------- ------
Net loss $ 5 $ 268 $ 6 $ 1,221 $ (121)
===== ===== ===== ======= ======
Net loss per share -
Basic and Diluted:
Loss from operations
and before
cumulative
effect of
accounting
changes $ 0.01 $ - $0.01 $ 2.58 $(0.26)
Cumulative effect
of adopting
SFAS No. 142 - 0.57 - - -
----- ----- ----- ------- ------
Net loss $0.01 $0.57 $0.01 $ 2.58 $(0.26)
===== ===== ===== ======= ======
Weighted
average
shares used
in computing
net loss per
share:
Basic and diluted 473 473 473 473 473
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 PRO FORMA TO GAAP
NET LOSS
THREE MONTHS ENDED OCTOBER 31, 2002
(Unaudited)
(In millions, Non-GAAP Adjustments
except per Other Asset
share amounts) GAAP Goodwill Intangibles Restructuring Impairment
----- --------- ----------- ------------- ----------
Orders $1,495 $ - $ - $ - $ -
====== ======= ========== ============ =========
Net revenue $1,736 $ - $ - $ - $ -
Costs and
expenses:
Cost of
products and
services 1,164 - (10) (142) -
Research and
development 322 - - (24) -
Selling,
general and
administrative 637 (79) (3) (90)
------ ------- ---------- ------------ ----------
Total costs
and expenses 2,123 (79) (13) (256) -
------ ------- ---------- ------------ ---------
Loss from
operations (387) 79 13 256 -
Other income
(expense), net 13 - - - 6
------ ------- ---------- ------------ ---------
Loss from
continuing
operations
before taxes (374) 79 13 256 6
Benefit for
taxes (139) - - - -
------ ------- ---------- ------------ ---------
Loss from
continuing
operations (235) 79 13 256 6
Loss from sale of
discontinued
operations, net
of taxes (1) - - - -
------ ------- ---------- ------------ ---------
Net loss $ (236) $ 79 $ 13 $ 256 $ 6
====== ======= ========== ============ =========
Net loss per share -
Basic and Diluted:
Loss from
continuing
operations $(0.51) $ 0.17 $ 0.03 $ 0.55 $ 0.02
Loss from sale
of discontinued
operations, net
of taxes - - - - -
------ ------- ---------- ------------ ---------
Net loss $(0.51) $ 0.17 $ 0.03 $ 0.55 $ 0.02
====== ======= ========== ============ =========
Weighted average shares
used in computing net
loss per share:
Basic and
diluted 467 467 467 467 467
Non-GAAP Adjustments
Discontinued Adjustment
(In millions, except Operations Other for Income Non-
per share amounts) Taxes GAAP
------------ ------- ----------- -------
Orders $ - $ - $ - $1,495
==== ===== ====== ======
Net revenue $ - $ - $ - $1,736
Costs and expenses:
Cost of products and
services - (6) 1 * 1,007
Research and development - - - 298
Selling, general and
administrative - - - 465
---- ----- ------ ------
Total costs and
expenses - (6) 1 1,770
---- ----- ------ ------
Loss from operations - 6 (1) (34)
Other income (expense), net - - - 19
---- ----- ------ ------
Loss from continuing
operations before taxes - 6 (1) (15)
Benefit for taxes - - 126 (13)
---- ----- ------ ------
Loss from continuing
operations - 6 (127) (2)
Loss from sale of
discontinued operations,
net of taxes 1 - - -
---- ----- ------ ------
Net loss $ 1 $ 6 $ (127) $ (2)
==== ===== ====== ======
Net loss per share -
Basic and Diluted:
Loss from continuing
operations $ - $0.02 $(0.28) $ -
Loss from sale of
discontinued operations,
net of taxes - - - -
---- ----- ------ ------
Net loss $ - $0.02 $(0.28) $ -
==== ===== ====== ======
Weighted average shares used
in computing net loss per
share:
Basic and diluted 467 467 467 467
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
TWELVE MONTHS ENDED OCTOBER 31, 2002
(Unaudited)
Non-GAAP Adjustments
(In millions, Other Dis- Asset
except per share Intang- Restructur-continued Impair-
amounts) GAAP Goodwill ibles ing Operations ment
-------- -------- ------ ---------- --------- ------
Orders $ 6,013 $ - $ - $ - $ - $ -
======== ======== ====== ========== ========= ======
Net revenue $ 6,010 $ - $ - $ - $ - $ -
Costs and
expenses:
Cost of
products and
services 3,875 - (40) (211) - (2)
Research and
development 1,250 - - (56) - (2)
Selling,
general and
administrative 2,492 (326) (12) (207) - (10)
-------- -------- ------ ---------- --------- ------
Total costs
and expenses 7,617 (326) (52) (474) - (14)
-------- -------- ------ ---------- --------- ------
Loss from
operations (1,607) 326 52 474 - 14
Other income
(expense), net 60 - - - - 10
-------- -------- ------ ---------- --------- ------
Loss from
continuing
operations
before taxes (1,547) 326 52 474 - 24
Benefit for taxes (525) - - - (6) -
-------- -------- ------ ---------- --------- ------
Loss from
continuing
operations (1,022) 326 52 474 6 24
Loss from sale of
discontinued
operations, net
of taxes (10) - - - 10 -
-------- -------- ------ ---------- --------- ------
Net loss $(1,032) $ 326 $ 52 $ 474 $ 16 $ 24
======== ======== ====== ========== ========= ======
Net loss per share -
Basic and Diluted:
Loss from
continuing
operations $ (2.20) $ 0.70 $0.12 $ 1.02 $ 0.01 $0.05
Loss from sale of
discontinued
operations, net
of taxes $ (0.02) $ - $ - $ - $ 0.02 $ -
-------- -------- ------ ---------- --------- ------
Net loss $ (2.22) $ 0.70 $0.12 $ 1.02 $ 0.03 $0.05
======== ======== ====== ========== ========= ======
Weighted average shares used in
computing net loss per share:
Basic and
diluted 465 465 465 465 465 465
Non-GAAP Adjustments
(In millions, except per Gain on Adjustment Retirement Non-
share amounts) Sale for Plans GAAP
of Income Curtailment
Assets Other Taxes Gains
------- ------ ------- ------- -------
Orders $ - $ - $ - $ - $6,013
======= ====== ======= ======= =======
Net revenue $ - $ - $ - $ - $6,010
Costs and expenses:
Cost of products and
services - (6) 1 * 11 3,628
Research and development - - - 3 1,195
Selling, general and
administrative - - - 5 1,942
------- ------ ------- ------- -------
Total costs and
expenses - (6) 1 19 6,765
------- ------ ------- ------- -------
Loss from operations - 6 (1) (19) (755)
Other income (expense),
net (13) - - - 57
------- ------ ------- ------- -------
Loss from continuing
operations before taxes (13) 6 (1) (19) (698)
Benefit for taxes - - 224 - (307)
------- ------ ------- ------- -------
Loss from continuing
operations (13) 6 (225) (19) (391)
Loss from sale of
discontinued operations,
net of taxes - - - - -
------- ------ ------- ------- -------
Net loss $ (13) $ 6 $ (225) $ (19) $ (391)
======= ====== ======= ======= =======
Net loss per share -
Basic and Diluted:
Loss from continuing
operations $(0.03) $0.01 $(0.48) $(0.04) $(0.84)
Loss from sale of
discontinued operations,
net of taxes $ - $ - $ - $ - -
------- ------ ------- ------- -------
Net loss $(0.03) $0.01 $(0.48) $(0.04) $(0.84)
======= ====== ======= ======= =======
Weighted average shares used in
computing net loss per share:
Basic and diluted 465 465 465 465 465
* Represents a rounding difference
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)
October 31, October 31,
2003 2002
------- ------
ASSETS
Current assets:
Cash and cash equivalents $ 1,607 $1,844
Accounts receivable, net 1,086 1,118
Inventory 995 1,184
Current deferred tax assets 10 462
Other current assets 191 272
------- ------
Total current assets 3,889 4,880
Property, plant and equipment, net 1,447 1,579
Goodwill and other intangible assets, net 402 685
Long-term deferred tax assets 27 635
Other assets 532 424
------- ------
Total assets $ 6,297 $8,203
======= ======
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 441 $ 451
Employee compensation and benefits 566 558
Deferred revenue 262 244
Income and other taxes payable 326 325
Other accrued liabilities 311 403
------- ------
Total current liabilities 1,906 1,981
------- ------
Senior convertible debentures 1,150 1,150
Other liabilities 417 445
------- ------
Total liabilities 3,473 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; 476 million shares at
October 31, 2003 and 467 million shares
at October 31, 2002 issued and outstanding 5 5
Additional paid-in capital 4,984 4,872
Accumulated deficit (2,160) (101)
Accumulated comprehensive loss (5) (149)
------- ------
Total stockholders' equity 2,824 4,627
------- ------
Total liabilities and
stockholders' equity $ 6,297 $8,203
======= ======
Historical amounts were reclassified to conform with current period
presentation.
AGILENT TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(In millions)
(Unaudited)
Twelve Three
months months
ended ended
Oct. 31, Oct. 31,
2003 2003
------- --------
Cash flows from operating activities:
Net (loss) income $(2,058) $ 13
Adjustments to reconcile net (loss)
income to net cash (used in) provided
by operating activities:
Depreciation 311 78
Amortization 51 11
Inventory-related charges 11 -
Deferred taxes 1,071 (14)
Asset impairment charges 91 2
Retirement plans curtailment loss 5 -
Net gain on sale of assets (5) -
Adoption of SFAS No. 142 268 -
Changes in assets and liabilities:
Accounts receivable 55 (106)
Inventory 169 57
Accounts payable 74 43
Employee compensation and benefits (21) 96
Income taxes (63) 134
Other current assets and liabilities (6) 32
Other long-term assets and liabilities (97) (117)
------- ------
Net cash (used in) provided by operating
activities * (144) 229
Cash flows from investing activities:
Investments in property, plant and equipment (205) (57)
Dispositions of property, plant and equipment 6 -
Purchase of equity investments (4) -
------- ------
Net cash used in investing activities (203) (57)
Cash flows from financing activities:
Issuance of common stock under
employee stock plans 112 8
Net repayments of notes payable and
short-term borrowings (2) (3)
------- ------
Net cash provided by financing activities 110 5
Change in cash and cash equivalents (237) 177
Cash and cash equivalents at beginning of period 1,844 1,430
-------- -------
Cash and cash equivalents at end of period $ 1,607 $1,607
======= ======
* Cash payments (receipts) included in
operating activities:
Restructuring 379 82
Income tax (refunds) payments (9) 17
Pension trust fund contributions 217 35
AGILENT TECHNOLOGIES, INC.
TEST AND MEASUREMENT INFORMATION
(In millions, except percent changes)
(Unaudited)
Three Three Three
months months months Yr
ended ended ended vs.
Oct. 31, July 31, Sequential Oct. 31, Yr
2003 2003 % change 2002 % change
--------------------------------------------------------
Orders $ 645 $ 566 14% $ 673 (4%)
Net Revenue $ 631 $ 613 3% $ 747 (16%)
Loss from
operations $ (11) $ (69) 84% $(107) 90%
----------------------------------------------------------------------
Twelve Twelve
months months
ended ended
Oct. 31, Oct. 31,
2003 2002 % change
---------------------------------------
Orders $2,413 $2,549 (5%)
Net Revenue $2,529 $2,612 (3%)
Loss from operations $ (315) $ (710) 56%
----------------------------------------------------------------------
Q4 FY03 vs Q3 FY03 BY MARKET SEGMENT
Orders Net Revenue
-------------------------- -----------------------------
Q4 FY03 Sequential % of Q4 FY03 Sequential % of
$ Amount % change Segment $ Amount % change Segment
-------------------------- -----------------------------
Communications
test $ 446 17% 69% $ 426 3% 68%
General
purpose test 199 7% 31% 205 2% 32%
------- ------- ------ ------
$ 645 14% 100% $ 631 3% 100%
======= ======= ====== ======
----------------------------------------------------------------------
Q4 FY03 vs Q4 FY02 BY MARKET SEGMENT
Orders Net Revenue
------------------- ----------------------
Q4 FY03 Yr vs.Yr Q4 FY03 Yr vs.Yr
$ Amount % change $ Amount % change
------------------- ----------------------
Communications test $ 446 (3%) $ 426 (21%)
General purpose test 199 (6%) 205 (2%)
------ ------
$ 645 (4%) $ 631 (16%)
====== ======
----------------------------------------------------------------------
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 months Yr
ended ended ended vs.
Oct. 31, July 31, Sequential Oct. 31, Yr
2003 2003 % change 2002 % change
--------------------------------------------------------
Orders $ 260 $ 251 4% $ 151 72%
Net Revenue $ 260 $ 206 26% $ 220 18%
Income from
operations $ 45 $ 6 650% $ 9 400%
----------------------------------------------------------------------
Twelve Twelve
months months
ended ended
Oct. 31, Oct. 31, Yr vs. Yr
2003 2002 % change
---------------------------------------
Orders $ 845 $ 745 13%
Net Revenue $ 755 $ 706 7%
Loss from operations $ (34) $ (70) 51%
----------------------------------------------------------------------
Q4 FY03 vs Q3 FY03 BY MARKET SEGMENT
Orders Net Revenue
---------------------------- --------------------------
Q4 FY03 Sequential % of Q4 FY03 Sequential % of
$ Amount % change Segment $ Amount % change Segment
---------------------------- --------------------------
Semiconductor
test $ 219 2% 84% $ 221 32% 85%
Manufacturing
test* 41 14% 16% 39 - % 15%
--------- ------- -------- -------
$ 260 4% 100% $ 260 26% 100%
========= ======= ======== =======
----------------------------------------------------------------------
Q4 FY03 vs Q4 FY02 BY MARKET SEGMENT
Orders Net Revenue
--------------------- ------------------------
Q4 FY03 Yr vs. Yr Q4 FY03 Yr vs. Yr
$ Amount % change $ Amount % change
--------------------- ------------------------
Semiconductor test $ 219 90% $ 221 20%
Manufacturing test* 41 14% 39 8%
--------- ----------
$ 260 72% $ 260 18%
========= ==========
----------------------------------------------------------------------
* Amounts presented as manufacturing test were previously included
in test and measurement's general purpose test.
Income (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). Income (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 months Yr
ended ended ended vs.
Oct. 31, July 31, Sequential Oct. 31, Yr
2003 2003 % change 2002 % change
--------------------------------------------------------
Orders $ 493 $ 358 38% $ 363 36%
Net Revenue $ 463 $ 380 22% $ 471 (2%)
Income (loss)
from operations $ 40 $ (8) 600% $ 21 (90%)
----------------------------------------------------------------------
Twelve Twelve
months months
ended ended
Oct. 31, Oct. 31, Yr vs. Yr
2003 2002 % change
---------------------------------------
Orders $1,652 $1,568 5%
Net Revenue $1,586 $1,559 2%
Loss from operations $ (59) $ (115) 49%
----------------------------------------------------------------------
Q4 FY03 vs Q3 FY03 BY MARKET SEGMENT
Orders Net Revenue
---------------------------- ----------------------------
Q4 FY03 Sequential % of Q4 FY03 Sequential % of
$ Amount % change Segment $ Amount % change Segment
---------------------------- ----------------------------
Networking $ 168 42% 34% $ 154 23% 33%
Personal
systems 325 35% 66% 309 21% 67%
--------- ------- --------- -------
$ 493 38% 100% $ 463 22% 100%
========= ======= ========= =======
----------------------------------------------------------------------
Q4 FY03 vs Q4 FY02 BY MARKET SEGMENT
Orders Net Revenue
--------------------- ------------------------
Q4 FY03 Yr vs.Yr Q4 FY03 Yr vs.Yr
$ Amount % change $ Amount % change
--------------------- ------------------------
Networking $ 168 37% $ 154 18%
Personal systems 325 35% 309 (9%)
--------- ---------
$ 493 36% $ 463 (2%)
========= ==========
----------------------------------------------------------------------
Income (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). Income (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 Yr
ended ended ended vs.
Oct. 31, July 31, Sequential Oct. 31, Yr
2003 2003 % change 2002 % change
--------------------------------------------------------
Orders $ 333 $ 293 14% $ 308 8%
Net Revenue $ 321 $ 303 6% $ 298 8%
Income from
operations $ 53 $ 41 29% $ 43 23%
----------------------------------------------------------------------
Twelve Twelve
months months
ended ended
Oct. 31, Oct. 31, Yr vs. Yr
2003 2002 % change
------- ------- ---------
Orders $1,174 $1,151 2%
Net Revenue $1,186 $1,133 5%
Income from
operations $ 148 $ 140 6%
----------------------------------------------------------------------
Income 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). Income 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 Income (Loss) from Operations
Reconciliation of Reporting Segments to Agilent Non-GAAP Income (Loss)
(In millions)
(Unaudited)
Three
months
Three months ended
ended Oct. 31, July 31,
-------------- -------
2003 2002 2003
----- ----- -------
Test and Measurement $ (11) $(107) $ (69)
Semiconductor Products 40 21 (8)
Automated Test 45 9 6
Life Sciences and Chemical Analysis 53 43 41
Residual corporate charges (5) - 3
----- ----- -----
Non-GAAP Income (loss)
from operations - Agilent $ 122 $ (34) $ (27)
===== ===== =====
----------------------------------------------------------------------
Income (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). Income (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 Oct. 31, Percent
2003 2002 Inc/(Dec)
------ ------ ----------
ORDERS
Americas $ 665 $ 629 6%
Europe 337 296 14%
Asia Pacific 729 570 28%
------- -------
Total $1,731 $1,495 16%
======= =======
NET REVENUE
Americas $ 660 $ 713 (7%)
Europe 323 320 1%
Asia Pacific 692 703 (2%)
------- -------
Total $1,675 $1,736 (4%)
======= =======
----------------------------------- -------- -------- -----------
Twelve Months
Ended Oct. 31, Percent
2003 2002 Inc/(Dec)
------ ------ ----------
ORDERS
Americas $2,303 $2,539 (9%)
Europe 1,248 1,154 8%
Asia Pacific 2,533 2,320 9%
------- -------
Total $6,084 $6,013 1%
======= =======
NET REVENUE
Americas $2,347 2,553 (8%)
Europe 1,214 1,154 5%
Asia Pacific 2,495 2,303 8%
------- -------
Total $6,056 $6,010 1%
======= =======
----------------------------------------------------------------------
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.
AGILENT TECHNOLOGIES, INC.
Reconciliation of Segment ROIC
(In millions)
(Unaudited)
Q4 FY03 Q4 FY03 Q4 FY03
Numerator: ATG SPG LSCA
Segment income from operations $ 45 $ 40 $ 53
Less:
Other income and taxes 23 (7) 16
---- ------ ----
Segment return 22 47 37
----- ------- -----
Segment return annualized $ 88 $ 188 $148
===== ======= =====
Denominator:
Segment assets $638 $1,224 $547
Less:
Net current liabilities * 115 289 181
---- ------ ----
Invested capital $523 $ 935 $366
---- ------ ----
Average Invested capital $495 $ 929 $353
ROIC 18% 20% 42%
ROIC calculation: (current quarter non-GAAP net profit *
4)/(average of the two most recent quarter-end balances of Segment
Invested Capital)
* Includes accounts payable, employee compensation and benefits
and other accrued liabilities.
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