[November 15, 2016] |
|
Agilent Technologies Reports Fourth-Quarter 2016 Results
Agilent Technologies Inc. (NYSE: A) today reported revenue of $1.11
billion, up 7.3 percent year over year (up 6.3 percent on a core basis(2))
for the fourth fiscal quarter ended Oct. 31, 2016.
Fourth-quarter GAAP income from continuing operations was $124 million,
or $0.38 per share. Last year's fourth-quarter GAAP income from
continuing operations was $140 million, or $0.42 per share.
During the fourth quarter, Agilent had intangible amortization of $32
million, impairment costs of $25 million, acquisition and integration
costs of $13 million, transformation costs of $6 million and $5 million
of other costs. Excluding these items, and a tax benefit of $12 million,
Agilent reported fourth-quarter adjusted income from continuing
operations of $193 million, or $0.59 per share(1).
"Agilent delivered a great fourth quarter, capping off a strong fiscal
year 2016," said Mike McMullen, Agilent president and CEO. "Our
fourth-quarter revenue was up 6.3 percent on a core basis(2)
supported by strength across all businesses, and earnings per share came
in well above our guidance range."
"Key drivers for our better-than-expected quarter were
stronger-than-expected growth in pharma and Europe, along with continued
strength in China. Looking ahead, we are well positioned to capture
market growth with our strong lineup of new offerings recently
introduced and in the pipeline for 2017," McMullen added.
Fourth-quarter revenue of $548 million from Agilent's Life Sciences and
Applied Markets Group (LSAG) grew 6 percent year over year (up 5 percent
on a core basis(2)), with strength in pharma, food and
forensics. LSAG's Q4 operating margin was 22.8 percent.
Fourth-quarter revenue of $370 million from the Agilent CrossLab Group
(ACG) grew 8 percent year over year (up 8 percent on a core basis(2)).
Both services and consumables experienced healthy growth across all
geographies. ACG's operating margin was 22.7 percent in the quarter.
Fourth-quarter revenue of $193 million from Agilent's Diagnostics and
Genomics Group (DGG) increased 8 percent year over year (up 8 percent on
a core basis(2)), led by strength in pathology and nucleic
acid solutions. DGG's operating margin for the quarter was 19.6 percent.
Agilent expects first-quarter 2017 revenue in the range of $1.04 billion
to $1.06 billion. First-quarter non-GAAP earnings are expected to be in
the range of $0.48 to $0.50 per share(3).
For fiscal year 2017, Agilent expects revenue of $4.35 billion to $4.37
billion and non-GAAP earnings of $2.10 to $2.16 per share(3).
The guidance is based on Oct. 31, 2016 exchange rates.
About Agilent Technologies
Agilent Technologies Inc. (NYSE: A), a global leader in life sciences,
diagnostics and applied chemical markets, is the premier laboratory
partner for a better world. Agilent works with customers in more than
100 countries, providing instruments, software, services and consumables
for the entire laboratory workflow. Agilent generated revenue of $4.20
billion in fiscal 2016. The company employs about 12,500 people
worldwide. Information about Agilent is available at www.agilent.com.
Agilent's management will present more details about its fourth-quarter
FY2016 financial results on a conference call with investors today at
1:30 p.m. PT. This event will be webcast live in listen-only mode.
Listeners may log on at www.investor.agilent.com
and select "Q4 2016 Agilent Technologies Inc. Earnings Conference Call"
in the "News & Events Calendar of Events" section. The webcast will
remain available on the company's website for 90 days.
Additional information regarding financial results can be found at www.investor.agilent.com
by selecting "Financial Results" in the "Financial Information" section.
A telephone replay of the conference call will be available at
approximately 4:30 p.m. PT today through Nov. 22 by dialing +1 855 859
2056 (or +1 404 537 3406 from outside the United States) and entering
passcode 94476938.
Forward-Looking Statements
This news release contains forward-looking statements as defined in the
Securities Exchange Act of 1934 and is subject to the safe harbors
created therein. The forward-looking statements contained herein
include, but are not limited to, information regarding Agilent's future
revenue, earnings and profitability; planned new products; market
trends; the future demand for the company's products and services;
customer expectations; and revenue and non-GAAP earnings guidance for
the first quarter and full fiscal year 2017. These forward-looking
statements involve risks and uncertainties that could cause Agilent's
results to differ materially from management's current expectations.
Such risks and uncertainties include, but are not limited to, unforeseen
changes in the strength of our customers' businesses; unforeseen changes
in the demand for current and new products, technologies, and services;
unforeseen changes in the currency markets; customer purchasing
decisions and timing, and the risk that we are not able to realize the
savings expected from integration and restructuring activities.
In addition, other risks that Agilent faces in running its operations
include the ability to execute successfully through business cycles; 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 our
ability to develop products and remain competitive and to operate
effectively; the impact of geopolitical uncertainties and global
economic conditions on our operations, our markets and our ability to
conduct business; the ability to improve asset performance to adapt to
changes in demand; the ability of our supply chain to adapt to changes
in demand; the ability to successfully introduce new products at the
right time, price and mix; the ability of Agilent to successfully
integrate recent acquisitions; the ability of Agilent to successfully
comply with certain complex regulations; and other risks detailed in
Agilent's filings with the Securities and Exchange Commission, including
our quarterly report on Form 10-Q for the quarter ended July 31, 2016.
Forward-looking statements are based on the beliefs and assumptions of
Agilent's management and on currently available information. Agilent
undertakes no responsibility to publicly update or revise any
forward-looking statement.
(1) Non-GAAP income from continuing operations and non-GAAP income from
continuing operations per share exclude primarily the impacts of
acquisition and integration costs, transformation initiatives, business
exit and divestiture costs, non-cash intangibles amortization, and
impairment of investment and loans. We also exclude any tax benefits
that are not directly related to ongoing operations and which are either
isolated or cannot be expected to occur again with any regularity or
predictability. A reconciliation between non-GAAP income from continuing
operations and GAAP income from continuing operations is set forth on
page 6 of the attached tables along with additional information
regarding the use of this non-GAAP measure.
(2) Core revenue growth excludes the impact of currency, the NMR
business and acquisitions and divestitures within the past 12 months.
Core revenue is a non-GAAP measure. A reconciliation between Q4 FY16
GAAP revenue and core revenue is set forth on page 8 of the attached
tables along with additional information regarding the use of this
non-GAAP measure.
(3) Non-GAAP earnings per share as projected for Q1 FY17 and full fiscal
year 2017 excludes primarily the future impact of acquisition and
integration costs, pension curtailment gain, business exit and
divestiture costs and non-cash intangibles amortization. We also exclude
any tax benefits that are not directly related to ongoing operations and
which are either isolated or cannot be expected to occur again with any
regularity or predictability. Most of these excluded amounts pertain to
events that have not yet occurred and are not currently possible to
estimate with a reasonable degree of accuracy and could differ
materially. Therefore, no reconciliation to GAAP amounts has been
provided. Future amortization of intangibles is expected to be
approximately $32 million per quarter.
NOTE TO EDITORS: Further technology, corporate citizenship 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)
|
PRELIMINARY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
October 31,
|
|
Percent
|
|
|
2016
|
|
|
|
2015
|
|
|
Inc/(Dec)
|
|
|
|
|
|
|
Net revenue
|
$
|
1,111
|
|
|
$
|
1,035
|
|
|
7
|
%
|
|
|
|
|
|
|
Costs and expenses:
|
|
|
|
|
|
Cost of products and services
|
|
523
|
|
|
|
500
|
|
|
5
|
%
|
Research and development
|
|
84
|
|
|
|
82
|
|
|
2
|
%
|
Selling, general and administrative
|
|
321
|
|
|
|
297
|
|
|
8
|
%
|
Total costs and expenses
|
|
928
|
|
|
|
879
|
|
|
6
|
%
|
|
|
|
|
|
|
Income from operations
|
|
183
|
|
|
|
156
|
|
|
17
|
%
|
|
|
|
|
|
|
Interest income
|
|
3
|
|
|
|
1
|
|
|
200
|
%
|
Interest expense
|
|
(19
|
)
|
|
|
(16
|
)
|
|
19
|
%
|
Other income (expense), net
|
|
(16
|
)
|
|
|
2
|
|
|
-
|
|
|
|
|
|
|
|
Income from continuing operations before taxes
|
|
151
|
|
|
|
143
|
|
|
6
|
%
|
|
|
|
|
|
|
Provision for income taxes
|
|
27
|
|
|
|
3
|
|
|
-
|
|
|
|
|
|
|
|
Income from continuing operations
|
|
124
|
|
|
|
140
|
|
|
(11
|
%)
|
|
|
|
|
|
|
Loss from discontinued operations, net of tax
|
|
-
|
|
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
Net income
|
$
|
124
|
|
|
$
|
140
|
|
|
(11
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share - Basic:
|
|
|
|
|
|
Income from continuing operations
|
$
|
0.38
|
|
|
$
|
0.42
|
|
|
|
Loss from discontinued operations
|
$
|
-
|
|
|
$
|
-
|
|
|
|
Net income per share - Basic
|
$
|
0.38
|
|
|
$
|
0.42
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share - Diluted:
|
|
|
|
|
|
Income from continuing operations
|
$
|
0.38
|
|
|
$
|
0.42
|
|
|
|
Loss from discontinued operations
|
$
|
-
|
|
|
$
|
-
|
|
|
|
Net income per share - Diluted
|
$
|
0.38
|
|
|
$
|
0.42
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares used in computing net income per share:
|
|
|
|
|
|
Basic
|
|
324
|
|
|
|
331
|
|
|
|
Diluted
|
|
328
|
|
|
|
333
|
|
|
|
|
|
|
|
|
|
Cash dividends declared per common share
|
$
|
0.115
|
|
|
$
|
0.100
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The preliminary income statement is estimated based on our current
information.
|
|
|
|
|
|
|
Page 1
|
|
|
AGILENT TECHNOLOGIES, INC.
|
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
|
(In millions, except per share amounts)
|
(Unaudited)
|
PRELIMINARY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended
|
|
|
|
October 31,
|
|
Percent
|
|
|
2016
|
|
|
|
|
2015
|
|
|
Inc/(Dec)
|
|
|
|
|
|
|
|
Net revenue
|
$
|
4,202
|
|
|
|
$
|
4,038
|
|
|
4
|
%
|
|
|
|
|
|
|
|
Costs and expenses:
|
|
|
|
|
|
|
Cost of products and services
|
|
2,005
|
|
|
|
|
1,997
|
|
|
-
|
|
Research and development
|
|
329
|
|
|
|
|
330
|
|
|
-
|
|
Selling, general and administrative
|
|
1,253
|
|
|
|
|
1,189
|
|
|
5
|
%
|
Total costs and expenses
|
|
3,587
|
|
|
|
|
3,516
|
|
|
2
|
%
|
|
|
|
|
|
|
|
Income from operations
|
|
615
|
|
|
|
|
522
|
|
|
18
|
%
|
|
|
|
|
|
|
|
Interest income
|
|
11
|
|
|
|
|
7
|
|
|
57
|
%
|
Interest expense
|
|
(72
|
)
|
|
|
|
(66
|
)
|
|
9
|
%
|
Other income (expense), net
|
|
(10
|
)
|
|
|
|
17
|
|
|
(159
|
%)
|
|
|
|
|
|
|
|
Income from continuing operations before taxes
|
|
544
|
|
|
|
|
480
|
|
|
13
|
%
|
|
|
|
|
|
|
|
Provision for income taxes
|
|
84
|
|
|
|
|
42
|
|
|
100
|
%
|
|
|
|
|
|
|
|
Income from continuing operations
|
|
460
|
|
|
|
|
438
|
|
|
5
|
%
|
|
|
|
|
|
|
|
Loss from discontinued operations, net of tax
|
|
-
|
|
|
|
|
(37
|
)
|
|
-
|
|
|
|
|
|
|
|
|
Net income
|
$
|
460
|
|
|
|
$
|
401
|
|
|
15
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share - Basic:
|
|
|
|
|
|
|
Income from continuing operations
|
$
|
1.41
|
|
|
|
$
|
1.32
|
|
|
|
Loss from discontinued operations
|
$
|
-
|
|
|
|
$
|
(0.12
|
)
|
|
|
Net income per share - Basic
|
$
|
1.41
|
|
|
|
$
|
1.20
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share - Diluted:
|
|
|
|
|
|
|
Income from continuing operations
|
$
|
1.40
|
|
|
|
$
|
1.31
|
|
|
|
Loss from discontinued operations
|
$
|
-
|
|
|
|
$
|
(0.11
|
)
|
|
|
Net income per share - Diluted
|
$
|
1.40
|
|
|
|
$
|
1.20
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares used in computing net income per share:
|
|
|
|
|
|
|
Basic
|
|
326
|
|
|
|
|
333
|
|
|
|
Diluted
|
|
329
|
|
|
|
|
335
|
|
|
|
|
|
|
|
|
|
|
Cash dividends declared per common share
|
$
|
0.460
|
|
|
|
$
|
0.400
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The preliminary income statement is estimated based on our current
information.
|
|
|
|
|
|
|
|
Page 2
|
|
|
AGILENT TECHNOLOGIES, INC.
|
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
|
(In millions)
|
(Unaudited)
|
PRELIMINARY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Years Ended
|
|
October 31,
|
|
October 31,
|
|
|
2016
|
|
|
|
2015
|
|
|
|
2016
|
|
|
|
2015
|
|
|
|
|
|
|
|
|
|
Net income
|
$
|
124
|
|
|
$
|
140
|
|
|
$
|
460
|
|
|
$
|
401
|
|
|
|
|
|
|
|
|
|
Other comprehensive income (loss), net of tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized gain (loss) on derivative instruments
|
|
5
|
|
|
|
1
|
|
|
|
(6
|
)
|
|
|
8
|
|
Amounts reclassified into earnings related to derivative instruments
|
|
3
|
|
|
|
(3
|
)
|
|
|
3
|
|
|
|
(12
|
)
|
Foreign currency translation
|
|
(49
|
)
|
|
|
1
|
|
|
|
(8
|
)
|
|
|
(336
|
)
|
Net defined benefit pension cost and post retirement plan costs:
|
|
|
|
|
|
|
|
Change in actuarial net loss
|
|
(115
|
)
|
|
|
(55
|
)
|
|
|
(86
|
)
|
|
|
(38
|
)
|
Change in net prior service benefit
|
|
(2
|
)
|
|
|
(3
|
)
|
|
|
(15
|
)
|
|
|
(11
|
)
|
Other comprehensive loss
|
|
(158
|
)
|
|
|
(59
|
)
|
|
|
(112
|
)
|
|
|
(389
|
)
|
|
|
|
|
|
|
|
|
Total comprehensive income (loss)
|
$
|
(34
|
)
|
|
$
|
81
|
|
|
$
|
348
|
|
|
$
|
12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The preliminary statement of comprehensive income is estimated based
on our current information.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Page 3
|
|
|
AGILENT TECHNOLOGIES, INC.
|
CONDENSED CONSOLIDATED BALANCE SHEET
|
(In millions, except par value and share amounts)
|
(Unaudited)
|
PRELIMINARY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
October 31,
|
|
October 31,
|
|
|
|
|
|
2016
|
|
|
|
2015
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
Cash and cash equivalents
|
$
|
2,289
|
|
|
$
|
2,003
|
|
|
Short-term restricted cash and cash equivalents
|
|
-
|
|
|
|
242
|
|
|
Accounts receivable, net
|
|
624
|
|
|
|
606
|
|
|
Inventory
|
|
|
533
|
|
|
|
541
|
|
|
Other current assets
|
|
189
|
|
|
|
294
|
|
|
|
Total current assets
|
|
3,635
|
|
|
|
3,686
|
|
|
|
|
|
|
|
|
Property, plant and equipment, net
|
|
639
|
|
|
|
604
|
|
Goodwill
|
|
|
|
2,517
|
|
|
|
2,366
|
|
Other intangible assets, net
|
|
408
|
|
|
|
445
|
|
Long-term investments
|
|
135
|
|
|
|
86
|
|
Other assets
|
|
|
483
|
|
|
|
292
|
|
|
|
Total assets
|
$
|
7,817
|
|
|
$
|
7,479
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
Accounts payable
|
$
|
257
|
|
|
$
|
279
|
|
|
Employee compensation and benefits
|
|
235
|
|
|
|
221
|
|
|
Deferred revenue
|
|
269
|
|
|
|
258
|
|
|
Other accrued liabilities
|
|
183
|
|
|
|
218
|
|
|
|
Total current liabilities
|
|
944
|
|
|
|
976
|
|
|
|
|
|
|
|
|
Long-term debt
|
|
1,912
|
|
|
|
1,655
|
|
Retirement and post-retirement benefits
|
|
360
|
|
|
|
264
|
|
Other long-term liabilities
|
|
357
|
|
|
|
414
|
|
|
|
Total liabilities
|
|
3,573
|
|
|
|
3,309
|
|
|
|
|
|
|
|
|
Total Equity:
|
|
|
|
|
|
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; 614 million shares at October 31, 2016
|
|
|
|
|
|
and 611 million shares at October 31, 2015, issued
|
|
6
|
|
|
|
6
|
|
|
Treasury stock at cost; 290 million shares at October 31, 2016 and
|
|
|
|
|
|
279 million shares at October 31, 2015
|
|
(10,508
|
)
|
|
|
(10,074
|
)
|
|
Additional paid-in-capital
|
|
9,159
|
|
|
|
9,045
|
|
|
Retained earnings
|
|
6,087
|
|
|
|
5,581
|
|
|
Accumulated other comprehensive loss
|
|
(503
|
)
|
|
|
(391
|
)
|
|
|
Total stockholders' equity
|
|
4,241
|
|
|
|
4,167
|
|
|
Non-controlling interest
|
|
3
|
|
|
|
3
|
|
|
|
Total equity
|
|
4,244
|
|
|
|
4,170
|
|
|
|
|
Total liabilities and equity
|
$
|
7,817
|
|
|
$
|
7,479
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The preliminary balance sheet is estimated based on our current
information.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Page 4
|
|
AGILENT TECHNOLOGIES, INC.
|
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
|
(In millions)
|
(Unaudited)
|
PRELIMINARY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
|
|
Year
|
|
|
|
|
|
Ended
|
|
Ended
|
|
|
|
|
|
October 31,
|
|
October 31,
|
|
|
|
|
|
|
2016
|
|
|
|
2016
|
|
Cash flows from operating activities:
|
|
|
|
|
|
Net income
|
|
$
|
124
|
|
|
$
|
460
|
|
|
|
|
|
|
|
|
|
Adjustments to reconcile net income to net cash provided by (used
in) operating activities:
|
|
|
|
|
|
Depreciation and amortization
|
|
|
56
|
|
|
|
246
|
|
|
Share-based compensation
|
|
|
11
|
|
|
|
58
|
|
|
Excess and obsolete inventory related charges
|
|
|
4
|
|
|
|
20
|
|
|
Impairment of investment and loans
|
|
|
25
|
|
|
|
25
|
|
|
Other non-cash expenses, net
|
|
|
3
|
|
|
|
19
|
|
|
Changes in assets and liabilities:
|
|
|
|
|
|
|
Accounts receivable
|
|
|
(45
|
)
|
|
|
(26
|
)
|
|
|
Inventory
|
|
|
4
|
|
|
|
(7
|
)
|
|
|
Accounts payable
|
|
|
12
|
|
|
|
(15
|
)
|
|
|
Employee compensation and benefits
|
|
|
29
|
|
|
|
15
|
|
|
|
Interest rate swap payments
|
|
|
(10
|
)
|
|
|
(10
|
)
|
|
|
Other assets and liabilities
|
|
|
21
|
|
|
|
8
|
|
Net cash provided by operating activities (a)
|
|
|
234
|
|
|
|
793
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
Investments in property, plant and equipment
|
|
|
(52
|
)
|
|
|
(139
|
)
|
|
Proceeds from sale of investment securities
|
|
|
-
|
|
|
|
1
|
|
|
Payment to acquire cost method investment
|
|
|
-
|
|
|
|
(80
|
)
|
|
Loan to equity method investment
|
|
|
-
|
|
|
|
(3
|
)
|
|
Change in restricted cash and cash equivalents, net
|
|
|
-
|
|
|
|
245
|
|
|
Payment in exchange for convertible loan
|
|
|
-
|
|
|
|
(1
|
)
|
|
Acquisition of businesses and intangible assets, net of cash acquired
|
|
|
(26
|
)
|
|
|
(261
|
)
|
Net cash used in investing activities
|
|
|
(78
|
)
|
|
|
(238
|
)
|
|
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
Issuance of common stock under employee stock plans
|
|
|
3
|
|
|
|
62
|
|
|
Payment of taxes related to net share settlement of equity awards
|
|
|
-
|
|
|
|
(6
|
)
|
|
Payment of dividends
|
|
|
(38
|
)
|
|
|
(150
|
)
|
|
Proceeds from revolving credit facility
|
|
|
-
|
|
|
|
255
|
|
|
Repayment of revolving credit facility
|
|
|
(235
|
)
|
|
|
(255
|
)
|
|
Proceeds from issuance of senior notes
|
|
|
299
|
|
|
|
299
|
|
|
Debt issuance cost
|
|
|
(2
|
)
|
|
|
(2
|
)
|
|
Repayment of debt
|
|
|
(37
|
)
|
|
|
(37
|
)
|
|
Treasury stock repurchases
|
|
|
(46
|
)
|
|
|
(434
|
)
|
Net cash used in financing activities
|
|
|
(56
|
)
|
|
|
(268
|
)
|
|
|
|
|
|
|
|
|
Effect of exchange rate movements
|
|
|
(10
|
)
|
|
|
(1
|
)
|
|
|
|
|
|
|
|
|
Net increase in cash and cash equivalents
|
|
|
90
|
|
|
|
286
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at beginning of period
|
|
|
2,199
|
|
|
|
2,003
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at end of period
|
|
$
|
2,289
|
|
|
$
|
2,289
|
|
|
|
|
|
|
|
|
|
|
(a) Cash payments included in operating activities:
|
|
|
|
|
|
|
Severance payments
|
|
|
3
|
|
|
|
8
|
|
|
|
Income tax payments, net
|
|
|
13
|
|
|
|
67
|
|
|
|
Interest payments
|
|
|
8
|
|
|
|
73
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The preliminary cash flow is estimated based on our current
information.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Page 5
|
|
|
|
|
AGILENT TECHNOLOGIES, INC.
|
NON-GAAP INCOME FROM CONTINUING OPERATIONS AND DILUTED EPS
RECONCILIATIONS
|
(In millions, except per share amounts)
|
(Unaudited)
|
PRELIMINARY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Years Ended
|
|
|
|
|
October 31,
|
|
October 31,
|
|
|
|
|
|
2016
|
|
Diluted EPS
|
|
|
2015
|
|
Diluted EPS
|
|
|
2016
|
|
|
Diluted EPS
|
|
|
2015
|
|
|
Diluted EPS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Income from continuing operations
|
|
$
|
124
|
|
$
|
0.38
|
|
|
$
|
140
|
|
|
0.42
|
|
|
$
|
460
|
|
|
$
|
1.40
|
|
|
$
|
438
|
|
|
|
1.31
|
|
|
Non-GAAP adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acceleration of share-based compensation related to workforce
reduction
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
2
|
|
|
|
0.01
|
|
|
|
Asset impairments
|
|
|
-
|
|
|
-
|
|
|
|
3
|
|
|
0.01
|
|
|
|
4
|
|
|
|
0.01
|
|
|
|
3
|
|
|
|
0.01
|
|
|
|
Intangible amortization
|
|
|
32
|
|
|
0.10
|
|
|
|
37
|
|
|
0.11
|
|
|
|
152
|
|
|
|
0.46
|
|
|
|
156
|
|
|
|
0.47
|
|
|
|
Business exit and divestiture costs
|
|
|
4
|
|
|
0.01
|
|
|
|
1
|
|
|
-
|
|
|
|
10
|
|
|
|
0.03
|
|
|
|
14
|
|
|
|
0.04
|
|
|
|
Transformational initiatives
|
|
|
6
|
|
|
0.02
|
|
|
|
15
|
|
|
0.05
|
|
|
|
38
|
|
|
|
0.12
|
|
|
|
56
|
|
|
|
0.17
|
|
|
|
Acquisition and integration costs
|
|
|
13
|
|
|
0.04
|
|
|
|
7
|
|
|
0.02
|
|
|
|
41
|
|
|
|
0.12
|
|
|
|
13
|
|
|
|
0.04
|
|
|
|
Impairment of investment and loans
|
|
|
25
|
|
|
0.08
|
|
|
|
-
|
|
|
-
|
|
|
|
25
|
|
|
|
0.08
|
|
|
|
-
|
|
|
|
-
|
|
|
|
Pension curtailment gain
|
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
|
|
(16
|
)
|
|
|
(0.05
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
Other
|
|
|
1
|
|
|
-
|
|
|
|
4
|
|
|
0.01
|
|
|
|
6
|
|
|
|
0.02
|
|
|
|
5
|
|
|
|
0.01
|
|
|
|
Adjustment for taxes (a)
|
|
|
(12
|
)
|
|
(0.04
|
)
|
|
|
(39
|
)
|
|
(0.12
|
)
|
|
|
(69
|
)
|
|
|
(0.21
|
)
|
|
|
(104
|
)
|
|
|
(0.32
|
)
|
Non-GAAP Income from continuing operations
|
|
$
|
193
|
|
$
|
0.59
|
|
|
$
|
168
|
|
$
|
0.50
|
|
|
$
|
651
|
|
|
$
|
1.98
|
|
|
$
|
583
|
|
|
$
|
1.74
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) The adjustment for taxes excludes tax benefits that
management believes are not directly related to on-going operations
and which are either isolated or cannot be expected to occur again
with any regularity or predictability. For the three months and year
ended October 31, 2016, management uses a non-GAAP effective tax
rate of 16.8% and 19.0%, respectively. For the three months and year
ended October 31, 2015, management uses a non-GAAP effective tax
rate of 20.0% for both periods.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Historical amounts are reclassified to conform with current
presentation.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
We provide non-GAAP income from continuing operations and non-GAAP
income from continuing operations per share amounts in order to
provide meaningful supplemental information regarding our
operational performance and our prospects for the future. These
supplemental measures exclude, among other things, charges related
to asset impairments, amortization of intangibles, pension
curtailment, transformational initiatives, acquisition and
integration costs, business exit and divestiture costs, and
impairment of investment and loans.
|
Asset impairments include assets that have been written down
to their fair value.
|
Business exit and divestiture costs include costs associated
with the exit of the NMR business and the divestiture of the XRD
business.
|
Transformational initiatives include expenses associated with
targeted cost reduction activities such as manufacturing transfers,
small site consolidations, reorganizations, insourcing or
outsourcing of activities. Such costs may include move and
relocation costs, one-time termination benefits and other one-time
reorganization costs. Included in this category are also expenses
associated with the post-separation resizing of the IT
infrastructure and streamlining of IT systems as well as the
expenses incurred primarily in fiscal year 2015 to effect the Agile
Agilent reengineering.
|
Acquisition and Integration costs include all incremental
expenses incurred to effect a business combination. Such acquisition
costs may include advisory, legal, accounting, valuation, and other
professional or consulting fees. Such integration costs may include
expenses directly related to integration of business and facility
operations, information technology systems and infrastructure and
other employee-related costs.
|
Impairment of investment and loans include an investment and
the related convertible loans that have been written down to their
fair value.
|
Pension curtailment gain resulted from certain retirement
plans benefit reductions.
|
Other includes certain legal costs and settlements in
addition to other miscellaneous adjustments.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Our management uses non-GAAP measures to evaluate the performance of
our core businesses, to estimate future core performance and to
compensate employees. Since management finds this measure to be
useful, we believe that our investors benefit from seeing our
results "through the eyes" of management in addition to seeing our
GAAP results. This information facilitates our management's internal
comparisons to our historical operating results as well as to the
operating results of our competitors.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Our management recognizes that items such as amortization of
intangibles can have a material impact on our cash flows and/or our
net income. Our GAAP financial statements including our statement of
cash flows portray those effects. Although we believe it is useful
for investors to see core performance free of special items,
investors should understand that the excluded items are actual
expenses that may impact the cash available to us for other uses. To
gain a complete picture of all effects on the company's profit and
loss from any and all events, management does (and investors should)
rely upon the GAAP income statement. The non-GAAP numbers focus
instead upon the core business of the company, which is only a
subset, albeit a critical one, of the company's performance.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Readers are reminded that non-GAAP numbers are merely a supplement
to, and not a replacement for, GAAP financial measures. They should
be read in conjunction with the GAAP financial measures. It should
be noted as well that our non-GAAP information may be different from
the non-GAAP information provided by other companies.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The preliminary non-GAAP net income and diluted EPS reconciliation
is estimated based on our current information.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Page 6
|
|
AGILENT TECHNOLOGIES, INC.
|
SEGMENT INFORMATION
|
(In millions, except where noted)
|
(Unaudited)
|
PRELIMINARY
|
|
|
|
|
Life Sciences and Applied Markets Group
|
|
|
|
|
Q4'16
|
|
Q4'15
|
Revenue
|
$
|
548
|
|
|
$
|
515
|
|
Gross Margin, %
|
|
59.4
|
%
|
|
|
56.9
|
%
|
Income from Operations
|
$
|
125
|
|
|
$
|
103
|
|
Operating margin, %
|
|
22.8
|
%
|
|
|
20.0
|
%
|
|
|
|
|
|
|
|
|
Diagnostics and Genomics Group
|
|
|
|
|
Q4'16
|
|
Q4'15
|
Revenue
|
$
|
193
|
|
|
$
|
178
|
|
Gross Margin, %
|
|
55.4
|
%
|
|
|
56.0
|
%
|
Income from Operations
|
$
|
38
|
|
|
$
|
34
|
|
Operating margin, %
|
|
19.6
|
%
|
|
|
19.2
|
%
|
|
|
|
|
|
|
|
|
Agilent CrossLab Group
|
|
|
|
|
Q4'16
|
|
Q4'15
|
Revenue
|
$
|
370
|
|
|
$
|
342
|
|
Gross Margin, %
|
|
49.4
|
%
|
|
|
50.3
|
%
|
Income from Operations
|
$
|
84
|
|
|
$
|
86
|
|
Operating margin, %
|
|
22.7
|
%
|
|
|
25.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations reflect the results of our reportable
segments under Agilent's management reporting system which are not
necessarily in conformity with GAAP financial measures. Income from
operations of our reporting segments exclude, among other things,
charges related to asset impairments, amortization of
intangibles,transformational initiatives, acquisition and
integration costs, business exit and divestiture costs and
impairment of investment and loans.
|
|
|
|
|
Readers are reminded that non-GAAP numbers are merely a supplement
to, and not a replacement for, GAAP financial measures. They should
be read in conjunction with the GAAP financial measures. It should
be noted as well that our non-GAAP information may be different from
the non-GAAP information provided by other companies.
|
|
|
|
|
The preliminary segment information is estimated based on our
current information.
|
|
|
|
|
Page 7
|
|
AGILENT TECHNOLOGIES, INC.
|
RECONCILIATIONS OF REVENUE BY SEGMENT EXCLUDING THE NMR BUSINESS,
|
ACQUISITIONS, DIVESTITURES AND THE IMPACT OF CURRENCY ADJUSTMENTS
(CORE)
|
(in millions)
|
(Unaudited)
|
PRELIMINARY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-over-Year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-over-Year
|
|
|
|
|
|
|
GAAP Revenue by Segment
|
|
Q4'16
|
|
Q4'15
|
% Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Life Sciences and Applied Markets Group
|
|
$
|
548
|
|
$
|
515
|
6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diagnostics and Genomics Group
|
|
|
193
|
|
|
178
|
8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Agilent CrossLab Group
|
|
|
370
|
|
|
342
|
8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Agilent
|
|
$
|
1,111
|
|
$
|
1,035
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
|
|
Currency Adjustments
|
|
Currency-Adjusted (a)
|
|
|
|
|
|
Year-over-Year
|
|
|
|
|
|
Year-over-Year
|
Non GAAP Revenue by Segment
|
|
Q4'16
|
|
Q4'15
|
% Change
|
|
Q4'16
|
|
Q4'16
|
|
Q4'15
|
% Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Life Sciences and Applied Markets Group excluding acquisition and NMR
|
|
$
|
535
|
|
$
|
507
|
5
|
%
|
|
$
|
3
|
|
$
|
532
|
|
$
|
507
|
5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diagnostics and Genomics Group
|
|
|
193
|
|
|
178
|
8
|
%
|
|
|
1
|
|
|
192
|
|
|
178
|
8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Agilent CrossLab Group excluding acquisition
|
|
|
368
|
|
|
342
|
8
|
%
|
|
|
-
|
|
|
368
|
|
|
342
|
8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Agilent Revenue (Core)
|
|
$
|
1,096
|
|
$
|
1,027
|
|
|
$
|
4
|
|
$
|
1,092
|
|
$
|
1,027
|
6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) We compare the year-over-year change in revenue
excluding the effect of the NMR business, recent acquisitions and
divestitures and foreign currency rate fluctuations to assess the
performance of our underlying business. To determine the impact of
currency fluctuations, current period results for entities reporting
in currencies other than United States dollars are converted into
United States dollars at the actual exchange rate in effect during
the respective prior periods.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The preliminary reconciliation of GAAP revenue adjusted for the NMR
business, recent acquisitions and divestitures and impact of
currency is estimated based on our current information.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Page 8
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20161115006689/en/
[ Back To TMCnet.com's Homepage ]
|