Agilent profits down, tips ‘Dutch Auction’
Mark LaPedus
(11/14/2005 4:39 PM EST)
URL: eetimes.com
SAN JOSE, Calif. — Agilent Technologies Inc. said revenues during the quarter were $1.41 billion, up 5 percent from the like period a year ago.
Fourth quarter GAAP net earnings were $26 million, or $0.05 per diluted share, compared with $74 million, or $0.15 per share, in last year's fourth quarter. Agilent (Santa Clara, Calif.) reported orders of $1.50 billion for the fourth fiscal quarter ended Oct. 31, 26 percent above one year ago.
Included in fourth quarter GAAP net earnings is a $48 million tax charge associated with repatriating $970 million of off-shore earnings under the Homeland Investment Act.
Also included in GAAP results is $119 million composed largely of restructuring costs associated with Agilent's announced sale of its Semiconductor Products business and with the planned spin-off of the company's Semiconductor Test Solutions (STS) business.
Seeking to reposition itself as a pure-play measurement company, Agilent in August sold its troubled Semiconductor Products Group to a pair of equity fund companies. Agilent also decided to discard its automatic test equipment (ATE) business (see August 15 story).
Last month, PMC-Sierra Inc. said that it has entered into a definitive agreement to acquire the storage semiconductor business of Agilent for about $425 million in cash (see Oct. 31 story).
Looking ahead, Agilent expects to receive proceeds from the sale of its 47 percent share of Lumileds within the month, and to complete the sale of its Semiconductor Products business on December 1. Preparations for a planned spin-off of its Semiconductor Test Solutions business continue on schedule with an expected IPO to take place near mid-2006.
The solid rebound in Semiconductor Test orders continued in the fourth quarter, with orders of $199 million up more than 200 percent from last year's fourth quarter trough. Revenues of $159 million were 39 percent above last year and up 36 percent sequentially.
The $2 million fourth quarter loss from operations compares to a loss of $18 million in the prior year and prior quarter. The loss in the current quarter was primarily due to a $10 million write-off of flash memory test inventory because of the discontinuance of certain products.
For the first quarter of fiscal 2006, the company expects revenues (including STS) in the range of $1.28-to-$1.35 billion, up 5 to 10 percent from last year and consistent with its normal seasonality. Adjusted net income is expected to be in the range of $0.25-to-$0.30 per share, roughly double last year's first quarter comparable earnings.
Separately, the Agilent board has authorized a share repurchase of up to approximately $2.7 billion in the form of a modified "Dutch Auction" tender offer to purchase up to 73 million shares of its common stock at a price per share not less than $32 and not greater than $37. The tender offer is expected to commence on Nov. 15, 2005, and to expire, unless extended, on Dec. 13, 2005. As of Oct. 31, 2005, Agilent had approximately 500 million shares of common stock outstanding.
[Harry: I am not sure adding fab capacity at a time of soft fab utilization is a good move for PMCS.] |
