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Press Release Source: Agilent Technologies
Agilent Technologies Reports Fourth Quarter 2005 Results
Monday November 14, 4:05 pm ET
$2.7 Billion 'Dutch Auction' Tender Offer Announced
PALO ALTO, Calif.--(BUSINESS WIRE)--Nov. 14, 2005--Agilent Technologies Inc. (NYSE:A - News) today reported orders of $1.50 billion for the fourth fiscal quarter ended Oct. 31, 2005, 26 percent above one year ago. Revenues during the quarter were $1.41 billion, five percent above last year. 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.
During the fourth quarter, Agilent announced a definitive agreement to sell its Semiconductor Products business. As such, the business is being treated as a Discontinued Operation in its fourth quarter GAAP financial statements. If Semiconductor Products had been a continuing operation, Agilent would have reported fourth quarter orders of $1.98 billion, 24 percent above last year, and total revenues of $1.90 billion(1), four 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. Excluding those costs, Agilent reported fourth quarter adjusted net income of $193 million, or $0.38 per share. On a comparable basis, the company earned $153 million, or $0.30 per share, one year ago(2).
"Agilent had a strong finish to a remarkable year," said Bill Sullivan, Agilent president and chief executive officer. "Including Semiconductor Products, fourth quarter total revenues were slightly above the top end of our expectations, as most of our markets gained momentum during the quarter. The quality of our performance was also good, with adjusted net income at the top of our guidance range.
"In both the Electronic Measurement and Bio-Analytical Measurement segments, we believe Agilent gained market share. In addition, both segments for the first time exceeded our long-term operating model target of 14 percent operating margins and 21 percent Return on Invested Capital(3). With our businesses performing well and the planned dispositions of Semiconductor Products, Lumileds and STS all on track, we are excited about the opportunities to create superior value for our owners and customers in fiscal 2006."
In the fourth quarter, the company generated $410 million in cash from operating activities and, after $51 million of capital spending, $359 million in operating free cash flow.(4) Both inventory days-on-hand and receivables days sales outstanding were at new record lows. During the quarter, the company repurchased about 8.9 million common shares for $290 million.
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.
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-FY2006.
The company remains comfortable with the fiscal year 2006 guidance it provided during its August 15 announcements. For the first quarter of fiscal 2006, the company expects revenues (including STS) in the range of $1.28 billion 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(5), roughly double last year's first quarter comparable earnings. |
