Agilent Technologies Reports Second Quarter 2006 Results
May 15, 2006 16:05:01 (ET)
<<PALO ALTO, Calif., May 15, 2006 (BUSINESS WIRE) -- Agilent Technologies Inc. (A, Trade) today reported orders of $1.59 billion for the second fiscal quarter ended April 30, 2006, 21 percent above one year ago. Revenues during the quarter were $1.43 billion, 12 percent above last year. Second quarter GAAP income from continuing operations was $131 million, or $0.30 per diluted share, compared with $53 million, or $0.11 per share, in last year's second quarter.
Included in GAAP results are $22 million of net charges related principally to the planned spinoff of Semiconductor Test Solutions (STS) and the reduction of Agilent's infrastructure costs. Excluding these charges and $25 million of non-cash stock compensation expenses, Agilent reported second quarter adjusted net income of $178 million, or $0.40 per share. On a comparable basis, the company earned $84 million, or $0.17 per share, one year ago.(1)
"Agilent continued to deliver on its operating and strategic commitments during the second quarter of 2006," said Bill Sullivan, Agilent president and chief executive officer. "Both revenues and adjusted earnings per share were at the high end of our expectations. Preparations for a spinoff of STS are on schedule. As of mid-year, we have successfully reduced Agilent's global infrastructure to a level commensurate with a pure-play measurement company. Despite the separation and restructuring costs associated with these actions, Agilent generated approximately $300 million in cash from operating activities during the second quarter."
Sullivan noted that gross margins remained at the highest level in five years, that inventories were below 100 Days On Hand for the first time, and that the company achieved a 24 percent Return on Invested Capital(2) during the quarter. "At this point," he said, "the fundamental strategic opportunity for this company is to leverage the robust operating model we've built through higher sustainable growth."
Looking ahead, Agilent (including STS) expects third quarter fiscal 2006 revenues of $1.37 billion to $1.43 billion, up 10 to 15 percent from last year. Adjusted net income is expected to be in the range of $0.37 to $0.42 per share(3), roughly double last year's comparable earnings. Normal seasonality would suggest fourth quarter revenues roughly 5 percent above the third quarter and an increase in operating earnings of about $0.10 per share.>>
The above would seem to be a good report, but A is selling off somewhat in the AH market.
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