Agilent Technologies Reports Third-Quarter 2005 Results

August 14, 2005 by Jeff Shepard

Agilent Technologies Inc. (Palo Alto, CA) reported orders of $1.80 billion for the third fiscal quarter ended July 31, 2005, one percent above one year ago. Revenues during the quarter were $1.69 billion, 10 percent below last year. Third-quarter GAAP net earnings were $104 million, or $0.21 per diluted share, compared with $100 million, or $0.20 per share, in last year's third quarter.

Excluding a net $38 million composed largely of restructuring charges and tax benefits, Agilent reported third-quarter operating net income of $142 million, or $0.28 per share. On a comparable basis, the company earned $154 million, or $0.30 per share, one year ago.

The company reported third-quarter revenues of $1.69 billion, just below its expectations of $1.70 billion to $1.80 billion. Operating earnings, at $0.28 per share, were at the high end of expectations of $0.23 to $0.28 per share. Gross margins improved by over two percentage points compared with last year, despite 10 percent lower revenues and difficult conditions in several of Agilent's markets. During the quarter, the company generated $85 million in free cash flow from operations, bringing total cash on hand to $2.8 billion.

Looking ahead, Agilent said it remained comfortable with its prior guidance for the fourth fiscal quarter. With evidence of a rebound in semiconductor-related markets, signs of a bottoming in wireless test, and the assumption of normal seasonality, the company expects fourth-quarter fiscal 2005 revenues of $1.79 billion to $1.89 billion. Operating earnings are expected to be in the range of $0.33 to $0.38 per share.