Exhibit 99.1
| EDITORIAL CONTACT: | PRGPSN4323 |
Michele Drake
+1 650 752 5296
michele_drake@agilent.com
INVESTOR CONTACT:
Hilliard Terry
+1 650 752 5329
hilliard_terry@agilent.com
Agilent Technologies Reports Third-Quarter 2003 Results
Company on Track to Achieve Profitability in Fourth Quarter
PALO ALTO, Calif., Aug. 18, 2003 — Agilent Technologies Inc. (NYSE: A) today reported orders of $1.47 billion and revenue of $1.50 billion for the fiscal third quarter ended July 31, 2003. During the quarter, the company recognized a $1.4 billion non-cash charge required under Statement of Financial Accounting Standards No. 109, “Accounting for Income Taxes,” and reported a GAAP net loss of $1.56 billion, or $3.28 per share. Excluding that charge, the company would have reported a loss from operations of $110 million, or $0.23 per share, which compares to a GAAP loss of $223 million, or $0.48 per share, one year ago.
Also excluding $99 million of net restructuring charges and intangibles amortization, Agilent reported a net loss for the third quarter of $11 million, or $0.02 per share, versus a loss on a comparable basis of $0.31 per share one year ago.
“We are encouraged by our third-quarter operating results,” said Ned Barnholt, Agilent chairman, president and chief executive officer. “Orders and revenues came in at expectations, with earnings from operations near the top end of expectations. We are confident that we’ll meet our commitment to achieve an operating breakeven cost structure of $1.45 billion and return to profitability in the fourth quarter of this year.”(1)
Agilent saw a continued rebound this quarter in semiconductor equipment orders, which reached their highest level in three years. Activity in the company’s other segments remained roughly flat compared to the prior year.
“We made good progress in continuing to reduce our structural costs,” Barnholt said. “These costs were reduced by nearly $100 million during the quarter, while worldwide headcount fell by an additional 2,400 during the last three months.”
Continued progress was also reflected on the balance sheet. The company generated $38 million cash from working capital during the quarter despite sequentially higher revenues. Capital spending, at $62 million, remained below depreciation expense of $77 million. Net cash consumption was only $103 million despite $121 million of cash restructuring payments. The company ended the quarter with over $1.4 billion in cash and equivalents.
Looking ahead, Barnholt said, “We are seeing more evidence of a sustainable upturn in semiconductor capital equipment, and in the underlying semiconductor markets.” Overall, the company anticipates a normal seasonal increase during the fiscal fourth quarter, with revenues in the range of $1.50 billion to $1.60 billion. Earnings before restructuring and amortization charges are expected to be in a range of an operating breakeven to $0.10 per share.(1)
“Our fourth-quarter priority remains firmly focused on achieving a $1.45 billion operating breakeven cost structure, which will lay the foundation for sustained profitability in 2004,” Barnholt said.(1) “I am confident we will achieve this milestone while continuing to deliver the innovative new products to our customers that will ensure their and our long-term success.”
Segment Results
Test and Measurement
(in millions)
| Q3:F03 | Q2:F03 | Q3:F02 | ||||||||||
| Orders | 566 | 608 | 590 | |||||||||
| Revenues | 613 | 652 | 521 | |||||||||
Operating Profit(2) | (69 | ) | (103 | ) | (260 | ) | ||||||
Third-quarter Test and Measurement orders were down 4 percent from one year ago and were off 7 percent from the seasonally strong second quarter. By market segment, communications test orders were down 9 percent from last year largely because of continued weakness in wireline test coupled with a modest decline in wireless test. General purpose test orders were up 8 percent compared to last year because of renewed strength in aerospace and defense markets and rising demand for the new oscilloscope product line. Third-quarter revenues of $613 million were 18 percent above last year, when implementation of a new ERP system interrupted shipments. Sequentially, revenues were down 6 percent.
The cumulative benefits of aggressive restructuring were clearly evident in the operating results of this segment. The third-quarter operating loss of $69 million was improved by $34 million from three months earlier despite $39 million lower revenues. Compared to last year, the operating loss was reduced by $191 million on $92 million of increased revenues. It is anticipated that this segment will return to profitability in the fourth quarter of this year.
Automated Test
(in millions)
| Q3:F03 | Q2:F03 | Q3:F02 | ||||||||||
| Orders | 251 | 219 | 212 | |||||||||
| Revenues | 206 | 153 | 194 | |||||||||
Operating Profit(2) | 6 | (37 | ) | (5 | ) | |||||||
The rebound in the Automated Test segment continued in the third quarter, with orders of $251 million up 18 percent from last year to the highest levels since the fourth quarter of 2000. Sequentially, orders were up 15 percent, with both semiconductor test and manufacturing test participating in the increase. Revenues of $206 million were 6 percent above last year and up 35 percent sequentially. Semiconductor Test’s third-quarter book-to-bill ratio of 1.29 was well ahead of the industry’s June reading of 1.19. In the third quarter, this segment returned to profitability, with operating profits of $6 million compared to an operating loss of $5 million one year earlier and a loss of $37 million during the second quarter of this year.
Semiconductor Products
(in millions)
| Q3:F03 | Q2:F03 | Q3:F02 | ||||||||||
| Orders | 358 | 420 | 383 | |||||||||
| Revenues | 380 | 376 | 390 | |||||||||
Operating Profit(2) | (8 | ) | (43 | ) | (38 | ) | ||||||
Semiconductor Products’ third-quarter orders of $358 million were down 7 percent from last year because of the continued sharp drop in the hardcopy ASIC business. Excluding hardcopy ASICs, segment orders were up 8 percent from one year ago. Total segment orders were off 15 percent from the seasonally strong second quarter. Revenues of $380 million were down 3 percent from last year and up 1 percent sequentially. Excluding the hardcopy ASIC business, revenues were up 10 percent, consistent with the year-to-year increase in worldwide semiconductor industry sales. Segment operating results benefited from better yields on new products, the shutdown of a facility and restructuring actions. The third-quarter segment loss of $8 million represented a $35 million improvement over second-quarter results on essentially flat revenues. Compared to last year, the operating loss was reduced by $30 million despite $10 million lower sales.
Life Sciences and Chemical Analysis
(millions)
| Q3:F03 | Q2:F03 | Q3:F02 | ||||||||||
| Orders | 293 | 280 | 271 | |||||||||
| Revenues | 303 | 286 | 286 | |||||||||
Operating Profit(2) | 41 | 20 | 42 | |||||||||
Life Sciences and Chemical Analysis orders and revenues showed some improvement from the generally flat trend of the past several quarters. Third-quarter orders of $293 million were up 8 percent from last year and up 5 percent sequentially. Life Sciences showed the most strength, with orders up 14 percent from last year and 10 percent sequentially while Chemical Analysis orders rose 4 percent from last year and were 1 percent ahead of the second quarter. Revenues of $303 million were 6 percent ahead of one year ago and the second quarter. Segment profits were about equal to one year ago. Compared to the second quarter, when spending is seasonally higher, operating profits were improved by $21 million on $17 million higher revenues.
Note on Non-Cash Charge Related to SFAS 109
In accordance with the Statement of Financial Accounting Standards No. 109, “Accounting for Income Taxes,” Agilent recorded a non-cash charge of $1.4 billion to establish a valuation allowance, which essentially eliminates its net deferred tax assets. This adjustment will impact both GAAP tax expense and shareholders’ equity on Agilent’s financial statements, but has no impact on the company’s cash flow, liquidity or future prospects.
In large part because of Agilent’s cumulative losses over the past few years in the United States and the United Kingdom, SFAS No. 109 requires that “greater weight be given to previous cumulative losses than the outlook for future profitability when determining whether deferred tax assets can be used.” In essence, the company is now unable to reference forecasts of future operating profits to value its deferred tax assets for GAAP purposes. The company emphasized that the establishment of this allowance was done strictly for purposes of conformance with GAAP, and does not in any way reflect reduced confidence in its future prospects. In fact, the company remains confident it will be able to use the entirety of its deferred tax assets before expiration dates that range from 5 to 20 years.
This valuation allowance will be reviewed periodically after the company has achieved positive retained earnings, and could be reversed, partially or totally, when business results have sufficiently improved to support recognition of the deferred tax assets for GAAP purposes. Until that point, Agilent will record a near zero tax rate for GAAP reporting purposes.
About Agilent Technologies
Agilent Technologies Inc. (NYSE: A) is a global technology leader in communications, electronics, life sciences and chemical analysis. The company’s 30,000 employees serve customers in more than 110 countries. Agilent had net revenue of $6 billion in fiscal year 2002. Information about Agilent is available on the Web at www.agilent.com.
More financial information about this quarter’s earnings is available at www.investor.agilent.com.
Agilent management will host a live webcast of its quarterly conference call with the investment community in listen-only mode today at 1:30 p.m. (PT). Listeners may log on at www.investor.agilent.com and select “conference calls.” The webcast will remain on the company site for seven days.
A telephone replay of the conference call will be available starting at 4:30 p.m. (PT) on Aug. 18 through Aug. 26 by dialing + 719 457 0820 and entering pass code 607246.
Forward-Looking Statements
This news release contains forward-looking statements (including, without limitation, information regarding projected revenue, earnings, breakeven and profitability, delivery of new innovative products, the outlook for the markets that Agilent serves and deferred tax assets, valuation allowance and GAAP tax rate) that involve risks and uncertainties that could cause results of Agilent to differ materially from management’s current expectations.
In addition, other risks that Agilent faces in running its operations include: the ability to execute successfully through the current economic downturn and an upturn while it continues to implement significant workforce and other cost reductions; 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; increasing 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 risk that we may not be able to use a portion of
deferred tax assets before their expiration dates; the impact of geopolitical uncertainties on our markets and our ability to conduct business; the successful implementation of Agilent’s ERP and other information systems and the ability to realize the benefits from these and other IT systems investments; the ability to improve asset performance to adapt to the current economic slowdown and other changes in demand; the ability to successfully introduce new products at the right time, price and mix, and other risks detailed in the company’s filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended Oct. 31, 2002, its Quarterly Report on Form 10-Q for the quarter ended April 30, 2003 and its Current Report on Form 8-K filed July 17, 2003. The company assumes no obligation to update the information in this press release.
| (1) | Agilent’s goal of achieving an operating breakeven cost structure of $1.45 billion in the fourth quarter and the company’s guidance range for the fourth quarter do not include restructuring costs and intangibles amortization. The $1.45 billion goal also excludes roughly $45 million of temporarily increased programmatic IT costs associated with its ERP and CRM implementations. Restructuring costs for the fourth quarter cannot be reliably estimated and may be significant. Amortization of intangibles is expected to be about $9 million quarterly. Pro forma tax rate is assumed to be 50 percent. | |
| (2) | Before restructuring charges in all periods. |
# # #
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)
| Three Months Ended | |||||||||||||||
| July 31, | |||||||||||||||
| Percent | |||||||||||||||
| 2003 | 2002 | Inc/(Dec) | |||||||||||||
| Orders | $ | 1,468 | $ | 1,456 | 1 | % | |||||||||
| Net revenue | $ | 1,502 | $ | 1,391 | 8 | % | |||||||||
| Costs and expenses: | |||||||||||||||
| Cost of products and services | 954 | 897 | 6 | % | |||||||||||
| Research and development | 257 | 304 | (15 | %) | |||||||||||
| Selling, general and administrative | 481 | 619 | (22 | %) | |||||||||||
| Total costs and expenses | 1,692 | 1,820 | (7 | %) | |||||||||||
| Loss from operations | (190 | ) | (429 | ) | 56 | % | |||||||||
| Other income (expense), net | (1 | ) | 6 | (117 | %) | ||||||||||
| Loss from continuing operations before taxes | (191 | ) | (423 | ) | 55 | % | |||||||||
| Benefit for taxes | (81 | ) | (200 | ) | (60 | %) | |||||||||
| Loss from continuing operations before tax valuation allowance | (110 | ) | (223 | ) | 51 | % | |||||||||
| Tax valuation allowance | 1,435 | — | |||||||||||||
| Loss from continuing operations | (1,545 | ) | (223 | ) | (593 | %) | |||||||||
| Loss from sale of discontinued operations, net of taxes | — | (5 | ) | ||||||||||||
| Loss before cumulative effect of accounting changes | (1,545 | ) | (228 | ) | (578 | %) | |||||||||
| Tax adjustment for cumulative effect of adopting SFAS No. 142 | (11 | ) | — | ||||||||||||
| Net loss | $ | (1,556 | ) | $ | (228 | ) | (582 | %) | |||||||
Net loss per share — Basic and diluted: | |||||||||||||||
| Loss from continuing operations | $ | (3.25 | ) | $ | (0.48 | ) | |||||||||
| Loss from sale of discontinued operations, net | — | (0.01 | ) | ||||||||||||
| Tax adjustment for cumulative effect of adopting SFAS No. 142 | (0.03 | ) | — | ||||||||||||
| Net loss | $ | (3.28 | ) | $ | (0.49 | ) | |||||||||
| Weighted average shares used in computing loss per share: | |||||||||||||||
| Basic and diluted | 475 | 466 | |||||||||||||
Historical amounts were reclassified to conform with current period presentation.
AGILENT TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(In millions, except per share amounts)
(Unaudited)
| Nine Months Ended | |||||||||||||||
| July 31, | |||||||||||||||
| Percent | |||||||||||||||
| 2003 | 2002 | Inc/(Dec) | |||||||||||||
| Orders | $ | 4,353 | $ | 4,518 | (4 | %) | |||||||||
| Net revenue | $ | 4,381 | $ | 4,274 | 3 | % | |||||||||
| Costs and expenses: | |||||||||||||||
| Cost of products and services | 2,798 | 2,711 | 3 | % | |||||||||||
| Research and development | 830 | 928 | (11 | %) | |||||||||||
| Selling, general and administrative | 1,534 | 1,855 | (17 | %) | |||||||||||
| Total costs and expenses | 5,162 | 5,494 | (6 | %) | |||||||||||
| Loss from operations | (781 | ) | (1,220 | ) | 36 | % | |||||||||
| Other income (expense), net | 14 | 47 | (70 | %) | |||||||||||
| Loss from continuing operations before taxes | (767 | ) | (1,173 | ) | 35 | % | |||||||||
| Benefit for taxes | (399 | ) | (386 | ) | 3 | % | |||||||||
| Loss from operations before tax valuation allowance | (368 | ) | (787 | ) | 53 | % | |||||||||
| Tax valuation allowance | 1,435 | — | |||||||||||||
| Loss from continuing operations | (1,803 | ) | (787 | ) | (129 | %) | |||||||||
| Loss from sale of discontinued operations, net of taxes | — | (9 | ) | ||||||||||||
| Loss before cumulative effect of accounting changes | (1,803 | ) | (796 | ) | (127 | %) | |||||||||
| Cumulative effect of adopting SFAS No. 142 | (268 | ) | — | ||||||||||||
| Net loss | $ | (2,071 | ) | $ | (796 | ) | (160 | %) | |||||||
Net loss per share — Basic and diluted: | |||||||||||||||
| Loss from continuing operations | $ | (3.82 | ) | $ | (1.69 | ) | |||||||||
| Loss from sale of discontinued operations, net | — | (0.02 | ) | ||||||||||||
| Cumulative effect of adopting SFAS No. 142, net | (0.57 | ) | — | ||||||||||||
| Net loss | $ | (4.39 | ) | $ | (1.71 | ) | |||||||||
| Weighted average shares used in computing loss per share: | |||||||||||||||
| Basic and diluted | 472 | 465 | |||||||||||||
Loss from sale of discontinued operations, net of taxes relate to the sale of our Healthcare Solutions group.
Historical amounts were reclassified to conform with current period presentation.
AGILENT TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
Excluding Restructuring, Amortization of Intangibles, Tax Valuation Allowance
and Non-Operational Items
(Unaudited)
| (In millions, except per share amounts) | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| July 31, | ||||||||||||||||
| Percent | ||||||||||||||||
| 2003 | 2002 | Inc/(Dec) | ||||||||||||||
| Orders | $ | 1,468 | $ | 1,456 | 1 | % | ||||||||||
| Net revenue | $ | 1,502 | $ | 1,391 | 8 | % | ||||||||||
| Costs and expenses: | ||||||||||||||||
| Cost of products and services | 896 | 880 | 2 | % | ||||||||||||
| Research and development | 225 | 289 | (22 | %) | ||||||||||||
| Selling, general and administrative | 408 | 483 | (16 | %) | ||||||||||||
| Total costs and expenses | 1,529 | 1,652 | (7 | %) | ||||||||||||
| Loss from operations | (27 | ) | (261 | ) | 90 | % | ||||||||||
| Other income (expense), net | 5 | 10 | (50 | %) | ||||||||||||
| Loss before taxes | (22 | ) | (251 | ) | 91 | % | ||||||||||
| Benefit for taxes | (11 | ) | (108 | ) | (90 | %) | ||||||||||
| Non-GAAP net loss | $ | (11 | ) | $ | (143 | ) | 92 | % | ||||||||
| Non-GAAP net loss per share: | ||||||||||||||||
| Basic and diluted | $ | (0.02 | ) | $ | (0.31 | ) | ||||||||||
| Weighted average shares used in computing non-GAAP net loss per share: | ||||||||||||||||
| Basic and diluted | 475 | 466 | ||||||||||||||
The above non-GAAP condensed consolidated statement of operations has been adjusted to exclude the following non-operational items and reconcile to GAAP net loss: | ||||||||||||||||
| Net loss per GAAP | $ | (1,556 | ) | $ | (228 | ) | ||||||||||
| Non-GAAP adjustments: | ||||||||||||||||
| Goodwill | — | 82 | ||||||||||||||
| Other intangibles | 22 | 13 | ||||||||||||||
| Asset impairments | 7 | 18 | ||||||||||||||
| Retirement plans curtailment loss (gain) | 5 | (19 | ) | |||||||||||||
| Discontinued operations | — | 8 | ||||||||||||||
| Restructuring | 141 | 78 | ||||||||||||||
| Gain on sale of assets | (1 | ) | — | |||||||||||||
| Other | (5 | ) | — | |||||||||||||
| Tax valuation allowance | 1,446 | — | ||||||||||||||
| Adjustment for income taxes | (70 | ) | (95 | ) | ||||||||||||
| Non-GAAP net loss | $ | (11 | ) | $ | (143 | ) | ||||||||||
We provide non-GAAP financial information in order to provide meaningful supplemental information regarding our operational performance and to enhance our investors’ overall understanding of our core current financial performance and our prospects for the future. We believe that our investors benefit from seeing our results “through the eyes” of management in addition to the GAAP presentation. Management measures segment and enterprise performance using measures such as are disclosed in this release. This information facilitates management’s internal comparisons to the company’s historical operating results and comparisons to competitors operating results.
Non-GAAP information allows for greater transparency to supplemental information used by management in its financial and operational decision making. Historically, we have reported similar non-GAAP information to our investors and believe that the inclusion of comparative numbers provides consistency in our financial reporting.
This information is not in accordance with, or an alternative for, generally accepted accounting principles in the United States and may be different from the non-GAAP information provided by other companies. Historical amounts were reclassified to conform with current period presentation.
AGILENT TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
Excluding Restructuring, Amortization of Intangibles, Tax Valuation Allowance
and Non-Operational Items
(Unaudited)
| (In millions, except per share amounts) | |||||||||||||||||
| Nine Months Ended | |||||||||||||||||
| July 31, | |||||||||||||||||
| Percent | |||||||||||||||||
| 2003 | 2002 | Inc/(Dec) | |||||||||||||||
| Orders | $ | 4,353 | $ | 4,518 | (4 | %) | |||||||||||
| Net revenue | $ | 4,381 | $ | 4,274 | 3 | % | |||||||||||
| Costs and expenses: | |||||||||||||||||
| Cost of products and services | 2,658 | 2,621 | 1 | % | |||||||||||||
| Research and development | 766 | 897 | (15 | %) | |||||||||||||
| Selling, general and administrative | 1,368 | 1,477 | (7 | %) | |||||||||||||
| Total costs and expenses | 4,792 | 4,995 | (4 | %) | |||||||||||||
| Loss from operations | (411 | ) | (721 | ) | 43 | % | |||||||||||
| Other income (expense), net | 26 | 38 | (32 | %) | |||||||||||||
| Loss before taxes | (385 | ) | (683 | ) | 44 | % | |||||||||||
| Benefit for taxes | (193 | ) | (294 | ) | (34 | %) | |||||||||||
| Non-GAAP net loss | $ | (192 | ) | $ | (389 | ) | 51 | % | |||||||||
| Non-GAAP net loss per share: | |||||||||||||||||
| Basic and diluted | $ | (0.41 | ) | $ | (0.84 | ) | |||||||||||
| Weighted average shares used in computing non-GAAP net loss per share: | |||||||||||||||||
| Basic and diluted | 472 | 465 | |||||||||||||||
The above non-GAAP condensed consolidated statement of operations has been adjusted to exclude the following non-operational items and reconcile to GAAP net loss: | |||||||||||||||||
| Net loss per GAAP | $ | (2,071 | ) | $ | (796 | ) | |||||||||||
| Non-GAAP adjustments: | |||||||||||||||||
| Goodwill | — | 247 | |||||||||||||||
| Other intangibles | 46 | 39 | |||||||||||||||
| Restructuring | 314 | 218 | |||||||||||||||
| Asset impairment | 15 | 18 | |||||||||||||||
| Retirement plans curtailment loss (gain) | 5 | (19 | ) | ||||||||||||||
| SFAS No. 142 adoption | 268 | — | |||||||||||||||
| Discontinued operations | — | 15 | |||||||||||||||
| Gain on sale of assets | (3 | ) | (13 | ) | |||||||||||||
| Other | 5 | — | |||||||||||||||
| Tax valuation allowance | 1,446 | — | |||||||||||||||
| Adjustment for income taxes | (217 | ) | (98 | ) | |||||||||||||
| Non-GAAP net loss | $ | (192 | ) | $ | (389 | ) | |||||||||||
We provide non-GAAP financial information in order to provide meaningful supplemental information regarding our operational performance and to enhance our investors’ overall understanding of our core current financial performance and our prospects for the future. We believe that our investors benefit from seeing our results “through the eyes” of management in addition to the GAAP presentation. Management measures segment and enterprise performance using measures such as are disclosed in this release. This information facilitates management’s internal comparisons to the company’s historical operating results and comparisons to competitors operating results.
Non-GAAP information allows for greater transparency to supplemental information used by management in its financial and operational decision making. Historically, we have reported similar non-GAAP information to our investors and believe that the inclusion of comparative numbers provides consistency in our financial reporting.
This information is not in accordance with, or an alternative for, generally accepted accounting principles in the United States and may be different from the non-GAAP information provided by other companies. Historical amounts were reclassified to conform with current period presentation.
AGILENT TECHNOLOGIES, INC
RECONCILIATION FROM GAAP TO NON-GAAP
NET LOSS
THREE MONTHS ENDED JULY 31, 2003
| (Unaudited) | Non-GAAP Adjustments | ||||||||||||||||||||||||||
| Other | Gain on Sale | Retirement Plans | Asset | ||||||||||||||||||||||||
| (In millions, except per share amounts) | GAAP | Intangibles | Restructuring | of Assets | Curtailment Loss | Impairment | |||||||||||||||||||||
| Orders | $ | 1,468 | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||
| Net revenue | $ | 1,502 | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||
| Costs and expenses: | |||||||||||||||||||||||||||
| Cost of products and services | 954 | (18 | ) | (44 | ) | — | (1 | ) | — | ||||||||||||||||||
| Research and development | 257 | — | (31 | ) | — | (1 | ) | — | |||||||||||||||||||
| Selling, general and administrative | 481 | (4 | ) | (66 | ) | — | (3 | ) | — | ||||||||||||||||||
| Total costs and expenses | 1,692 | (22 | ) | (141 | ) | — | (5 | ) | — | ||||||||||||||||||
| Loss from operations | (190 | ) | 22 | 141 | — | 5 | — | ||||||||||||||||||||
| Other income (expense), net | (1 | ) | — | — | (1 | ) | — | 7 | |||||||||||||||||||
| Loss from operations before taxes | (191 | ) | 22 | 141 | (1 | ) | 5 | 7 | |||||||||||||||||||
| Benefit for taxes | (81 | ) | — | — | — | — | — | ||||||||||||||||||||
| Loss from operations before tax valuation allowance | (110 | ) | 22 | 141 | (1 | ) | 5 | 7 | |||||||||||||||||||
| Tax valuation allowance | 1,435 | — | — | — | — | — | |||||||||||||||||||||
| Loss before cumulative effect of accounting changes | (1,545 | ) | 22 | 141 | (1 | ) | 5 | 7 | |||||||||||||||||||
| Tax adjustment for cumulative effect of adopting SFAS No. 142 | (11 | ) | — | — | — | — | — | ||||||||||||||||||||
| Net loss | $ | (1,556 | ) | $ | 22 | $ | 141 | $ | (1 | ) | $ | 5 | $ | 7 | |||||||||||||
Net loss per share — Basic and Diluted: | |||||||||||||||||||||||||||
| Loss before cumulative effect of accounting changes | $ | (3.25 | ) | $ | 0.05 | $ | 0.30 | $ | — | $ | 0.01 | $ | 0.01 | ||||||||||||||
| Tax adjustment for cumulative effect of adopting SFAS No. 142 | (0.03 | ) | — | — | — | — | — | ||||||||||||||||||||
| Net loss | $ | (3.28 | ) | $ | 0.05 | $ | 0.30 | $ | — | $ | 0.01 | $ | 0.01 | ||||||||||||||
| Weighted average shares used in computing net loss per share: | |||||||||||||||||||||||||||
| Basic and diluted | 475 | 475 | 475 | 475 | 475 | 475 | |||||||||||||||||||||
[Additional columns below]
[Continued from above table, first column(s) repeated]
| (Unaudited) | Non-GAAP Adjustments | ||||||||||||||||||
| Tax Valuation | Adjustment for | ||||||||||||||||||
| (In millions, except per share amounts) | Other | Allowance | Income Taxes | Non-GAAP | |||||||||||||||
| Orders | $ | — | $ | — | $ | — | $ | 1,468 | |||||||||||
| Net revenue | $ | — | $ | — | $ | — | $ | 1,502 | |||||||||||
| Costs and expenses: | |||||||||||||||||||
| Cost of products and services | 5 | — | — | 896 | |||||||||||||||
| Research and development | — | — | — | 225 | |||||||||||||||
| Selling, general and administrative | — | — | — | 408 | |||||||||||||||
| Total costs and expenses | 5 | — | — | 1,529 | |||||||||||||||
| Loss from operations | (5 | ) | — | — | (27 | ) | |||||||||||||
| Other income (expense), net | — | — | 5 | ||||||||||||||||
| Loss from operations before taxes | (5 | ) | — | — | (22 | ) | |||||||||||||
| Benefit for taxes | 70 | (11 | ) | ||||||||||||||||
| Loss from operations before tax valuation allowance | (5 | ) | — | (70 | ) | (11 | ) | ||||||||||||
| Tax valuation allowance | — | (1,435 | ) | — | — | ||||||||||||||
| Loss before cumulative effect of accounting changes | (5 | ) | 1,435 | (70 | ) | (11 | ) | ||||||||||||
| Tax adjustment for cumulative effect of adopting SFAS No. 142 | — | 11 | — | — | |||||||||||||||
| Net loss | $ | (5 | ) | $ | 1,446 | $ | (70 | ) | $ | (11 | ) | ||||||||
Net loss per share — Basic and Diluted: | |||||||||||||||||||
| Loss before cumulative effect of accounting changes | $ | (0.01 | ) | $ | 3.02 | $ | (0.15 | ) | $ | (0.02 | ) | ||||||||
| Tax adjustment for cumulative effect of adopting SFAS No. 142 | — | 0.03 | — | — | |||||||||||||||
| Net loss | $ | (0.01 | ) | $ | 3.05 | $ | (0.15 | ) | $ | (0.02 | ) | ||||||||
| Weighted average shares used in computing net loss per share: | |||||||||||||||||||
| Basic and diluted | 475 | 475 | 475 | 475 | |||||||||||||||
We provide non-GAAP financial information in order to provide meaningful supplemental information regarding our operational performance and to enhance our investors’ overall understanding of our core current financial performance and our prospects for the future. We believe that our investors benefit from seeing our results “through the eyes” of management in addition to the GAAP presentation. Management measures segment and enterprise performance using measures such as those that are disclosed in this release. This information facilitates management’s internal comparisons to the company’s historical operating results and comparisons to competitors’ operating results.
Non-GAAP information allows for greater transparency to supplemental information used by management in its financial and operational decision making. Historically, we have reported similar non-GAAP information to our investors and believe that the inclusion of comparative numbers provides consistency in our financial reporting.
This information is not in accordance with, or an alternative for, generally accepted accounting principles in the United States and may be different from the non-GAAP information provided by other companies.
AGILENT TECHNOLOGIES, INC
RECONCILIATION FROM GAAP TO NON-GAAP
NET LOSS
NINE MONTHS ENDED JULY 31, 2003
| (Unaudited) | Non-GAAP Adjustments | ||||||||||||||||||||||||||
| Other | Asset | Gain on Sale | Retirement Plans | ||||||||||||||||||||||||
| (In millions, except per share amounts) | GAAP | Intangibles | Restructuring | Impairment | of Assets | Curtailment Loss | |||||||||||||||||||||
| Orders | $ | 4,353 | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||
| Net revenue | $ | 4,381 | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||
| Costs and expenses: | |||||||||||||||||||||||||||
| Cost of products and services | 2,798 | (38 | ) | (96 | ) | — | — | (1 | ) | ||||||||||||||||||
| Research and development | 830 | — | (63 | ) | — | — | (1 | ) | |||||||||||||||||||
| Selling, general and administrative | 1,534 | (8 | ) | (155 | ) | — | — | (3 | ) | ||||||||||||||||||
| Total costs and expenses | 5,162 | (46 | ) | (314 | ) | — | — | (5 | ) | ||||||||||||||||||
| Loss from operations | (781 | ) | 46 | 314 | — | — | 5 | ||||||||||||||||||||
| Other income (expense), net | 14 | — | — | 15 | (3 | ) | — | ||||||||||||||||||||
| Loss from operations before taxes | (767 | ) | 46 | 314 | 15 | (3 | ) | 5 | |||||||||||||||||||
| Benefit for taxes | (399 | ) | — | — | — | — | — | ||||||||||||||||||||
| Loss from operations before tax valuation allowance | (368 | ) | 46 | 314 | 15 | (3 | ) | 5 | |||||||||||||||||||
| Tax valuation allowance | 1,435 | — | — | — | — | — | |||||||||||||||||||||
| Net loss before cumulative effect of accounting changes | (1,803 | ) | 46 | 314 | 15 | (3 | ) | 5 | |||||||||||||||||||
| Cumulative effect of adopting SFAS No. 142 | (268 | ) | — | — | — | — | — | ||||||||||||||||||||
| Net loss | $ | (2,071 | ) | $ | 46 | $ | 314 | $ | 15 | $ | (3 | ) | $ | 5 | |||||||||||||
Net loss per share — Basic and Diluted: | |||||||||||||||||||||||||||
| Loss from operations and before cumulative effect of accounting changes | $ | (3.82 | ) | $ | 0.10 | $ | 0.67 | $ | 0.03 | $ | (0.01 | ) | $ | 0.01 | |||||||||||||
| Cumulative effect of adopting SFAS No. 142 | (0.57 | ) | — | — | — | — | — | ||||||||||||||||||||
| Net loss | $ | (4.39 | ) | $ | 0.10 | $ | 0.67 | $ | 0.03 | $ | (0.01 | ) | $ | 0.01 | |||||||||||||
| Weighted average shares used in computing net loss per share: | |||||||||||||||||||||||||||
| Basic and diluted | 472 | 472 | 472 | 472 | 472 | 472 | |||||||||||||||||||||
[Additional columns below]
[Continued from above table, first column(s) repeated]
| (Unaudited) | Non-GAAP Adjustments | ||||||||||||||||||||||
| SFAS No. | Tax Valuation | Adjustment for | |||||||||||||||||||||
| (In millions, except per share amounts) | 142 | Other | Allowance | Income Taxes | Non-GAAP | ||||||||||||||||||
| Orders | $ | — | $ | — | $ | — | $ | — | $ | 4,353 | |||||||||||||
| Net revenue | $ | — | $ | — | $ | — | $ | — | $ | 4,381 | |||||||||||||
| Costs and expenses: | |||||||||||||||||||||||
| Cost of products and services | — | (5 | ) | — | — | 2,658 | |||||||||||||||||
| Research and development | — | — | — | — | 766 | ||||||||||||||||||
| Selling, general and administrative | — | — | — | — | 1,368 | ||||||||||||||||||
| Total costs and expenses | — | (5 | ) | — | — | 4,792 | |||||||||||||||||
| Loss from operations | — | 5 | — | — | (411 | ) | |||||||||||||||||
| Other income (expense), net | — | — | — | — | 26 | ||||||||||||||||||
| Loss from operations before taxes | — | 5 | — | — | (385 | ) | |||||||||||||||||
| Benefit for taxes | — | — | — | 206 | (193 | ) | |||||||||||||||||
| Loss from operations before tax valuation allowance | — | 5 | — | (206 | ) | (192 | ) | ||||||||||||||||
| Tax valuation allowance | — | — | (1,435 | ) | — | — | |||||||||||||||||
| Net loss before cumulative effect of accounting changes | — | 5 | 1,435 | (206 | ) | (192 | ) | ||||||||||||||||
| Cumulative effect of adopting SFAS No. 142 | 268 | — | 11 | (11 | ) | — | |||||||||||||||||
| Net loss | $ | 268 | $ | 5 | $ | 1,446 | $ | (217 | ) | $ | (192 | ) | |||||||||||
Net loss per share — Basic and Diluted: | |||||||||||||||||||||||
| Loss from operations and before cumulative effect of accounting changes | $ | — | $ | 0.01 | $ | 3.04 | $ | (0.44 | ) | $ | (0.41 | ) | |||||||||||
| Cumulative effect of adopting SFAS No. 142 | 0.57 | — | 0.02 | (0.02 | ) | — | |||||||||||||||||
| Net loss | $ | 0.57 | $ | 0.01 | $ | 3.06 | $ | (0.46 | ) | $ | (0.41 | ) | |||||||||||
| Weighted average shares used in computing net loss per share: | |||||||||||||||||||||||
| Basic and diluted | 472 | 472 | 472 | 472 | 472 | ||||||||||||||||||
We provide non-GAAP financial information in order to provide meaningful supplemental information regarding our operational performance and to enhance our investors’ overall understanding of our core current financial performance and our prospects for the future. We believe that our investors benefit from seeing our results “through the eyes” of management in addition to the GAAP presentation. Management measures segment and enterprise performance using measures such as those that are disclosed in this release. This information facilitates management’s internal comparisons to the company’s historical operating results and comparisons to competitors’ operating results.
Non-GAAP information allows for greater transparency to supplemental information used by management in its financial and operational decision making. Historically, we have reported similar non-GAAP information to our investors and believe that the inclusion of comparative numbers provides consistency in our financial reporting.
This information is not in accordance with, or an alternative for, generally accepted accounting principles in the United States and may be different from the non-GAAP information provided by other companies.
AGILENT TECHNOLOGIES, INC
RECONCILIATION FROM GAAP TO NON-GAAP
NET LOSS
THREE MONTHS ENDED JULY 31, 2002
| (Unaudited) | Non-GAAP Adjustments | ||||||||||||||||||||||
| Other | Discontinued | ||||||||||||||||||||||
| (In millions, except per share amounts) | GAAP | Goodwill | Intangibles | Restructuring | Operations | ||||||||||||||||||
| Orders | $ | 1,456 | $ | — | $ | — | $ | — | $ | — | |||||||||||||
| Net revenue | $ | 1,391 | $ | — | $ | — | $ | — | $ | — | |||||||||||||
| Costs and expenses: | |||||||||||||||||||||||
| Cost of products and services | 897 | — | (10 | ) | (16 | ) | — | ||||||||||||||||
| Research and development | 304 | — | — | (16 | ) | — | |||||||||||||||||
| Selling, general and administrative | 619 | (82 | ) | (3 | ) | (46 | ) | — | |||||||||||||||
| Total costs and expenses | 1,820 | (82 | ) | (13 | ) | (78 | ) | — | |||||||||||||||
| Loss from operations | (429 | ) | 82 | 13 | 78 | — | |||||||||||||||||
| Other income (expense), net | 6 | — | — | — | — | ||||||||||||||||||
| Loss from continuing operations before taxes | (423 | ) | 82 | 13 | 78 | — | |||||||||||||||||
| Benefit for taxes | (200 | ) | — | — | — | (3 | ) | ||||||||||||||||
| Loss from continuing operations | (223 | ) | 82 | 13 | 78 | 3 | |||||||||||||||||
| Loss from sale of discontinued operations, net of taxes | (5 | ) | — | — | — | 5 | |||||||||||||||||
| Net loss | $ | (228 | ) | $ | 82 | $ | 13 | $ | 78 | $ | 8 | ||||||||||||
Net loss per share — Basic and Diluted: | |||||||||||||||||||||||
| Loss from continuing operations | $ | (0.48 | ) | $ | 0.18 | $ | 0.03 | $ | 0.17 | $ | 0.01 | ||||||||||||
| Loss from sale of discontinued operations, net of taxes | $ | (0.01 | ) | $ | — | $ | — | $ | — | $ | 0.01 | ||||||||||||
| Net loss | $ | (0.49 | ) | $ | 0.18 | $ | 0.03 | $ | 0.17 | $ | 0.02 | ||||||||||||
| Weighted average shares used in computing net loss per share: | |||||||||||||||||||||||
| Basic and diluted | 466 | 466 | 466 | 466 | 466 | ||||||||||||||||||
[Additional columns below]
[Continued from above table, first column(s) repeated]
| (Unaudited) | Non-GAAP Adjustments | ||||||||||||||||||
| Asset | Adjustment for | Retirement Plans | |||||||||||||||||
| (In millions, except per share amounts) | Impairment | Income Taxes | Curtailment Gains | Non-GAAP | |||||||||||||||
| Orders | $ | — | $ | — | $ | — | $ | 1,456 | |||||||||||
| Net revenue | $ | — | $ | — | $ | — | $ | 1,391 | |||||||||||
| Costs and expenses: | |||||||||||||||||||
| Cost of products and services | (2 | ) | — | 11 | 880 | ||||||||||||||
| Research and development | (2 | ) | — | 3 | 289 | ||||||||||||||
| Selling, general and administrative | (10 | ) | — | 5 | 483 | ||||||||||||||
| Total costs and expenses | (14 | ) | — | 19 | 1,652 | ||||||||||||||
| Loss from operations | 14 | — | (19 | ) | (261 | ) | |||||||||||||
| Other income (expense), net | 4 | — | — | 10 | |||||||||||||||
| Loss from continuing operations before taxes | 18 | — | (19 | ) | (251 | ) | |||||||||||||
| Benefit for taxes | — | 95 | — | (108 | ) | ||||||||||||||
| Loss from continuing operations | 18 | (95 | ) | (19 | ) | (143 | ) | ||||||||||||
| Loss from sale of discontinued operations, net of taxes | — | — | — | — | |||||||||||||||
| Net loss | $ | 18 | $ | (95 | ) | $ | (19 | ) | $ | (143 | ) | ||||||||
Net loss per share — Basic and Diluted: | |||||||||||||||||||
| Loss from continuing operations | $ | 0.04 | $ | (0.21 | ) | $ | (0.05 | ) | $ | (0.31 | ) | ||||||||
| Loss from sale of discontinued operations, net of taxes | $ | — | $ | — | $ | — | $ | — | |||||||||||
| Net loss | $ | 0.04 | $ | (0.21 | ) | $ | (0.05 | ) | $ | (0.31 | ) | ||||||||
| Weighted average shares used in computing net loss per share: | |||||||||||||||||||
| Basic and diluted | 466 | 466 | 466 | 466 | |||||||||||||||
We provide non-GAAP financial information in order to provide meaningful supplemental information regarding our operational performance and to enhance our investors’ overall understanding of our core current financial performance and our prospects for the future. We believe that our investors benefit from seeing our results “through the eyes” of management in addition to the GAAP presentation. Management measures segment and enterprise performance using measures such as those that are disclosed in this release. This information facilitates management’s internal comparisons to the company’s historical operating results and comparisons to competitors’ operating results.
Non-GAAP information allows for greater transparency to supplemental information used by management in its financial and operational decision making. Historically, we have reported similar non-GAAP information to our investors and believe that the inclusion of comparative numbers provides consistency in our financial reporting.
This information is not in accordance with, or an alternative for, generally accepted accounting principles in the United States and may be different from the non-GAAP information provided by other companies.
AGILENT TECHNOLOGIES, INC
RECONCILIATION FROM GAAP TO NON-GAAP
NET LOSS
NINE MONTHS ENDED JULY 31, 2002
| (Unaudited) | Non-GAAP Adjustments | ||||||||||||||||||||||||||
| Other | Discontinued | Asset | |||||||||||||||||||||||||
| (In millions, except per share amounts) | GAAP | Goodwill | Intangibles | Restructuring | Operations | Impairment | |||||||||||||||||||||
| Orders | $ | 4,518 | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||
| Net revenue | $ | 4,274 | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||
| Costs and expenses: | |||||||||||||||||||||||||||
| Cost of products and services | 2,711 | — | (30 | ) | (69 | ) | — | (2 | ) | ||||||||||||||||||
| Research and development | 928 | — | — | (32 | ) | — | (2 | ) | |||||||||||||||||||
| Selling, general and administrative | 1,855 | (247 | ) | (9 | ) | (117 | ) | — | (10 | ) | |||||||||||||||||
| Total costs and expenses | 5,494 | (247 | ) | (39 | ) | (218 | ) | — | (14 | ) | |||||||||||||||||
| Loss from operations | (1,220 | ) | 247 | 39 | 218 | — | 14 | ||||||||||||||||||||
| Other income (expense), net | 47 | — | — | — | — | 4 | |||||||||||||||||||||
| Loss from continuing operations before taxes | (1,173 | ) | 247 | 39 | 218 | — | 18 | ||||||||||||||||||||
| Benefit for taxes | (386 | ) | — | — | — | (6 | ) | — | |||||||||||||||||||
| Loss from continuing operations | (787 | ) | 247 | 39 | 218 | 6 | 18 | ||||||||||||||||||||
| Loss from sale of discontinued operations, net of taxes | (9 | ) | — | — | — | 9 | — | ||||||||||||||||||||
| Net loss | $ | (796 | ) | $ | 247 | $ | 39 | $ | 218 | $ | 15 | $ | 18 | ||||||||||||||
Net loss per share — Basic and Diluted: | |||||||||||||||||||||||||||
| Loss from continuing operations | $ | (1.69 | ) | $ | 0.53 | $ | 0.08 | $ | 0.47 | $ | 0.01 | $ | 0.04 | ||||||||||||||
| Loss from sale of discontinued operations, net of taxes | $ | (0.02 | ) | $ | — | $ | — | $ | — | $ | 0.02 | $ | — | ||||||||||||||
| Net loss | $ | (1.71 | ) | $ | 0.53 | $ | 0.08 | $ | 0.47 | $ | 0.03 | $ | 0.04 | ||||||||||||||
| Weighted average shares used in computing net loss per share: | |||||||||||||||||||||||||||
| Basic and diluted | 465 | 465 | 465 | 465 | 465 | 465 | |||||||||||||||||||||
[Additional columns below]
[Continued from above table, first column(s) repeated]
| (Unaudited) | Non-GAAP Adjustments | ||||||||||||||||||
| Gain on Sale | Adjustment for | Retirement Plans | |||||||||||||||||
| (In millions, except per share amounts) | of Assets | Income Taxes | Curtailment Gains | Non-GAAP | |||||||||||||||
| Orders | $ | — | $ | — | $ | — | $ | 4,518 | |||||||||||
| Net revenue | $ | — | $ | — | $ | — | $ | 4,274 | |||||||||||
| Costs and expenses: | |||||||||||||||||||
| Cost of products and services | — | — | 11 | 2,621 | |||||||||||||||
| Research and development | — | — | 3 | 897 | |||||||||||||||
| Selling, general and administrative | — | — | 5 | 1,477 | |||||||||||||||
| Total costs and expenses | — | — | 19 | 4,995 | |||||||||||||||
| Loss from operations | — | — | (19 | ) | (721 | ) | |||||||||||||
| Other income (expense), net | (13 | ) | — | — | 38 | ||||||||||||||
| Loss from continuing operations before taxes | (13 | ) | — | (19 | ) | (683 | ) | ||||||||||||
| Benefit for taxes | — | 98 | — | (294 | ) | ||||||||||||||
| Loss from continuing operations | (13 | ) | (98 | ) | (19 | ) | (389 | ) | |||||||||||
| Loss from sale of discontinued operations, net of taxes | — | — | — | — | |||||||||||||||
| Net loss | $ | (13 | ) | $ | (98 | ) | $ | (19 | ) | $ | (389 | ) | |||||||
Net loss per share — Basic and Diluted: | |||||||||||||||||||
| Loss from continuing operations | $ | (0.03 | ) | $ | (0.21 | ) | $ | (0.04 | ) | $ | (0.84 | ) | |||||||
| Loss from sale of discontinued operations, net of taxes | $ | — | $ | — | $ | — | — | ||||||||||||
| Net loss | $ | (0.03 | ) | $ | (0.21 | ) | $ | (0.04 | ) | $ | (0.84 | ) | |||||||
| Weighted average shares used in computing net loss per share: | |||||||||||||||||||
| Basic and diluted | 465 | 465 | 465 | 465 | |||||||||||||||
We provide non-GAAP financial information in order to provide meaningful supplemental information regarding our operational performance and to enhance our investors’ overall understanding of our core current financial performance and our prospects for the future. We believe that our investors benefit from seeing our results “through the eyes” of management in addition to the GAAP presentation. Management measures segment and enterprise performance using measures such as those that are disclosed in this release. This information facilitates management’s internal comparisons to the company’s historical operating results and comparisons to competitors’ operating results.
Non-GAAP information allows for greater transparency to supplemental information used by management in its financial and operational decision making. Historically, we have reported similar non-GAAP information to our investors and believe that the inclusion of comparative numbers provides consistency in our financial reporting.
This information is not in accordance with, or an alternative for, generally accepted accounting principles in the United States and may be different from the non-GAAP information provided by other companies.
AGILENT TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEET
(in millions, except par value and share amounts)
(Unaudited)
| July 31, | October 31, | |||||||||||
| 2003 | 2002 | |||||||||||
| ASSETS Current assets: | ||||||||||||
| Cash and cash equivalents | $ | 1,430 | $ | 1,844 | ||||||||
| Accounts receivable, net | 967 | 1,118 | ||||||||||
| Inventory | 1,051 | 1,184 | ||||||||||
| Current deferred tax assets | 13 | 462 | ||||||||||
| Other current assets | 289 | 272 | ||||||||||
| Total current assets | 3,750 | 4,880 | ||||||||||
| Property, plant and equipment, net | 1,449 | 1,579 | ||||||||||
| Goodwill and other intangible assets, net | 391 | 685 | ||||||||||
| Long-term deferred tax assets | 14 | 635 | ||||||||||
| Other assets | 386 | 424 | ||||||||||
| Total assets | $ | 5,990 | $ | 8,203 | ||||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: | ||||||||||||
| Accounts payable | $ | 274 | $ | 305 | ||||||||
| Employee compensation and benefits | 550 | 533 | ||||||||||
| Deferred revenue | 259 | 244 | ||||||||||
| Income and other taxes payable | 295 | 325 | ||||||||||
| Other accrued liabilities | 410 | 574 | ||||||||||
| Total current liabilities | 1,788 | 1,981 | ||||||||||
| Senior convertible debentures | 1,150 | 1,150 | ||||||||||
| Other liabilities | 332 | 445 | ||||||||||
| Total liabilities | 3,270 | 3,576 | ||||||||||
| Commitments and contingencies | — | — | ||||||||||
| 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; 467 million shares at October 31, 2002 and 475 million shares at July 31, 2003 issued and outstanding | 5 | 5 | ||||||||||
| Additional paid-in capital | 4,976 | 4,872 | ||||||||||
| Accumulated deficit | (2,172 | ) | (101 | ) | ||||||||
| Accumulated comprehensive loss | (89 | ) | (149 | ) | ||||||||
| Total stockholders’ equity | 2,720 | 4,627 | ||||||||||
| Total liabilities and stockholders’ equity | $ | 5,990 | $ | 8,203 | ||||||||
Historical amounts were reclassified to conform with current period presentation.
AGILENT TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(In millions)
(Unaudited)
| Nine months | Three months | |||||||||
| ended | ended | |||||||||
| July 31, | July 31, | |||||||||
| 2003 | 2003 | |||||||||
| Cash flows from operating activities: | ||||||||||
| Net loss | $ | (2,071 | ) | $ | (1,556 | ) | ||||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||||
| Depreciation | 233 | 77 | ||||||||
| Amortization | 40 | 14 | ||||||||
| Inventory-related charges | 11 | 5 | ||||||||
| Deferred taxes | 1,085 | 1,402 | ||||||||
| Asset impairment charges | 89 | 62 | ||||||||
| Net gain on sale of assets | (5 | ) | (3 | ) | ||||||
| Adoption of SFAS No. 142 | 268 | — | ||||||||
| Changes in assets and liabilities: | ||||||||||
| Accounts receivable | 169 | (24 | ) | |||||||
| Inventory | 112 | 68 | ||||||||
| Accounts payable | (15 | ) | (6 | ) | ||||||
| Employee compensation and benefits | (183 | ) | (127 | ) | ||||||
| Income taxes | (98 | ) | (37 | ) | ||||||
| Other current assets and liabilities | (83 | ) | (39 | ) | ||||||
| Other long-term assets and liabilities | 75 | 73 | ||||||||
| Net cash used in operating activities *: | (373 | ) | (91 | ) | ||||||
| Cash flows from investing activities: | ||||||||||
| Investments in property, plant and equipment | (148 | ) | (62 | ) | ||||||
| Dispositions of property, plant and equipment | 6 | (1 | ) | |||||||
| Purchase of equity investments | (4 | ) | (2 | ) | ||||||
| Net cash used in investing activities: | (146 | ) | (65 | ) | ||||||
| Cash flows from financing activities: | ||||||||||
| Issuance of common stock under employee stock plans | 104 | 53 | ||||||||
| Net payments to notes payable and short-term borrowings | 1 | — | ||||||||
| Net cash provided by financing activities: | 105 | 53 | ||||||||
| Change in cash and cash equivalents | (414 | ) | (103 | ) | ||||||
| Cash and cash equivalents at beginning of period | 1,844 | 1,533 | ||||||||
| Cash and cash equivalents at end of period | $ | 1,430 | $ | 1,430 | ||||||
| * Cash payments (receipts) included in operating activities: | ||||||||||
| Restructuring | 297 | 121 | ||||||||
| Income tax (refunds) payments | (26 | ) | 13 | |||||||
| Pension trust fund contributions | 182 | 28 | ||||||||
AGILENT TECHNOLOGIES, INC.
TEST AND MEASUREMENT INFORMATION
(In millions, except percent changes)
(Unaudited)
| Three months | Three months | Three months | ||||||||||||||||||
| ended | ended | ended | ||||||||||||||||||
| July 31, | July 31, | Yr vs.Yr | April 30, | Sequential | ||||||||||||||||
| 2003 | 2002 | % change | 2003 | % change | ||||||||||||||||
| Orders | $ | 566 | $ | 590 | (4 | %) | $ | 608 | (7 | %) | ||||||||||
| Net Revenue | $ | 613 | $ | 521 | 18 | % | $ | 652 | (6 | %) | ||||||||||
| Loss from operations | $ | (69 | ) | $ | (260 | ) | 73 | % | $ | (103 | ) | 33 | % | |||||||
| Nine months | Nine months | |||||||||||
| ended | ended | |||||||||||
| July 31, | July 31, | Yr vs.Yr | ||||||||||
| 2003 | 2002 | % change | ||||||||||
| Orders | $ | 1,768 | $ | 1,876 | (6 | %) | ||||||
| Net Revenue | $ | 1,898 | $ | 1,865 | 2 | % | ||||||
| Loss from operations | $ | (304 | ) | $ | (603 | ) | 50 | % | ||||
Q3 FY03 vs Q2 FY03 BY MARKET SEGMENT
| Orders | Net Revenue | |||||||||||||||||||||||
| Q3 FY03 | Sequential | % of | Q3 FY03 | Sequential | % of | |||||||||||||||||||
| $ Amount | % change | Segment | $ Amount | % change | Segment | |||||||||||||||||||
| Communications test | $ | 380 | (8 | %) | 67 | % | $ | 413 | (10 | %) | 67 | % | ||||||||||||
| General purpose test | 186 | (4 | %) | 33 | % | 200 | 4 | % | 33 | % | ||||||||||||||
| $ | 566 | (7 | %) | 100 | % | $ | 613 | (6 | %) | 100 | % | |||||||||||||
Q3 FY03 vs Q3 FY02 BY MARKET SEGMENT
| Orders | Net Revenue | |||||||||||||||
| Q3 FY03 | Yr vs.Yr | Q3 FY03 | Yr vs.Yr | |||||||||||||
| $ Amount | % change | $ Amount | % change | |||||||||||||
| Communications test | $ | 380 | (9 | %) | $ | 413 | 16 | % | ||||||||
| General purpose test | 186 | 8 | % | 200 | 21 | % | ||||||||||
| $ | 566 | (4 | %) | $ | 613 | 18 | % | |||||||||
Loss from operations reflect the results of our reportable segments under Agilent’s management reporting system which are not necessarily in conformity with accounting principles generally accepted in the United States (GAAP). Loss from operations of our reporting segments excludes restructuring, amortization of intangibles, non-operational charges and some residual corporate charges.
In general, recorded orders represent firm purchase commitments from our customers with established terms and conditions for products and services that will be delivered within six months.
Historical amounts have been reclassified to conform with current period presentation.
AGILENT TECHNOLOGIES, INC.
AUTOMATED TEST INFORMATION
(In millions, except percent changes)
(Unaudited)
| Three months | Three months | Three months | ||||||||||||||||||
| ended | ended | ended | ||||||||||||||||||
| July 31, | July 31, | Yr vs.Yr | April 30, | Sequential | ||||||||||||||||
| 2003 | 2002 | % change | 2003 | % change | ||||||||||||||||
| Orders | $ | 251 | $ | 212 | 18 | % | $ | 219 | 15 | % | ||||||||||
| Net Revenue | $ | 206 | $ | 194 | 6 | % | $ | 153 | 35 | % | ||||||||||
| Earnings (loss) from operations | $ | 6 | $ | (5 | ) | N/M | $ | (37 | ) | N/M | ||||||||||
| Nine months | Nine months | |||||||||||
| ended | ended | |||||||||||
| July 31, | July 31, | Yr vs.Yr | ||||||||||
| 2003 | 2002 | % change | ||||||||||
| Orders | $ | 585 | $ | 594 | (2 | %) | ||||||
| Net Revenue | $ | 495 | $ | 486 | 2 | % | ||||||
| Loss from operations | $ | (79 | ) | $ | (79 | ) | — | % | ||||
Q3 FY03 vs Q2 FY03 BY MARKET SEGMENT
| Orders | Net Revenue | |||||||||||||||||||||||
| Q3 FY03 | Sequential | % of | Q3 FY03 | Sequential | % of | |||||||||||||||||||
| $ Amount | % change | Segment | $ Amount | % change | Segment | |||||||||||||||||||
| Semiconductor test | $ | 215 | 15 | % | 86 | % | $ | 167 | 38 | % | 81 | % | ||||||||||||
| Manufacturing test* | 36 | 13 | % | 14 | % | 39 | 22 | % | 19 | % | ||||||||||||||
| $ | 251 | 15 | % | 100 | % | $ | 206 | 35 | % | 100 | % | |||||||||||||
Q3 FY03 vs Q3 FY02 BY MARKET SEGMENT
| Orders | Net Revenue | |||||||||||||||
| Q3 FY03 | Yr vs.Yr | Q3 FY03 | Yr vs.Yr | |||||||||||||
| $ Amount | % change | $ Amount | % change | |||||||||||||
| Semiconductor test | $ | 215 | 20 | % | $ | 167 | 4 | % | ||||||||
| Manufacturing test* | 36 | 9 | % | 39 | 15 | % | ||||||||||
| $ | 251 | 18 | % | $ | 206 | 6 | % | |||||||||
*Amounts presented as manufacturing test were previously included in test and measurement’s general purpose test. Earnings (loss) from operations reflect the results of our reportable segments under Agilent’s management reporting system which are not necessarily in conformity with accounting principles generally accepted in the United States (GAAP). Earnings (loss) from operations of our reporting segments excludes restructuring, amortization of intangibles, non-operational charges and some residual corporate charges.
In general, recorded orders represent firm purchase commitments from our customers with established terms and conditions for products and services that will be delivered within six months.
Historical amounts have been reclassified to conform with current period presentation.
AGILENT TECHNOLOGIES, INC.
SEMICONDUCTOR PRODUCTS INFORMATION
(In millions, except percent changes)
(Unaudited)
| Three months | Three months | Three months | ||||||||||||||||||
| ended | ended | ended | ||||||||||||||||||
| �� | July 31, | July 31, | Yr vs.Yr | April 30, | Sequential | |||||||||||||||
| 2003 | 2002 | % change | 2003 | % change | ||||||||||||||||
| Orders | $ | 358 | $ | 383 | (7 | %) | $ | 420 | (15 | %) | ||||||||||
| Net Revenue | $ | 380 | $ | 390 | (3 | %) | $ | 376 | 1 | % | ||||||||||
| Loss from operations | $ | (8 | ) | $ | (38 | ) | 79 | % | $ | (43 | ) | 81 | % | |||||||
| Nine months | Nine months | |||||||||||
| ended | ended | |||||||||||
| July 31, | July 31, | Yr vs.Yr | ||||||||||
| 2003 | 2002 | % change | ||||||||||
| Orders | $ | 1,159 | $ | 1,205 | (4 | %) | ||||||
| Net Revenue | $ | 1,123 | $ | 1,088 | 3 | % | ||||||
| Loss from operations | $ | (99 | ) | $ | (136 | ) | 27 | % | ||||
Q3 FY03 vs Q2 FY03 BY MARKET SEGMENT
| Orders | Net Revenue | |||||||||||||||||||||||
| Q3 FY03 | Sequential | % of | Q3 FY03 | Sequential | % of | |||||||||||||||||||
| $ Amount | % change | Segment | $ Amount | % change | Segment | |||||||||||||||||||
| Networking | $ | 118 | (9 | %) | 33 | % | $ | 125 | 8 | % | 33 | % | ||||||||||||
| Personal systems | 240 | (17 | %) | 67 | % | 255 | (2 | %) | 67 | % | ||||||||||||||
| $ | 358 | (15 | %) | 100 | % | $ | 380 | 1 | % | 100 | % | |||||||||||||
Q3 FY03 vs Q3 FY02 BY MARKET SEGMENT
| Orders | Net Revenue | |||||||||||||||
| Q3 FY03 | Yr vs.Yr | Q3 FY03 | Yr vs.Yr | |||||||||||||
| $ Amount | % change | $ Amount | % change | |||||||||||||
| Networking | $ | 118 | 3 | % | $ | 125 | (4 | %) | ||||||||
| Personal systems | 240 | (10 | %) | 255 | (2 | %) | ||||||||||
| $ | 358 | (7 | %) | $ | 380 | (3 | %) | |||||||||
Loss from operations reflect the results of our reportable segments under Agilent’s management reporting system which are not necessarily in conformity with accounting principles generally accepted in the United States (GAAP). Loss from operations of our reporting segments excludes restructuring, amortization of intangibles, non-operational charges and some residual corporate charges.
In general, recorded orders represent firm purchase commitments from our customers with established terms and conditions for products that will be delivered within six months.
Historical amounts have been reclassified to conform with current period presentation.
AGILENT TECHNOLOGIES, INC.
LIFE SCIENCES AND CHEMICAL ANALYSIS INFORMATION
(In millions, except percent changes)
(Unaudited)
| Three months | Three months | Three months | ||||||||||||||||||
| ended | ended | ended | ||||||||||||||||||
| July 31, | July 31, | Yr vs.Yr | April 30, | Sequential | ||||||||||||||||
| 2003 | 2002 | % change | 2003 | % change | ||||||||||||||||
| Orders | $ | 293 | $ | 271 | 8 | % | $ | 280 | 5 | % | ||||||||||
| Net Revenue | $ | 303 | $ | 286 | 6 | % | $ | 286 | 6 | % | ||||||||||
| Earnings from operations | $ | 41 | $ | 42 | (2 | %) | $ | 20 | 105 | % | ||||||||||
| Nine months | Nine months | |||||||||||
| ended | ended | |||||||||||
| July 31, | July 31, | Yr vs.Yr | ||||||||||
| 2003 | 2002 | % change | ||||||||||
| Orders | $ | 841 | $ | 843 | — | % | ||||||
| Net Revenue | $ | 865 | $ | 835 | 4 | % | ||||||
| Earnings from operations | $ | 95 | $ | 97 | (2 | %) | ||||||
Earnings from operations reflect the results of our reportable segments under Agilent’s management reporting system which are not necessarily in conformity with accounting principles generally accepted in the United States (GAAP). Earnings from operations of our reporting segments excludes restructuring, amortization of intangibles, non-operational charges and some residual corporate charges.
In general, recorded orders represent firm purchase commitments from our customers with established terms and conditions for products and services that will be delivered within six months.
Historical amounts have been reclassified to conform with current period presentation.
AGILENT TECHNOLOGIES, INC.
Segment Earnings (Loss) from Operations
Reconciliation of Reporting Segments to Agilent Non-GAAP Loss
(In millions)
(Unaudited)
| Three months ended | Three months ended | ||||||||||||
| July 31, | April 30, | ||||||||||||
| 2003 | 2002 | 2003 | |||||||||||
| Test and Measurement | $ | (69 | ) | $ | (260 | ) | $ | (103 | ) | ||||
| Semiconductor Products | (8 | ) | (38 | ) | (43 | ) | |||||||
| Automated Test | 6 | (5 | ) | (37 | ) | ||||||||
| Life Sciences and Chemical Analysis | 41 | 42 | 20 | ||||||||||
| Residual corporate charges | 3 | — | (19 | ) | |||||||||
| Non-GAAP Loss from operations — Agilent | $ | (27 | ) | $ | (261 | ) | $ | (182 | ) | ||||
Earnings (loss) from operations reflect the results of our reportable segments under Agilent’s management reporting system which are not necessarily in conformity with accounting principles generally accepted in the United States (GAAP).
Earnings (loss) from operations of our reporting segments excludes restructuring, amortization of intangibles, non-operational charges and residual corporate charges.
Historical amounts were reclassified to conform with current period presentation.
AGILENT TECHNOLOGIES, INC.
ORDERS AND NET REVENUE FROM OPERATIONS
BY GEOGRAPHY
(In millions, except percent changes)
(Unaudited)
| Three Months Ended | Percent | ||||||||||||
| July 31, | Inc/(Dec) | ||||||||||||
| 2003 | 2002 | ||||||||||||
| ORDERS | |||||||||||||
| Americas | $ | 553 | $ | 623 | (11 | %) | |||||||
| Europe | 312 | 246 | 27 | % | |||||||||
| Asia Pacific | 603 | 587 | 3 | % | |||||||||
| Total | $ | 1,468 | $ | 1,456 | 1 | % | |||||||
| NET REVENUE | |||||||||||||
| Americas | $ | 578 | $ | 612 | (6 | %) | |||||||
| Europe | 298 | 252 | 18 | % | |||||||||
| Asia Pacific | 626 | 527 | 19 | % | |||||||||
| Total | $ | 1,502 | $ | 1,391 | 8 | % | |||||||
| Nine Months Ended | Percent | ||||||||||||
| July 31, | Inc/(Dec) | ||||||||||||
| 2003 | 2002 | ||||||||||||
| ORDERS | |||||||||||||
| Americas | $ | 1,638 | $ | 1,910 | (14 | %) | |||||||
| Europe | 911 | 858 | 6 | % | |||||||||
| Asia Pacific | 1,804 | 1,750 | 3 | % | |||||||||
| Total | $ | 4,353 | $ | 4,518 | (4 | %) | |||||||
| NET REVENUE | |||||||||||||
| Americas | $ | 1,687 | $ | 1,840 | (8 | %) | |||||||
| Europe | 891 | 834 | 7 | % | |||||||||
| Asia Pacific | 1,803 | 1,600 | 13 | % | |||||||||
| Total | $ | 4,381 | $ | 4,274 | 3 | % | |||||||
In general, recorded orders represent firm purchase commitments from our customers with established terms and conditions for products and services that will be delivered within six months.
Historical amounts were reclassified to conform with current period presentation.
