EXHIBIT 99.1
AGILENT TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENT OF EARNINGS
(In millions, except per share amounts)
(UNAUDITED)
Six Months Ended
April 30,
----------------------- Percent
2002 2001 Decrease
-------- -------- --------
Orders $ 3,062 $ 3,869 (21%)
Net revenue $ 2,883 $ 4,971 (42%)
Costs and expenses:
Cost of products and services 1,732 2,575 (33%)
Research and development 587 653 (10%)
Selling, general and administrative 1,355 1,498 (10%)
-------- --------
Total costs & expenses 3,674 4,726 (22%)
-------- --------
(Loss) earnings from operations before taxes (791) 245 (423%)
Other income (expense), net 41 277 (85%)
-------- --------
(Loss) earnings from continuing operations before
taxes (750) 522 (244%)
(Benefit) provision for taxes (186) 259 (172%)
-------- --------
Net (loss) earnings from continuing operations (564) 263 (314%)
Cumulative effect of adoption SFAS 133
(net of tax benefit of $16 million) -- (25)
Cumulative effect of adopting SAB 101
(net of tax benefit of $24 million) -- (47)
Earnings from discontinued operations, net of taxes -- 11
Loss from sale of discontinued operations, net of taxes (4) --
-------- --------
Net (loss) earnings $ (568) $ 202 (381%)
======== ========
NET (LOSS) EARNINGS PER SHARE - BASIC:
Net (loss) earnings from continuing operations before
cumulative effect of change in accounting principle $ (1.21) $ 0.58
Cumulative effect of adoption SFAS 133 -- (0.06)
Cumulative effect of adoption SAB 101 -- (0.10)
Earnings from discontinued operations -- 0.02
Loss from sale of discontinued operations (0.01) --
-------- --------
$ (1.22) $ 0.44
======== ========
NET (LOSS) EARNINGS PER SHARE - DILUTED:
Net (loss) earnings from continuing operations before
cumulative effect of change in accounting principle $ (1.21) $ 0.57
Cumulative effect of adoption SFAS 133 -- (0.05)
Cumulative effect of adoption SAB 101 -- (0.10)
Earnings from discontinued operations -- 0.02
Loss from sale of discontinued operations (0.01) --
-------- --------
$ (1.22) $ 0.44
======== ========
Avg shares used in computing net (loss) earnings per share:
Basic 464 455
Diluted 464 464
Note: Amounts in the condensed consolidated financial statements for the six
months ended April 30, 2001 have been reclassified to conform to the
current period's presentation.
AGILENT TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENT OF EARNINGS
(In millions, except per share amounts)
(UNAUDITED)
Three Months Ended
April 30,
----------------------- Percent
2002 2001 Inc/(Dec)
-------- -------- ---------
Orders $ 1,597 $ 1,397 14%
Net revenue $ 1,457 $ 2,406 (39%)
Costs and expenses:
Cost of products and services 854 1,353 (37%)
Research and development 289 331 (13%)
Selling, general and administrative 663 771 (14%)
-------- --------
Total costs & expenses 1,806 2,455 (26%)
-------- --------
Loss from operations before taxes (349) (49) (612%)
Other income (expense), net 22 260 (92%)
-------- --------
(Loss) earnings from continuing operations before
taxes (327) 211 (255%)
(Benefit) provision for taxes (80) 122 (166%)
-------- --------
Net (loss) earnings from continuing operations (247) 89 (378%)
Earnings from discontinued operations, net of taxes -- 13
Loss from sale of discontinued operations, net of taxes (6) --
-------- --------
Net (loss) earnings $ (253) $ 102 (348%)
======== ========
NET (LOSS) EARNINGS PER SHARE - BASIC:
Net (loss) earnings from continuing operations before
discontinued operations $ (0.54) $ 0.19
Earnings from discontinued operations $ -- 0.03
Loss from sale of discontinued operations $ (0.01) --
-------- --------
$ (0.55) $ 0.22
======== ========
NET (LOSS) EARNINGS PER SHARE - DILUTED:
Net (loss) earnings from continuing operations before
discontinued operations $ (0.54) $ 0.19
Earnings from discontinued operations -- 0.03
Loss from sale of discontinued operations (0.01) --
-------- --------
$ (0.55) $ 0.22
======== ========
Avg shares used in computing net (loss) earnings per share:
Basic 464 456
Diluted 464 461
Note: Amounts in the condensed consolidated financial statements for the three
months ended April 30, 2001 have been reclassified to conform to the
current period's presentation.
AGILENT TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEET
(UNAUDITED)
(In millions, except par value and share amounts)
April 30, October 31,
2002 2001
--------- -----------
ASSETS
Current assets:
Cash and cash equivalents $ 2,235 $ 1,170
Accounts receivable, net 902 977
Inventory 1,307 1,491
Net investment in lease receivable 13 237
Other current assets 803 924
-------- --------
Total current assets 5,260 4,799
Property, plant and equipment, net 1,728 1,848
Goodwill and other intangible assets, net 863 1,070
Other assets 387 269
-------- --------
Total assets $ 8,238 $ 7,986
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 347 $ 392
Employee compensation and benefits 522 576
Deferred revenue 283 279
Accrued taxes and other accrued liabilities 457 755
-------- --------
Total current liabilities 1,609 2,002
-------- --------
Senior convertible debentures 1,150 --
Other liabilities 351 325
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; 464 million shares at April 30, 2002
and 461 million shares at October 31, 2001 issued and outstanding 5 5
Additional paid-in capital 4,803 4,723
Retained earnings 363 931
Accumulated comprehensive loss (43) --
-------- --------
Total stockholders' equity 5,128 5,659
-------- --------
Total liabilities and stockholders' equity $ 8,238 $ 7,986
======== ========
AGILENT TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(UNAUDITED)
(In millions)
Six months Three months
ended ended
April 30, April 30,
2002 2002
---------- ------------
Cash flows from operating activities:
Net loss from continuing operations (564) (247)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization 368 169
Inventory related charges 22 12
Deferred taxes 25 (24)
Asset impairment charges 12 (4)
Net gain on divestitures and sales of assets (12) (7)
Changes in assets and liabilities:
Accounts receivable 66 (96)
Inventory 162 71
Accounts payable (57) 8
US Pension contribution (76) (76)
Accrued compensation and benefits 23 65
Income taxes payable (269) (74)
Other current assets and liabilities 51 73
Other long term assets and liabilities (13) 12
-------- --------
Net cash used in operating activities *: (262) (118)
-------- --------
Cash flows from investing activities:
Investments in property, plant and equipment (155) (86)
Proceeds from net investment in lease receivable 237 237
Purchase of equity investments (3) --
Proceeds from dispositions 26 7
-------- --------
Net cash provided by investing activities: 105 158
-------- --------
Cash flows from financing activities:
Issuance of long-term debt, net of issuance costs 1,123 --
Issuance of common stock under employee stock plans 72 10
Net proceeds from notes payable and short-term borrowings 4 1
-------- --------
Net cash provided by financing activities: 1,199 11
-------- --------
Net cash provided by (used in) discontinued operations 23 (4)
-------- --------
Change in cash and cash equivalents 1,065 47
-------- --------
Cash and cash equivalents at beginning of period 1,170 2,188
-------- --------
Cash and cash equivalents at end of period 2,235 2,235
======== ========
* Cash payments for restructuring included in operating activities: 144 55
AGILENT TECHNOLOGIES, INC.
ORDERS AND NET REVENUE FROM CONTINUING OPERATIONS
BY BUSINESS SEGMENT
(UNAUDITED)
(In millions, except percent changes)
For the three months ended April 30 Yr vs. Yr Sequential
2002 2001 % change % change
-------- -------- --------- ----------
ORDERS
Test and measurement $ 836 $ 932 (10%) 0%
Semiconductor products 476 200 138% 38%
Life sciences and chemical analysis 285 265 8% (1%)
-------- -------- -------- --------
Total $ 1,597 $ 1,397 14% 9%
======== ======== ======== ========
NET REVENUE
Test and measurement $ 814 $ 1,661 (51%) (1%)
Semiconductor products 371 455 (18%) 13%
Life sciences and chemical analysis 272 290 (6%) (2%)
-------- -------- -------- --------
Total $ 1,457 $ 2,406 (39%) 2%
======== ======== ======== ========
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.
AGILENT TECHNOLOGIES, INC.
ORDERS AND NET REVENUE FROM CONTINUING OPERATIONS
BY BUSINESS SEGMENT
(UNAUDITED)
(In millions, except percent changes)
For the six months ended April 30 Yr vs.Yr
2002 2001 % change
-------- -------- --------
ORDERS
Test and measurement $ 1,668 $ 2,552 (35%)
Semiconductor products 822 753 9%
Life sciences and chemical analysis 572 564 1%
-------- -------- --------
Total $ 3,062 $ 3,869 (21%)
======== ======== ========
NET REVENUE
Test and measurement $ 1,636 $ 3,366 (51%)
Semiconductor products 698 1,047 (33%)
Life sciences and chemical analysis 549 558 (2%)
-------- -------- --------
Total $ 2,883 $ 4,971 (42%)
======== ======== ========
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.