Agilent Technologies Inc. (NYSE: A) today reported orders of $1.74 billion, up 9 percent over one year ago, for the third fiscal quarter ended July 31, 2014, and revenues of $1.77 billion, up 7 percent compared with one year ago. Third-quarter GAAP net income was $147 million, or $0.43 per share. Last year’s third-quarter GAAP net income was $168 million, or $0.49 per share.
During the third quarter, Agilent had pre-separation costs of $62 million, intangible amortization of $50 million, a net loss on extinguishment of debt of $21 million, and a tax benefit of $14 million. Excluding these items and $4 million of other net benefits, Agilent reported third-quarter adjusted net income of $262 million, or $0.78 per share (1).
“Agilent generated strong revenue and earnings this quarter, exceeding the high-end of our forecasted guidance,” said Agilent President and CEO Bill Sullivan. “We’re seeing continued improvement in our markets and good order growth across our businesses.”
“While delivering these solid results, the Agilent and Keysight teams have done an outstanding job of executing the company separation to date,” he added. “We are on track for the formal separation in early November, and both companies are well positioned for the future.”Third-quarter revenues for Electronic Measurement—now Keysight— increased 8 percent compared with a year ago. Operating margins were 20 percent. Orders increased 7 percent over a year ago. Keysight began operating as a wholly owned subsidiary of Agilent on Aug. 1. The subsidiary is expected to formally separate from Agilent in early November 2014, when its common stock is expected to trade on the New York Stock Exchange with the ticker symbol KEYS. In Life Sciences, Diagnostics and Applied Chemical Markets (LDA)—the new Agilent—revenues grew 6 percent compared with a year ago, led by growth in environmental, forensics, pharma and clinical/diagnostics. LDA operating margins were 19 percent. Orders were up 10 percent year over year.