Agilent Technologies

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signed a deal to sell its semiconductor products segment to Kohlberg Kravis Roberts and Silver Lake Partners for $2.66 billion as part of a significant restructuring of the technology company's operations.

The Palo Alto, Calif., company also reached an agreement to sell its stake in Lumileds to

Philips Electronics

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for $950 million plus the repayment of $50 million of debt, and set plans to spin off its SOC and memory test businesses in 2006.

Agilent said the cash proceeds will be used toward a $4 billion share repurchase program that will start immediately. Additionally, the company intends to call its $1.15 billion convertible debenture.

As part of its reorganization, Agilent will reduce its job count by about 1,300 workers, including employees being transferred and those leaving through attrition. The company believes the roughly $200 million of implementation costs will be essentially offset by the proceeds of property and asset sales.

Separately, Agilent reported third-quarter revenue of $1.69 billion, down 10% from last year. The company earned $104 million, or 21 cents a share, compared with $100 million, or 20 cents a share, in last year's third quarter. Operating earnings were 28 cents a share.

Looking ahead, Agilent said it remains comfortable with its prior guidance for the fiscal fourth quarter, including revenue of $1.79 billion to $1.89 billion and operating earnings of 33 cents to 38 cents a share.

Thomson First Call carries consensus profit estimates of 26 cents for the third quarter and 34 cents for the fourth quarter.