Agilent Technologies Reports Third-Quarter 2015 Results

Highlights:
 • GAAP income from continuing operations of $105 million, or $0.31 per share
 • Non-GAAP income from continuing operations of $147 million, or $0.44 per share(1)
 • Orders of $953 million and revenue of $1.01 billion
 • Fourth-quarter fiscal year 2015 revenue guidance of $1.03 billion to $1.05 billion, and non-GAAP earnings guidance of $0.45 to $0.49 per share(2)
 • Fiscal year 2015 revenue guidance of $4.03 billion to $4.05 billion, and non-GAAP earnings guidance of $1.68 to $1.72 per share(2)

SANTA CLARA, Calif.--(BUSINESS WIRE)--Agilent Technologies Inc. (NYSE: A) today reported orders of $953 million, down 6 percent (up 3 percent on a core basis(3)) over one year ago for the third fiscal quarter ended July 31, 2015. Third-quarter revenue was $1.01 billion, up 1 percent (up 9 percent on a core basis(3)) compared with one year ago.

Third-quarter GAAP income from continuing operations was $105 million, or $0.31 per share. Last year’s third-quarter GAAP income from continuing operations was $63 million, or $0.19 per share.

During the third quarter, Agilent had intangible amortization of $38 million, transformation costs of $12 million, acquisition and integration costs of $4 million, and a tax benefit of $14 million. Excluding these items, and $2 million of other costs, Agilent reported third-quarter adjusted income from continuing operations of $147 million, or $0.44 per share(1).

“Agilent delivered excellent results for our shareholders in the third quarter,” said Mike McMullen, Agilent president and CEO. “Revenue was at the high end of our guidance, and earnings per share were above our guidance range.”

“Our operating model is driving above-market revenue growth and margin expansion,” he added. “In Q3, we delivered an adjusted operating margin of 19.9 percent(4), up 110 basis points from last year.”

Third-quarter revenue of $511 million from Agilent’s Life Sciences and Applied Markets Group (LSAG) grew 1 percent year over year (up 9 percent on a core basis(3)), driven by strong performance in pharma, environmental and forensics markets. LSAG’s Q3 operating margin was 18.7 percent.

Third-quarter revenue of $336 million from the Agilent CrossLab Group (ACG) was flat year over year (up 8 percent on a core basis(3)), led by continued strong acceptance of the company’s CrossLab services and consumables offerings. ACG’s operating margin was 22.6 percent in the quarter.

Third-quarter revenue of $167 million from Agilent’s Diagnostics and Genomics Group (DGG) was flat year over year (up 10 percent on a core basis(3)), with continued strong growth across all its businesses. DGG’s operating margin for the quarter was 16.8 percent.

Agilent expects fourth-quarter 2015 revenue in the range of $1.03 billion to $1.05 billion. Fourth-quarter non-GAAP earnings are expected to be in the range of $0.45 to $0.49 per share(2).

For fiscal year 2015, Agilent expects revenue of $4.03 billion to $4.05 billion and non-GAAP earnings of $1.68 to $1.72 per share(2). The guidance is based on July 31, 2015, exchange rates.

About Agilent Technologies
Agilent Technologies Inc. (NYSE: A), a global leader in life sciences, diagnostics and applied chemical markets, is the premier laboratory partner for a better world. Agilent works with customers in more than 100 countries, providing instruments, software, services and consumables for the entire laboratory workflow. Agilent generated revenue of $4.0 billion in fiscal 2014. The company employs about 12,000 people worldwide. Agilent marks its 50th anniversary in analytical instrumentation this year. Information about Agilent is available at www.agilent.com .

Agilent’s management will present more details about its third-quarter FY2015 financial results on a conference call with investors today at 1:30 p.m. PT. This event will be webcast live in listen-only mode. Listeners may log on at www.investor.agilent.com  and select “Q3 2015 Agilent Technologies Inc. Earnings Conference Call” in the “News & Events Calendar of Events” section. The webcast will remain available on the company’s website for 90 days.

Additional information regarding financial results can be found at www.investor.agilent.com  by selecting “Financial Results” in the “Financial Information” section.

A telephone replay of the conference call will be available at approximately 5:30 p.m. PT today through Aug. 25 by dialing +1 855 859 2056 (or +1 404 537 3406 from outside the United States) and entering passcode 87671650.

Contacts
Agilent Technologies Inc.
EDITORIAL CONTACT:
Michele Drake, +1 408-345-8396
michele_drake@agilent.com
or
INVESTOR CONTACT:
Alicia Rodriguez, +1 408-345-8948
alicia_rodriguez@agilent.com