Agilent Technologies Announces First Quarter 2011 Financial Report

Beijing, February 15, 2011 - Agilent Technologies (NYSE:A) recently announced its first quarterly financial report as of January 31, 2011. The report shows that in the first quarter of fiscal year 2011, the company’s revenue was US$1.52 billion, up 25% from the same period of last year. Excluding the impact of Varian’s acquisition and recent spin-off, this figure was 19%. Calculated according to US GAAP, the company’s net income in the first quarter was US$193 million, equivalent to a diluted earnings per share of US$0.54, compared with the company’s net income of US$79 million calculated in the same period last year, equivalent to diluted earnings per share. It is 0.22 US dollars.

In the first quarter, Agilent’s amortization of intangible assets was 28 million U.S. dollars, Varian consolidated spending of 19 million U.S. dollars, and business restructuring expenses of 13 million U.S. dollars. The report also pointed out that Agilent has achieved a $41 million tax benefit. Excluding the above items, Agilent's adjusted net income reported in the first quarter was US$212 million, equivalent to a diluted earnings per share of US$0.60.

Bill Sullivan, President and CEO of Agilent Technologies, said: “We had a good start at the beginning of the year. This was due to our continued strong performance in the product area. We achieved two revenues in each region of the world. Endogenous growth of numbers."

Revenue from electronic measurement services increased by 23% over the same period of last year. Excluding the impact of stripping network service business, both order volume and revenue achieved a 31% growth. Strong growth in the communications, industrial, computer and semiconductor markets has become a bright spot this quarter.

Chemical analysis business revenue increased by 43% compared to the same period last year. Calculated on the basis of endogenousness, orders and revenues achieved growth of 16% and 8%, respectively. Growth in the fields of petrochemicals, food, environmental protection, and poison appraisal all performed well.

Life Sciences business income increased by 19% from the same period of last year. Based on the endogenous basis, the volume of orders and revenues achieved growth of 11% and 7% respectively. During the quarter, growth was excellent in the pharmaceutical and research and government markets with strong demand.

The return on investment in the first quarter was 21%. Agilent received a total of 120 million U.S. dollars in cash during its seasonally weak first quarter. After paying off $1.5 billion in world trade debt in December, the company’s net cash amount at the end of the first quarter was $554 million.

Shao Luwen pointed out: "We look forward to the company's steady growth for another year. We believe that with the continuous recovery of the global economy, we can make good use of market opportunities to achieve our own accurate positioning."

It is expected that Agilent’s revenue for the second quarter of 2011 will be between 1.59 billion and 16.1 billion U.S. dollars. Based on non-US GAAP estimates, the company’s earnings in the second quarter are expected to be between US$0.63 and US$0.65 per share.

Throughout the 2011 fiscal year, Agilent is increasing its revenue forecast from $6.3 billion to $6.4 billion. Based on non-US GAAP, earnings per share will be between $2.53 and $2.63.