Agilent Technologies Reports Third-Quarter 2015 Results

Highlights:

·       GAAP income from continuing operations of $105million, or $0.31 per share

·       Non-GAAP income from continuing operations of $147million, 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)

Agilent TechnologiesInc. (NYSE: A) today reported orders of $953 million, down 6 percent (up 3percent on a core basis(3)) over one year agofor 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 oneyear ago.

“In Q3, we delivered an adjusted operating margin of 19.9percent(4), up 110 basis points from last year.”

Third-quarter GAAPincome from continuing operations was $105 million, or $0.31 per share. Lastyear’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 $12million, acquisition and integration costs of $4 million, and a tax benefit of$14 million. Excluding these items, and $2 million of other costs, Agilentreported third-quarter adjusted income from continuing operations of $147million, or $0.44 per share(1).

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

“Our operating modelis 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 basispoints from last year.”

Third-quarter revenueof $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 strongperformance in pharma, environmental and forensics markets. LSAG’s Q3 operatingmargin was 18.7 percent.

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

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

Agilent expectsfourth-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 $0.49per share(2).

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