Agilent Technologies Inc. (A, Financial) filed Quarterly Report for the period ended 2010-04-30.
Agilent Technologies Inc. has a market cap of $10.56 billion; its shares were traded at around $30.335 with a P/E ratio of 23.89 and P/S ratio of 2.36. A is in the portfolios of Richard Snow of Snow Capital Management, L.P., RS Investment Management, Chris Davis of Davis Selected Advisers, Robert Olstein of Olstein Financial Alert Fund, Jean-Marie Eveillard of First Eagle Investment Management, LLC, Jeremy Grantham of GMO LLC, PRIMECAP Management, John Keeley of Keeley Fund Management, Ron Baron of Baron Funds, Steven Cohen of SAC Capital Advisors.
Net income for the three and six months ended April 30, 2010 was $108 million and $187 million, respectively, compared to a loss of $101 million and a loss of $37 million for the corresponding periods last year. In the six months ended April 30, 2010, we generated $255 million of cash from operations compared with $154 million generated in the same period last year.
On May 14, 2010, we completed our acquisition of Varian, Inc. (Varian), a leading supplier of scientific instrumentation and associated consumables for life science and applied market applications, by means of a merger of one of our wholly-owned subsidiaries with and into Varian such that Varian became a wholly-owned subsidiary of Agilent. The $1.5 billion total purchase price of Varian includes $52 cash per share of Varians outstanding common stock including vested and non-vested in-the-money stock options at $52 cash per share less their exercise price. Varians non-vested restricted stock awards, non-vested performance shares, at 100 percent of target, and non-vested directors stock units were also paid at $52 per share. Varians cash acquired at completion of the acquisition was approximately $225 million. As part of the European Commissions merger approval and the Federal Trade Commission consent order, Agilent had previously committed to sell Varians laboratory gas chromatography (GC) business; Varians triple quadrupole gas chromatography-mass spectrometry (GC-MS) business; Varians inductively-coupled plasma-mass spectrometry (ICP-MS) business; and Agilents micro GC business. On May 19, 2010 we completed the sale of the Agilent micro GC business and the Varian laboratory GC business, the triple quadrupole GC-MS business and the ICP-MS business for approximately $40 million subject to post-closing adjustments. We financed the purchase price of Varian using the proceeds from our September 2009 offering of senior notes and other existing cash. The Varian merger will be accounted for in accordance with the authoritative accounting guidance. The initial accounting for the acquisition of Varian is incomplete. The acquired assets and assumed liabilities will be recorded by Agilent at their estimated fair values. Agilent will determine the estimated fair values with the assistance of valuations performed by independent third party specialists, discounted cash flow analyses, quoted market prices where available, and estimates made by management.
For the three and six months ended April 30, 2010 there were continuing signs of a recovery in our key markets with strong total order and revenue growth compared to the same periods last year. Total orders for the three and six months ended April 30, 2010 were $1,346 million and $2,566 million, respectively, an increase of 31 percent and 20 percent, respectively, above the same periods last year. Foreign currency movements accounted for 3 percentage points and 4 percentage points of order growth in the three and six months ended April 30, 2010, respectively, compared to the same periods last year. Each of our operating businesses recorded order growth in the three and six months ended April 30, 2010, with electronic measurement making a strong recovery in the second quarter of this year.
For the three and six months ended April 30, 2010, we recorded an income tax provision of $31 million and $35 million, respectively, compared to an income tax provision of $43 million and $6 million, respectively, for the same periods last year. The income tax provision for the three and six months ended April 30, 2010 includes net discrete tax expense of $12 million and $3 million, respectively. The net discrete expense relates primarily to tax settlements, lapses of statutes of limitations and valuation allowance adjustments based on changes in other comprehensive income items. The income tax expense for the three and six months ended April 30, 2009 include net discrete benefits of zero and $42 million, respectively, and are primarily associated with lapses of
Our U.S. federal income tax returns for 2000 through 2002 and 2003 through 2007 are under audit by the IRS which is normal for taxpayers subject to the IRSs Large and Mid-Sized Business examination procedures. In August 2007, we received a Revenue Agents Report (RAR) for 2000 through 2002. The RAR proposed several adjustments to taxable income. We disagreed with most of the proposed adjustments. In order to resolve the disagreements, representatives of Agilent met with the Appeals Office of the IRS. In April 2010, we reached resolution in principle with the Appeals Office on the last remaining significant proposed adjustment. Tax adjustments resulting from the Appeals Office agreements will be offset with net operating losses from subsequent years and tax credits. Federal deficiency interest for the intervening years is about $13 million, or $8 million net of federal tax benefit. This $8 million is reflected in our statements of operations.
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Agilent Technologies Inc. has a market cap of $10.56 billion; its shares were traded at around $30.335 with a P/E ratio of 23.89 and P/S ratio of 2.36. A is in the portfolios of Richard Snow of Snow Capital Management, L.P., RS Investment Management, Chris Davis of Davis Selected Advisers, Robert Olstein of Olstein Financial Alert Fund, Jean-Marie Eveillard of First Eagle Investment Management, LLC, Jeremy Grantham of GMO LLC, PRIMECAP Management, John Keeley of Keeley Fund Management, Ron Baron of Baron Funds, Steven Cohen of SAC Capital Advisors.
Highlight of Business Operations:
For the three and six months ended April 30, 2010 there were continuing signs of a recovery in our key markets with strong total order and revenue growth compared to the same periods last year. Total orders for the three and six months ended April 30, 2010 were $1,346 million and $2,566 million, respectively, an increase of 31 percent and 20 percent, respectively, above the same periods last year. Foreign currency movements accounted for 3 percentage points and 4 percentage points of order growth in the three and six months ended April 30, 2010, respectively, compared to the same periods last year. Each of our operating businesses recorded order growth in the three and six months ended April 30, 2010, with electronic measurement making a strong recovery in the second quarter of this year.Net income for the three and six months ended April 30, 2010 was $108 million and $187 million, respectively, compared to a loss of $101 million and a loss of $37 million for the corresponding periods last year. In the six months ended April 30, 2010, we generated $255 million of cash from operations compared with $154 million generated in the same period last year.
On May 14, 2010, we completed our acquisition of Varian, Inc. (Varian), a leading supplier of scientific instrumentation and associated consumables for life science and applied market applications, by means of a merger of one of our wholly-owned subsidiaries with and into Varian such that Varian became a wholly-owned subsidiary of Agilent. The $1.5 billion total purchase price of Varian includes $52 cash per share of Varians outstanding common stock including vested and non-vested in-the-money stock options at $52 cash per share less their exercise price. Varians non-vested restricted stock awards, non-vested performance shares, at 100 percent of target, and non-vested directors stock units were also paid at $52 per share. Varians cash acquired at completion of the acquisition was approximately $225 million. As part of the European Commissions merger approval and the Federal Trade Commission consent order, Agilent had previously committed to sell Varians laboratory gas chromatography (GC) business; Varians triple quadrupole gas chromatography-mass spectrometry (GC-MS) business; Varians inductively-coupled plasma-mass spectrometry (ICP-MS) business; and Agilents micro GC business. On May 19, 2010 we completed the sale of the Agilent micro GC business and the Varian laboratory GC business, the triple quadrupole GC-MS business and the ICP-MS business for approximately $40 million subject to post-closing adjustments. We financed the purchase price of Varian using the proceeds from our September 2009 offering of senior notes and other existing cash. The Varian merger will be accounted for in accordance with the authoritative accounting guidance. The initial accounting for the acquisition of Varian is incomplete. The acquired assets and assumed liabilities will be recorded by Agilent at their estimated fair values. Agilent will determine the estimated fair values with the assistance of valuations performed by independent third party specialists, discounted cash flow analyses, quoted market prices where available, and estimates made by management.
For the three and six months ended April 30, 2010 there were continuing signs of a recovery in our key markets with strong total order and revenue growth compared to the same periods last year. Total orders for the three and six months ended April 30, 2010 were $1,346 million and $2,566 million, respectively, an increase of 31 percent and 20 percent, respectively, above the same periods last year. Foreign currency movements accounted for 3 percentage points and 4 percentage points of order growth in the three and six months ended April 30, 2010, respectively, compared to the same periods last year. Each of our operating businesses recorded order growth in the three and six months ended April 30, 2010, with electronic measurement making a strong recovery in the second quarter of this year.
For the three and six months ended April 30, 2010, we recorded an income tax provision of $31 million and $35 million, respectively, compared to an income tax provision of $43 million and $6 million, respectively, for the same periods last year. The income tax provision for the three and six months ended April 30, 2010 includes net discrete tax expense of $12 million and $3 million, respectively. The net discrete expense relates primarily to tax settlements, lapses of statutes of limitations and valuation allowance adjustments based on changes in other comprehensive income items. The income tax expense for the three and six months ended April 30, 2009 include net discrete benefits of zero and $42 million, respectively, and are primarily associated with lapses of
Our U.S. federal income tax returns for 2000 through 2002 and 2003 through 2007 are under audit by the IRS which is normal for taxpayers subject to the IRSs Large and Mid-Sized Business examination procedures. In August 2007, we received a Revenue Agents Report (RAR) for 2000 through 2002. The RAR proposed several adjustments to taxable income. We disagreed with most of the proposed adjustments. In order to resolve the disagreements, representatives of Agilent met with the Appeals Office of the IRS. In April 2010, we reached resolution in principle with the Appeals Office on the last remaining significant proposed adjustment. Tax adjustments resulting from the Appeals Office agreements will be offset with net operating losses from subsequent years and tax credits. Federal deficiency interest for the intervening years is about $13 million, or $8 million net of federal tax benefit. This $8 million is reflected in our statements of operations.
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