Attributes the decline to weakness in its semiconductor and board test businesses
Testing equipment and chip maker Agilent Technologies has reported a 47% decline in net income to $64m for the first quarter 2009, compared to $120m in the year-ago quarter, on revenue down 16% at $1.17bn. The decline was attributed to weakness in its semiconductor and board test as well as electronic measurement businesses.
The company also announced plans to cut approximately 600 jobs as part of a restructuring program that includes shutting down two small board-inspection businesses and restructuring its global infrastructure operations.
Operating income during the quarter fell 82% to $24m, diluted EPS fell 42% to $0.18, and orders fell 20% to $1.11bn. The company also repurchased $125m of its common stock for $852m.
The company said bio-analytical revenue fell 1% to $525m, with both life sciences and chemical analysis revenue down 1%. Electronic measurement revenue fell 23% to $596m, and semiconductor and board test revenue fell 49% to $45m. Geographically, Americas revenue fell 10%, Europe revenue fell 21%, and Asia revenue fell 18%.
Bill Sullivan, president and chief executive at Agilent, said: In the first quarter, Agilent felt the full brunt of the severe, worldwide economic downturn. We moved quickly to minimize the impact of this unexpected weakness, and delivered operating results consistent with Agilent’s operating model. But, operating earnings per share of $0.20 were also well below our earlier expectations due to lower activity levels. We will remain proactive and are committed to delivering performance consistent with Agilent’s operating model. Our best guess is that second-quarter revenues and operating earnings will be roughly in line with first-quarter results.
It said the restructuring program will reduce operating costs by $150m, while incurring charges of $100m.