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 Agilent Technologies Reports Fourth-Quarter 2015 Results
   Monday, November 16, 2015 4:05:01 PM ET

--GAAP income from continuing operations of $140 million, or $0.42 per share

--Non-GAAP income from continuing operations of $168 million, or $0.50 per share(1)

--Revenue of $1.04 billion

--First-quarter fiscal year 2016 revenue guidance of $1.0 billion to $1.02 billion, and non-GAAP earnings guidance of $0.42 to $0.44 per share(2)

--Fiscal year 2016 revenue guidance of $4.15 billion to $4.17 billion, and non-GAAP earnings guidance of $1.85 to $1.91 per share(2)

Agilent Technologies Inc. (A ) today reported revenue of $1.04 billion, down 1 percent year over year (up 6 percent on a core basis(3)) for the fourth fiscal quarter ended Oct. 31, 2015.

Fourth-quarter GAAP income from continuing operations was $140 million, or $0.42 per share. Last year’s fourth-quarter GAAP loss from continuing operations was $26 million, or a loss of $0.08 per share.



During the fourth quarter, Agilent had intangible amortization of $37 million, transformation costs of $15 million, acquisition and integration costs of $7 million, asset impairments of $3 million, and a tax benefit of $39 million. Excluding these items, and $5 million of other costs, Agilent reported fourth-quarter adjusted income from continuing operations of $168 million, $0.50 per share(1).

"Agilent delivered a strong quarter to end a strong year," said Mike McMullen, Agilent president and CEO. "Our fourth-quarter revenue was up 6 percent on a core basis(3), and earnings per share were above our guidance range."

"Our adjusted operating margin was 21.9(4) percent, up 150 basis points over a year ago," he added. "This marks the third consecutive quarter of significant year-over-year margin improvements."

Fourth-quarter revenue of $515 million from Agilent’s Life Sciences and Applied Markets Group (LSAG) declined 4 percent year over year (up 2 percent on a core basis(3)). Strong performance in pharma was offset by softness in the industrial market and in the academia and government market. LSAG’s Q4 operating margin was 20.0 percent.

Fourth-quarter revenue of $342 million from the Agilent CrossLab Group (ACG) grew 3 percent year over year (up 11 percent on a core basis(3)). Both services and consumables experienced strong growth across all geographies. ACG’s operating margin was 25.1 percent in the quarter.

Fourth-quarter revenue of $178 million from Agilent’s Diagnostics and Genomics Group (DGG) increased 4 percent year over year (up 10 percent on a core basis(3)), reflecting continued strength across all of its businesses. DGG’s operating margin for the quarter was 19.2 percent.

Agilent expects first-quarter 2016 revenue in the range of $1.0 billion to $1.02 billion. First-quarter non-GAAP earnings are expected to be in the range of $0.42 to $0.44 per share(2).

For fiscal year 2016, Agilent expects revenue of $4.15 billion to $4.17 billion and non-GAAP earnings of $1.85 to $1.91 per share(2). The guidance is based on Oct. 30, 2015, exchange rates.

Agilent announced on Sept. 2 that it would no longer report or comment on orders or book-to-bill.

About Agilent Technologies

Agilent Technologies Inc. (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 $4.04 billion in fiscal 2015. 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 fourth-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 "Q4 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 4:30 p.m. PT today through Nov. 23 by dialing +1 855 859 2056 (or +1 404 537 3406 from outside the United States) and entering passcode 54851057.

Forward-Looking Statements

This news release contains forward-looking statements as defined in the Securities Exchange Act of 1934 and is subject to the safe harbors created therein. The forward-looking statements contained herein include, but are not limited to, information regarding Agilent’s future revenue, earnings and profitability; planned new products; market trends; the future demand for the company’s products and services; customer expectations; and revenue and non-GAAP earnings guidance for the first quarter and full fiscal year 2016. These forward-looking statements involve risks and uncertainties that could cause Agilent’s results to differ materially from management’s current expectations. Such risks and uncertainties include, but are not limited to, unforeseen changes in the strength of our customers’ businesses; unforeseen changes in the demand for current and new products, technologies, and services; unforeseen changes in the currency markets; customer purchasing decisions and timing, and the risk that we are not able to realize the savings expected from integration and restructuring activities.

In addition, other risks that Agilent faces in running its operations include the ability to execute successfully through business cycles; the ability to meet and achieve the benefits of its cost-reduction goals and otherwise successfully adapt its cost structures to continuing changes in business conditions; ongoing competitive, pricing and gross-margin pressures; the risk that our cost-cutting initiatives will impair our ability to develop products and remain competitive and to operate effectively; the impact of geopolitical uncertainties and global economic conditions on our operations, our markets and our ability to conduct business; the ability to improve asset performance to adapt to changes in demand; the ability of our supply chain to adapt to changes in demand; the ability to successfully introduce new products at the right time, price and mix; the ability of Agilent to successfully integrate recent acquisitions; the ability of Agilent to successfully comply with certain complex regulations; and other risks detailed in Agilent’s filings with the Securities and Exchange Commission, including our quarterly report on Form 10-Q for the quarter ended July 31, 2015. Forward-looking statements are based on the beliefs and assumptions of Agilent’s management and on currently available information. Agilent undertakes no responsibility to publicly update or revise any forward-looking statement.

(1) Non-GAAP income from continuing operations and non-GAAP income from continuing operations per share exclude primarily the impacts of acquisition and integration costs, pre-separation costs, transformation initiatives and restructuring costs, business exit and divestiture costs, and non-cash intangibles amortization. We also exclude any tax benefits that are not directly related to ongoing operations and which are either isolated or cannot be expected to occur again with any regularity or predictability. A reconciliation between non-GAAP net income and GAAP net income is set forth on page 6 of the attached tables along with additional information regarding the use of this non-GAAP measure.

(2) Non-GAAP earnings per share as projected for Q1 FY16 and full fiscal year 2016 excludes primarily the future impact of acquisition and integration costs, restructuring costs, asset impairment charges, business exit and divestiture costs and non-cash intangibles amortization. We also exclude any tax benefits that are not directly related to ongoing operations and which are either isolated or cannot be expected to occur again with any regularity or predictability. Most of these excluded amounts pertain to events that have not yet occurred and are not currently possible to estimate with a reasonable degree of accuracy. Therefore, no reconciliation to GAAP amounts has been provided. Future amortization of intangibles is expected to be approximately $37 million per quarter.

(3) Core revenue excludes the impact of currency, the NMR business and acquisitions and divestitures within the past 12 months. Core revenue is a non-GAAP measure. A reconciliation between GAAP revenue and core revenue is set forth on page 8 of the attached tables along with additional information regarding the use of this non-GAAP measure.

(4) Adjusted operating margin is a non-GAAP measure and excludes primarily the impacts of acquisition and integration costs, transformation initiatives and restructuring costs, business exit and divestiture costs, and non-cash intangibles amortization in addition to the costs related to services Agilent is providing to Keysight post separation. A reconciliation is set forth on page 9 of the attached tables along with additional information regarding the use of this non-GAAP measure.

NOTE TO EDITORS: Further technology, corporate citizenship and executive news is available on the Agilent news site at www.agilent.com/go/news.

                                                                   
                                                                                                                       AGILENT TECHNOLOGIES, INC.
                                                                                                             CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
                                                                                                                 (In millions, except per share amounts)
                                                                                                                               (Unaudited)
                                                                                                                               PRELIMINARY
                                                                                                                                                                                                             
                                                                                                                                                                                                                                                     
                                                                                                                                                           Three Months Ended
                                                                                                                                                               October 31,                                                                                 Percent
                                                                                                          ---------------------------------------------------------------------------------------------------------------------
                                                                                                             2015                           2014                              Inc/(Dec)
                                                                                                          -------------------- ----- --------------------                      -------------------- ----- --------------------                      ---------------------
                                                                                                                                                                                                                                                     
Net revenue                                                                                                                  $ 1,035                                                              $ 1,043                                                       (1 %)
                                                                                                                                                                                                                                                     
Costs and expenses:
   Cost of products and services                                                                                                 500                                                                  564                                                      (11 %)
   Research and development                                                                                                       82                                                                   97                                                      (15 %)
   Selling, general and administrative                                                                        297                            312                                    (5 %)
                                                                                                          -------------------- ----- --------------------                      -------------------- ----- --------------------
      Total costs and expenses                                                                                879                            973                                   (10 %)
                                                                                                          -------------------- ----- --------------------                      -------------------- ----- --------------------
                                                                                                                                                                                                                                                     
Income from operations                                                                                                           156                                                                   70                                                      123 %
                                                                                                                                                                                                                                                     
Interest income                                                                                                                    1                                                                    2                                                      (50 %)
Interest expense                                                                                                                 (16 )                                                                (23 )                                                    (30 %)
Other income (expense), net                                                                                     2                            (71 )                                         --
                                                                                                          -------------------- ----- --------------------                      -------------------- ----- --------------------
                                                                                                                                                                                                                                                     
Income (loss) from continuing operations before taxes                                                                            143                                                                  (22 )                                         --
                                                                                                                                                                                                                                                     
Provision for income taxes                                                                                      3                              4                                   (25 %)
                                                                                                          -------------------- ----- --------------------                      -------------------- ----- --------------------
                                                                                                                                                                                                                                                     
Income (loss) from continuing operations                                                                                         140                                                                  (26 )                                         --
                                                                                                                                                                                                                                                     
Income from discontinued operations, net of tax                                                                 -                             49  
                                                                                                          -------------------- ----- --------------------                      -------------------- ----- --------------------
                                                                                                                                                                                                                                                     
Net income                                                                                                                   $   140                                           $    23                                   509 %
                                                                                                          ==================== ===== ====================                      ==================== ===== ====================
                                                                                                                                                                                                                                                     
                                                                                                                                                                                                                                                     
                                                                                                                                                                                                                                                     
Net income per share - Basic:
   Income (loss) from continuing operations                                                                                  $  0.42                                                              $ (0.08 )
   Income from discontinued operations                                                                                       $     -                                           $  0.15  
                                                                                                          -------------------- ----- --------------------                      -------------------- ----- --------------------
Net income per share - Basic                                                                                                 $  0.42                                           $  0.07  
                                                                                                          ==================== ===== ====================                      ==================== ===== ====================
                                                                                                                                                                                                                                                     
                                                                                                                                                                                                                                                     
Net income per share - Diluted:
   Income (loss) from continuing operations                                                                                  $  0.42                                                              $ (0.08 )
   Income from discontinued operations                                                                                       $     -                                           $  0.15  
                                                                                                          -------------------- ----- --------------------                      -------------------- ----- --------------------
Net income per share - Diluted                                                                                               $  0.42                                           $  0.07  
                                                                                                          ==================== ===== ====================                      ==================== ===== ====================
                                                                                                                                                                                                                                                     
                                                                                                                                                                                                                                                     
Weighted average shares used in computing net income per share:
            Basic                                                                                                                331                                                                  334
            Diluted                                                                                                              333                                                                  334
                                                                                                                                                                                                                                                     
Cash dividends declared per common share                                                                                     $ 0.100                                                              $ 0.132
                                                                                                                                                                                                                                                     
                                                                                                                                                                                                                                                     
   The preliminary income statement is estimated based on our current
   information.
                                                                                                                                                                                                                                                     
                                                                                                                                 Page 1
 
 
                                                                                                                       AGILENT TECHNOLOGIES, INC.
                                                                                                             CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
                                                                                                                 (In millions, except per share amounts)
                                                                                                                               (Unaudited)
                                                                                                                               PRELIMINARY
                                                                                                                                                                       
                                                                                                                                                                                                                                                     
                                                                                                                                                               Years Ended
                                                                                                                                                               October 31,                                                                                 Percent
                                                                                                          ---------------------------------------------------------------------------------------------------------------------
                                                                                                             2015                           2014                              Inc/(Dec)
                                                                                                          -------------------- ----- --------------------                      -------------------- ----- --------------------                      ---------------------
                                                                                                                                                                                                                                                     
Net revenue                                                                                                                  $ 4,038                                                              $ 4,048                                           --
                                                                                                                                                                                                                                                     
Costs and expenses:
   Cost of products and services                                                                                               1,997                                                                2,072                                                       (4 %)
   Research and development                                                                                                      330                                                                  358                                                       (8 %)
   Selling, general and administrative                                                                      1,189                          1,199                                    (1 %)
                                                                                                          -------------------- ----- --------------------                      -------------------- ----- --------------------
      Total costs and expenses                                                                              3,516                          3,629                                    (3 %)
                                                                                                          -------------------- ----- --------------------                      -------------------- ----- --------------------
                                                                                                                                                                                                                                                     
Income from operations                                                                                                           522                                                                  419                                                       25 %
                                                                                                                                                                                                                                                     
Interest income                                                                                                                    7                                                                    9                                                      (22 %)
Interest expense                                                                                                                 (66 )                                                               (110 )                                                    (40 %)
Other income (expense), net                                                                                    17                            (89 )                                         --
                                                                                                          -------------------- ----- --------------------                      -------------------- ----- --------------------
                                                                                                                                                                                                                                                     
Income from continuing operations before taxes                                                                                   480                                                                  229                                                      110 %
                                                                                                                                                                                                                                                     
Provision for income taxes                                                                                     45                             31                                    45 %
                                                                                                          -------------------- ----- --------------------                      -------------------- ----- --------------------
                                                                                                                                                                                                                                                     
Income from continuing operations                                                                                                435                                                                  198                                                      120 %
                                                                                                                                                                                                                                                     
Income (loss) from discontinued operations, net of tax                                                        (37 )                                             306  
                                                                                                          -------------------- ----- --------------------                      -------------------- ----- --------------------
                                                                                                                                                                                                                                                     
Net income                                                                                                                   $   398                                           $   504                                   (21 %)
                                                                                                          ==================== ===== ====================                      ==================== ===== ====================
                                                                                                                                                                                                                                                     
                                                                                                                                                                                                                                                     
                                                                                                                                                                                                                                                     
Net income per share - Basic:
   Income from continuing operations                                                                                         $  1.31                                                              $  0.59
   Income (loss) from discontinued operations                                                                                $ (0.11 )                                                            $  0.92  
                                                                                                          -------------------- ----- --------------------                      -------------------- ----- --------------------
Net income per share - Basic                                                                                                 $  1.20                                           $  1.51  
                                                                                                          ==================== ===== ====================                      ==================== ===== ====================
                                                                                                                                                                                                                                                     
                                                                                                                                                                                                                                                     
Net income per share - Diluted:
   Income from continuing operations                                                                                         $  1.30                                                              $  0.59
   Income (loss) from discontinued operations                                                                                $ (0.11 )                                                            $  0.90  
                                                                                                          -------------------- ----- --------------------                      -------------------- ----- --------------------
Net income per share - Diluted                                                                                               $  1.19                                           $  1.49  
                                                                                                          ==================== ===== ====================                      ==================== ===== ====================
                                                                                                                                                                                                                                                     
                                                                                                                                                                                                                                                     
Weighted average shares used in computing net income per share:
            Basic                                                                                                                333                                                                  333
            Diluted                                                                                                              335                                                                  338
                                                                                                                                                                                                                                                     
Cash dividends declared per common share                                                                                     $ 0.400                                                              $ 0.528
                                                                                                                                                                                                                                                     
                                                                                                                                                                                                                                                     
   The preliminary income statement is estimated based on our current
   information.
                                                                                                                                                                                                                                                     
                                                                                                                                 Page 2
 
                                                                                                                                                                                                                                                            
                                                                                                                                                                                         AGILENT TECHNOLOGIES, INC.
                                                                                                                                                                          CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
                                                                                                                                                                                                (In millions)
                                                                                                                                                                                                 (Unaudited)
                                                                                                                                                                                                 PRELIMINARY
                                                                                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                                                                                             
                                                                                                                                                                            Three Months Ended                                                                                                                                          Years Ended
                                                                                                                                                                                October 31,                                                                                                                                             October 31,
                                                                                                                  ---------------------------------------------------------------------------------------------------------------------------------------                     -------------------------------------------------------------------------------------------------------------------------------
                                                                                                                         2015                                    2014                                    2015                                2014   
                                                                                                                  -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- ------ --------------------
                                                                                                                                                                                                                                                                                                                                                             
Net income                                                                                                                           $            140                                                              $             23                                                              $            398                                                              $    504
                                                                                                                                                                                                                                                                                                                                                             
Other comprehensive income (loss), net of tax:
                                                                                                                                                                                                                                                                                                                                                             
   Unrealized gain on investments                                                                                                      --                                                                             3                                                                --                                                                    11
   Amounts reclassified into earnings related to investments                                                                           --                                                                --                                                                --                                                                    (1 )
   Unrealized gain on derivative instruments                                                                                                        1                                                                             7                                                                             8                                                                     8
   Amounts reclassified into earnings related to derivative instruments                                                                            (3 )                                                              --                                                                           (12 )                                                                   1
   Foreign currency translation                                                                                                                    (2 )                                                                        (210 )                                                                        (339 )                                                                (269 )
   Net defined benefit pension cost and post retirement plan costs:
      Change in actuarial net loss                                                                                                                (63 )                                                                        (179 )                                                                         (46 )                                                                (143 )
      Change in net prior service benefit                                                                                       (2 )                                                       (8 )                                                      (10 )                                              (32 )
                                                                                                                  -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- ------ --------------------
Other comprehensive loss                                                                                                       (69 )                                                     (387 )                                                     (399 )                                             (425 )
                                                                                                                  -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- ------ --------------------
                                                                                                                                                                                                                                                                                                                                                             
Total comprehensive income (loss)                                                                                                    $             71                                           $           (364 )                                                            $             (1 )                                                            $     79  
                                                                                                                  ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ====== ====================
                                                                                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                                                                                             
   The preliminary statement of comprehensive income is estimated based
   on our current information.
                                                                                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                   Page 3
                                                                                                                                                                                                                                                                                                                                                             
 
                                                                                                              AGILENT TECHNOLOGIES, INC.
                                                                                                         CONDENSED CONSOLIDATED BALANCE SHEET
                                                                                                   (In millions, except par value and share amounts)
                                                                                                                      (Unaudited)
                                                                                                                      PRELIMINARY
                                                                                              
                                                                                                                                                                                               
                                                                                                                                       October 31,                                                                   October 31,
                                                                                                                       2015                                    2014       
                                                                                                                -------------------- -------------- --------------------                      -------------------- -------------- --------------------
ASSETS
                                                                                                                                                                                               
Current assets:
   Cash and cash equivalents                                                                                                       $          2,003                                                              $          2,218
   Short-term restricted cash and cash equivalents                                                                                              242                                                                --
   Accounts receivable, net                                                                                                                     606                                                                           626
   Inventory                                                                                                                                    541                                                                           574
   Other current assets                                                                                                                         294                                                                           261
   Current assets of discontinued operations                                                                      --                                   1,821  
                                                                                                                -------------------- -------------- --------------------                      -------------------- -------------- --------------------
      Total current assets                                                                                                                    3,686                                                                         5,500
                                                                                                                                                                                               
Property, plant and equipment, net                                                                                                              604                                                                           631
Goodwill                                                                                                                                      2,366                                                                         2,507
Other intangible assets, net                                                                                                                    445                                                                           649
Long-term investments                                                                                                                            86                                                                            96
Other assets                                                                                                                                    289                                                                           283
Non-current assets of discontinued operations                                                                     --                                   1,165  
                                                                                                                -------------------- -------------- --------------------                      -------------------- -------------- --------------------
      Total assets                                                                                                                 $          7,476                                           $         10,831  
                                                                                                                ==================== ============== ====================                      ==================== ============== ====================
                                                                                                                                                                                               
LIABILITIES AND EQUITY
                                                                                                                                                                                               
Current liabilities:
   Accounts payable                                                                                                                $            279                                                              $            302
   Employee compensation and benefits                                                                                                           221                                                                           228
   Deferred revenue                                                                                                                             258                                                                           260
   Other accrued liabilities                                                                                                                    228                                                                           289
   Current liabilities of discontinued operations                                                                 --                                     623  
                                                                                                                -------------------- -------------- --------------------                      -------------------- -------------- --------------------
      Total current liabilities                                                                                                                 986                                                                         1,702
                                                                                                                                                                                               
Long-term debt                                                                                                                                1,655                                                                         1,663
Retirement and post-retirement benefits                                                                                                         264                                                                           209
Other long-term liabilities                                                                                                                     413                                                                           522
Long-term liabilities of discontinued operations                                                                  --                                   1,434  
                                                                                                                -------------------- -------------- --------------------                      -------------------- -------------- --------------------
      Total liabilities                                                                                                    3,318                                   5,530  
                                                                                                                -------------------- -------------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                                                               
Total Equity:
   Stockholders’ equity:
                                                                                                                                     --                                                                --
   Preferred stock; $0.01 par value; 125 million shares authorized;
   none issued and outstanding
                                                                                                                                                  6                                                                             6
   Common stock; $0.01 par value, 2 billion shares authorized; 611
   million shares at October 31, 2015 and 608 million shares at
   October 31, 2014, issued
                                                                                                                                            (10,074 )                                                                      (9,807 )
   Treasury stock at cost; 279 million shares at October 31, 2015 and
   273 million shares at October 31, 2014
   Additional paid-in-capital                                                                                                                 9,043                                                                         8,967
   Retained earnings                                                                                                                          5,581                                                                         6,466
   Accumulated other comprehensive loss                                                                                     (401 )                                                     (334 )
                                                                                                                -------------------- -------------- --------------------                      -------------------- -------------- --------------------
      Total stockholders’ equity                                                                                                              4,155                                                                         5,298
   Non-controlling interest                                                                                                    3                                       3  
                                                                                                                -------------------- -------------- --------------------                      -------------------- -------------- --------------------
         Total equity                                                                                                      4,158                                   5,301  
                                                                                                                -------------------- -------------- --------------------                      -------------------- -------------- --------------------
            Total liabilities and equity                                                                                           $          7,476                                           $         10,831  
                                                                                                                ==================== ============== ====================                      ==================== ============== ====================
                                                                                                                                                                                               
                                                                                                                                                                                               
The preliminary balance sheet is estimated based on our current
information.
                                                                                                                                                                                               
                                                                                                                                                                                               
                                                                                                                        Page 4
 
 
                                                                                                            AGILENT TECHNOLOGIES, INC.
                                                                                                  CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
                                                                                                                   (In millions)
                                                                                                                    (Unaudited)
                                                                                                                    PRELIMINARY
                                                                                                                                       
                                                                                                                                                                                                  
                                                                                                                                         Three Months                                                                  Year
                                                                                                                                             Ended                                                                     Ended
                                                                                                                                          October 31,                                                               October 31,
                                                                                                                          2015                                2015   
                                                                                                                   -------------------- -------------- --------------------                      -------------------- ------ --------------------
Cash flows from operating activities:
   Net income                                                                                                                         $            140                                                              $    398
     
Adjustments to reconcile net income to net cash provided by (used
in) operating activities:
   Depreciation and amortization                                                                                                                    60                                                                   253
   Share-based compensation                                                                                                                         11                                                                    54
   Excess tax benefit from share-based plans                                                                                                        (3 )                                                                  (8 )
   Excess and obsolete inventory related charges                                                                                                    10                                                                    30
   Other non-cash expenses, net                                                                                                                      6                                                                    19
   Changes in assets and liabilities:
      Accounts receivable                                                                                                                          (25 )                                                                 (24 )
      Inventory                                                                                                                                     (6 )                                                                 (24 )
      Accounts payable                                                                                                                              21                                                                   (26 )
      Employee compensation and benefits                                                                                                            32                                                                     5
      Other assets and liabilities                                                                                               (9 )                                             (186 )
                                                                                                                   -------------------- -------------- --------------------                      -------------------- ------ --------------------
Net cash provided by operating activities (a)                                                                                                      237                                                                   491
                                                                                                                                                                                                  
Cash flows from investing activities:
   Investments in property, plant and equipment                                                                                                    (27 )                                                                 (98 )
   Proceeds from sale of property, plant and equipment                                                                                               1                                                                    12
   Proceeds from divestiture                                                                                                            --                                                                     3
   Payment to acquire equity method investment                                                                                          --                                                                    (1 )
   Change in restricted cash and cash equivalents, net                                                                                            (241 )                                                                (240 )
   Payment in exchange for convertible note                                                                                             --                                                                    (2 )
   Acquisition of businesses and intangible assets, net of cash acquired                                                         (8 )                                              (74 )
                                                                                                                   -------------------- -------------- --------------------                      -------------------- ------ --------------------
Net cash used in investing activities                                                                                                             (275 )                                                                (400 )
                                                                                                                                                                                                  
Cash flows from financing activities:
   Issuance of common stock under employee stock plans                                                                                               1                                                                    58
   Treasury stock repurchases                                                                                                           --                                                                  (267 )
   Payment of dividends                                                                                                                            (33 )                                                                (133 )
   Net transfer to Keysight                                                                                                             --                                                                  (734 )
   Excess tax benefit from share-based plans                                                                                      3                               8  
                                                                                                                   -------------------- -------------- --------------------                      -------------------- ------ --------------------
Net cash used in financing activities                                                                                                              (29 )                                                              (1,068 )
                                                                                                                                                                                                  
Effect of exchange rate movements                                                                                                                   (5 )                                                                 (48 )
                                                                                                                                                                                                  
Net decrease in cash and cash equivalents                                                                                                          (72 )                                                              (1,025 )
                                                                                                                                                                                                  
Change in cash and cash equivalents within current assets of                                                                            --                                                                   810
discontinued operations
                                                                                                                                                                                                  
Cash and cash equivalents at beginning of period                                                                              2,075                           2,218  
                                                                                                                   -------------------- -------------- --------------------                      -------------------- ------ --------------------
                                                                                                                                                                                                  
Cash and cash equivalents at end of period                                                                                            $          2,003                                           $  2,003  
                                                                                                                   ==================== ============== ====================                      ==================== ====== ====================
                                                                                                                                                                                                  
   (a) Cash payments included in operating activities:
      Severance payments                                                                                                                             3                                                                    33
      Income tax payments, net                                                                                                                       9                                                                   129
                                                                                                                                                                                                  
                                                                                                                                                                                                  
   The preliminary cash flow is estimated based on our current
   information.
                                                                                                                                                                                                  
                                                                                                                                                                                                  
                                                                                                                      Page 5
 
                                                                                                                                                                                                                                     AGILENT TECHNOLOGIES, INC.
                                                                                                                                                                                                                                     NON-GAAP INCOME FROM CONTINUING OPERATIONS AND DILUTED EPS
                                                                                                                                                                                                                                     RECONCILIATIONS
                                                                                                                                                                                                                                     (In millions, except per share amounts)
                                                                                                                                                                                                                                     (Unaudited)
                                                                                                                                                                                                                                     PRELIMINARY
                                                                                                                                                                                                                                                                                                                                                                                                                                                       
                                                                                                                                                                                                                                                       Three Months Ended                                                                                                                                                                                                                                                                                                       Years Ended
                                                                                                                                                                                                                                                           October 31,                                                                                                                                                                                                                                                                                                          October 31,
                                                                                                                     2015                                    Diluted                                                     2014                                    Diluted                                                     2015                                    Diluted                                                2014                              Diluted
                                                                                                                                                                                                                        EPS                                                                                                                                                          EPS                                                                                                                                                          EPS                                                                                                                                               EPS
                                                                                                              -------------------- -------------- -------------------- -------------------- ------------------------------------------------------                         -------------------- -------------- -------------------- -------------------- ------------------------------------------------------                         -------------------- -------------- -------------------- -------------------- ------------------------------------------------------                         -------------------- ---- -------------------- -------------------- ------------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
GAAP Income (loss) from continuing operations                                                                                    $            140                                                              $           0.42                                                               $            (26 )                                                            $          (0.08 )                                                             $            435                                                              $           1.30                                                               $  198                                                              $           0.59
   Non-GAAP adjustments:
      Restructuring and other related costs                                                                                        --                                                                --                                                                 --                                                                --                                                                 --                                                                --                                                                   (2 )                                                                       (0.01 )
      Asset impairments and write-downs                                                                                                         3                                                                          0.01                                                                              4                                                                          0.01                                                                              3                                                                          0.01                                                                    4                                                                          0.01
      Acceleration of share-based compensation related to workforce                                                                --                                                                --                                                                              1                                                                --                                                                              2                                                                          0.01                                                                    1                                                                --
      reduction
      Intangible amortization                                                                                                                  37                                                                          0.11                                                                             45                                                                          0.13                                                                            156                                                                          0.47                                                                  189                                                                          0.56
      Business exit and divestiture costs                                                                                                       1                                                                --                                                                             68                                                                          0.21                                                                             14                                                                          0.04                                                                   68                                                                          0.20
      Transformational initiatives                                                                                                             15                                                                          0.05                                                                             11                                                                          0.03                                                                             56                                                                          0.17                                                                   29                                                                          0.09
      Acquisition and integration costs                                                                                                         7                                                                          0.02                                                                              1                                                                --                                                                             13                                                                          0.04                                                                   11                                                                          0.03
      Pre-separation costs                                                                                                         --                                                                --                                                                              7                                                                          0.02                                                                 --                                                                --                                                                   15                                                                          0.05
      Net loss on extinguishment of debt                                                                                           --                                                                --                                                                             68                                                                          0.21                                                                 --                                                                --                                                                   89                                                                          0.26
      Unallocated corporate costs                                                                                                  --                                                                --                                                                             12                                                                          0.04                                                                 --                                                                --                                                                   44                                                                          0.13
      Other                                                                                                                                     4                                                                          0.01                                                                             (3 )                                                                       (0.01 )                                                                            5                                                                          0.01                                                                  (13 )                                                                       (0.04 )
      Adjustment for taxes (a)                                                                                             (39 )                                 (0.12 )                                                       (27 )                                 (0.08 )                                                      (101 )                                 (0.31 )                                             (76 )                                 (0.22 )
                                                                                                              -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------                       -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------                       -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------                       -------------------- ---- -------------------- -------------------- -------------------- -------------- --------------------
Non-GAAP Income from continuing operations                                                                                       $            168                        $           0.50                                            $            161                        $           0.48                                            $            583                        $           1.74                                            $  557                        $           1.65  
                                                                                                              ==================== ============== ==================== ==================== ==================== ============== ====================                       ==================== ============== ==================== ==================== ==================== ============== ====================                       ==================== ============== ==================== ==================== ==================== ============== ====================                       ==================== ==== ==================== ==================== ==================== ============== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
(a) The adjustment for taxes excludes tax benefits that
management believes are not directly related to ongoing operations
and which are either isolated or cannot be expected to occur again
with any regularity or predictability. For the three months and
years ended October 31, 2015 and 2014 , management uses a non-GAAP
effective tax rate of 20% and 16%, respectively, that we believe to
be indicative of on-going operations.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
Historical amounts are reclassified to conform with current
presentation.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
We provide non-GAAP income from continuing operations and non-GAAP
income from continuing operations per share amounts in order to
provide meaningful supplemental information regarding our
operational performance and our prospects for the future. These
supplemental measures exclude, among other things, charges related
to the amortization of intangibles, the impact of restructuring
charges, transformational initiatives, acquisition and integration
costs, business exit and divestiture and pre-separation costs.
 
      Restructuring costs include incremental expenses associated
      with publicly announced major restructuring programs, usually
      aimed at material changes in business and/or cost structure. Such
      costs may include one-time termination benefits, asset
      impairments, facility-related costs and contract termination fees.
      Asset impairments and write-downs include assets that have
      been written-down to their fair value.
      Business exit and divestiture costs include costs associated
      with the exit of the NMR business and the divestiture of the XRD
      business.
      Transformational initiatives include expenses associated with
      targeted cost reduction activities such as manufacturing transfers,
      small site consolidations, reorganizations, insourcing or
      outsourcing of activities. Such costs may include move and
      relocation costs, one-time termination benefits and other one-time
      reorganization costs. Included in this category are also expenses
      associated with the post-separation resizing of the IT
      infrastructure and streamlining of IT systems as well as the
      expenses incurred to effect the Agile Agilent reengineering.
      Acquisition and Integration costs include all incremental
      expenses incurred to effect a business combination. Such acquisition
      costs may include advisory, legal, accounting, valuation, and other
      professional or consulting fees. Such integration costs may include
      expenses directly related to integration of business and facility
      operations, information technology systems and infrastructure and
      other employee-related costs.
      Pre-separation costs include Agilent-specific incremental
      expenses incurred in order to effect the separation, through
      November 1, 2014 distribution date.
      Net loss on extinguishment of debt relates to the early
      redemption of some of our senior notes.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
Our management uses non-GAAP measures to evaluate the performance of
our core businesses, to estimate future core performance and to
compensate employees. Since management finds this measure to be
useful, we believe that our investors benefit from seeing our
results "through the eyes" of management in addition to seeing our
GAAP results. This information facilitates our management’s internal
comparisons to our historical operating results as well as to the
operating results of our competitors.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
Our management recognizes that items such as amortization of
intangibles and restructuring charges can have a material impact on
our cash flows and/or our net income. Our GAAP financial statements
including our statement of cash flows portray those effects.
Although we believe it is useful for investors to see core
performance free of special items, investors should understand that
the excluded items are actual expenses that may impact the cash
available to us for other uses. To gain a complete picture of all
effects on the company’s profit and loss from any and all events,
management does (and investors should) rely upon the GAAP income
statement. The non-GAAP numbers focus instead upon the core business
of the company, which is only a subset, albeit a critical one, of
the company’s performance.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
Readers are reminded that non-GAAP numbers are merely a supplement
to, and not a replacement for, GAAP financial measures. They should
be read in conjunction with the GAAP financial measures. It should
be noted as well that our non-GAAP information may be different from
the non-GAAP information provided by other companies.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
The preliminary non-GAAP net income and diluted EPS reconciliation
is estimated based on our current information.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
                                                                                                                                                                                                                                     Page 6
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
 
                                                                          AGILENT TECHNOLOGIES, INC.
                                                                              SEGMENT INFORMATION
                                                                       (In millions, except where noted)
                                                                                  (Unaudited)
                                                                                  PRELIMINARY
                                                                             
Life Sciences and Applied Markets Group
                                                                                       Q4’15                               Q4’14                                  Q3’15
                                                                                  ---------------                     ---------------                     ---------------------
   Revenue                                                                           $  515                              $  539                                $    511
   Gross Margin, %                                                                     56.9 %                              57.1 %                                  55.6 %
   Income from Operations                                                            $  103                              $  109                                $     95
   Operating margin, %                                                                 20.0 %                              20.2 %                                  18.7 %
                                                                                                                                                           
                                                                                                                                                           
Diagnostics and Genomics Group
                                                                                       Q4’15                               Q4’14                                  Q3’15
                                                                                  ---------------                     ---------------                     ---------------------
   Revenue                                                                           $  178                              $  172                                $    167
   Gross Margin, %                                                                     56.0 %                              54.0 %                                  57.0 %
   Income from Operations                                                            $   34                              $   26                                $     28
   Operating margin, %                                                                 19.2 %                              14.9 %                                  16.8 %
                                                                                                                                                           
                                                                                                                                                           
Agilent CrossLab(TM) Group
                                                                                       Q4’15                               Q4’14                                  Q3’15
                                                                                  ---------------                     ---------------                     ---------------------
   Revenue                                                                           $  342                              $  332                                $    336
   Gross Margin, %                                                                     50.3 %                              48.5 %                                  48.5 %
   Income from Operations                                                            $   86                              $   78                                $     76
   Operating margin, %                                                                 25.1 %                              23.6 %                                  22.6 %
                                                                                                                                                           
                                                                                                                                                           
Income from operations reflect the results of our reportable
segments under Agilent’s management reporting system which are not
necessarily in conformity with GAAP financial measures. Income from
operations of our reporting segments exclude, among other things,
charges related to the amortization of intangibles, the impact of
restructuring charges, transformational initiatives, acquisition and
integration costs, business exit and divestiture and pre-separation
costs.
                                                                                                                                                           
Readers are reminded that non-GAAP numbers are merely a supplement
to, and not a replacement for, GAAP financial measures. They should
be read in conjunction with the GAAP financial measures. It should
be noted as well that our non-GAAP information may be different from
the non-GAAP information provided by other companies.
                                                                                                                                                           
The preliminary segment information is estimated based on our
current information.
                                                                                                                                                           
                                                                                                                                                           
                                                                                    Page 7
 
                                                                                                                                                                                                  AGILENT TECHNOLOGIES, INC.
                                                                                                                                                                               RECONCILIATIONS OF REVENUE BY SEGMENT EXCLUDING THE NMR BUSINESS,
                                                                                                                                                                               ACQUISITIONS, DIVESTITURES AND THE IMPACT OF CURRENCY ADJUSTMENTS
                                                                                                                                                                                                            (CORE)
                                                                                                                                                                                                         (in millions)
                                                                                                                                                                                                          (Unaudited)
                                                                                                                                                                                                          PRELIMINARY
                                                                                                                                                                                                                  
                                                                                                                                                                                                                                                        Year-over-Year
                                                                                                                                                                                                                                                                                                                                                                                               
                                                                                                                                                                  GAAP
                                                                                                -----------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                Year-over-Year
GAAP Revenue by Segment                                                                                  Q4’15                   Q4’14                       % Change
-----------------------------------------------------                                           --------------------  -------------------- --------------------  -------------------- -------------------- ----------------------------
                                                                                                                                                                                                                                                                                                                                                                                               
Life Sciences and Applied Markets Group                                                                  $        515                               $        539                                                 (4 %)
                                                                                                                                                                                                                                                                                                                                                                                               
Diagnostics and Genomics Group                                                                                    178                                        172                                                  4 %
                                                                                                                                                                                                                                                                                                                                                                                               
Agilent CrossLab(TM) Group                                                                           342                                        332                                                  3 %
                                                                                                                         
                                                                                                ----------------------                     ----------------------
Agilent                                                                                                  $      1,035            $      1,043                                                 (1 %)
                                                                                                ========== ========== ==================== ========== ==========
                                                                                                                                                                                                                                                                                                                                                                                               
                                                                                                                                                                                                                                                                                                                                                                                               
                                                                                                                                                                Non -GAAP                                                                                           Currency                                                                             Currency-Adjusted (a)
                                                                                                                                                                                                                                                                   Adjustments
                                                                                                --------------------------------------------------------------------------------------------------------------------------------                              ------------------                        --------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                   Year-over-Year                                                                                                                                Year-over-Year
Non GAAP Revenue by Segment                                                                              Q4’15                                      Q4’14                                                  % Change                                Q4’15                                      Q4’15                   Q4’14           % Change   
-----------------------------------------------------                                           --------------------                       --------------------                                            -------- --------------------                      ------------------                        --------------------  -------------------- --------------------  -------------------- ---------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                               
Life Sciences and Applied Markets Group excluding NMR                                                    $        507                               $        524                                                 (3 %)                                             $    (28 )                                    $        535                               $        524                               2 %
                                                                                                                                                                                                                                                                                                                                                                                               
Diagnostics and Genomics Group excluding acquisition                                                              178                                        172                                                  4 %                                                   (12 )                                             190                                        172                              10 %
                                                                                                                                                                                                                                                                                                                                                                                               
Agilent CrossLab(TM) Group                                                                           342                                        332                                                  3 %                                                   (26 )                                             368                                        332                              11 %
                                                                                                                                                                                                                                                     
                                                                                                ----------------------                     ----------------------                                                                                             ---------------------                     ------------------------------------------ ----------------------
Agilent Revenue (Core)                                                                                   $      1,027            $      1,028                                                  0 %                                              $    (66 )                                    $      1,093            $      1,028                               6 %
                                                                                                ========== ========== ==================== ========== ==========                                                                                              ====== ====== ======                      ========== ========== ==================== ========== ==========
                                                                                                                                                                                                                                                                                                                                                                                               
                                                                                                                                                                                                                                                                                                                                                                                               
                                                                                                                                                                                                                                                                                                                                                                                               
(a) We compare the year-over-year change in revenue
excluding the effect of the NMR business, recent acquisitions and
divestitures and foreign currency rate fluctuations to assess the
performance of our underlying business. To determine the impact of
currency fluctuations, current period results for entities reporting
in currencies other than United States dollars are converted into
United States dollars at the actual exchange rate in effect during
the respective prior periods.
                                                                                                                                                                                                                                                                                                                                                                                               
                                                                                                                                                                                                                                                                                                                                                                                               
The preliminary reconciliation of GAAP revenue adjusted for the NMR
business, recent acquisitions and divestitures and impact of
currency is estimated based on our current information.
                                                                                                                                                                                                                                                                                                                                                                                               
                                                                                                                                                                                                                                                                                                                                                                                               
                                                                                                                                                                                                            Page 8
 
                                                                                      
                                                                     AGILENT TECHNOLOGIES, INC.
                                                   RECONCILIATION OF ADJUSTED NON-GAAP INCOME FROM OPERATIONS AND
                                                                          OPERATING MARGINS
                                                                  (In millions, except margin data)
                                                                             (Unaudited)
                                                                             PRELIMINARY
                                                                                                                                                 
                                                                                                                                                      Operating
                                                                                                       Q4 2015                     Margin %
                                                                                          ----------------------------------------------------- ---------------------
                                                                                                                                                 
Revenue:                                                                                                     $       1,035
                                                                                                                                                 
Income from operations:
GAAP Income from operations                                                                                  $         156                             15.1 %
Add:
   Amortization of intangible assets                                                                                    37
   Transformational initiatives                                                                                         15
   Acquisition and integration costs                                                                                     7
   Asset impairments and write-downs                                                                                     3
   Business exit and divestiture costs                                                                                   1
   Other                                                                                              4
                                                                                          -------------------- -----------
Non-GAAP income from operations                                                                              $         223                             21.5 %
   Reimbursement from Keysight for services (a)                                                       3
                                                                                          -------------------- -----------
Adjusted non-GAAP income from operations                                                                     $         226                             21.9 %
                                                                                          ==================== ===========
                                                                                                                                                 
                                                                                                                                                 
(a) Post separation, Agilent is providing Keysight Technologies,
Inc. certain IT and site services. These IT and site services are
included in our operating expenses. The amounts billed to Keysight
for these services are recorded in other income.
                                                                                                                                                 
We provide non-GAAP income from operations in order to provide
meaningful supplemental information regarding our operational
performance and our prospects for the future. These supplemental
measures exclude, among other things, charges related to the
amortization of intangibles, transformational initiatives,
acquisition and integration costs and business exit and divestiture
costs.
                                                                                                                                                 
Our management recognizes that items such as amortization of
intangibles can have a material impact on our cash flows and/or our
net income. Our GAAP financial statements including our statement of
cash flows portray those effects. Although we believe it is useful
for investors to see core performance free of special items,
investors should understand that the excluded items are actual
expenses that may impact the cash available to us for other uses. To
gain a complete picture of all effects on the company’s profit and
loss from any and all events, management does (and investors should)
rely upon the GAAP income statement. The non-GAAP numbers focus
instead upon the core business of the company, which is only a
subset, albeit a critical one, of the company’s performance.
                                                                                                                                                 
Readers are reminded that non-GAAP numbers are merely a supplement
to, and not a replacement for, GAAP financial measures. They should
be read in conjunction with the GAAP financial measures. It should
be noted as well that our non-GAAP information may be different from
the non-GAAP information provided by other companies.
                                                                                                                                                 
The preliminary reconciliation of income from operations and
operating margins is estimated based on our current information.
                                                                                                                                                 
                                                                               Page 9

http://cts.businesswire.com/ct/CT?id=bwnews&sty=20151116006319r1&sid=cmtx6&distro=nx&lang=en

View source version on businesswire.com: http://www.businesswire.com/news/home/20151116006319/en/

SOURCE: Agilent Technologies Inc.

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


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