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 Agilent Technologies Reports Fourth-Quarter 2016 Results
   Tuesday, November 15, 2016 4:05:02 PM ET

--Highlights:

--GAAP income from continuing operations of $124 million, or $0.38 per share

--Non-GAAP income from continuing operations of $193 million, or $0.59 per share(1) versus midpoint guidance of $0.51 per share

--Revenue of $1.11 billion; core revenue growth of 6.3 percent(2) versus midpoint guidance of 1.2 percent

--First-quarter fiscal year 2017 revenue guidance of $1.04 billion to $1.06 billion, and non-GAAP earnings guidance of $0.48 to $0.50 per share(3)

--Fiscal year 2017 revenue guidance of $4.35 billion to $4.37 billion, and non-GAAP earnings guidance of $2.10 to $2.16 per share(3)

Agilent Technologies Inc. (A ) today reported revenue of $1.11 billion, up 7.3 percent year over year (up 6.3 percent on a core basis(2)) for the fourth fiscal quarter ended Oct. 31, 2016.

Fourth-quarter GAAP income from continuing operations was $124 million, or $0.38 per share. Last year’s fourth-quarter GAAP income from continuing operations was $140 million, or $0.42 per share.

During the fourth quarter, Agilent had intangible amortization of $32 million, impairment costs of $25 million, acquisition and integration costs of $13 million, transformation costs of $6 million and $5 million of other costs. Excluding these items, and a tax benefit of $12 million, Agilent reported fourth-quarter adjusted income from continuing operations of $193 million, or $0.59 per share(1).

"Agilent delivered a great fourth quarter, capping off a strong fiscal year 2016," said Mike McMullen, Agilent president and CEO. "Our fourth-quarter revenue was up 6.3 percent on a core basis(2) supported by strength across all businesses, and earnings per share came in well above our guidance range."

"Key drivers for our better-than-expected quarter were stronger-than-expected growth in pharma and Europe, along with continued strength in China. Looking ahead, we are well positioned to capture market growth with our strong lineup of new offerings recently introduced and in the pipeline for 2017," McMullen added.

Fourth-quarter revenue of $548 million from Agilent’s Life Sciences and Applied Markets Group (LSAG) grew 6 percent year over year (up 5 percent on a core basis(2)), with strength in pharma, food and forensics. LSAG’s Q4 operating margin was 22.8 percent.

Fourth-quarter revenue of $370 million from the Agilent CrossLab Group (ACG) grew 8 percent year over year (up 8 percent on a core basis(2)). Both services and consumables experienced healthy growth across all geographies. ACG’s operating margin was 22.7 percent in the quarter.

Fourth-quarter revenue of $193 million from Agilent’s Diagnostics and Genomics Group (DGG) increased 8 percent year over year (up 8 percent on a core basis(2)), led by strength in pathology and nucleic acid solutions. DGG’s operating margin for the quarter was 19.6 percent.

Agilent expects first-quarter 2017 revenue in the range of $1.04 billion to $1.06 billion. First-quarter non-GAAP earnings are expected to be in the range of $0.48 to $0.50 per share(3).

For fiscal year 2017, Agilent expects revenue of $4.35 billion to $4.37 billion and non-GAAP earnings of $2.10 to $2.16 per share(3). The guidance is based on Oct. 31, 2016 exchange rates.

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 $4.20 billion in fiscal 2016. The company employs about 12,500 people worldwide. Information about Agilent is available at www.agilent.com.

Agilent’s management will present more details about its fourth-quarter FY2016 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 2016 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. 22 by dialing +1 855 859 2056 (or +1 404 537 3406 from outside the United States) and entering passcode 94476938.

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 2017. 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, 2016. 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, transformation initiatives, business exit and divestiture costs, non-cash intangibles amortization, and impairment of investment and loans. 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 income from continuing operations and GAAP income from continuing operations is set forth on page 6 of the attached tables along with additional information regarding the use of this non-GAAP measure.

(2) Core revenue growth 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 Q4 FY16 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.

(3) Non-GAAP earnings per share as projected for Q1 FY17 and full fiscal year 2017 excludes primarily the future impact of acquisition and integration costs, pension curtailment gain, 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 and could differ materially. Therefore, no reconciliation to GAAP amounts has been provided. Future amortization of intangibles is expected to be approximately $32 million per quarter.

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
                                                                -----------------------------------------------------------------------------------------------------------------------
                                                                   2016                            2015                               Inc/(Dec)
                                                                -------------------- ------ --------------------                      -------------------- ------ --------------------                      ---------------------
                                                                                                                                                                                                             
Net revenue                                                                        $  1,111                                                              $  1,035                                                        7 %
                                                                                                                                                                                                             
Costs and expenses:
   Cost of products and services                                                        523                                                                   500                                                        5 %
   Research and development                                                              84                                                                    82                                                        2 %
   Selling, general and administrative                               321                             297                                     8 %
                                                                -------------------- ------ --------------------                      -------------------- ------ --------------------
       Total costs and expenses                                      928                             879                                     6 %
                                                                -------------------- ------ --------------------                      -------------------- ------ --------------------
                                                                                                                                                                                                             
Income from operations                                                                  183                                                                   156                                                       17 %
                                                                                                                                                                                                             
Interest income                                                                           3                                                                     1                                                      200 %
Interest expense                                                                        (19 )                                                                 (16 )                                                     19 %
Other income (expense), net                                          (16 )                                                2                        --
                                                                -------------------- ------ --------------------                      -------------------- ------ --------------------
                                                                                                                                                                                                             
Income from continuing operations before taxes                                          151                                                                   143                                                        6 %
                                                                                                                                                                                                             
Provision for income taxes                                            27                               3                        --
                                                                -------------------- ------ --------------------                      -------------------- ------ --------------------
                                                                                                                                                                                                             
Income from continuing operations                                                       124                                                                   140                                                      (11 %)
                                                                                                                                                                                                             
Loss from discontinued operations, net of tax                          -                               -                        --
                                                                -------------------- ------ --------------------                      -------------------- ------ --------------------
                                                                                                                                                                                                             
Net income                                                                         $    124                                           $    140                                   (11 %)
                                                                ==================== ====== ====================                      ==================== ====== ====================
                                                                                                                                                                                                             
                                                                                                                                                                                                             
                                                                                                                                                                                                             
Net income per share - Basic:
       Income from continuing operations                                           $   0.38                                                              $   0.42
       Loss from discontinued operations                                           $      -                                           $      -  
                                                                -------------------- ------ --------------------                      -------------------- ------ --------------------
Net income per share - Basic                                                       $   0.38                                           $   0.42  
                                                                ==================== ====== ====================                      ==================== ====== ====================
                                                                                                                                                                                                             
                                                                                                                                                                                                             
Net income per share - Diluted:
       Income from continuing operations                                           $   0.38                                                              $   0.42
       Loss from discontinued operations                                           $      -                                           $      -  
                                                                -------------------- ------ --------------------                      -------------------- ------ --------------------
Net income per share - Diluted                                                     $   0.38                                           $   0.42  
                                                                ==================== ====== ====================                      ==================== ====== ====================
                                                                                                                                                                                                             
                                                                                                                                                                                                             
Weighted average shares used in computing net income per share:
       Basic                                                                            324                                                                   331
       Diluted                                                                          328                                                                   333
                                                                                                                                                                                                             
Cash dividends declared per common share                                           $  0.115                                                              $  0.100
                                                                                                                                                                                                             
                                                                                                                                                                                                             
                                                                                                                                                                                                             
                                                                                                                                                                                                             
                                                                               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
                                                                ------------------------------------------------------------------------------------------------------------------------------------------
                                                                   2016                                                2015                              Inc/(Dec)
                                                                -------------------- ----- --------------------                                           -------------------- ----- --------------------                      ---------------------
                                                                                                                                                                                                                                
Net revenue                                                                        $ 4,202                                                                                   $ 4,038                                                        4 %
                                                                                                                                                                                                                                
Costs and expenses:
     Cost of products and services                                                   2,005                                                                                     1,997                                           --
     Research and development                                                          329                                                                                       330                                           --
     Selling, general and administrative                          1,253                                               1,189                                     5 %
                                                                -------------------- ----- --------------------                                           -------------------- ----- --------------------
       Total costs and expenses                                   3,587                                               3,516                                     2 %
                                                                -------------------- ----- --------------------                                           -------------------- ----- --------------------
                                                                                                                                                                                                                                
Income from operations                                                                 615                                                                                       522                                                       18 %
                                                                                                                                                                                                                                
Interest income                                                                         11                                                                                         7                                                       57 %
Interest expense                                                                       (72 )                                                                                     (66 )                                                      9 %
Other income (expense), net                                         (10 )                                                                   17                                  (159 %)
                                                                -------------------- ----- --------------------                                           -------------------- ----- --------------------
                                                                                                                                                                                                                                
Income from continuing operations before taxes                                         544                                                                                       480                                                       13 %
                                                                                                                                                                                                                                
Provision for income taxes                                           84                                                  42                                   100 %
                                                                -------------------- ----- --------------------                                           -------------------- ----- --------------------
                                                                                                                                                                                                                                
Income from continuing operations                                                      460                                                                                       438                                                        5 %
                                                                                                                                                                                                                                
Loss from discontinued operations, net of tax                         -                                                 (37 )                                         --
                                                                -------------------- ----- --------------------                                           -------------------- ----- --------------------
                                                                                                                                                                                                                                
Net income                                                                         $   460                                                                $   401                                    15 %
                                                                ==================== ===== ====================                                           ==================== ===== ====================
                                                                                                                                                                                                                                
                                                                                                                                                                                                                                
                                                                                                                                                                                                                                
Net income per share - Basic:
       Income from continuing operations                                           $  1.41                                                                                   $  1.32
       Loss from discontinued operations                                           $     -                                                                $ (0.12 )
                                                                -------------------- ----- --------------------                                           -------------------- ----- --------------------
Net income per share - Basic                                                       $  1.41                                                                $  1.20  
                                                                ==================== ===== ====================                                           ==================== ===== ====================
                                                                                                                                                                                                                                
                                                                                                                                                                                                                                
Net income per share - Diluted:
       Income from continuing operations                                           $  1.40                                                                                   $  1.31
       Loss from discontinued operations                                           $     -                                                                $ (0.11 )
                                                                -------------------- ----- --------------------                                           -------------------- ----- --------------------
Net income per share - Diluted                                                     $  1.40                                                                $  1.20  
                                                                ==================== ===== ====================                                           ==================== ===== ====================
                                                                                                                                                                                                                                
                                                                                                                                                                                                                                
Weighted average shares used in computing net income per share:
       Basic                                                                           326                                                                                       333
       Diluted                                                                         329                                                                                       335
                                                                                                                                                                                                                                
Cash dividends declared per common share                                           $ 0.460                                                                                   $ 0.400
                                                                                                                                                                                                                                
                                                                                                                                                                                                                                
                                                                                                                                                                                                                                
                                                                                                                                                                                                                                
                                                                                         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,
                                                                          -------------------------------------------------------------------------------------------------------------------                     ---------------------------------------------------------------------------------------------------------------------
                                                                            2016                          2015                          2016                           2015   
                                                                          -------------------- ---- --------------------                      -------------------- ---- --------------------                      -------------------- ---- --------------------                      -------------------- ------ --------------------
                                                                                                                                                                                                                                                                                       
Net income                                                                                   $  124                                                              $  140                                                              $  460                                                              $    401
                                                                                                                                                                                                                                                                                       
Other comprehensive income (loss), net of tax:
                                                                                                                                                                                                                                                                                       
     Unrealized gain (loss) on derivative instruments                                             5                                                                   1                                                                  (6 )                                                                   8
     Amounts reclassified into earnings related to derivative instruments                         3                                                                  (3 )                                                                 3                                                                   (12 )
     Foreign currency translation                                                               (49 )                                                                 1                                                                  (8 )                                                                (336 )
     Net defined benefit pension cost and post retirement plan costs:
        Change in actuarial net loss                                                           (115 )                                                               (55 )                                                               (86 )                                                                 (38 )
        Change in net prior service benefit                                   (2 )                                             (3 )                                            (15 )                                              (11 )
                                                                          -------------------- ---- --------------------                      -------------------- ---- --------------------                      -------------------- ---- --------------------                      -------------------- ------ --------------------
Other comprehensive loss                                                    (158 )                                            (59 )                                           (112 )                                             (389 )
                                                                          -------------------- ---- --------------------                      -------------------- ---- --------------------                      -------------------- ---- --------------------                      -------------------- ------ --------------------
                                                                                                                                                                                                                                                                                       
Total comprehensive income (loss)                                                            $  (34 )                                                            $   81                                           $  348                                           $     12  
                                                                          ==================== ==== ====================                      ==================== ==== ====================                      ==================== ==== ====================                      ==================== ====== ====================
                                                                                                                                                                                                                                                                                       
                                                                                                                                                                                                                                                                                       
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,
                                                                                                             2016                                    2015       
                                                                                                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
ASSETS
                                                                                                                                                                                     
Current assets:
                     Cash and cash equivalents                                                                           $          2,289                                                              $          2,003
                     Short-term restricted cash and cash equivalents                                                       --                                                                           242
                     Accounts receivable, net                                                                                         624                                                                           606
                     Inventory                                                                                                        533                                                                           541
                     Other current assets                                                                          189                                     294  
                                                                                                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
                                            Total current assets                                                                    3,635                                                                         3,686
                                                                                                                                                                                     
Property, plant and equipment, net                                                                                                    639                                                                           604
Goodwill                                                                                                                            2,517                                                                         2,366
Other intangible assets, net                                                                                                          408                                                                           445
Long-term investments                                                                                                                 135                                                                            86
Other assets                                                                                                       483                                     292  
                                                                                                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
                                            Total assets                                                                 $          7,817                                           $          7,479  
                                                                                                      ==================== ============== ====================                      ==================== ============== ====================
                                                                                                                                                                                     
LIABILITIES AND EQUITY
                                                                                                                                                                                     
Current liabilities:
                     Accounts payable                                                                                    $            257                                                              $            279
                     Employee compensation and benefits                                                                               235                                                                           221
                     Deferred revenue                                                                                                 269                                                                           258
                     Other accrued liabilities                                                                     183                                     218  
                                                                                                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
                                            Total current liabilities                                                                 944                                                                           976
                                                                                                                                                                                     
Long-term debt                                                                                                                      1,912                                                                         1,655
Retirement and post-retirement benefits                                                                                               360                                                                           264
Other long-term liabilities                                                                                        357                                     414  
                                                                                                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
                                            Total liabilities                                                    3,573                                   3,309  
                                                                                                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                                                     
Total Equity:
                     Stockholders’ equity:
                     Preferred stock; $0.01 par value; 125 million
                                            shares authorized; none issued and outstanding                                 --                                                                --
                     Common stock; $0.01 par value, 2 billion
                                            shares authorized; 614 million shares at October 31, 2016
                                            and 611 million shares at October 31, 2015, issued                                          6                                                                             6
                     Treasury stock at cost; 290 million shares at October 31, 2016 and
                                            279 million shares at October 31, 2015                                                (10,508 )                                                                     (10,074 )
                     Additional paid-in-capital                                                                                     9,159                                                                         9,045
                     Retained earnings                                                                                              6,087                                                                         5,581
                     Accumulated other comprehensive loss                                                         (503 )                                                     (391 )
                                                                                                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
                                            Total stockholders’ equity                                                              4,241                                                                         4,167
                     Non-controlling interest                                                                        3                                       3  
                                                                                                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
                                            Total equity                                                         4,244                                   4,170  
                                                                                                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
                                                                         Total liabilities and equity                    $          7,817                                           $          7,479  
                                                                                                      ==================== ============== ====================                      ==================== ============== ====================
                                                                                                                                                                                     
                                                                                                                                                                                     
                                                                                                                                                                                     
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,
                                                                                                                   2016                           2016   
                                                                                                                -------------------- ----- --------------------                      -------------------- ------ --------------------
Cash flows from operating activities:
                     Net income                                                                                                    $   124                                                              $    460
                                                                                                                                                                                      
Adjustments to reconcile net income to net cash provided by (used
in) operating activities:
                     Depreciation and amortization                                                                                      56                                                                   246
                     Share-based compensation                                                                                           11                                                                    58
                     Excess and obsolete inventory related charges                                                                       4                                                                    20
                     Impairment of investment and loans                                                                                 25                                                                    25
                     Other non-cash expenses, net                                                                                        3                                                                    19
                     Changes in assets and liabilities:
                                             Accounts receivable                                                                       (45 )                                                                 (26 )
                                             Inventory                                                                                   4                                                                    (7 )
                                             Accounts payable                                                                           12                                                                   (15 )
                                             Employee compensation and benefits                                                         29                                                                    15
                                             Interest rate swap payments                                                               (10 )                                                                 (10 )
                                             Other assets and liabilities                                            21                               8  
                                                                                                                -------------------- ----- --------------------                      -------------------- ------ --------------------
Net cash provided by operating activities (a)                                                                                          234                                                                   793
                                                                                                                                                                                      
Cash flows from investing activities:
                     Investments in property, plant and equipment                                                                      (52 )                                                                (139 )
                     Proceeds from sale of investment securities                                                                         -                                                                     1
                     Payment to acquire cost method investment                                                                           -                                                                   (80 )
                     Loan to equity method investment                                                                                    -                                                                    (3 )
                     Change in restricted cash and cash equivalents, net                                                                 -                                                                   245
                     Payment in exchange for convertible loan                                                                            -                                                                    (1 )
                     Acquisition of businesses and intangible assets, net of cash acquired                          (26 )                                             (261 )
                                                                                                                -------------------- ----- --------------------                      -------------------- ------ --------------------
Net cash used in investing activities                                                                                                  (78 )                                                                (238 )
                                                                                                                                                                                      
Cash flows from financing activities:
                     Issuance of common stock under employee stock plans                                                                 3                                                                    62
                     Payment of taxes related to net share settlement of equity awards                                                   -                                                                    (6 )
                     Payment of dividends                                                                                              (38 )                                                                (150 )
                     Proceeds from revolving credit facility                                                                             -                                                                   255
                     Repayment of revolving credit facility                                                                           (235 )                                                                (255 )
                     Proceeds from issuance of senior notes                                                                            299                                                                   299
                     Debt issuance cost                                                                                                 (2 )                                                                  (2 )
                     Repayment of debt                                                                                                 (37 )                                                                 (37 )
                     Treasury stock repurchases                                                                     (46 )                                             (434 )
                                                                                                                -------------------- ----- --------------------                      -------------------- ------ --------------------
Net cash used in financing activities                                                                                                  (56 )                                                                (268 )
                                                                                                                                                                                      
Effect of exchange rate movements                                                                                                      (10 )                                                                  (1 )
                                                                                                                                                                                      
Net increase in cash and cash equivalents                                                                                               90                                                                   286
                                                                                                                                                                                      
Cash and cash equivalents at beginning of period                                                                  2,199                           2,003  
                                                                                                                -------------------- ----- --------------------                      -------------------- ------ --------------------
                                                                                                                                                                                      
Cash and cash equivalents at end of period                                                                                         $ 2,289                                           $  2,289  
                                                                                                                ==================== ===== ====================                      ==================== ====== ====================
                                                                                                                                                                                      
                     (a) Cash payments included in operating activities:
                                             Severance payments                                                                          3                                                                     8
                                             Income tax payments, net                                                                   13                                                                    67
                                             Interest payments                                                                           8                                                                    73
                                                                                                                                                                                      
                                                                                                                                                                                      
                                                                                                                                                                                      
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,
                                                                                                                    2016                            Diluted                                                          2015                          Diluted EPS                                                        2016                            Diluted EPS                                                        2015                            Diluted EPS
                                                                                                                                                                                            EPS
                                                                                                        -------------------- -------------- -------------------- ------------------------------------------------------                        -------------------- -------------- -------------------- ------------------------------------------------------                        -------------------- -------------- -------------------- -------------------- ------------------------------------------------------                        -------------------- -------------- -------------------- -------------------- ------------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
GAAP Income from continuing operations                                                                                     $            124                                         $           0.38                                                              $            140                                                     0.42                                                              $            460                                                              $           1.40                                                              $            438                                                                          1.31
                     Non-GAAP adjustments:
                                          Acceleration of share-based compensation related to workforce                      --                                           --                                                                --                                           --                                                                --                                                                --                                                                             2                                                                          0.01
                                          reduction
                                          Asset impairments                                                                  --                                           --                                                                             3                                                     0.01                                                                             4                                                                          0.01                                                                             3                                                                          0.01
                                          Intangible amortization                                                                        32                                                     0.10                                                                            37                                                     0.11                                                                           152                                                                          0.46                                                                           156                                                                          0.47
                                          Business exit and divestiture costs                                                             4                                                     0.01                                                                             1                                           --                                                                            10                                                                          0.03                                                                            14                                                                          0.04
                                          Transformational initiatives                                                                    6                                                     0.02                                                                            15                                                     0.05                                                                            38                                                                          0.12                                                                            56                                                                          0.17
                                          Acquisition and integration costs                                                              13                                                     0.04                                                                             7                                                     0.02                                                                            41                                                                          0.12                                                                            13                                                                          0.04
                                          Impairment of investment and loans                                                             25                                                     0.08                                                                --                                           --                                                                            25                                                                          0.08                                                                --                                                                --
                                          Pension curtailment gain                                                           --                                           --                                                                --                                           --                                                                           (16 )                                                                       (0.05 )                                                              --                                                                --
                                          Other                                                                                           1                                           --                                                                             4                                                     0.01                                                                             6                                                                          0.02                                                                             5                                                                          0.01
                                          Adjustment for taxes (a)                                                   (12 )                               (0.04 )                                                      (39 )                               (0.12 )                                                      (69 )                                                    (0.21 )                                                     (104 )                                                    (0.32 )
                                                                                                        -------------------- -------------- -------------------- -------------------- -------------- --------------------                      -------------------- -------------- -------------------- -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Non-GAAP Income from continuing operations                                                                                 $            193                      $           0.59                                           $            168                      $           0.50                                           $            651                                           $           1.98                                           $            583                                           $           1.74  
                                                                                                        ==================== ============== ==================== ==================== ============== ====================                      ==================== ============== ==================== ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
(a) The adjustment for taxes excludes tax benefits that
management believes are not directly related to on-going operations
and which are either isolated or cannot be expected to occur again
with any regularity or predictability. For the three months and year
ended October 31, 2016, management uses a non-GAAP effective tax
rate of 16.8% and 19.0%, respectively. For the three months and year
ended October 31, 2015, management uses a non-GAAP effective tax
rate of 20.0% for both periods.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
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 asset impairments, amortization of intangibles, pension
curtailment, transformational initiatives, acquisition and
integration costs, business exit and divestiture costs, and
impairment of investment and loans.
     Asset impairments 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 primarily in fiscal year 2015 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.
     Impairment of investment and loans include an investment and
     the related convertible loans that have been written down to their
     fair value.
     Pension curtailment gain resulted from certain retirement
     plans benefit reductions.
     Other includes certain legal costs and settlements in
     addition to other miscellaneous adjustments.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
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 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
                                                Q4’16                                    Q4’15
                                        --------------------                     --------------------
   Revenue                                     $      548                               $      515
   Gross Margin, %                                   59.4 %                                   56.9 %
   Income from Operations                      $      125                               $      103
   Operating margin, %                               22.8 %                                   20.0 %
                                                                                  
                                                                                  
Diagnostics and Genomics Group
                                                Q4’16                                    Q4’15
                                        --------------------                     --------------------
   Revenue                                     $      193                               $      178
   Gross Margin, %                                   55.4 %                                   56.0 %
   Income from Operations                      $       38                               $       34
   Operating margin, %                               19.6 %                                   19.2 %
                                                                                  
                                                                                  
Agilent CrossLab Group
                                                Q4’16                                    Q4’15
                                        --------------------                     --------------------
   Revenue                                     $      370                               $      342
   Gross Margin, %                                   49.4 %                                   50.3 %
   Income from Operations                      $       84                               $       86
   Operating margin, %                               22.7 %                                   25.1 %
                                                                                  
                                                                                  
                                                                                  
                                                                                  
                                                                                  
                                                                                  
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 asset impairments, amortization of
intangibles,transformational initiatives, acquisition and
integration costs, business exit and divestiture costs and
impairment of investment and loans.
                                                                                  
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                                                                             Q4’16                   Q4’15           % Change
---------------------------------------------------------------------                      --------------------  -------------------- --------------------  -------------
                                                                                                                                                                                                                                                                                                                 
Life Sciences and Applied Markets Group                                                             $        548                               $        515       6 %
                                                                                                                                                                                                                                                                                                                 
Diagnostics and Genomics Group                                                                               193                                        178       8 %
                                                                                                                                                                                                                                                                                                                 
Agilent CrossLab Group                                                                                       370                                        342       8 %
                                                                                                 
                                                                                           ------------------------------------------ ----------------------
Agilent                                                                                             $      1,111            $      1,035
                                                                                           ========== ========== ==================== ========== ==========
                                                                                                                                                                                                                                                                                                                 
                                                                                                                                                                                                                                                                                                                 
                                                                                                                               Non-GAAP                                                                  Currency                                                                    Currency-Adjusted (a)
                                                                                                                                                                                                        Adjustments
                                                                                           -------------------------------------------------------------------------                            ------------------------                       ------------------------------------------------------------------------------------------
                                                                                                                                                            Year-over-Year                                                                                                                                               Year-over-Year
Non GAAP Revenue by Segment                                                                         Q4’16                   Q4’15           % Change                                    Q4’16                                        Q4’16                   Q4’15         % Change   
---------------------------------------------------------------------                      --------------------  -------------------- --------------------  -------------                       ------------------------                       --------------------  -------------------- --------------------  ---------- --------------------
                                                                                                                                                                                                                                                                                                                 
Life Sciences and Applied Markets Group excluding acquisition and NMR                               $        535                               $        507       5 %                                    $              3                               $        532                               $        507          5 %
                                                                                                                                                                                                                                                                                                                 
Diagnostics and Genomics Group                                                                               193                                        178       8 %                                                   1                                        192                                        178          8 %
                                                                                                                                                                                                                                                                                                                 
Agilent CrossLab Group excluding acquisition                                                                 368                                        342       8 %                                      --                                        368                                        342          8 %
                                                                                                                                                                         
                                                                                           ------------------------------------------ ----------------------                                    --------------------------                     ------------------------------------------ ----------------------
Agilent Revenue (Core)                                                                              $      1,096            $      1,027                                              $              4                               $      1,092            $      1,027          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

http://cts.businesswire.com/ct/CT?id=bwnews&sty=20161115006689r1&sid=cmtx6&distro=nx&lang=en

View source version on businesswire.com: http://www.businesswire.com/news/home/20161115006689/en/

SOURCE: Agilent Technologies Inc.

Agilent Technologies Inc. 
EDITORIAL CONTACT: 
Rekha Parthasarathy, +1-408-345-8396 
rekha.parthasarathy@agilent.com 
and 
INVESTOR CONTACT: 
Alicia Rodriguez, +1-408-345-8948 
alicia_rodriguez@agilent.com


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