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 Agilent Technologies Reports First-Quarter Fiscal Year 2018 Financial Results
   Wednesday, February 14, 2018 4:05:01 PM ET

--Highlights:

--Revenue of $1.21 billion, representing growth of 14 percent (core revenue growth of 10 percent(2) versus midpoint guidance of 5.25 percent)

--GAAP net loss of $320 million, or $0.99 net loss per share. GAAP results include a one-time tax provision of $533 million associated with the recent enactment of U.S. Tax Reform legislation. (4)

--Non-GAAP net income of $216 million, or $0.66 per share(1), $0.10 above midpoint guidance of $0.56 per share, increase of 25% from 2017

--Second-quarter fiscal year revenue guidance of $1.20 billion to $1.22 billion, and non-GAAP earnings guidance of $0.61 to $0.63 per share(3)

--Increasing fiscal year 2018 core revenue growth guidance from a midpoint of 4.25 percent to a midpoint of 5.5 percent(2). Increasing fiscal year 2018 non-GAAP earnings guidance from a midpoint of $2.53 to a midpoint of $2.65 per share(3).

--Increasing fiscal year 2018 operating cash flow guidance from $970 million to $1,050 million

Agilent Technologies, Inc. (A ) today reported revenue of $1.21 billion for the first-quarter ended January 31, 2018, up 14 percent year over year (up 10 percent on a core basis(2)).

On a GAAP basis, including the $533 million charge related to U.S. Tax Reform legislation, first-quarter net loss was $320 million, or $0.99 net loss per share. Last year’s first-quarter GAAP net income was $168 million, or $0.52 per share.

During the first quarter, Agilent had an adjustment related to U.S. Tax Reform of $533 million, intangible amortization of $25 million, a pension settlement gain of $5 million, transformation costs of $5 million, acquisition and integration costs of $3 million, and $3 million in other costs. Excluding these items and a tax benefit of $28 million, Agilent reported first-quarter non-GAAP net income of $216 million, or $0.66 per share(1).

"We are very pleased with our strong start to the year," said Mike McMullen, Agilent CEO and President. "The Agilent team continued our positive momentum and delivered another excellent quarter of operating results."

"Looking forward, we will keep our focus on driving sustainable above-market growth and delivering value to shareholders through the execution of our proven strategy," continued McMullen. "Overall, we are well-positioned to continue delivering excellent operating results."

First-quarter revenue of $618 million from Agilent’s Life Sciences and Applied Markets Group (LSAG) grew 14 percent year over year (up 11 percent on a core basis(2)), with broad strength across all major end markets. LSAG’s operating margin for the quarter was 25.8 percent.

First-quarter revenue of $408 million from Agilent CrossLab Group (ACG) grew 12 percent year over year (up 9 percent on a core basis(2)). Growth was strong across services and consumables. ACG’s operating margin for the quarter was 21.6 percent.

First-quarter revenue of $185 million from Agilent’s Diagnostics and Genomics Group (DGG) grew 13 percent year over year (up 8 percent on a core basis(2)) led by strong demand for pathology products and companion diagnostics services. DGG’s operating margin for the quarter was 11.7 percent.

Agilent expects second-quarter 2018 revenue in the range of $1.20 billion to $1.22 billion. Second-quarter 2018 non-GAAP earnings are expected to be in the range of $0.61 to $0.63 per share(3).

For fiscal year 2018, Agilent expects revenue of $4.885 billion to $4.905 billion and non-GAAP earnings of $2.62 to $2.68 per share(3). The guidance is based on January 31, 2018 currency exchange rates.

Conference Call

Agilent’s management will present more details about its first-quarter fiscal 2018 financial results on a conference call with investors today at 1:30 p.m. (Pacific Time). This event will be webcast live in listen-only mode. Listeners may log on at www.investor.agilent.com and select "Q1 2018 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 February 14, 2018 at 4:30 p.m. (Pacific Time) after the call and through February 21 by dialing +1 855-859-2056 (or +1 404-537-3406 from outside the United States) and entering pass code 1482568.

About Agilent Technologies

Agilent Technologies Inc. (A ) is a global leader in life sciences, diagnostics and applied chemical markets. With more than 50 years of insight and innovation, Agilent instruments, software, services, solutions, and people provide trusted answers to its customers’ most challenging questions. The company generated revenues of $4.47 billion in fiscal 2017 and employs 13,800 people worldwide. Information about Agilent is available at www.agilent.com.

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 second quarter and full fiscal year 2018. 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 annual report on Form 10-K for the fiscal year ended October 31, 2017. 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 net income and non-GAAP earnings per share primarily exclude the impacts of non-cash intangibles amortization, transformation initiatives, acquisition and integration costs, pension settlement gain, and Nucleic Acid Solutions Division ("NASD") site costs. We also exclude any tax benefits or expenses that are not directly related to ongoing operations and which are either isolated or are not expected to occur again with any regularity or predictability. For Q1 FY18, the impact of Tax Reform is also excluded. A reconciliation between non-GAAP net income and GAAP net loss is set forth on page 5 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 and acquisitions and divestitures within the past 12 months. Core revenue is a non-GAAP measure. A reconciliation between Q1 FY18 GAAP revenue and core revenue is set forth on page 7 of the attached tables along with additional information regarding the use of this non-GAAP measure. Core revenue growth rate as projected for full fiscal year 2018 excludes the impact of currency, acquisitions and divestitures within the past 12 months. Most of these exclude amounts that 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 for the projection.

(3) Non-GAAP earnings per share as projected for Q2 FY18 and full fiscal year 2018 excludes primarily the impacts of non-cash intangibles amortization, transformation initiatives, acquisition and integration costs, pension settlement gain, and Nucleic Acid Solutions Division ("NASD") site costs. We also exclude any tax benefits that are not directly related to ongoing operations and which are either isolated or are not expected to occur again with any regularity or predictability, including the impact of Tax Reform. Most of these excluded amounts that 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 $25 million per quarter.

(4) For the three months ended January 31, 2018, our preliminary provision for income taxes is $553 million. This includes a $533 provision charge for the impact of the U.S. Tax Cuts and Jobs Act (Tax Reform) enactment. This charge primarily consists of: 1) an estimated provision of $480 million for U.S. transition tax and correlative items on deemed repatriated earnings of non-U.S. subsidiaries; and 2) an estimated provision of $53 million associated with the decrease in the US corporate tax rate from 35% to 21% and its impact on the Company’s US deferred tax assets and liabilities. The taxes payable associated with the transition tax, net of tax attributes, on deemed repatriation of foreign earnings is approximately $440 million, payable over 8 years. The final impact of Tax Reform may differ materially from these estimates, due to, among other things, changes in interpretations, analysis and assumptions made by the Company, additional guidance that may be issued, and actions that the Company may undertake.

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
                                                                                                                                                                   January 31,                                                                                  Percent
                                                                                                             -----------------------------------------------------------------------------------------------------------------------
                                                                                                                                   2018                                                                  2017                                                  Inc/(Dec)
                                                                                                             -------------------------------------------------                     -------------------------------------------------                     ---------------------
                                                                                                                                                                                                                                                          
Net revenue                                                                                                                     $  1,211                                                              $  1,067                                                       14 %
                                                                                                                                                                                                                                                          
Costs and expenses:
   Cost of products and services                                                                                                     538                                                                   493                                                        9 %
   Research and development                                                                                                           93                                                                    79                                                       18 %
   Selling, general and administrative                                                                            341                             289                                    18 %
                                                                                                             -------------------- ------ --------------------                      -------------------- ------ --------------------
      Total costs and expenses                                                                                    972                             861                                    13 %
                                                                                                             -------------------- ------ --------------------                      -------------------- ------ --------------------
                                                                                                                                                                                                                                                          
Income from operations                                                                                                               239                                                                   206                                                       16 %
                                                                                                                                                                                                                                                          
Interest income                                                                                                                        9                                                                     4                                                      125 %
Interest expense                                                                                                                     (20 )                                                                 (20 )                                         --
Other income (expense), net                                                                                         5                               3                                    67 %
                                                                                                             -------------------- ------ --------------------                      -------------------- ------ --------------------
                                                                                                                                                                                                                                                          
Income before taxes                                                                                                                  233                                                                   193                                                       21 %
                                                                                                                                                                                                                                                          
Provision for income taxes                                                                                                           553                                                                    25                                           --
                                                                                                                                                                 
                                                                                                             -------------------------------------------------                     -------------------------------------------------
Net income (loss)                                                                                                               $   (320 )                                                            $    168                        --
                                                                                                             ==================== ====== ====================                      ==================== ====== ====================
                                                                                                                                                                                                                                                          
                                                                                                                                                                                                                                                          
                                                                                                                                                                                                                                                          
Net income (loss) per share:
                    Basic                                                                                                       $  (0.99 )                                                            $   0.52
                    Diluted                                                                                                     $  (0.99 )                                                            $   0.52
                                                                                                                                                                                                                                                          
Weighted average shares used in computing net income (loss) per
share:
                    Basic                                                                                                            323                                                                   322
                    Diluted                                                                                                          323                                                                   326
                                                                                                                                                                                                                                                          
Cash dividends declared per common share                                                                                        $  0.149                                                              $  0.132
                                                                                                                                                                                                                                                          
                                                                                                                                                                                                                                                          
                                                                                                                                                                                                                                                          
                                                                                                                                                                                                                                                          
                                                                                                                                                                                                                                                          
                                                                                                                                                                                                                                                          
                                                                                                                                                                                                                                                          
                                                                                                                                                                                                                                                          
The preliminary income statement is estimated based on our current
                           information.
                                                                                                                                                                                                                                                          
                                                                                                                                                                                                                                                          
                                                                                                                                    Page 1
                                                                                                                                                                                                                                                          
                                                                                                     AGILENT TECHNOLOGIES, INC.
                                                                                                       CONDENSED CONSOLIDATED
                                                                                              STATEMENT OF COMPREHENSIVE INCOME (LOSS)
                                                                                                            (In millions)
                                                                                                             (Unaudited)
                                                                                                             PRELIMINARY
                                                                                                                         
                                                                                                                                                                                    
                                                                                                                                                                Three Months Ended
                                                                                                                                                                    January 31,
                                                                                                               ---------------------------------------------------------------------------------------------------------------------
                                                                                                                                    2018                                                                 2017
                                                                                                               -----------------------------------------------                     -------------------------------------------------
                                                                                                                                                                                    
Net income (loss)                                                                                                                 $ (320 )                                                            $    168
                                                                                                                                                                                    
Other comprehensive income (loss), net of tax:
                                                                                                                                                                                    
   Unrealized gain (loss) on derivative instruments                                                                                   (7 )                                                                   1
   Foreign currency translation                                                                                                       79                                                                    (3 )
   Net defined benefit pension cost and post retirement plan costs:
      Change in actuarial net loss                                                                                                     6                                                                    17
      Change in net prior service benefit                                                                          (1 )                                               (1 )
                                                                                                               -------------------- ---- --------------------                      -------------------- ------ --------------------
Other comprehensive income                                                                                         77                              14  
                                                                                                               -------------------- ---- --------------------                      -------------------- ------ --------------------
                                                                                                                                                                                    
Total comprehensive income (loss)                                                                                                 $ (243 )                                                            $    182  
                                                                                                               ==================== ==== ====================                      ==================== ====== ====================
                                                                                                                                                                                    
                                                                                                                                                                                    
                                                                                                                                                                                    
                                                                                                                                                                                    
The preliminary statement of comprehensive income is estimated based
on our current information.
                                                                                                                                                                                    
                                                                                                                                                                                    
                                                                                                                                                                                    
                                                                                                                                                                                    
                                                                                                                                                                                    
                                                                                                               Page 2
                                                                                                                                                                                    
 
                                                                                                             AGILENT TECHNOLOGIES, INC.
                                                                                                               CONDENSED CONSOLIDATED
                                                                                                                    BALANCE SHEET
                                                                                                      (In millions, except par value and share
                                                                                                                      amounts)
                                                                                                                     (Unaudited)
                                                                                                                     PRELIMINARY
                                                                                                                                 
                                                                                                                                                                                            
                                                                                                                                    January 31,                                                                   October 31,
                                                                                                                                       2018                                                                          2017
                                                                                                             ---------------------------------------------------------                     ---------------------------------------------------------
ASSETS
                                                                                                                                                                                            
Current assets:
   Cash and cash equivalents                                                                                                    $          2,887                                                              $          2,678
   Accounts receivable, net                                                                                                                  751                                                                           724
   Inventory                                                                                                                                 608                                                                           575
   Other current assets                                                                                                   151                                     192  
                                                                                                             -------------------- -------------- --------------------                      -------------------- -------------- --------------------
      Total current assets                                                                                                                 4,397                                                                         4,169
                                                                                                                                                                                            
Property, plant and equipment, net                                                                                                           792                                                                           757
Goodwill                                                                                                                                   2,633                                                                         2,607
Other intangible assets, net                                                                                                                 341                                                                           361
Long-term investments                                                                                                                        140                                                                           138
Other assets                                                                                                              395                                     394  
                                                                                                             -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Total assets                                                                                                                    $          8,698                                           $          8,426  
                                                                                                             ==================== ============== ====================                      ==================== ============== ====================
                                                                                                                                                                                            
LIABILITIES AND EQUITY
                                                                                                                                                                                            
Current liabilities:
   Accounts payable                                                                                                             $            292                                                              $            305
   Employee compensation and benefits                                                                                                        221                                                                           276
   Deferred revenue                                                                                                                          321                                                                           291
   Short-term debt                                                                                                                           345                                                                           210
   Other accrued liabilities                                                                                              182                                     181  
                                                                                                             -------------------- -------------- --------------------                      -------------------- -------------- --------------------
      Total current liabilities                                                                                                            1,361                                                                         1,263
                                                                                                                                                                                            
Long-term debt                                                                                                                             1,800                                                                         1,801
Retirement and post-retirement benefits                                                                                                      241                                                                           234
Other long-term liabilities                                                                                               770                                     293  
                                                                                                             -------------------- -------------- --------------------                      -------------------- -------------- --------------------
      Total liabilities                                                                                                 4,172                                   3,591  
                                                                                                             -------------------- -------------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                                                            
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; 323                                                                                3                                                                             3
million shares at January 31, 2018 and 322 million shares at
October 31, 2017, issued
Treasury stock at cost; 37 thousand shares at January 31, 2018 and                                                                            (3 )                                                              --
zero shares at October 31, 2017
Additional paid-in-capital                                                                                                                 5,320                                                                         5,300
Accumulated deficit                                                                                                                         (529 )                                                                        (126 )
Accumulated other comprehensive loss                                                                                     (269 )                                                     (346 )
                                                                                                             -------------------- -------------- --------------------                      -------------------- -------------- --------------------
      Total stockholders’ equity                                                                                                           4,522                                                                         4,831
Non-controlling interest                                                                                                    4                                       4  
                                                                                                             -------------------- -------------- --------------------                      -------------------- -------------- --------------------
   Total equity                                                                                                         4,526                                   4,835  
                                                                                                             -------------------- -------------- --------------------                      -------------------- -------------- --------------------
      Total liabilities and equity                                                                                              $          8,698                                           $          8,426  
                                                                                                             ==================== ============== ====================                      ==================== ============== ====================
                                                                                                                                                                                            
                                                                                                                                                                                            
                                                                                                                                                                                            
The preliminary balance sheet is estimated based on our current
information.
                                                                                                                                                                                            
                                                                                                                                                                                            
                                                                                                                       Page 3
                                                                                                                                                                                            
                                                                            
                                                                                                                AGILENT TECHNOLOGIES, INC.
                                                                                                                  CONDENSED CONSOLIDATED
                                                                                                                  STATEMENT OF CASH FLOWS
                                                                                                                       (In millions)
                                                                                                                        (Unaudited)
                                                                                                                        PRELIMINARY
                                                                                                                                                                             
                                                                                                                                                                                                  
                                                                                                                                                                             Three Months Ended
                                                                                                                                          January 31,                                                                   January 31,
                                                                                                                                             2018                                                                          2017
                                                                                                                   ---------------------------------------------------------                     ---------------------------------------------------------
Cash flows from operating activities:
   Net income (loss)                                                                                                                  $           (320 )                                                            $            168
                                                                                                                                                                                                  
Adjustments to reconcile net income (loss) to net cash provided by
(used in) operating activities:
   Depreciation and amortization                                                                                                                    51                                                                            55
   Share-based compensation                                                                                                                         31                                                                            20
   Excess and obsolete inventory related charges                                                                                                     5                                                                             7
   Other non-cash expenses, net                                                                                                                      1                                                                             2
   Changes in assets and liabilities:
      Accounts receivable, net                                                                                                                      (5 )                                                                         (31 )
      Inventory                                                                                                                                    (34 )                                                                         (26 )
      Accounts payable                                                                                                                              (3 )                                                                           9
      Employee compensation and benefits                                                                                                           (62 )                                                                         (43 )
      Change in assets and liabilities due to Tax Reform                                                                                           533                                                                --
      Other assets and liabilities                                                                                               18                                     (45 )
                                                                                                                   -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Net cash provided by operating activities (a)                                                                                                      215                                                                           116
                                                                                                                                                                                                  
Cash flows from investing activities:
   Investments in property, plant and equipment                                                                                                    (60 )                                                                         (32 )
   Payment to acquire cost method investments                                                                                                       (1 )                                                              --
   Proceeds from divestitures                                                                                                           --                                                                             1
   Acquisition of businesses and intangible assets, net of cash acquired                                                         (6 )                                                      (70 )
                                                                                                                   -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Net cash used in investing activities                                                                                                              (67 )                                                                        (101 )
                                                                                                                                                                                                  
Cash flows from financing activities:
   Issuance of common stock under employee stock plans                                                                                              25                                                                            18
   Payment of taxes related to net share settlement of equity awards                                                                               (28 )                                                                         (12 )
   Payment of dividends                                                                                                                            (48 )                                                                         (42 )
   Proceeds from debt and revolving credit facility                                                                                                274                                                                           131
   Repayment of debt and revolving credit facility                                                                                                (139 )                                                                         (42 )
   Treasury stock repurchases                                                                                                   (47 )                                                     (111 )
                                                                                                                   -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Net cash provided by (used in) financing activities                                                                                                 37                                                                           (58 )
                                                                                                                                                                                                  
Effect of exchange rate movements                                                                                                                   24                                                                            (5 )
                                                                                                                                                                                                  
Net increase (decrease) in cash and cash equivalents                                                                                               209                                                                           (48 )
                                                                                                                                                                                                  
Cash and cash equivalents at beginning of period                                                                              2,678                                   2,289  
                                                                                                                   -------------------- -------------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                                                                  
Cash and cash equivalents at end of period                                                                                            $          2,887                                           $          2,241  
                                                                                                                   ==================== ============== ====================                      ==================== ============== ====================
                                                                                                                                                                                                  
   (a) Cash payments included in operating activities:
      Income tax payments, net                                                                                                        $             32                                                              $             27
      Interest payments                                                                                                               $             29                                                              $             29
                                                                                                                                                                                                  
                                                                                                                                                                                                  
                                                                                                                                                                                                  
The preliminary cash flow is estimated based on our current
information.
                                                                                                                                                                                                  
                                                                                                                                                                                                  
                                                                                                                          Page 4
                                                                                                                                                                                                  
 
                                                                                                                                                                                            AGILENT TECHNOLOGIES, INC.
                                                                                                                                                                                              NON-GAAP NET INCOME AND
                                                                                                                                                                                            DILUTED EPS RECONCILIATIONS
                                                                                                                                                                                             (In millions, except per
                                                                                                                                                                                                  share amounts)
                                                                                                                                                                                                    (Unaudited)
                                                                                                                                                                                                    PRELIMINARY
                                                                                                                                                                                                 
                                                                                                                                                                                                                                           Three Months Ended
                                                                                                                                                                                                                                               January 31,
                                                                                                               2018                                                         Diluted                                                                                                2017                                                      Diluted
                                                                                                                                                                                                 EPS                                                                                                                                                                                 EPS
                                                                                     ------------------------------------------------------   -------------------- -----------------------------------------------------------                                              ------------------------------------------------------   -------------------- ------------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                           
GAAP net (loss) income                                                                                  $           (320 )                                                            $          (0.99 )                    (b)                                                                $            168                                                              $           0.52
   Non-GAAP adjustments:
      Intangible amortization                                                                                         25                                                                          0.08                                                                                                       31                                                                          0.10
      Transformational initiatives                                                                                     5                                                                          0.02                                                                                                        2                                                                          0.01
      Acquisition and integration costs                                                                                3                                                                          0.01                                                                                                       16                                                                          0.05
      Pension settlement gain                                                                                         (5 )                                                                       (0.02 )                                                                                                    (32 )                                                                       (0.11 )
      NASD site costs                                                                                                  2                                                                          0.01                                                                                           --                                                                --
      Special compliance costs                                                                                         1                                                                --                                                                                           --                                                                --
      Other                                                                                               --                                                                --                                                                                                        2                                                                          0.01
                                                                                                                     533                                                                          1.63                                                                                           --                                                                --
      Adjustment for Tax Reform
      Adjustment for taxes (a)                                                                    (28 )                                 (0.08 )                                                                                 (15 )                                 (0.05 )
                                                                                     -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------                                                 -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------
Non-GAAP net income                                                                                     $            216                        $           0.66   (c)                                                                $            172                        $           0.53  
                                                                                     ==================== ============== ==================== ==================== ==================== ============== ====================                                                 ==================== ============== ==================== ==================== ==================== ============== ====================
                                                                                                                                                                                                                                                                                                                                                           
                                                                                                                                                                                                                                                                                                                                                           
(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 ended
January 31, 2018, management uses a non-GAAP effective tax rate of
18.0%. In the same periods last year, management used a non-GAAP
effective tax rate of 19.0%.
 
(b) GAAP diluted net loss per share was computed using
323 million weighted average diluted shares which excludes from
consideration the anti-dilutive effects of all potential common
shares outstanding.
 
(c) Non-GAAP diluted net income per share was computed
using 327 million weighted average diluted shares which includes the
dilutive effects of potential common shares outstanding.
                                                                                                                                                                                                                                                                                                                                                           
We provide non-GAAP net income and non-GAAP net income 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 amortization of intangibles, transformational
initiatives, acquisition and integration costs, pension settlement
gain, NASD site costs, special compliance costs, and adjustment for
Tax Reform.
 
                     Transformational initiatives include expenses associated with
                     targeted cost reduction activities such as manufacturing transfers,
                     small site consolidations, legal entity and other business
                     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 system as well as
                     company programs to transform our product lifecycle management (PLM)
                     system and financial systems.
                      
                     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, the transfer of assets and intellectual property,
                     information technology systems and infrastructure and other
                     employee-related costs.
                      
                     Pension settlement gain resulted from transfer of the
                     substitutional portion of our Japanese pension plan to the
                     government.
                      
                     NASD site costs include all the costs related to the
                     expansion of our manufacturing of nucleic acid active pharmaceutical
                     ingredients incurred prior to the commencement of commercial
                     manufacturing.
                      
                     Special compliance costs include costs associated with
                     transforming our processes to implement new regulations such as the
                     EU’s General Data Protection Regulation (GDPR), revenue recognition
                     and certain tax reporting requirements.
                      
                     Other includes certain legal costs and settlements in
                     addition to other miscellaneous adjustments.
                      
                     Adjustment for Tax Reform primarily consists of an estimated
                     provision of $480 million for U.S. transition tax and correlative
                     items on deemed repatriated earnings of non-U.S. subsidiaries and an
                     estimated provision of $53 million associated with the decrease in
                     the U.S. corporate tax rate from 35% to 21% and its impact on our
                     U.S. deferred tax assets and liabilities. The taxes payable
                     associated with the transition tax, net of tax attributes, on deemed
                     repatriation of foreign earnings is approximately $440 million,
                     payable over 8 years. The final impact of Tax Reform may differ
                     materially from these estimates, due to, among other things, changes
                     in interpretations, analysis and assumptions made, additional
                     guidance that may be issued, and actions that we may undertake.
                                                                                                                                                                                                                                                                                                                                                           
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 5
                                                                                                                                                                                                                                                                                                                                                           
 
                                                             AGILENT TECHNOLOGIES, INC.
                                                                 SEGMENT INFORMATION
                                                                         (In
                                                            millions, except where noted)
                                                                     (Unaudited)
                                                                     PRELIMINARY
                                                                     
Life Sciences and Applied Markets Group
                                                                                            Q1’18                                      Q1’17
                                                                                  ------------------------                     ---------------------
   Revenue                                                                                 $        618                             $    540
   Gross Margin, %                                                                                 61.8 %                               59.6 %
   Income from Operations                                                                  $        159                             $    126
   Operating margin, %                                                                             25.8 %                               23.4 %
                                                                                                                                
                                                                                                                                
Diagnostics and Genomics Group
                                                                                            Q1’18                                      Q1’17
                                                                                  ------------------------                     ---------------------
   Revenue                                                                                 $        185                             $    164
   Gross Margin, %                                                                                 54.4 %                               54.8 %
   Income from Operations                                                                  $         22                             $     23
   Operating margin, %                                                                             11.7 %                               14.3 %
                                                                                                                                
                                                                                                                                
Agilent CrossLab Group
                                                                                            Q1’18                                      Q1’17
                                                                                  ------------------------                     ---------------------
   Revenue                                                                                 $        408                             $    363
   Gross Margin, %                                                                                 50.6 %                               48.5 %
   Income from Operations                                                                  $         88                             $     74
   Operating margin, %                                                                             21.6 %                               20.3 %
                                                                                                                                
                                                                                                                                
                                                                                                                                
                                                                                                                                
                                                                                                                                
                                                                                                                                
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 amortization of intangibles, business exit and
divestiture costs, transformational initiatives, acquisition and
integration costs, pension settlement gain, NASD site costs, and
special compliance costs.
                                                                                                                                
Readers are reminded that non-GAAP numbers are merely a supplement
to, and not a replacement for, GAAP financial measures. They should
be read in conjunction with the GAAP financial measures. It should
be noted as well that our non-GAAP information may be different from
the non-GAAP information provided by other companies.
                                                                                                                                
The preliminary segment information is estimated based on our
current information.
                                                                                                                                
                                                                                                                                
                                                                       Page 6
                                                                                                                                
                                                                                                                                                                                          
                                                                                                                                                                              AGILENT TECHNOLOGIES, INC.
                                                                                                                                                                              RECONCILIATIONS OF REVENUE
                                                                                                                                                                                 BY SEGMENT EXCLUDING
                                                                                                                                                                          ACQUISITIONS, DIVESTITURES AND THE
                                                                                                                                                                         IMPACT OF CURRENCY ADJUSTMENTS (CORE)
                                                                                                                                                                                     (in millions)
                                                                                                                                                                                      (Unaudited)
                                                                                                                                                                                      PRELIMINARY
                                                                                                                                                                                                                        
                                                                                                                                                                                                                             Year-over-Year
                                                                                                                                                                                                                                                                                                                                                                  
                                                                                                                                  GAAP
                                                                                  -----------------------------------------------------------------------------------------------------
                                                                                                                                                                        Year-over-Year
GAAP Revenue by Segment                                                                    Q1’18                   Q1’17             % Change
---------------------------------------                                           --------------------  -------------------- --------------------  -------------------- -------------
                                                                                                                                                                                                                                                                                                                                                                  
Life Sciences and Applied Markets Group                                                    $        618                               $        540                           14 %
                                                                                                                                                                                                                                                                                                                                                                  
Diagnostics and Genomics Group                                                                      185                                        164                           13 %
                                                                                                                                                                                                                                                                                                                                                                  
Agilent CrossLab Group                                                                              408                                        363                           12 %
                                                                                        
                                                                                  ------------------------------------------ ----------------------
Agilent                                                                                    $      1,211            $      1,067                           14 %
                                                                                  ========== ========== ==================== ========== ==========
                                                                                                                                                                                                                                                                                                                                                                  
                                                                                                                                                                                                                                                                                                                                                                  
                                                                                                                                Non-GAAP                                                                            Currency             Currency                                                             Currency-Adjusted (a)
                                                                                                                 (excluding Acquisitions & Divestitures)                                                                              Adjustments          Adjustments
                                                                                  ---------------------------------------------------------------------------------------------                             -------------------- ------------------   ------------------                        -------------------------------------------------------------------------------
                                                                                                                                                                        Year-over-Year                                                                                                                                                                              Year-over-Year
Non GAAP Revenue by Segment                                                                Q1’18                   Q1’17             % Change                                   Q1’18                Q1’17                                      Q1’18                                      Q1’17              % Change
---------------------------------------                                           --------------------  -------------------- --------------------  -------------------- -------------                       -------------------- ------------------   ------------------                        --------------------                       --------------------  -------------------
                                                                                                                                                                                                                                                                                                                                                                  
Life Sciences and Applied Markets Group                                                    $        616                               $        539                           14 %                                                     $     (3 )           $    (17 )                                    $        619                               $        556         11 %
                                                                                                                                                                                                                                                                                                                                                                  
Diagnostics and Genomics Group                                                                      182                                        163                           12 %                                                           (1 )                 (7 )                                             183                                        170          8 %
                                                                                                                                                                                                                                                                                                                                                                  
Agilent CrossLab Group                                                                              408                                        363                           12 %                                                           (3 )                (15 )                                             411                                        378          9 %
                                                                                                                                                                                                       
                                                                                  ------------------------------------------ ----------------------                                                                              ------------------------------------------                     ------------------------------------------ ----------------------
Agilent (Core)                                                                             $      1,206            $      1,065                           13 %                                                     $     (7 )           $    (39 )                                    $      1,213            $      1,104         10 %
                                                                                  ========== ========== ==================== ========== ==========                                                                               ====== ====== ====== ====== ====== ======                      ========== ========== ==================== ========== ==========
                                                                                                                                                                                                                                                                                                                                                                  
                                                                                                                                                                                                                                                                                                                                                                  
                                                                                                                                                                                                                                                                                                                                                                  
(a) We compare the year-over-year change in revenue
excluding the effect of 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 and prior year 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 last month of the current period.
                                                                                                                                                                                                                                                                                                                                                                  
                                                                                                                                                                                                                                                                                                                                                                  
The preliminary reconciliation of GAAP revenue adjusted for recent
acquisitions and divestitures and impact of currency is estimated
based on our current information.
                                                                                                                                                                                                                                                                                                                                                                  
                                                                                                                                                                                                                                                                                                                                                                  
                                                                                                                                                                                        Page 7
                                                                                                                                                                                                                                                                            

http://cts.businesswire.com/ct/CT?id=bwnews&sty=20180214006237r1&sid=cmtx6&distro=nx&lang=en

View source version on businesswire.com: http://www.businesswire.com/news/home/20180214006237/en/

SOURCE: Agilent Technologies, Inc.

Agilent Technologies, Inc. 
INVESTOR CONTACT: 
Alicia Rodriguez, +1 408-345-8948 
alicia_rodriguez@agilent.com 
or 
EDITORIAL CONTACT: 
Stefanie Notaney, +1 408-345-8955 
stefanie.notaney@agilent.com


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