<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>3
<FILENAME>dex991.txt
<DESCRIPTION>FINANCIAL STATEMENTS, DATED NOVEMBER 15, 2001
<TEXT>
<PAGE>
Exhibit 99.1
AGILENT TECHNOLOGIES, INC.
PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF EARNINGS
Excluding Amortization of Goodwill and Other Intangibles,
Acquisition and Divestiture Related Items and
Other One-Time and Non-Operational Items
(Unaudited)
(In millions, except per share amounts)
<TABLE>
<CAPTION>
Three Months Ended
October 31,
--------------------- Percent
2001 2000 Inc/(Dec)
-------- -------- ---------
<S> <C> <C> <C>
Net revenue $ 1,606 $ 3,017 (47%)
Costs and expenses:
Cost of products and services 1,228 1,522 (19%)
Research and development 322 319 1%
Selling, general and administrative 488 696 (30%)
-------- --------
Total costs & expenses 2,038 2,537 (20%)
-------- --------
(Loss) earnings from operations (432) 480 (190%)
Other income (expense), net 3 9 (67%)
-------- --------
(Loss) earnings before taxes (429) 489 (188%)
(Benefit) provision for taxes (154) 161 (195%)
-------- --------
Pro forma net (loss) earnings $ (275) $ 328 (184%)
======== ========
Pro forma net (loss) earnings per share - Basic $ (0.60) $ 0.72
======== ========
Pro forma net (loss) earnings per share - Diluted $ (0.60) $ 0.71
======== ========
Average shares used in computing pro forma net
earnings per share:
Basic 460 454
Diluted 460 462
The above pro forma condensed consolidated statement of earnings has been
adjusted to exclude the following one-time and non-operational items and
reconcile to GAAP net earnings:
Net earnings per GAAP $ 197 $ 305
Pro forma adjustments:
Goodwill 93 30
Other intangibles 13 3
Restructuring 154 -
Investment writedown 8 -
Loss relating to securities 6 -
Discontinued operations - (12)
Gain from sale of discontinued operations (1,068) -
Adjustment for income taxes 322 2
-------- --------
Pro forma net (loss) earnings from continuing operations $(275) $328
======== ========
</TABLE>
We provide pro forma financial information to help the reader better understand
our operating results. This information is not in accordance with, or an
alternative for, generally accepted accounting principles and may be different
from the pro forma information provided by other companies.
<PAGE>
AGILENT TECHNOLOGIES, INC.
PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF EARNINGS
Excluding Amortization of Goodwill and Other Intangibles,
Acquisition and Divestiture Related Items and
Other One-Time and Non-Operational Items
(Unaudited)
(In millions, except per share amounts)
<TABLE>
<CAPTION>
Twelve Months Ended
October 31,
--------------------- Percent
2001 2000 Inc/(Dec)
-------- -------- ---------
<S> <C> <C> <C>
Net revenue $ 8,396 $ 9,361 (10%)
Costs and expenses:
Cost of products and services 5,066 4,735 7%
Research and development 1,323 1,129 17%
Selling, general and administrative 2,213 2,502 (12%)
-------- --------
Total costs & expenses 8,602 8,366 3%
-------- --------
(Loss) earnings from operations (206) 995 (121%)
Other income (expense), net 2 81 (98%)
-------- --------
(Loss) earnings before taxes (204) 1,076 (119%)
(Benefit) provision for taxes (78) 355 (122%)
-------- --------
Pro forma net (loss) earnings $ (126) $ 721 (117%)
======== ========
Pro forma net (loss) earnings per share - Basic $ (0.28) $ 1.61
======== ========
Pro forma net (loss) earnings per share - Diluted $ (0.28) $ 1.58
======== ========
Average shares used in computing pro forma net
earnings per share:
Basic 458 449
Diluted 458 455
The above pro forma condensed consolidated statement of earnings has been
adjusted to exclude the following one-time and non-operational items and
reconcile to GAAP net earnings:
Net earnings per GAAP $ 174 $ 757
Pro forma adjustments:
Goodwill 303 64
Other intangibles (including in-process R&D charge) 41 7
Restructuring 154 -
Investment writedown 8 -
FAS 133 adoption 41 -
SAB 101 adoption 74 -
Gain on land sale (269) -
Gain relating to securities (38) (13)
Capitalized software write-off 74 -
Discontinued operations (21) (146)
Gain from sale of discontinued operations (1,068) -
Adjustment for income taxes 401 52
-------- --------
Pro forma net (loss) earnings from continuing operations $ (126) $ 721
======== ========
</TABLE>
We provide pro forma financial information to help the reader better understand
our operating results. This information is not in accordance with, or an
alternative for, generally accepted accounting principles and may be different
from the pro forma information provided by other companies.
<PAGE>
AGILENT TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENT OF EARNINGS
(Unaudited)
(In millions, except per share amounts)
<TABLE>
<CAPTION>
Three Months Ended
October 31,
--------------------- Percent
2001 2000 Inc/(Dec)
-------- -------- ---------
<S> <C> <C> <C>
Net revenue $ 1,606 $ 3,017 (47%)
Costs and expenses:
Cost of products and services 1,317 1,522 (13%)
Research and development 339 319 6%
Selling, general and administrative 642 729 (12%)
-------- --------
Total costs & expenses 2,298 2,570 (11%)
-------- --------
(Loss) earnings from continuing operations (692) 447 (255%)
Other income (expense), net (11) 9 (222%)
-------- --------
(Loss) earnings before taxes and discontinued operations (703) 456 (254%)
(Benefit) provision for taxes (254) 155 (264%)
-------- --------
Net (loss) earnings from continuing operations
before discontinued operations (449) 301 (249%)
Earnings from discontinued operations, net of taxes - 4 N/M
Gain from the sale of discontinued operations, net of taxes 646 - N/M
-------- --------
Net earnings $ 197 $ 305
======== ========
Net earnings per share - Basic:
Net (loss) earnings from continuing operations before
discontinued operations $ (0.98) $ 0.66
Net earnings from discontinued operations $ - $ 0.01
Gain from the sale of discontinued operations $ 1.41 $ -
-------- --------
$ 0.43 $ 0.67
======== ========
Net earnings per share - Diluted:
Net (loss) earnings from continuing operations before
discontinued operations $ (0.98) $ 0.65
Net earnings from discontinued operations $ - $ 0.01
Gain from the sale of discontinued operations $ 1.41 $ -
-------- --------
$ 0.43 $ 0.66
======== ========
Average shares used in computing net earnings per share:
Basic 460 454
Diluted 460 462
</TABLE>
<PAGE>
AGILENT TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENT OF EARNINGS
(Unaudited)
(In millions, except per share amounts)
<TABLE>
<CAPTION>
Twelve Months Ended
October 31,
--------------------- Percent
2001 2000 Inc/(Dec)
-------- -------- ---------
<S> <C> <C> <C>
Net revenue $ 8,396 $ 9,361 (10%)
Costs and expenses:
Cost of products and services 5,166 4,735 9%
Research and development 1,349 1,129 19%
Selling, general and administrative 2,659 2,573 3%
-------- --------
Total costs & expenses 9,174 8,437 9%
-------- --------
(Loss) earnings from continuing operations (778) 924 (184%)
Other income (expense), net 301 94 220%
-------- --------
(Loss) earnings before taxes, discontinued operations,
and cumulative effect of changes in accounting principles (477) 1,018 (147%)
(Benefit) provision for taxes (71) 346 (121%)
-------- --------
Net (loss) earnings from continuing operations before
discontinued operations and cumulative effect of changes
in accounting principles (406) 672 (160%)
Earnings from discontinued operations, net of taxes 6 85 N/M
Gain from the sale of discontinued operations, net of taxes 646 - N/M
Cumulative effect of adopting FAS 133
(net of tax benefit of $16 million) (25) - N/M
Cumulative effect of adopting SAB 101
(net of tax benefit of $27 million) (47) - N/M
-------- --------
Net earnings $ 174 $ 757
======== ========
Net earnings per share - Basic:
Net (loss) earnings from continuing operations before
discontinued operations and cumulative effect of changes
in accounting principles $ (0.89) $ 1.49
Net earnings from discontinued operations $ 0.01 $ 0.19
Gain from sale of discontinued operations $ 1.41 $ -
Cumulative effect of adopting FAS 133 $ (0.05) $ -
Cumulative effect of adopting SAB 101 $ (0.10) $ -
-------- --------
$ 0.38 $ 1.68
======== ========
Net earnings per share - Diluted:
Net (loss) earnings from continuing operations before
discontinued operations and cumulative effect of
changes in accounting principles $ (0.89) $ 1.48
Net earnings from discontinued operations $ 0.01 $ 0.18
Gain from sale of discontinued operations $ 1.41 $ -
Cumulative effect of adopting FAS 133 $ (0.05) $ -
Cumulative effect of adopting SAB 101 $ (0.10) $ -
-------- --------
$ 0.38 $ 1.66
======== ========
Average shares used in computing net earnings per share:
Basic 458 449
Diluted 458 455
</TABLE>
<PAGE>
AGILENT TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEET
(Unaudited)
(In millions, except par value and share amounts)
<TABLE>
<CAPTION>
October 31, October 31,
2001 2000
----------- -----------
<S> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents $ 1,170 $ 996
Accounts receivable, net 977 1,938
Inventory 1,491 1,610
Other current assets 1,089 595
----------- -----------
Total current assets 4,727 5,139
Property, plant and equipment, net 1,848 1,685
Goodwill and other intangible assets, net 1,070 467
Other assets 341 442
Net investment in discontinued operations - 597
----------- -----------
Total assets $ 7,986 $ 8,330
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 386 $ 857
Notes payable and short-term borrowings 6 110
Employee compensation and benefits 576 679
Deferred revenue 279 322
Accrued taxes and other accrued liabilities 766 695
----------- -----------
Total current liabilities 2,013 2,663
----------- -----------
Other liabilities 325 402
Commitments and contingencies
Stockholders' equity:
Preferred stock; $0.01 par value; 125,000,000
shares authorized; none issued and outstanding
Common stock; $0.01 par value; 2,000,000,000
shares authorized; 461 million shares at
October 31, 2001 and 454 million shares at
October 31, 2000 issued and outstanding 5 5
Additional paid-in capital 4,712 4,508
Retained earnings 931 757
Other comprehensive loss - (5)
----------- -----------
Total stockholders' equity 5,648 5,265
----------- -----------
Total liabilities and stockholders' equity $ 7,986 $ 8,330
=========== ===========
</TABLE>
<PAGE>
AGILENT TECHNOLOGIES, INC.
PRO FORMA EARNINGS (LOSS) FROM CONTINUING OPERATIONS
BY BUSINESS SEGMENT
(Unaudited)
(In millions, except percent changes)
<TABLE>
<CAPTION>
Yr vs.Yr Sequential
For the three months ended October 31 2001 2000 %change %change
----------------------------------------------------------------
<S> <C> <C> <C> <C>
PRO FORMA EARNINGS (LOSS) FROM CONTINUING OPERATIONS
Test and measurement $ (358) $ 371 (196%) 156%
Semiconductor products (114) 84 (236%) (200%)
Chemical analysis 40 25 60% 33%
---------- --------- --------- ----------
Total $ (432) $ 480 (190%) 192%
========== ========= ========= ==========
<CAPTION>
Yr vs.Yr
For the twelve months ended October 31 2001 2000 %change
------------------------------------------------
<S> <C> <C> <C>
PRO FORMA EARNINGS (LOSS) FROM CONTINUING
OPERATIONS
Test and measurement $ (141) $ 706 (120%)
Semiconductor products (183) 248 (174%)
Chemical analysis 118 41 188%
---------- --------- ---------
Total $ (206) $ 995 (121%)
========== ========= =========
</TABLE>
We provide pro forma financial information to help the reader better understand
our operating results. This information is not in accordance with, or an
alternative for, generally accepted accounting principles and may be different
from the pro forma information provided by other companies.
<PAGE>
AGILENT TECHNOLOGIES, INC.
NET REVENUE FROM CONTINUING OPERATIONS
BY BUSINESS SEGMENT
(Unaudited)
(In millions, except percent changes)
<TABLE>
<CAPTION>
Yr vs.Yr Sequential
For the three months ended October 31 2001 2000 %change %change
----------------------------------------------------------------
<S> <C> <C> <C> <C>
NET REVENUE
Test and measurement $ 936 $ 2,048 (54%) (17%)
Semiconductor products 383 678 (44%) (9%)
Chemical analysis 287 291 (1%) 7%
---------- --------- --------- ----------
Total $ 1,606 $ 3,017 (47%) (12%)
========== ========= ========= ==========
</TABLE>
<PAGE>
AGILENT TECHNOLOGIES, INC.
NET REVENUE FROM CONTINUING OPERATIONS
BY BUSINESS SEGMENT
(Unaudited)
(In millions, except percent changes)
<TABLE>
<CAPTION>
Yr vs.Yr
For the twelve months ended October 31 2001 2000 %change
------------------------------------------------
<S> <C> <C> <C>
NET REVENUE
Test and measurement $ 5,432 $ 6,108 (11%)
Semiconductor products 1,850 2,213 (16%)
Chemical analysis 1,114 1,040 7%
---------- --------- ---------
Total $ 8,396 $ 9,361 (10%)
========== ========= =========
</TABLE>
<PAGE>
AGILENT TECHNOLOGIES, INC.
PERCENT CHANGE IN Q4 NET REVENUE
BY MARKET SEGMENT
YEAR VERSUS YEAR COMPARISON
Q4 FY01 versus Q4 FY00
(Unaudited)
(In millions, except percent changes)
<TABLE>
<CAPTION>
Net Revenue
------------------------------------
Q4 FY01 % Change % of
$ Amount Y/Y Segment
------------------------------------
<S> <C> <C> <C>
Test and measurement
--------------------
Communications test $ 618 (50%) 66%
Semiconductor test 100 (64%) 11%
General purpose test 218 (60%) 23%
--------- ---------
$ 936 (54%) 100%
========= =========
Semiconductor products
----------------------
Networking and computing $ 171 (38%) 45%
Wireless 39 (62%) 10%
Imaging 107 (48%) 28%
Core opto business 66 (30%) 17%
--------- ---------
$ 383 (44%) 100%
========= =========
</TABLE>
<PAGE>
AGILENT TECHNOLOGIES, INC.
PERCENT CHANGE IN Q4 NET REVENUE
BY MARKET SEGMENT
SEQUENTIAL COMPARISON
Q4 FY01 versus Q3 FY01
(Unaudited)
(In millions, except percent changes)
<TABLE>
<CAPTION>
Net Revenue
------------------------------------
Q4 FY01 % of
$ Amount % Change Segment
------------------------------------
<S> <C> <C> <C>
Test and measurement
--------------------
Communications test $ 618 (18%) 66%
Semiconductor test 100 (7%) 11%
General purpose test 218 (17%) 23%
--------- ---------
$ 936 (17%) 100%
========= =========
Semiconductor products
----------------------
Networking and computing $ 171 (17%) 45%
Wireless 39 1% 10%
Imaging 107 (2%) 28%
Core opto business 66 3% 17%
--------- ---------
$ 383 (9%) 100%
========= =========
</TABLE>
<PAGE>
AGILENT TECHNOLOGIES, INC.
NET REVENUE FROM CONTINUING OPERATIONS
BY GEOGRAPHY
For The Three Months Ended October 31
(Unaudited)
<TABLE>
<CAPTION>
(Percent)
(In millions) -----------------
---------- ----------- USD
2001 2000 Growth
---------- ----------- -----------------
<S> <C> <C> <C>
NET REVENUE
United States $ 620 $ 1,396 (56%)
Europe 331 550 (40%)
Asia Pacific 571 872 (35%)
Latin America 45 109 (59%)
Canada 39 90 (57%)
---------- -----------
Total $ 1,606 $ 3,017 (47%)
========== ===========
</TABLE>
<PAGE>
AGILENT TECHNOLOGIES, INC.
NET REVENUE FROM CONTINUING OPERATIONS
BY GEOGRAPHY
For The Twelve Months Ended October 31
(Unaudited)
<TABLE>
<CAPTION>
(Percent)
(In millions) -----------------
---------- ----------- USD
2001 2000 Growth
---------- ----------- -----------------
<S> <C> <C> <C>
NET REVENUE
United States $ 3,373 $ 3,999 (16%)
Europe 1,772 1,874 (5%)
Asia Pacific 2,711 2,869 (6%)
Latin America 222 336 (34%)
Canada 318 283 12%
---------- -----------
Total $ 8,396 $ 9,361 (10%)
========== ===========
</TABLE>
</TEXT>
</DOCUMENT>