Agilent Technologies Inc. (NYSE: A) today reported orders of $1.40 billion for the second fiscal quarter ended April 30, 2007, 10 percent above one year ago. Revenues during the quarter were $1.32 billion, 7 percent above last year. Second quarter GAAP net income was $123 million, or $0.30 per diluted share, compared with $115 million, or $0.26 per share, in last year’s second quarter.

Included in this quarter’s GAAP income is $40 million of share-based compensation expense. Excluding this item and $13 million of tax and other net costs, Agilent reported second quarter adjusted net income of $176 million, or $0.43 per share. On a comparable basis, the company earned $157 million, or $0.36 per share, one year ago. (1)

“Agilent had another solid performance in this year’s second quarter,” said Bill Sullivan, Agilent president and chief executive officer. “Both revenues and earnings were in the middle of our guidance range. As in the first quarter, we saw notable strength across our Bio-Analytical Measurement portfolio, and significant weakness in wireless handset test.” In Q2, revenues were up 7 percent, and adjusted net income per share, at $0.43, was 19 percent above last year’s results.

Sullivan noted that the company’s Bio-Analytical revenues were up 15 percent, again outpacing all major competitors. “We’re particularly pleased by the initial reception to our second quarter GC and GC/MS platform introductions.” Sullivan also noted that, while Electronic Measurement revenues grew 3 percent, segment growth excluding the impact of a weak handset test market was about 7 percent.

Sullivan added, “The pick-up in second quarter Electronic Measurement bookings to 8-percent growth, combined with the steady 14-percent growth in Bio-Analytical orders, bodes well for Agilent’s prospects in the second half of this year.”

Second quarter Return on Invested Capital(2) reached 25 percent, 2 points better than last year’s strong performance, while receivables Days-Sales-Outstanding improved 4 days. Inventory Days-On-Hand, anticipating a stronger second half, increased by 6 days. Cash generated from operating activities was $302 million in the second quarter. During the period, the company repurchased $382 million of its common stock. The company ended the quarter with net cash of $2.1 billion.

For the fiscal third quarter of 2007, Agilent expects revenues of $1.36 billion to $1.40 billion, up 10 percent to 13 percent from last year. Adjusted net income is expected to be in the range of $0.46 to $0.50 per share, 18 percent to 28 percent above last year’s comparable earnings. Normal seasonality would suggest fourth quarter revenues roughly 5 percent above the third quarter and an increase in operating earnings of about $0.09 per share. (3)

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