Agilent posts higher profit

Agilent Technologies posted a higher quarterly profit as stronger sales of its bioanalytical measurement and electronic measurement tools boosted revenue.
 
The company also issued a forecast and the midpoint of that forecast -- $1.4 billion -- was below the current average analyst expectation and Agilent shares fell 2.2 percent.

Agilent said net income for its fiscal second quarter ended April 30 rose to $115 million, or 26 cents per share, from $95 million, or 19 cents per share, a year ago.

Revenue rose to $1.43 billion from $1.28 billion.

Revenue and earnings per share were at the high end of Agilent's expectations, said Chief Executive Bill Sullivan on a conference call with analysts to discuss the results. Orders and net revenues were at their highest since 2001.

"There was good growth in wireless test and electronic manufacturing test," Sullivan said. "On the wireless side, demand for low-cost phones in China and India, as well as investment in 3G manufacturing, helped drive our results."

Excluding charges for the upcoming spinoff of its semiconductor testing business, Agilent had a profit of 34 cents per share. That figure includes 6 cents per share in stock-based compensation expense.

Agilent remains on track to spin off its semiconductor business -- named Verigy -- unit in its fiscal third quarter, Sullivan said in a telephone interview and he noted he was pleased with the company's performance in the just-completed quarter.

"Across the board we were quite happy with the quarter," Sullivan said, noting that business in the United States was aided by increased defense spending, its Japan business continues to improve and it takes advantage of emerging opportunities in the pharmaceutical industry in India.