Agilent Technologies Reports First Quarter 2003 Results
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Agilent Technologies Reports First Quarter 2003 Results



PALO ALTO, Calif.--(BUSINESS WIRE)--Feb. 21, 2003--Agilent Technologies Inc. (NYSE: A) today reported orders of $1.36 billion and revenue of $1.41 billion for the fiscal first quarter ended Jan. 31, 2003. On an operating earnings-before-restructuring basis, the company lost $0.23 per share.

After $12 million of non-cash amortization charges and $42 million of restructuring expenses, the net first quarter loss from continuing operations was $112 million, or $0.24 per share on a generally accepted accounting principle (GAAP) basis. In addition, the company took a $257 million one-time goodwill write-off in the quarter related to the adoption of a new accounting rule, SFAS 142.

"Our first quarter results were disappointing," said Ned Barnholt, Agilent chairman, president and chief executive officer. "Orders were weaker than expected due to a general climate of uncertainty. In addition, margin pressures continued to impact several of our businesses. Based on these results, we are taking additional aggressive cost-cutting actions to return Agilent to profitability during the second half of this year."

Barnholt said that Agilent's orders were down 22 percent compared to a year ago in the Americas, about flat in Europe and up 7 percent in Asia. "Our first quarter results reflect a collective hesitation by many of our customers, who are deferring capital expenditures. Geopolitical uncertainty, on top of the general economic weakness we've experienced in the last year and a half, has resulted in a continuing pattern of weak orders."

While all of Agilent's business segments were relatively soft in the first quarter, the company said it saw particular weakness in its semiconductor equipment, test and measurement, and chemical analysis businesses compared to prior expectations.

"Our near-term outlook calls for a modest improvement in second quarter orders and revenues based on a rebound in semiconductor equipment and seasonally higher semiconductor orders," Barnholt said. "However, visibility has never been worse, and we have no reason to believe that business will improve materially in the quarters immediately ahead."

To date, Agilent has achieved about $1.25 billion of annualized savings from its previously announced restructuring programs. The company said it had expected to finish this year with a normalized quarterly breakeven cost structure of about $1.57 billion. The new actions Agilent will take in the next few months will reduce the workforce by an additional 4,000 jobs and bring the company's cost structure down an additional $125 million per quarter in order to achieve a fourth quarter breakeven cost structure of $1.45 billion.

"These actions will be extraordinarily painful, but we have no alternative," Barnholt said. "Agilent must return to profitability as soon as possible. Our commitment is to move quickly and to make the critical trade-offs that will ensure our profitability without jeopardizing our long-term success. We are confident that we are up to the challenge."




    Segment Results

    Test and Measurement
    (in millions of dollars)

                       Q1:F03              Q4:F02              Q1:F02
Orders                    594                 673                 647
Revenues                  633                 747                 684
Operating Profit(1)      (132)               (107)               (171)



First quarter Test and Measurement orders were down 8 percent from one year ago and were off 12 percent from the seasonally strong fourth quarter. By market segment, communications test, buoyed by the still strong Asian wireless market, was stronger than general purpose test. Within general purpose test, U.S. government spending was particularly weak. First quarter revenues of $633 million were down 7 percent from last year and off 15 percent sequentially. Restructuring actions helped offset the impact of lower volumes and intense competitive pressures on operating results. The first quarter operating loss of $132 million was $39 million below last year despite $51 million lower revenues. Sequentially, the first quarter operating loss increased a relatively modest $25 million, considering the $114 million reduction in revenues. Additional restructuring, combined with the actions already under way, is expected to bring Test and Measurement to a breakeven by the fourth quarter of this year.




    Automated Test
    (in millions of dollars)
                       Q1:F03              Q4:F02              Q1:F02
    Orders                115                 151                 185
    Revenues              136                 220                 138
    Operating Profit(1)   (48)                  9                 (44)



First quarter Automated Test orders of $115 million were down 38 percent from the very strong pace of one year earlier, and were off 24 percent sequentially. Automated Test's book-to-bill ratio of 0.85 was consistent with the industry results through January recently reported by Semiconductor Equipment and Materials International(2). The volatility in Automated Test segment orders was due to both the system-on-a-chip (SOC) business, which was down 45 percent from last year but up 31 percent from the prior quarter, and from our flash memory test business, which was down sharply versus both prior year and the prior quarter due to the lumpiness of customer orders. Excluding flash memory test, segment orders were flat sequentially.

Revenues of $136 million were about flat with a year ago and off 38 percent sequentially because of declining orders. The first quarter operating loss of $48 million was $4 million greater than last year.




    Semiconductor Products
    (in millions of dollars)
                      Q1:F03              Q4:F02              Q1:F02
    Orders               381                 363                 346
    Revenues             367                 471                 327
    Operating Profit(1)  (48)                 21                 (61)



Semiconductor Products' orders of $381 million were 10 percent above last year and up 5 percent sequentially. Excluding a sharp decline in hardcopy ASICs, segment orders would have been up 19 percent and 11 percent, respectively. Revenues of $367 million were 12 percent higher than one year ago but off 22 percent from strong fourth quarter 2002 results. The book-to-bill ratio of 1.04 compares to 0.77 in the fourth quarter and 1.06 one year ago. Operating results were affected by the decline in ASIC business and the cost of ramping production to meet strong demand for the FBAR filter and E-pHEMT power module. The operating loss of $48 million compares to a $61 million loss one year ago and $21 million of operating profits in the prior quarter.




    Life Sciences and Chemical Analysis
    (in millions of dollars)
                       Q1:F03              Q4:F02              Q1:F02
    Orders                268                 308                 287
    Revenues              276                 298                 277
    Operating Profit(1)    34                  43                  35



Life Sciences and Chemical Analysis orders of $268 million were 7 percent below one year ago and off 13 percent from the seasonally strong fourth quarter. Within the segment, orders for chemical analytical systems were particularly weak, down 9 percent from a year ago and 13 percent sequentially, as customers delayed spending due to higher oil prices, and geopolitical and economic uncertainty. Pharmaceutical companies also slowed spending in the quarter, with total Life Sciences orders off 3 percent from a year ago and 13 percent sequentially. Revenues of $276 million were flat with a year ago and down 7 percent sequentially. Operating profits of $34 million were about equal to a year ago and off only $9 million sequentially, despite a $22 million decline in revenues. Segment return on invested capital (ROIC) of about 24 percent is comparable to one year ago.

Concluded Barnholt, "Business conditions are very difficult, and we have much left to do to restore Agilent to financial health, but we should not ignore the progress we are making."

In addition to the cumulative benefits of Agilent's restructuring actions to date, the company said its balance sheet remains strong. Agilent ended the quarter with $1.75 billion in cash and equivalents, and generated more than $220 million from the reduction in receivables and inventories. Capital spending of $61 million was below last year and below the level of depreciation. Agilent expects to spend only $250 million on capital expenditures this year compared to $301 million in 2002 and $881 million in 2001.

"In short, we are confident we will restore Agilent to financial health in the short term while continuing to reinforce our global technology leadership position for the long term," Barnholt said.

The company also today announced guidance for its second quarter 2003 revenues and earnings before restructuring. Agilent expects revenues in the range of $1.4 billion to $1.5 billion. Earnings before restructuring are expected to be a loss of between $0.10 to $0.20 per share.

About Agilent Technologies

Agilent Technologies Inc. (NYSE: A) is a global technology leader in communications, electronics and life sciences. The company's 35,000 employees serve customers in more than 110 countries. Agilent had net revenue of $6 billion in fiscal year 2002. Information about Agilent is available on the Web at www.agilent.com.

More financial information about this quarter's earnings is available at www.investor.agilent.com.

Agilent management will host a live webcast of its quarterly conference call with the investment community in listen-only mode today at 7 a.m. (PT). Listeners may log on at www.investor.agilent.com and select "conference calls." The webcast will remain on the company site for seven days.

A telephone replay of the conference call will be available starting at 11 a.m. (PT) on Feb. 21 through Feb. 28 by dialing +1 719 457 0820 and entering pass code 101496.

Safe Harbor Statement

This news release contains forward-looking statements (including, without limitation, information regarding projected orders, revenues, cost structure, breakeven and profitability, workforce reductions and the outlook for the general economy and for the markets that Agilent serves) that involve risks and uncertainties that could cause results of Agilent to differ materially from management's current expectations.

In addition, other risks that Agilent faces in running its operations include: the ability to execute successfully through the current economic downturn and an upturn while it continues to implement significant workforce reductions, 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, the risk that our cost-cutting initiatives will impair our ability to develop products and remain competitive, increasing competitive, pricing and gross margin pressures, the successful implementation of Agilent's ERP and CRM systems and the ability to realize the benefits from these and other IT systems investments, the ability to improve asset performance to adapt to the current economic slowdown and other changes in demand, the ability to successfully introduce new products at the right time and with the right mix, and other risks detailed in the company's filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended Oct. 31, 2002 and its Current Reports on Form 8-K dated Jan. 24 and Feb. 10, 2003. The company assumes no obligation to update the information in this press release.

(1) before restructuring charges in all periods

(2) according to Semiconductor Equipment and Materials International

press release dated Feb. 18, 2002 (see http://www.semi.org).




                      AGILENT TECHNOLOGIES, INC.
            CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
               (In millions, except per share amounts)
                             (Unaudited)


                                              Three Months
                                                  Ended
                                               January 31,    
                                             ---------------  Percent
                                               2003    2002  Inc/(Dec)
                                             ------- ------- ---------

Orders                                       $1,358  $1,465       (7%)


Net revenue                                  $1,412  $1,426       (1%)

Costs and expenses:
  Cost of products and services                 883     920       (4%)
  Research and development                      277     317      (13%)
  Selling, general and administrative           508     631      (19%)
                                             ------- -------
          Total costs and expenses            1,668   1,868      (11%)
                                             ------- -------

Loss from operations                           (256)   (442)       42%

Other income (expense), net                       4      19      (79%)
                                             ------- -------

Loss from continuing operations before taxes   (252)   (423)       40%

Benefit for taxes                              (140)   (106)       32%
                                             ------- -------

Loss from continuing operations                (112)   (317)       65%

Gain from sale of discontinued operations
 (net of taxes)                                   -       2
                                             ------- -------

Loss before cumulative effect of accounting
 changes                                       (112)   (315)       64%

Cumulative effect of adopting SFAS No. 142
  (net of tax benefit of $11 million)          (257)      -
                                             ------- -------

Net loss                                      $(369)  $(315)     (17%)
                                             ======= =======


Net (loss) earnings per share - Basic and
 diluted:

Loss from continuing operations              $(0.24) $(0.68)
Gain from sale of discontinued operations,
 net                                              -       -
Cumulative effect of adopting SFAS No. 142,
 net                                          (0.54)      -
                                             ------- -------
Net loss                                     $(0.78) $(0.68)
                                             ======= =======


Weighted average shares used in computing
 loss per share:
          Basic and diluted                     471     463


Historical amounts have been reclassified to conform with current
 period presentation.




                      AGILENT TECHNOLOGIES, INC.
       PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
       Excluding Restructuring, Amortization of Intangibles and
               Other One-Time and Non-Operational Items
               (In millions, except per share amounts)
                             (Unaudited)



                                              Three Months
                                                  Ended
                                               January 31,    
                                             ---------------  Percent
                                               2003    2002  Inc/(Dec)
                                             ------- ------- ---------

Orders                                       $1,358  $1,465       (7%)


Net revenue                                  $1,412  $1,426       (1%)

Costs and expenses:
  Cost of products and services                 867     862         1%
  Research and development                      273     305      (10%)
  Selling, general and administrative           474     500       (5%)
                                             ------- -------
          Total costs and expenses            1,614   1,667       (3%)
                                             ------- -------

Loss from operations                           (202)   (241)       16%

Other income (expense), net                       7      14      (50%)
                                             ------- -------

Loss before taxes                              (195)   (227)       14%

Benefit for taxes                               (86)    (93)      (8%)
                                             ------- -------

Pro forma net loss                            $(109)  $(134)       19%
                                             ======= =======



Pro forma net loss per share:
  Basic and diluted                          $(0.23) $(0.29)


Weighted average shares used in computing 
 pro forma net loss per share:
          Basic and diluted                     471     463

The above pro forma condensed consolidated statement
 of operations has been adjusted to exclude the
 following one-time and non-operational items and
 reconcile to GAAP net loss:

  Net loss per GAAP                           $(369)  $(315)
     Pro forma adjustments:
        Goodwill                                  -      83
        Other intangibles (including in-
         process R&D)                            12      13
        Restructuring                            42     105
        Asset Impairment                          5       -
        SFAS No. 142 adoption                   268       -
        Discontinued operations                   -      (3)
        Gain on sale of assets                   (2)     (5)
        Adjustment for income taxes             (65)    (12)
                                             ------- -------
  Pro forma net loss                          $(109)  $(134)
                                             ======= =======


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.


Historical amounts have been reclassified to conform with current
 period presentation.




                      AGILENT TECHNOLOGIES, INC.
                 CONDENSED CONSOLIDATED BALANCE SHEET
          (In millions, except par value and share amounts)
                             (Unaudited)


                                                    Jan. 31,  Oct. 31,
                                                      2003      2002
                                                    --------  --------
ASSETS
Current assets:
  Cash and cash equivalents                          $1,754    $1,844
  Accounts receivable, net                              930     1,118
  Inventory                                           1,166     1,184
  Current deferred tax assets                           451       462
  Other current assets                                  258       272
                                                    --------  --------
    Total current assets                              4,559     4,880

Property, plant and equipment, net                    1,571     1,579
Goodwill and other intangible assets, net               422       685
Long-term deferred tax assets                           796       635
Other assets                                            422       424
                                                    --------  --------
    Total assets                                     $7,770    $8,203
                                                    ========  ========

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
  Accounts payable                                     $290      $305
  Employee compensation and benefits                    627       733
  Deferred revenue                                      256       244
  Income and other taxes payable                        387       325
  Other accrued liabilities                             463       574
                                                    --------  --------
    Total current liabilities                         2,023     2,181
                                                    --------  --------

Senior convertible debentures                         1,150     1,150
Other liabilities                                       248       245
                                                    --------  --------
     Total liabilities                                3,421     3,576
                                                    --------  --------

Commitments and contingencies                             -         -

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; 467 million shares at October 31,
   2002 and 471 million shares at January 31, 2003
   issued and outstanding                                 5         5
  Additional paid-in capital                          4,922     4,872
  Accumulated deficit                                  (470)     (101)
  Accumulated comprehensive loss                       (108)     (149)
                                                    --------  --------
    Total stockholders' equity                        4,349     4,627
                                                    --------  --------
      Total liabilities and stockholders' equity     $7,770    $8,203
                                                    ========  ========




                      AGILENT TECHNOLOGIES, INC.
            CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
                            (In millions)
                             (Unaudited)
                                                          Three months
                                                             ended
                                                          January 31,
                                                              2003
Cash flows from operating activities:                     ------------
    Net loss                                                    $(369)
Adjustments to reconcile net loss to net cash used in
 operating activities:
    Depreciation and amortization                                  82
    Inventory-related charges                                      (1)
    Deferred taxes                                               (149)
    Asset impairment charges                                       10
    Net loss on sale of assets                                      4
    Adoption of SFAS No. 142                                      268
    Changes in assets and liabilities:
       Accounts receivable                                        192
       Inventory                                                   32
       Accounts payable                                            (9)
       Employee compensation and benefits                        (106)
       Income taxes                                                33
       Other current assets and liabilities                       (60)
       Other long-term assets and liabilities                      (3)
                                                          ------------
Net cash used in operating activities *:                          (76)

Cash flows from investing activities:
    Investments in property, plant and equipment                  (61)
    Dispositions of property, plant and equipment                   1
    Purchase of equity investments                                 (2)
                                                          ------------
Net cash used in investing activities:                            (62)

Cash flows from financing activities:
    Issuance of common stock under employee stock plans            50
    Net payments to notes payable and short-term
     borrowings                                                    (2)
                                                          ------------
Net cash provided by financing activities:                         48
                                                          ------------

Change in cash and cash equivalents                               (90)

Cash and cash equivalents at beginning of period                1,844
                                                          ------------

Cash and cash equivalents at end of period                      1,754
                                                          ============


*  Cash payments for restructuring included in
     operating activities:                                         43




                      AGILENT TECHNOLOGIES, INC.
                   TEST AND MEASUREMENT INFORMATION
                (In millions, except percent changes)
                             (Unaudited)


            Three months Three months   Yr vs.  Three months
                ended        ended        Yr       ended
              January 31,  January 31,     %    October 31, Sequential
                 2003         2002     change       2002     % change
              ----------  ----------- --------  ----------- ----------

Orders       $      594  $       647      (8%) $       673       (12%)

Net Revenue  $      633  $       684      (7%) $       747       (15%)

Loss from
 operations  $     (132) $      (171)      23% $      (107)      (23%)

            ------------ ------------ -------- ------------ ----------



Q1 FY03 vs Q4 FY02 BY MARKET SEGMENT


                         Orders                    Net Revenue
               -------------------------- ----------------------------
               Q1 FY03 Sequential  % of   Q1 FY03  Sequential   % of
                  $               Segment    $                 Segment
                Amount  % change           Amount    % change
               ------- ---------- ------- ------- ------------ -------

Communications
 test            $420        (9%)     71%   $453         (16%)     72%

General
 purpose test     174       (18%)     29%    180         (14%)     28%
               -------            ------- -------              -------

                 $594       (12%)    100%   $633         (15%)    100%
               =======            ======= =======              =======



Q1 FY03 vs Q1 FY02 BY MARKET SEGMENT


                             Orders                   Net Revenue
                      ---------------------    -----------------------
                       Q1 FY03    Yr vs.Yr      Q1 FY03      Yr vs.Yr
                      $ Amount    % change     $ Amount      % change
                      ---------   ---------    ---------     ---------

Communications test       $420         (5%)        $453           (6%)

General purpose test       174        (15%)         180          (10%)
                      ---------                ---------

                          $594         (8%)        $633           (7%)
                      =========                =========


Loss from operations reflect the results of our reportable segments
 under Agilent's management reporting system which are not necessarily
 in conformity with accounting principles generally accepted in the
 United States (GAAP). Loss from operations of our reporting segments
 excludes restructuring, amortization of intangibles, other one-time
 and non-operational charges and some residual corporate charges.

In general, recorded orders represent firm purchase commitments from
 our customers with established terms and conditions for products and
 services that will be delivered within six months.

Historical amounts have been reclassified to conform with current
 period presentation.




                      AGILENT TECHNOLOGIES, INC.
                  SEMICONDUCTOR PRODUCTS INFORMATION
                (In millions, except percent changes)
                             (Unaudited)


                     Three      Three              Three    
                     months     months    Yr vs.   months
                     ended      ended      Yr      ended
                    Jan. 31,   Jan. 31,     %      Oct. 31, Sequential
                      2003       2002     change     2002    % change
                   ---------- ---------- -------- --------- ----------

Orders                  $381       $346       10%     $363          5%

Net Revenue             $367       $327       12%     $471       (22%)

(Loss) earnings
 from operations        $(48)      $(61)      21%      $21      (329%)




Q1 FY03 vs Q4 FY02 BY MARKET SEGMENT


                       Orders                      Net Revenue
            ---------------------------- -----------------------------
            Q1 FY03  Sequential   % of   Q1 FY03  Sequential   % of
            $ Amount   % change Segment  $ Amount   % change  Segment

Networking     $131          7%      34%    $125        (4%)       34%

Personal
 systems        250          4%      66%     242       (29%)       66%
            --------            -------- --------            ---------

               $381          5%     100%    $367       (22%)      100%
            ========            ======== ========            =========



Q1 FY03 vs Q1 FY02 BY MARKET SEGMENT

                            Orders                    Net Revenue
                   ------------------------    -----------------------
                     Q1 FY03      Yr vs.Yr       Q1 FY03    Yr vs.Yr
                    $ Amount      % change      $ Amount    % change

Networking               $131           11%          $125         (2%)

Personal systems          250           10%           242          21%
                   -----------                 -----------

                         $381           10%          $367          12%
                   ===========                 ===========

Loss from operations reflect the results of our reportable segments
 under Agilent's management reporting system which are not necessarily
 in conformity with accounting principles generally accepted in the
 United States (GAAP). Loss from operations of our reporting segments
 excludes restructuring, amortization of intangibles, other one-time
 and non-operational charges and some residual corporate charges.

In general, recorded orders represent firm purchase commitments from
 our customers with established terms and conditions for products that
 will be delivered within six months.

Historical amounts have been reclassified to conform with current
 period presentation.




                      AGILENT TECHNOLOGIES, INC.
                      AUTOMATED TEST INFORMATION
                (In millions, except percent changes)
                             (Unaudited)


            Three months Three months Yr vs.Yr Three months Sequential
             ended Jan.   ended Jan.  % change  ended Oct.   % change
              31, 2003     31, 2002              31, 2002

Orders             $115         $185     (38%)        $151       (24%)

Net Revenue        $136         $138      (1%)        $220       (38%)

(Loss)
 earnings
 from
 operations        $(48)        $(44)     (9%)          $9      (633%)



Q1 FY03 vs Q4 FY02 BY MARKET SEGMENT


                         Orders                     Net Revenue
               --------------------------- ---------------------------
               Q1 FY03  Sequential  % of   Q1 FY03  Sequential  % of
               $ Amount  % change  Segment $ Amount  % change  Segment

Semiconductor
 test              $86       (25%)     75%    $107       (42%)     79%

Manufacturing
 test*              29       (19%)     25%      29       (19%)     21%
               --------            ------- --------            -------

                  $115       (24%)    100%    $136       (38%)    100%
               ========            ======= ========            =======



Q1 FY03 vs Q1 FY02 BY MARKET SEGMENT


                            Orders                     Net Revenue
                      -------------------         --------------------
                       Q1 FY03  Yr vs.Yr           Q1 FY03   Yr vs.Yr
                      $ Amount  % change          $ Amount   % change

Semiconductor test         $86      (44%)             $107        (1%)

Manufacturing test*         29       (9%)               29        (3%)
                      ---------                   ---------

                          $115      (38%)             $136        (1%)
                      =========                   =========


*Amounts presented as manufacturing test were previously
 included in TMO's general purpose test.

Loss from operations reflect the results of our reportable segments
 under Agilent's management reporting system which are not necessarily
 in conformity with accounting principles generally accepted in the
 United States (GAAP). Loss from operations of our reporting segments
 excludes restructuring, amortization of intangibles, other one-time
 and non-operational charges and some residual corporate charges.

In general, recorded orders represent firm purchase commitments from
 our customers with established terms and conditions for products and
 services that will be delivered within six months.

Historical amounts have been reclassified to conform with
 current period presentation.




                      AGILENT TECHNOLOGIES, INC.
           LIFE SCIENCES AND CHEMICAL ANALYSIS INFORMATION
                (In millions, except percent changes)
                             (Unaudited)


            Three months Three months Yr vs.Yr Three months Sequential
             ended Jan.   ended Jan.     %      ended Oct.    % change
              31, 2003     31, 2002    change    31, 2002

Orders             $268         $287      (7%)        $308       (13%)

Net Revenue        $276         $277        0%        $298        (7%)

Earnings
 from
 operations         $34          $35      (3%)         $43       (21%)



Loss from operations reflect the results of our reportable segments
 under Agilent's management reporting system which are not necessarily
 in conformity with accounting principles generally accepted in the
 United States (GAAP). Loss from operations of our reporting segments
 excludes restructuring, amortization of intangibles, other one-time
 and non-operational charges and some residual corporate charges.

In general, recorded orders represent firm purchase commitments from
 our customers with established terms and conditions for products and
 services that will be delivered within six months.

Historical amounts have been reclassified to conform with current
 period presentation.




                      AGILENT TECHNOLOGIES, INC.
          ORDERS AND NET REVENUE FROM CONTINUING OPERATIONS
                             BY GEOGRAPHY
                For The Three Months Ended January 31
                (In millions, except percent changes)
                             (Unaudited)


                                                         Percent
                                                        Inc/(Dec)
                                                   -------------------
                                                      USD     Local
                                 2003     2002                Currency
                              -------- --------    --------- ---------
ORDERS

Americas                         $496     $638         (22%)     (22%)

Europe                            295      298          (1%)      (2%)

Asia Pacific                      567      529            7%        7%

                              -------- --------
               Total           $1,358   $1,465          (7%)      (7%)
                              ======== ========

NET REVENUE

Americas                         $576     $596          (3%)

Europe                            296      305          (3%)

Asia Pacific                      540      525            3%

                              -------- --------
               Total           $1,412   $1,426          (1%)
                              ======== ========


In general, recorded orders represent firm purchase commitments from
 our customers with established terms and conditions for products and
 services that will be delivered within six months.


CONTACT: CONTACT: Agilent Editorial Contact
             Michele Drake, 650/752-5296 (U.S.)
             
Email Contact
             Jorgen Tesselaar, +31 20 547 2825 (Europe and Asia)
             
Email Contact
             or
             Agilent Investor Contact
             Hilliard Terry, 650/752-5329
             
Email Contact