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Agilent results miss, sees weak fourth-quarter
(Reuters) - Electronics testing equipment maker Agilent Technologies Inc (A.N) forecast a weak fourth quarter after falling demand from its manufacturing and aerospace customers hit quarterly profit, sending its shares down 8 percent in extended trade.
Technology companies serving the U.S. defense and aerospace markets have been pressured by a fall in customer spending. The 2013 U.S. defense budget proposes to cut spending outlays by about $5 billion, the first cut in more than a decade.
"We have clearly entered an environment of much slower growth, resulting in deals taking longer to close and customers delaying their order deliveries," Chief Executive Bill Sullivan said in a statement.
Agilent, known for its tools that measure voltage variation and analyze chemical compounds, forecast fourth-quarter adjusted earnings of between 80 cents and 82 cents per share, on revenue of between $1.76 billion and $1.78 billion.
Analysts were expecting earnings of 93 cents per share, excluding items, on revenue of $1.87 billion, according to Thomson Reuters I/B/E/S.
The company was not able to recognize about $50 million in revenue in the third quarter as customers delayed orders. It does not expect the deferred revenue to show up in the fourth quarter, CEO Sullivan said in a conference call with analysts.
Its recent acquisition of Danish cancer diagnostics company Dako will add $85 million in revenue in the current quarter, the company said during an call.
Agilent, which bought Dako for $2.2 billion in May, had expected the Danish business to generate $373 million in sales in fiscal 2013.
Aerospace and defense sector revenue fell 11 percent in the third quarter while industrial segment revenue fell 10 percent.
Net income fell to $243 million, or 69 cents per share, for the third quarter, from $330 million or 92 cents per share, a year earlier.
Excluding items, the company, which competes with Waters Corp (WAT.N), Life Technologies (LIFE.O) and Pall Corp (PLL.N), earned 79 cents per share.
Agilent, which was carved out of Hewlett-Packard Co (HPQ.N) in 1999, said quarterly revenue rose 2 percent to $1.72 billion.
Analysts were expecting a profit of 83 cents per share, on revenue of $1.79 billion.
Shares of the company were down at $37.10 in trading after the bell. They closed at $40.48 on the New York Stock Exchange on Wednesday.
(Reporting By Aurindom Mukherjee and Shubham Singhal in Bangalore; Editing by Saumyadeb Chakrabarty, Supriya Kurane)
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