(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.
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