The Palo Alto-based supplier of chips, test and measurement products reported a loss of $146 million, or minus $0.31 a share, in the period, which includes $74 million of net restructuring charges and intangibles amortization.

This compares to a loss $253 million, or minus $0.55, a year ago. In the previous period, it reported a loss of $369 million, or minus $0.78 a share.

Orders were $1.53 billion in the period, compared to $1.597 billion a year ago and $1.36 billion in the previous quarter.

"Our second quarter results were mixed," Ned Barnholt, Agilent chairman, president and chief executive, said in a statement.

"We're encouraged by orders and revenue that came in near the top of our expectations, despite world events. Earnings, however, were at the low end of our range because of delays in realizing restructuring savings as well as ongoing pricing pressures in our markets,” he said.

“But, we did achieve $35 million in structural cost reductions during the quarter, and we reduced headcount by nearly 2,500. We remain committed to achieving an operating breakeven of $1.45 billion in the fourth quarter of this year," he said.

The company reported a rebound in semiconductor test equipment orders, which reached their highest level in two-and-a-half years. Semiconductor component orders were also seasonally higher, but they remained well below last year's second-quarter spike.

Looking ahead, the company said it sees no material change in the outlook for its end markets. Agilent expects third-quarter revenue in the range of $1.45-to-$1.55 billion. Earnings before restructuring and amortization charges are expected to be in a range of a loss of $0.10 per share to an operating breakeven.

"Our fourth-quarter priority remains firmly focused on achieving a $1.45 billion operating break even," Barnholt said. "We are confident that by reaching this milestone, we will have laid the foundation for sustained profitability in 2004."

By: DocMemory
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