Agilent Technologies Restructures Electronic Measurement Businesses
- Electronic Measurement (EM) businesses to be resized in response to sustained 30% reduction in global demand
- Restructuring of Electronic Measurement to reduce Segment annual breakeven (B/E) cost structure by $300 million, and achieve 12% operating margin(1) and 21% ROIC(2) at an annual revenue of $2.3 billion
- Semiconductor & Board Test Segment further restructured to lower B/E by $10 million
- Total headcount reductions of 2,700 and cash costs of $160 million
- Savings to be achieved ratably over next four quarters
- Share repurchase program temporarily suspended until 2009 fiscal year-end
"We have been very aggressive to date in addressing the downturn in electronic measurement markets," said Bill Sullivan, Agilent president and chief executive officer. "However, business remains severely depressed, and there are no prospects for a meaningful recovery in the foreseeable future. Therefore, we have no choice but to resize our electronic measurement businesses for the realities of the marketplace."
The company announced it would reduce costs in its Electronic Measurement Segment by an annualized $300 million over the course of the next four quarters, sizing the Segment to achieve a 12 percent operating margin and a 21 percent ROIC at annualized revenues of $2.3 billion. It also announced a further restructuring of its Semiconductor & Board Test Segment to reduce annual costs by an additional $10 million. This restructuring will affect approximately 2,700 employees and have a cash cost of about $160 million.
Said Sullivan, "For Agilent to realize its full potential, we must have a financially healthy company and a solidly profitable Electronic Measurement business. We will move quickly to resize the EM businesses to the new business levels, align resources to the best market opportunities, and position the company for the new economic environment."
In order to fully fund the restructuring and conserve cash in an environment of severely constrained financial markets, the company also announced it was temporarily suspending its share repurchase program until the end of its 2009 fiscal year.
About Agilent Technologies
Agilent Technologies Inc. (NYSE: A) is the world's premier measurement company and a technology leader in communications, electronics, life sciences and chemical analysis. The company's 19,000 employees serve customers in more than 110 countries. Agilent had net revenues of $5.8 billion in fiscal 2008. Information about Agilent is available on the Web at www.agilent.com.
|
Related News
- Agilent Technologies' New Electronic System-Level EDA Platform Helps Algorithm Developers, System Architects Cut Design Time in Half
- Electronic System Design Industry Posts $4.7 Billion in Revenue in Q2 2024, ESD Alliance Reports
- Electronic System Design Industry Posts $4.5 Billion in Revenue in Q1 2024, ESD Alliance Reports (PRNewsfoto/SEMI)
- STMicroelectronics restructures for the AI age
- Cadence Expands System IP Portfolio with Network on Chip to Optimize Electronic System Connectivity
Breaking News
- Ubitium Debuts First Universal RISC-V Processor to Enable AI at No Additional Cost, as It Raises $3.7M
- TSMC drives A16, 3D process technology
- Frontgrade Gaisler Unveils GR716B, a New Standard in Space-Grade Microcontrollers
- Blueshift Memory launches BlueFive processor, accelerating computation by up to 50 times and saving up to 65% energy
- Eliyan Ports Industry's Highest Performing PHY to Samsung Foundry SF4X Process Node, Achieving up to 40 Gbps Bandwidth at Unprecedented Power Levels with UCIe-Compliant Chiplet Interconnect Technology
Most Popular
- Cadence Unveils Arm-Based System Chiplet
- CXL Fabless Startup Panmnesia Secures Over $60M in Series A Funding, Aiming to Lead the CXL Switch Silicon Chip and CXL IP
- Esperanto Technologies and NEC Cooperate on Initiative to Advance Next Generation RISC-V Chips and Software Solutions for HPC
- Eliyan Ports Industry's Highest Performing PHY to Samsung Foundry SF4X Process Node, Achieving up to 40 Gbps Bandwidth at Unprecedented Power Levels with UCIe-Compliant Chiplet Interconnect Technology
- Arteris Selected by GigaDevice for Development in Next-Generation Automotive SoC With Enhanced FuSa Standards
E-mail This Article | Printer-Friendly Page |