Agilent Technologies: Priority uses of cash includes share repurchases

By Lisa Kerner

Charlotte, N.C., Sept. 19 - Agilent Technologies Inc. plans to use excess cash to increase its pipeline, to repurchase shares in the United States and for investments, according to a presentation by Nick Roelofs, president of the company's life sciences group, at the UBS Global Life Sciences Conference in New York.

The company had net cash and short-term investments of $1 billion at July 31, with most of the cash held outside of the United States.

Roelofs said Agilent has no plans to borrow money to repurchase stock.

Agilent had a strong fiscal third quarter with an all-time high operating margin and a 19% organic growth rate. Typically, the third quarter is soft for the company, Roelofs said.

The life sciences group has been growing for the past 18 quarters but has the weakest margin.

Agilent is seeing growth in Asia, where it has 42% of its employees. China is a strong market with a 28% organic growth rate, according to Roelofs.

The company is a "high spender" when it comes to research and development, allocating 10% of its revenue to R&D.

Agilent, based in Santa Clara, Calif., makes electronic and bio-analytical measuring instruments.

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