AGILENT TECHNOLOGIES INC

Previous wording

New Segment Structure. In the first quarter of fiscal year 2024, we announced a change in our operating segments to move our cell analysis business from our life sciences and applied markets segment to our diagnostics and genomics operating segment in order to further strengthen growth opportunities for both organizations. Following this reorganization, we continue to have three business segments comprised of life sciences and applied markets, diagnostics and genomics and Agilent CrossLab, each of which continues to comprise a reportable segment. We are reporting under this new structure beginning with this Quarterly Report on Form 10-Q for the period ended January 31, 2024. All historical financial segment information has been recast to conform to this new presentation in our financial statements and accompanying notes. There was no change to our Agilent CrossLab business segment.

Current wording

New Segment Structure. In the first quarter of fiscal year 2024, we announced a change in our operating segments to move our cell analysis business from our life sciences and applied markets segment to our diagnostics and genomics operating segment in order to further strengthen growth opportunities for both organizations. Following this reorganization, we continue to have three business segments comprised of life sciences and applied markets, diagnostics and genomics and Agilent CrossLab, each of which continues to comprise a reportable segment. We began reporting under this new structure beginning with the Quarterly Report on Form 10-Q for the period ended January 31, 2024. All historical financial segment information has been recast to conform to this new presentation in our financial statements and accompanying notes. There was no change to our Agilent CrossLab business segment.

Previous wording

Net revenue of $1,658 million for the three months ended January 31, 2024 decreased 6 percent when compared to the same period last year. Foreign currency movements for the three months ended January 31, 2024 had an overall favorable impact on revenue growth of 1 percentage point when compared to the same period last year. Net revenue for the three months ended January 31, 2024, declined in our life sciences and applied markets and diagnostics and genomics segments in both the Americas and the Asia Pacific regions, particularly in China, partially offset by revenue growth in our Agilent Crosslab segment. Revenue declined in most of the end markets we serve, most significantly in the pharmaceutical and chemical and advanced materials markets due to our customers' continued capital expenditure pressures compared to the same period last year. Revenue generated by our life sciences and applied markets business in the three months ended January 31, 2024 decreased 10 percent when compared to the same period last year. Foreign currency movements for the three months ended

Current wording

Net revenue of $1,573 million and $3,231 million for the three and six months ended April 30, 2024 decreased 8 percent and 7 percent, respectively, when compared to the same periods last year. Overall, foreign currency movements for the three and six months ended April 30, 2024 had no impact on revenue growth in both periods, when compared to the same periods last year. Net revenue for the three and six months ended April 30, 2024, declined in our life sciences and applied markets and diagnostics and genomics segments partially offset by revenue growth in our Agilent Crosslab segment. Revenue declined in all regions, particularly in China, and in all of our end markets we serve, most significantly in the pharmaceutical market due to our customers' continued capital expenditure pressures compared to the same periods last year. Revenue generated by our life sciences and applied markets business in the three and six months ended April 30, 2024 decreased 14 percent and 12 percent, respectively, when compared to the same periods last year. Foreign currency movements for the three and six months ended

Previous wording

January 31, 2024, had an overall favorable impact on revenue growth of 1 percentage point when compared to the same period last year. Revenue generated by our diagnostics and genomics business for the three months ended January 31, 2024 decreased 6 percent when compared to the same period last year. Foreign currency movements for the three months ended January 31, 2024 had an overall favorable impact on revenue growth of 1 percentage point when compared to the same period last year. Revenue generated by our Agilent CrossLab business in the three months ended January 31, 2024 increased 6 percent when compared to the same period last year. Foreign currency movements for the three months ended January 31, 2024 had an overall favorable impact on revenue growth of 1 percentage point when compared to the same period last year.

Current wording

April 30, 2024, had an overall unfavorable impact on revenue growth of 1 percentage point and no impact, respectively, when compared to the same periods last year. Revenue generated by our diagnostics and genomics business for the three and six months ended April 30, 2024 decreased 9 percent and 7 percent, respectively, when compared to the same periods last year. Foreign currency movements for the three and six months ended April 30, 2024 had an overall unfavorable impact on revenue growth of 1 percentage point and no impact, respectively, when compared to the same periods last year. Revenue generated by our Agilent CrossLab business in the three and six months ended April 30, 2024 increased 4 percent and 5 percent, respectively, when compared to the same periods last year. Foreign currency movements for the three and six months ended April 30, 2024 had an overall unfavorable impact on revenue growth of 1 percentage point and no impact, respectively, when compared to the same periods last year.

Previous wording

Net income for the three months ended January 31, 2024 was $348 million compared to net income of $352 million for the corresponding period last year. In the three months ended January 31, 2024, cash provided by operations was $485 million compared to cash provided by operations of $296 million in the same period last year.

Current wording

Net income for the three and six months ended April 30, 2024 was $308 million and $656 million, respectively, compared to net income of $302 million and $654 million for the corresponding periods last year. In the six months ended April 30, 2024, cash provided by operations was $818 million compared to cash provided by operations of $694 million in the same period last year.

Previous wording

Dividends. During the three months ended January 31, 2024, we paid cash dividends of $0.236 per common share or $69 million on the company's common stock. During the three months ended January 31, 2023, we paid cash dividends of $0.225 per common share or $67 million on the company's common stock.

Current wording

Dividends. During the three and six months ended April 30, 2024, we paid cash dividends of $0.236 per common share or $69 million and $0.472 per common share or $138 million, respectively, on the company's common stock. During the three and six months ended April 30, 2023, we paid cash dividends of $0.225 per common share or $66 million and $0.450 per common share or $133 million, respectively, on the company's common stock.

Previous wording

2021 Repurchase Program. During the three months ended January 31, 2023, we repurchased and retired 499,000 shares for $75 million under this authorization. On March 1, 2023, the 2021 repurchase program was terminated and the remaining authorization of $339 million expired.

Current wording

2021 Repurchase Program. During the three and six months ended April 30, 2023, we repurchased and retired 162,399 shares for $24 million and 1 shares for $99 million, respectively, under this authorization. On March 1, 2023, the 2021 repurchase program was terminated and the remaining authorization of $339 million expired.

Previous wording

2023 Repurchase Program. On January 9, 2023, we announced that our board of directors had approved a share repurchase program (the "2023 repurchase program") designed, among other things, to reduce or eliminate dilution resulting from issuance of stock under the company's employee equity incentive programs. The 2023 repurchase program authorizes the purchase of up to $2.0 billion, excluding excise taxes, of our common stock at the company's discretion and has no fixed termination date. The 2023 repurchase program does not require the company to acquire a specific number of shares and may be suspended, amended or discontinued at any time. The 2023 repurchase program commenced on March 1, 2023, and also terminated and replaced the 2021 repurchase program. During the three months ended January 31, 2024, we repurchased and retired no shares under this authorization. As of January 31, 2024, we had remaining authorization to repurchase up to approximately $1.524 billion of our common stock under the 2023 repurchase program.

Current wording

2023 Repurchase Program. On January 9, 2023, we announced that our board of directors had approved a share repurchase program (the "2023 repurchase program") designed, among other things, to reduce or eliminate dilution resulting from issuance of stock under the company's employee equity incentive programs. The 2023 repurchase program authorizes the purchase of up to $2.0 billion, excluding excise taxes, of our common stock at the company's discretion and has no fixed termination date. The 2023 repurchase program does not require the company to acquire a specific number of shares and may be suspended, amended or discontinued at any time. The 2023 repurchase program commenced on March 1, 2023, and also terminated and replaced the 2021 repurchase program. During both the three and six months ended April 30, 2023, we repurchased and retired 443,690 shares for $61 million under this authorization. During both the three and six months ended April 30, 2024, we repurchased and retired 1.594 million shares for $230 million, excluding excise taxes of $1.0 million, under this authorization. As of April 30, 2024, we had remaining authorization to repurchase up to approximately $1.294 billion of our common stock under the 2023 repurchase program.

Previous wording

Looking forward, we continue to be focused on improving our customers’ experience, differentiating product solutions and productivity. While we anticipate a challenging macroeconomic environment, particularly in China, and an overall pressure on our customers' capital expenditures in the near-term, we remain optimistic about our long-term growth opportunities in all of our key end markets. We expect to continue to face inflationary pressures which we will continue to mitigate through targeted pricing and various other cost savings strategies.

Current wording

Looking forward, we continue to be focused on improving our customers’ experience, differentiating product solutions and productivity. While we anticipate a challenging macroeconomic environment, particularly in China, and an overall pressure on our customers' capital expenditures to continue in the near-term, we remain optimistic about our long-term growth opportunities in all of our key end markets. We expect to continue to face inflationary pressures which we will continue to mitigate through targeted pricing and various other cost savings strategies.

Previous wording

In connection with this plan, we have recorded approximately $3 million in restructuring and other related costs in the three months ended January 31, 2024, for a total of $49 million since inception. The restructuring plan costs include severance and other personnel costs associated with the workforce reduction. The consolidation of excess facilities includes accelerated depreciation expenses of right-of-use ("ROU") and machinery and equipment assets, and other facilities-related costs. The timing and scope of the workforce reductions will vary based on local legal requirements. These actions impact all three of our business segments. The costs associated with this restructuring plan have not been allocated to our business segments' results; however, each business segment will benefit from the future cost savings from these actions. When completed, the restructuring program is expected to result in the reduction of $80 million in annual cost of sales and operating expenses over the three business segments. While the majority of the workforce reduction was completed in the first quarter of 2024, we expect to substantially complete the remaining restructuring activities by the end of fiscal year 2024.

Current wording

In connection with this plan, we have recorded approximately $1 million and $4 million in restructuring and other related costs in the three and six months ended April 30, 2024, for a total of $50 million since inception. The restructuring plan costs include severance and other personnel costs associated with the workforce reduction. The consolidation of excess facilities includes accelerated depreciation expenses of right-of-use ("ROU") and machinery and equipment assets, and other facilities-related costs. The timing and scope of the workforce reductions will vary based on local legal requirements. These actions impact all three of our business segments. The costs associated with this restructuring plan have not been allocated to our business segments' results; however, each business segment will benefit from the future cost savings from these actions. When completed, the restructuring program is expected to result in the reduction of $80 million in annual cost of sales and operating expenses over the three business segments. While the majority of the workforce reduction was completed in the first quarter of 2024, we expect to substantially complete the remaining restructuring activities by the end of fiscal year 2024.

Previous wording

The restructuring and other related costs of $11 million at January 31, 2024, are recorded in other accrued liabilities on the condensed consolidated balance sheet and reflect estimated future cash outlays.

Current wording

The restructuring and other related costs of $6 million at April 30, 2024, are recorded in other accrued liabilities on the condensed consolidated balance sheet and reflect estimated future cash outlays.

Previous wording

Our revenues, costs and expenses, and monetary assets and liabilities and equity are exposed to changes in foreign currency exchange rates as a result of our global operating and financing activities. Foreign currency movements for the three months ended January 31, 2024 had an overall favorable impact on revenue of 1 percentage point when compared to the same period last year. When movements in foreign currency exchange rates have a positive impact on revenue, they will also have a negative impact by increasing our costs and expenses. We calculate the impact of movements in foreign currency exchange rates by applying the actual foreign currency exchange rates in effect during the last month of each quarter of the current year to both the applicable current and prior year periods. We hedge revenues, expenses and balance sheet exposures that are not denominated in the functional currencies of our subsidiaries on a short term and anticipated basis. We do experience some fluctuations within individual lines of the condensed consolidated statement of operations and balance sheet because our hedging program is not designed to offset the currency movements in each category of revenues, expenses, monetary assets and liabilities. Our hedging program is designed to hedge currency movements on a relatively short-term basis (up to a rolling twelve-month period). We may also hedge equity balances denominated in foreign currency on a long-term basis. To the extent that we are required to pay for all, or portions, of an acquisition price in foreign currencies, we may enter into foreign exchange contracts to reduce the risk that currency movements will impact the U.S. dollar cost of the transaction.

Current wording

Our revenues, costs and expenses, and monetary assets and liabilities and equity are exposed to changes in foreign currency exchange rates as a result of our global operating and financing activities. Overall, foreign currency movements for the six months ended April 30, 2024 had no impact on revenue growth when compared to the same period last year. Typically, when movements in foreign currency exchange rates have a positive impact on revenue, they will also have a negative impact by increasing our costs and expenses. We calculate the impact of movements in foreign currency exchange rates by applying the actual foreign currency exchange rates in effect during the last month of each quarter of the current year to both the applicable current and prior year periods. We hedge revenues, expenses and balance sheet exposures that are not denominated in the functional currencies of our subsidiaries on a short term and anticipated basis. We do experience some fluctuations within individual lines of the condensed consolidated statement of operations and balance sheet because our hedging program is not designed to offset the currency movements in each category of revenues, expenses, monetary assets and liabilities. Our hedging program is designed to hedge currency movements on a relatively short-term basis (up to a rolling twelve-month period). We may also hedge equity balances denominated in foreign currency on a long-term basis. To the extent that we are required to pay for all, or portions, of an acquisition price in foreign currencies, we may enter into foreign exchange contracts to reduce the risk that currency movements will impact the U.S. dollar cost of the transaction.

Previous wording

Revenue from products for the three months ended January 31, 2024 decreased 9 percent when compared to the same period last year. The product revenue decline in the three months ended January 31, 2024 was primarily driven by decreases in our liquid chromatography, mass spectrometry and cell analysis businesses partially offset by increases in our consumables and pathology businesses when compared to the same period last year. Overall, product revenue declined due to our customers' continued capital expenditure pressures and mostly impacted the pharmaceutical market within our life sciences and applied markets and diagnostics and genomics segments.

Current wording

Revenue from products for the three and six months ended April 30, 2024 decreased 12 percent and 10 percent, respectively, when compared to the same periods last year. The product revenue decline in the three and six months ended April 30, 2024 was primarily driven by decreases in our liquid chromatography, mass spectrometry and cell analysis businesses partially offset by increases in our consumables and pathology businesses when compared to the same periods last year. Overall, product revenue declined due to our customers' continued capital expenditure pressures and mostly impacted the pharmaceutical market within our life sciences and applied markets and diagnostics and genomics segments.

Previous wording

Services and other revenue for the three months ended January 31, 2024 increased 4 percent when compared to the same period last year. Services and other revenue consist of contract repair, preventative maintenance, compliance services, relocation services, installation services and consulting services related to the companion diagnostics and nucleic acid solutions businesses. For the three months ended January 31, 2024, service revenue increases reflected strong growth from contract repair and preventative maintenance services partly offset by declines in installation services related to the decline of the product revenues.

Current wording

Services and other revenue for the three and six months ended April 30, 2024 increased 1 percent and 2 percent, respectively, when compared to the same periods last year. Services and other revenue consist of contract repair, preventative maintenance, compliance services, relocation services, installation services and consulting services related to the companion diagnostics and nucleic acid solutions businesses. For the three and six months ended April 30, 2024, service revenue increases reflected strong growth from contract repair and preventative maintenance services partly offset by declines in installation services related to the decline of the product revenues.

Previous wording

Revenue in the life sciences and applied markets business for the three months ended January 31, 2024 decreased 10 percent when compared to the same period last year. Foreign currency movements for the three months ended January 31, 2024 had an overall favorable impact on revenue growth of 1 percentage point when compared to the same period last year. For the three months ended January 31, 2024, revenue declined in most of our end markets. We saw a significant decline in revenue in the pharmaceutical and chemical and advanced materials markets and a moderate decline in the diagnostics and clinical markets when compared to the same period last year. We saw modest revenue growth in the academia and government market when compared to the same period last year.

Current wording

Revenue in the life sciences and applied markets business for the three and six months ended April 30, 2024 decreased 14 percent and 12 percent, respectively, when compared to the same periods last year. Foreign currency movements for the three and six months ended April 30, 2024 had an overall unfavorable impact on revenue growth of 1 percentage point and no impact, respectively, when compared to the same periods last year. For the three and six months ended April 30, 2024, revenue declined in all of our end markets. We saw a significant decline in revenue in the pharmaceutical, food and chemical and advanced materials markets when compared to the same periods last year.

Previous wording

Revenue in the diagnostics and genomics business for the three months ended January 31, 2024, decreased 6 percent when compared to the same period last year. Foreign currency movements for the three months ended January 31, 2024 had a favorable impact on revenue growth of 1 percentage point when compared to the same period last year. For the three months ended January 31, 2024, we saw a significant decline in revenue in the pharmaceutical market due to lower sales in our cell analysis and nucleic acid solutions businesses when compared to the same period last year.

Current wording

Revenue in the diagnostics and genomics business for the three and six months ended April 30, 2024, decreased 9 percent and 7 percent, respectively, when compared to the same periods last year. Foreign currency movements for the three and six months ended April 30, 2024 had an unfavorable impact on revenue growth of 1 percentage point and no impact, respectively, when compared to the same periods last year. For the three and six months ended April 30, 2024, we saw a significant decline in revenue in the pharmaceutical market due to lower sales in our cell analysis and nucleic acid solutions businesses when compared to the same periods last year.

Previous wording

Revenue generated by Agilent CrossLab in the three months ended January 31, 2024, increased 6 percent when compared to the same period last year. Foreign currency movements for the three months ended January 31, 2024 had an overall favorable impact on revenue growth of 1 percentage point when compared to the same period last year. For the three months ended January 31, 2024, we saw strong revenue growth across all of our end markets led by the diagnostics and clinical, pharmaceutical, chemicals and advanced materials and academia and government markets when compared to the same period last year.

Current wording

Revenue generated by Agilent CrossLab in the three and six months ended April 30, 2024, increased 4 percent and 5 percent, respectively, when compared to the same periods last year. Foreign currency movements for the three and six months ended April 30, 2024 had an overall unfavorable impact on revenue growth of 1 percentage point and no impact, respectively, when compared to the same periods last year. For the three months ended April 30, 2024, we saw revenue growth across most of our end markets led by strong revenue growth in the pharmaceutical and moderate revenue growth in the chemical and applied materials and environmental and forensics markets when compared to the same period last year. For the six months ended April 30, 2024, we saw revenue growth across all of our end markets led by strong revenue growth in the pharmaceutical, chemical and applied materials and environmental and forensics markets when compared to the same period last year.

Previous wording

Selling, general and administrative expenses for the three months ended January 31, 2024 decreased 5 percent when compared to the same period last year. The decrease in the three months ended January 31, 2024, was due to lower intangible amortization expenses, transformational initiatives and variable pay partially offset by higher wages and the unfavorable impact of currency movements. In addition, selling, general and administrative expenses decreased due to savings from restructuring and business exit activities that occurred in the fourth quarter of fiscal year 2023.

Current wording

Selling, general and administrative expenses for the three and six months ended April 30, 2024 decreased 8 percent and 7 percent, respectively, when compared to the same periods last year. The decrease in the three and six months ended April 30, 2024, was due to lower intangible amortization expenses, variable pay and transformational initiatives partially offset by higher share-based compensation expense and the unfavorable impact of currency movements. In addition, selling, general and administrative expenses decreased due to savings from restructuring and business exit activities that occurred in the fourth quarter of fiscal year 2023.

Previous wording

Interest income for the three months ended January 31, 2024 and 2023 was $18 million and $9 million, respectively. The increase in interest income in 2024 was primarily due to higher cash balances and increases in interest rates related to our cash and cash equivalents.

Current wording

Interest income for the three months ended April 30, 2024 and 2023 was $19 million and $12 million, respectively. Interest income for the six months ended April 30, 2024 and 2023 was $37 million and $21 million, respectively. The increase in interest income in 2024 was primarily due to higher cash balances and increases in interest rates related to our cash and cash equivalents.

Previous wording

At January 31, 2024, our headcount was approximately 17,700 as compared to approximately 18,300 at January 31, 2023.

Current wording

At April 30, 2024, our headcount was approximately 17,600 as compared to approximately 18,400 at April 30, 2023.

Previous wording

In the three months ended January 31, 2024, other income and expense, net includes a net gain of $3 million on equity securities. In the three months ended January 31, 2024, other income and expense, net also includes $8 million of income related to foreign currency translation reclassified out of accumulated comprehensive income (loss) and $7 million of income related to the defined benefit retirement and post-retirement benefit plans (interest cost, expected return on assets, amortization of net actuarial (gain) loss and prior service credits). In the three months ended January 31, 2024, other income and expense, net also includes income of $3 million related to the provision of site service costs to, and lease income from Keysight Technologies, Inc. The costs associated with these services are reported within income from operations.

Current wording

In the three and six months ended April 30, 2024, other income and expense, net includes a net gain of $1 million and $4 million, respectively, on equity securities and $8 million and $14 million, respectively, of income related to the defined benefit retirement and post-retirement benefit plans (interest cost, expected return on assets, amortization of net actuarial (gain) loss and prior service credits). In the three and six months ended April 30, 2024, other income and expense, net also includes income of $3 million and $6 million, respectively, related to the provision of site service costs to, and lease income from Keysight Technologies, Inc. The costs associated with these services are reported within income from operations. In the six months ended April 30, 2024, other income and expense, net also includes $8 million of income related to foreign currency translation reclassified out of accumulated comprehensive income (loss).

Previous wording

In the three months ended January 31, 2023, other income and expense, net includes a net loss on equity securities of $10 million. In the three months ended January 31, 2023 other income and expense, net also includes income of $3 million related to the provision of site service costs to, and lease income from Keysight Technologies, Inc. The costs associated with these services are reported within income from operations.

Current wording

In the three and six months ended April 30, 2023, other income and expense, net includes a net loss on equity securities of $4 million and $15 million, respectively. In the three and six months ended April 30, 2023, other income and expense, net includes income of $3 million and $7 million, respectively, related to the defined benefit retirement and post-retirement benefit plans (interest cost, expected return on assets, amortization of net actuarial (gain) loss and prior service credits). In the three and six months ended April 30, 2023 other income and expense, net also includes income of $3 million and $6 million, respectively, related to the provision of site service costs to, and lease income from Keysight Technologies, Inc. The costs associated with these services are reported within income from operations.

Previous wording

For the three months ended January 31, 2023, our income tax expense was $58 million with an effective tax rate of 14.1 percent. For the three months ended January 31, 2023, our effective tax rate and the resulting provision for income taxes were impacted by the excess tax benefits from stock-based compensation of $12 million along with the expiration of various foreign statutes of limitations which resulted in the recognition of previously unrecognized tax benefits of $7 million.

Current wording

For the three and six months ended April 30, 2023, our income tax expense was $75 million with an effective tax rate of 19.9 percent and $133 million with an effective tax rate of 16.9 percent, respectively. For the three months ended April 30, 2023, there were no significant discrete items. For the six months ended April 30, 2023, our effective tax rate and the resulting provision for income taxes were impacted by the excess tax benefits from stock-based compensation of $13 million along with the expiration of various foreign statutes of limitations which resulted in the recognition of previously unrecognized tax benefits of $9 million.

Previous wording

In the first quarter of fiscal year 2024, we announced a change in our operating segments to move our cell analysis business from our life sciences and applied markets segment to our diagnostics and genomics operating segment in order to further strengthen growth opportunities for both organizations. Following this reorganization, we continue to have three business segments comprised of life sciences and applied markets, diagnostics and genomics and Agilent CrossLab, each of which continues to comprise a reportable segment. We are reporting under this new structure beginning with this Quarterly Report on Form 10-Q for the period ended January 31, 2024. All historical financial segment information has been recast to conform to this new presentation in our financial statements and accompanying footnotes. There was no change to our Agilent CrossLab business segment.

Current wording

In the first quarter of fiscal year 2024, we announced a change in our operating segments to move our cell analysis business from our life sciences and applied markets segment to our diagnostics and genomics operating segment in order to further strengthen growth opportunities for both organizations. Following this reorganization, we continue to have three business segments comprised of life sciences and applied markets, diagnostics and genomics and Agilent CrossLab, each of which continues to comprise a reportable segment. We began reporting under this new structure beginning with the Quarterly Report on Form 10-Q for the period ended January 31, 2024. All historical financial segment information has been recast to conform to this new presentation in our financial statements and accompanying footnotes. There was no change to our Agilent CrossLab business segment.

Previous wording

Geographically, revenue for the three months ended January 31, 2024 decreased 15 percent in the Americas with no currency impact, decreased 6 percent in Europe with a 4 percentage point favorable currency impact and decreased 10 percent in Asia Pacific with a 1 percentage point unfavorable currency impact. The revenue decline in the Americas was driven by weakness in our liquid chromatography, liquid chromatography mass spectrometry and gas chromatography mass spectrometry businesses partially offset by strength in the consumables business when compared to the same period last year. The revenue decline in Asia Pacific was also driven by lower demand in China within our liquid chromatography, liquid chromatography mass spectrometry and gas chromatography mass spectrometry businesses partially offset by strength in the consumables business when compared to the same period last year. The revenue decline in Europe was driven by weakness in our liquid chromatography business partially offset by strength in the consumables business when compared to the same period last year.

Current wording

Revenue for the six months ended April 30, 2024 decreased 12 percent in the Americas with no currency impact, decreased 7 percent in Europe with a 3 percentage point favorable currency impact and decreased 14 percent in Asia Pacific with a 1 percentage point unfavorable currency impact when compared to the same period last year. The revenue decline in the Americas was driven by weakness in our liquid chromatography and liquid chromatography mass spectrometry businesses partially offset by strength in the consumables business when compared to the same period last year. The revenue decline in Europe was driven by weakness in our liquid chromatography, gas chromatography and gas chromatography mass spectrometry businesses partially offset by strength in the consumables business when compared to the same period last year. The revenue decline in Asia Pacific was driven by lower demand in China within our liquid chromatography, liquid chromatography mass spectrometry and gas chromatography mass spectrometry businesses when compared to the same period last year.

Previous wording

For the three months ended January 31, 2024, revenue declined across all end markets except academia and government. Revenue in the pharmaceutical market declined significantly due to weakness in our liquid chromatography and liquid chromatography mass spectrometry businesses partially offset by strength in our consumables business when compared to the same period last year. Revenue in the chemicals and advanced materials market declined significantly due to weakness in our spectroscopy and liquid chromatography businesses partially offset by strength in our consumables businesses when compared to the same period last year. Revenue in the diagnostics and clinical market declined significantly due to weakness in our liquid chromatography mass spectrometry, and liquid chromatography businesses partially offset by strength in our consumables business when compared to the same period last year. Modest revenue growth in the academia and government market was driven by strength in our spectrometry and remarketed instruments businesses partially offset by weakness in our liquid chromatography mass spectrometry and liquid chromatography businesses when compared to the same period last year.

Current wording

For the six months ended April 30, 2024, revenue declined across all end markets. Revenue in the pharmaceutical market declined significantly due to weakness in our liquid chromatography and liquid chromatography mass spectrometry businesses when compared to the same period last year. Revenue in the chemicals and advanced materials market declined significantly due to weakness in our liquid chromatography and spectroscopy businesses partially offset by strength in our consumables businesses when compared to the same period last year. Revenue in the food market declined significantly due to weakness in our liquid chromatography, spectroscopy and gas chromatography mass spectrometry businesses partially offset by strength in our consumables business when compared to the same period last year

Previous wording

Looking forward, despite the challenging macroeconomic environment, our customers' capital expenditure pressures and geopolitical uncertainties, we are optimistic about our long-term growth opportunities in the life sciences and applied markets as our broad portfolio of products and solutions are well suited to address customer needs. While we anticipate continued volatility in our markets, we expect long term growth across our end markets as we continue to invest in expanding and improving our applications and solutions portfolio.

Current wording

Looking forward, despite the challenging macroeconomic environment, our customers' capital expenditure pressures and geopolitical uncertainties, we are optimistic about our long-term growth opportunities in the life sciences and applied markets as our broad portfolio of products and solutions are well suited to address customer needs. We will continue to invest in expanding and improving our applications and solutions portfolio.

Previous wording

Income from operations for the three months ended January 31, 2024, decreased $64 million or 22 percent on a corresponding revenue decrease of $97 million.

Current wording

Income from operations for the three and six months ended April 30, 2024, decreased $58 million or 24 percent and $122 million or 22 percent, respectively, on a corresponding revenue decrease of $120 million and $217 million, respectively.

Previous wording

Geographically, revenue for the three months ended January 31, 2024 decreased 10 percent in the Americas with no currency impact, increased 2 percent in Europe with a 3 percentage point favorable currency impact and decreased 5 percent in Asia Pacific with a 1 percentage point unfavorable currency impact compared to the same period last year. For the three months ended January 31, 2024, the revenue decline in the Americas was driven by our cell analysis, genomics and nucleic acid solutions businesses. Revenue increased in Europe due to strong performance in our pathology and biomolecular analysis businesses partially offset by a decline in our cell analysis business. The revenue decline in Asia Pacific was driven by our cell analysis business.

Current wording

Revenue for the six months ended April 30, 2024 decreased 11 percent in the Americas with no currency impact, increased 3 percent in Europe with a 2 percentage point favorable currency impact and decreased 13 percent in Asia Pacific with a 3 percentage point unfavorable currency impact. For the six months ended April 30, 2024, the revenue decline in the Americas was primarily driven by our cell analysis, genomics and nucleic acid solutions businesses. Revenue increased in Europe due to strong performance in our pathology, genomics and biomolecular analysis businesses partially offset by a decline in our cell analysis business. The revenue decline in Asia Pacific was driven by our cell analysis business which was partially offset by strong performance in pathology.

Previous wording

For the three months ended January 31, 2024, revenue performance in the pharmaceutical market declined significantly due to our cell analysis and nucleic acid solutions businesses. We also saw revenue decline in the diagnostics and clinical markets primarily from our cell analysis and genomics businesses when compared to the same period last year. Revenue in the academia and government markets grew modestly due to our biomolecular analysis and cell analysis businesses.

Current wording

For the three months ended April 30, 2024, revenue performance in the pharmaceutical market declined significantly due to our cell analysis, genomics and nucleic acid solutions businesses when compared to the same period last year. We also saw a modest revenue decline in the diagnostics and clinical markets primarily from our genomics and cell analysis businesses which was partially offset by strong performance in our biomolecular analysis and pathology businesses. Revenue in the academia and government markets declined due to our cell analysis business.

Previous wording

Looking forward, despite the challenging macroeconomic environment, geopolitical uncertainties and the short-term unfavorable market conditions affecting our genomics and cell analysis businesses, we are optimistic about our long-term growth opportunities in our end markets and continue to invest in expanding and improving our applications and solutions portfolio. We remain positive about our growth in our end markets as our product portfolio around OMNIS and PD-L1 assays continues to gain strength with our customers in clinical oncology applications, and our next generation sequencing related solutions continue to be adopted. Market demand in the nucleic acid solutions business related to therapeutic oligo programs continues, and with the expansion of our nucleic acid solutions production facility in Frederick, Colorado, we are well positioned to serve more of the market demand. We will also continue to invest in research and development and seek to expand our position in developing countries and emerging markets.

Current wording

Looking forward, despite the challenging macroeconomic environment, geopolitical uncertainties and the short-term unfavorable market conditions affecting our genomics and cell analysis businesses, we are optimistic about our long-term growth opportunities in our end markets and continue to invest in expanding and improving our applications and solutions portfolio. We remain positive about our growth in our end markets as our product portfolio around OMNIS and PD-L1 assays continues to gain strength with our customers in clinical oncology applications, and our next generation sequencing related solutions continue to be adopted. Market demand in the nucleic acid solutions business related to therapeutic oligo programs continues, and with the ongoing expansion of our nucleic acid solutions production facility in Frederick, Colorado, we are well positioned to serve more of the market demand. We will also continue to invest in research and development and seek to expand our position in developing countries and emerging markets.

Previous wording

Research and development expenses for the three months ended January 31, 2024, decreased 7 percent when compared to the same period last year. Research and development expenses for the three months ended January 31, 2024 decreased primarily due to savings from the exit of our resolution bioscience business and the restructuring activities that occurred in the fourth quarter of fiscal year 2023.

Current wording

Research and development expenses for the three and six months ended April 30, 2024, decreased 12 percent and 9 percent, respectively, when compared to the same periods last year. Research and development expenses for the three and six months ended April 30, 2024 decreased primarily due to savings from the exit of our Resolution Bioscience business and the restructuring activities that occurred in the fourth quarter of fiscal year 2023 and lower variable pay.

Previous wording

Selling, general and administrative expenses for the three months ended January 31, 2024, decreased 6 percent when compared to the same period last year. Selling, general and administrative expenses for the three months ended January 31, 2024 decreased due to less expenses attributed to the exit of our resolution bioscience business and lower commissions in our cell analysis business partially offset by higher wages. In addition, selling, general and administrative expenses decreased due to savings from restructuring activities that occurred in the fourth quarter of fiscal year 2023.

Current wording

Selling, general and administrative expenses for the three and six months ended April 30, 2024, decreased 7 percent in both periods when compared to the same periods last year. Selling, general and administrative expenses for the three and six months ended April 30, 2024 decreased due to expense reductions attributed to the exit of our Resolution Bioscience business, savings from restructuring activities that occurred in the fourth quarter of fiscal year 2023 and lower variable pay partially offset by higher infrastructure costs.

Previous wording

Operating margin for products and services for the three months ended January 31, 2024 was relatively flat when compared to the same period last year. Operating margin for products and services for the three months ended January 31, 2024, increased due to savings from restructuring and business exit activities that occurred in the fourth quarter of fiscal year 2023; these savings were offset by lower revenue, higher wages and higher infrastructure costs.

Current wording

Operating margin for products and services for the three and six months ended April 30, 2024 was relatively flat in both periods when compared to the same periods last year. Operating margin for products and services for the three and six months ended April 30, 2024, increased due to savings from restructuring and business exit activities that occurred in the fourth quarter of fiscal year 2023 and lower variable pay offset by lower revenue, higher infrastructure costs and the unfavorable impact of currency movements.

Previous wording

Geographically, revenue for the three months ended January 31, 2024 increased 6 percent in the Americas with a 1 percentage point favorable currency impact, increased 14 percent in Europe with a 6 percentage point favorable currency impact and increased 1 percent in Asia Pacific with a 1 percentage point unfavorable currency impact compared to the same period last year. For the three months ended January 31, 2024, revenue growth in all three regions reflected consistent high demand for repair, maintenance and compliance services across the entire portfolio. The revenue growth was partially offset by weakness in installation revenue, mostly in the Asia Pacific region.

Current wording

Geographically, revenue for the three months ended April 30, 2024 increased 9 percent in the Americas with a 1 percentage point favorable currency impact, increased 7 percent in Europe with a 1 percentage point favorable currency impact and decreased 5 percent in Asia Pacific with a 4 percentage point unfavorable currency impact compared to the same period last year. For the three months ended April 30, 2024, revenue in all three regions reflected consistent high demand for repair and maintenance services across the entire portfolio. In Americas and Europe, revenue growth was partially offset by weakness in installation revenue. In the Asia Pacific region the weakness in installation revenue more than offset the revenue growth seen from repair and maintenance services.

Previous wording

For the three months ended January 31, 2024, we saw strong revenue growth across all of the end markets, mainly driven by our spectroscopy, gas chromatography and liquid chromatography businesses, when compared to the same period last year.

Current wording

For the three and six months ended April 30, 2024, we saw strong revenue growth across all of the end markets, mainly driven by our spectroscopy, gas chromatography and liquid chromatography businesses, when compared to the same periods last year.

Previous wording

Gross margin for the three months ended January 31, 2024 increased 2 percentage points when compared to the same period last year. Gross margin for the three months ended January 31, 2024 was impacted bytargeted price increases, well-controlled variable service delivery costs and the favorable impact of currency movements which were partially offset by higher wages.

Current wording

Gross margin for the three and six months ended April 30, 2024 increased 3 percentage points in both periods when compared to the same periods last year. Gross margin for the three and six months ended April 30, 2024 was impacted by targeted price increases, well-controlled variable service delivery costs and lower variable pay. In addition, gross margin was impacted by savings from restructuring activities that occurred in the fourth quarter of fiscal year 2023.

Previous wording

Research and development expenses for the three months ended January 31, 2024, were flat when compared to the same period last year. Research and development expenses for the three months ended January 31, 2024 were flat due to higher program investments in our digital lab offset by lower consumables and travel expenses when compared to the same period last year.

Current wording

Research and development expenses for the three and six months ended April 30, 2024 were flat in both periods when compared to the same periods last year. Research and development expenses for the three and six months ended April 30, 2024 were flat due to savings from restructuring activities that occurred in the fourth quarter of fiscal year 2023 and lower variable pay offset by higher program investments.

Previous wording

Selling, general and administrative expenses for the three months ended January 31, 2024 were flat when compared to the same period last year. Selling, general and administrative expenses for the three months ended January 31, 2024 were flat mainly due to higher wages, commissions and the unfavorable impact of currency, offset by lower travel costs and other discretionary spending.

Current wording

Selling, general and administrative expenses for the three and six months ended April 30, 2024 were relatively flat in both periods when compared to the same periods last year. Selling, general and administrative expenses for the three and six months ended April 30, 2024 were flat mainly due to higher wages and commissions offset by lower travel costs and other discretionary spending. In addition, selling, general and administrative expenses decreased due to savings from restructuring activities that occurred in the fourth quarter of fiscal year 2023.

Previous wording

Operating margin for products and services for the three months ended January 31, 2024 increased 3 percentage points when compared to the same period last year. Operating margin for the three months ended January 31, 2024 increased mostly driven by targeted price increases that improved margins in addition to flat expenses.

Current wording

Operating margin for products and services for the three and six months ended April 30, 2024 increased 4 percentage points in both periods when compared to the same periods last year. Operating margin for the three and six months ended April 30, 2024 increased mostly driven by targeted price increases and well-controlled variable service delivery costs that improved margins in addition to flat expenses.

Previous wording

Income from operations for the three months ended January 31, 2024 increased $19 million or 19 percent on a corresponding revenue increase of $24 million.

Current wording

Income from operations for the three and six months ended April 30, 2024 increased $20 million or 19 percent and $39 million or 19 percent, respectively, on a corresponding revenue increase of $15 million and $39 million, respectively.