PALO ALTO, Calif.--Hampered by shortages of parts for test and measurement gear, Agilent Technologies Inc. here has warned investors that it will fall short of Wall Street's consensus for earnings in the company's current fiscal quarter, which ends July 31.
The spin-off from Hewlett-Packard Co. said demand for semiconductors, testers, and measurement systems remains strong, but the company is having trouble shipping products to customers because of capacity constraints and part shortages. Agilent said it now expects earnings per share for in the fiscal third quarter to be between $0.18 and $0.22 cents vs. Wall Street's estimate of $0.35 per share. Last year, in the same quarter, Agilent posted earnings of $0.36 per share.
"We're very frustrated because we're not fully satisfying the unprecedented demand in our communications businesses," said Edward W. (Ned) Barnholt, president and chief executive officer of Agilent. "People throughout the organization are working very hard to ramp shipments, but with less than two weeks left in the quarter and the difficulties in obtaining critical parts, it's clear that revenue will come in below plan."
The company also said demand in its healthcare systems business remained weak, particularly in the U.S. patient-monitoring market. New products in cardiology imaging are slightly offsetting this weakness, according to Agilent. The Palo Alto company said its healthcare-solutions business is likely to post an operating loss for the quarter that is at least equal to last quarter's operating loss of $30 million.
Because of parts shortages in the test-and-measurement business, the company said this unit is falling short of revenue and profit plans, particularly for radio-frequency (RF) and microwave products.
Agilent is scheduled to report its fiscal third quarter results on Aug. 17.