Agilent Technologies, a leading supplier of electronic test and measurement products is facing serious threats from the downturn of telecom, semiconductor and associated semiconductor capital equipment markets. It has taken several steps to ward off these threats. It believes that it has the cost structure as well as innovative products to compete effectively. But as competition increases, it remains to be seen how Agilent will cope with uncertainty in the years to come. We had a very good finish to a very tough year. Orders, revenues and earnings all came in above expectations. We met our commitment to achieve an operating break-even cost structure of $1.45 bn and earned an attractive profit on the additional revenue we realized. - Ned Barnholt, President and CEO, Agilent

Agilent Technologies was formed in 1999 when Hewlett-Packard (HP) spun-off its measurement business. Agilent's core products had formed the original business of William Hewlett (Hewlett) and David Packard (Packard) who had started HP in 1939 as a test and measurement equipment maker. After starting off with an audio oscillator for testing sound equipment, they had moved into computer peripherals.

Agilent had become a leading manufacturer of scientific instruments and analysis equipment2. It was the leading supplier of electronic test and measurement products, including data generators, multimeters, and oscilloscopes. The company also made an array of semiconductor products, such as light-emitting diodes, optoelectronic components, and chipsets. Its life sciences and chemical analysis unit manufactured laboratory equipment and other scientific instruments. Agilent also offered a wide range of services, such as consulting, equipment repair and calibration, and professional engineering services. Agilent's customers included global giants such as Cisco, Dow Chemical, GlaxoSmithKline, Intel, Merck, and Samsung. Customers located outside the US accounted for 60% of sales.