SANTA ROSA — Santa Rosa will soon be home to a multi-billion-dollar international electronics measurement technology company following Agilent Technologies' (NYSE: A) decision to spin off the division that is headquartered in the North Bay, company officials said.
[caption id="attachment_80089" align="alignleft" width="179"] Guy Sene[/caption]
Agilent will rename the electronic measurement spinoff, which will maintain its current headquarters in Santa Rosa, said division president Guy Sene. The remaining company will retain the name "Agilent" and focus on life sciences and diagnostic medical technology.
Thursday's spinoff announcement came nearly 15 years after Agilent's own spinoff from Hewlett Packard, and follows what Agilent chief executive William Sullivan called an increasing evolution towards "two distinct investment and business opportunities."
"The big change is that now, going forward, we will have a clear leader who is passionate about electronic measurement," Mr. Sene said.[poll id="88"]
Focused on technology that measures wireless signal frequency and hard-wired data networks, the electronic measurement division has a total of 9,500 employees and projected revenue of $2.9 billion for the fiscal year ending Oct. 31. Around 1,200 of those employees are based in Santa Rosa.
The life science division, meanwhile, has around 11,500 employees and projected revenue of $3.9 billion for the fiscal year. It focuses on technology for advanced medical imaging devices, chemical analysis and genetics.
Agilent cited the ability to independently manage the two operations as a driver of the decision, noting that the two divisions will now be more focused on devoting revenue back towards their own operations instead of capitalizing other operating groups.
The electronic measurement group most recently reported a 17 percent decrease in third-quarter revenue compared to the same period in fiscal year 2012, but an 18.5 percent operating margin that topped the company as a whole. Agilent reported a total of $1.65 billion in revenue for that quarter, down 4 percent from the prior year but higher than analyst expectations.