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Agilent stock plunges on 3Q warning
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July 20, 2000: 5:54 p.m. ET
Company cites parts shortages and weak demand for missing target
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NEW YORK (CNNfn) - Agilent Technologies Inc. stock plunged 25 percent in after hours trading Thursday after the company announced that it expects to miss Wall Street's third-quarter earnings estimate of 35 cents a share because of parts shortages.
Its stock was down 18 points at 55 in after hours trading on MarketXT shortly after 7 p.m. ET, following the announcement after the bell.
The Palo Alto, Calif.-based producer of test measurement and semiconductor equipment said it now expects to post earnings of between 18 cents and 22 cents a share when it reports third-quarter results on Aug. 17.
 A shortage of parts has caused a backlog of orders, which will affect revenue for the quarter, said Edward Barnholt, Agilent's president and chief executive officer.
The company, which has annual revenue of $8.3 billion, also cited weak demand for patient monitoring equipment in the United States. It expects at least a $30 million operating loss for the quarter, the same number it posted in the year-ago quarter.
Sales in its chemical analysis division are also weaker than expected.
"We're very frustrated because we're not fully satisfying the unprecedented demand in our communications businesses," Barnholt said. "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."
Barnholt did say he feels comfortable that Agilent will meet fourth-quarter estimates of 39 cents a share as new initiatives are put in place.
Agilent formed in November, 1999 when computer giant Hewlett-Packard split off 15 percent of its measurement business to the public. The remainder was distributed to shareholders earlier this year.
During 2000, Agilent acquired Salient 3's wireless subsidiary, SAFCO Technologies, for $120 million.
Shares of Agilent (A: Research, Estimates) fell 7/8 to close at 73-3/16 in the regular trading session Thursday. 
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Agilent
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