Tech and Web NEWS

Agilent Technologies Appoints Ron Nersesian Senior Vice President and General Manager & cut Another 2,700 Jobs

By Amarendra Bhushan for CEOWORLD Magazine Updated:March 26, 2009

Agilent Technologies Inc., plans to cut 2,700 employees as revenue in its electronic measurement unit falls 30 percent to its lowest level in 10 years.

Santa Clara-based Agilent (NYSE:A), which employs more than 200 in Roseville, said the restructuring effort will cost $160 million, but its plans will save $300 milion a year in the electronic measurement part of its business and it will move to cut another $10 million in its chip testing unit.

The company projected revenue in the semiconductor and board test segment is expected to drop 50 percent from 2008 levels, about 65 percent below peak volume.

Agilent also said it has temporarily suspended its share repurchase program until the end of the 2009 fiscal year.

“We have been very aggressive to date in addressing the downturn in electronic measurement markets,” said Bill Sullivan, Agilent president and chief executive. “However, business remains severely depressed, and there are no prospects for a meaningful recovery in the foreseeable future. Therefore, we have no choice but to resize our electronic measurement businesses for the realities of the marketplace.”

Last month, Agilent reported that its fiscal 2009 first-quarter revenues had dropped 16 percent year over year to $1.17 billion, and its profit fell 47 percent to $64 million, or $.18 per share. Its Bio-Analytical Measurement revenues fell 1 percent year over year, making that segment a relative bright spot for the firm.

In a separate release, Agilent said it appointed Ron Nersesian as senior vice president and general manager of the company’s Electronic Measurement Group. Under the new organization, Nersesian will oversee all business operations of both the Electronic Measurement as well as Semiconductor & Board Test segments. 49-year-old Nersesian has 27 years of experience in engineering, marketing and general management at Agilent, Hewlett-Packard Co. and other high-tech companies.

Agilent Technologies Inc. (NYSE: A) has named Ron Nersesian senior vice president and general manager of the company’s Electronic Measurement Group (EMG). Nersesian is currently vice president and general manager of EMG’s Wireless Business Unit (WBU), Agilent’s largest business unit with operations in the U.S., Europe and Asia. He is based in Santa Rosa, Calif.

EMG is comprised of three business units: WBU, Network & Digital Solutions, and Electronic Instruments, as well as Sales, Service and Support. Under the new organization, Nersesian will oversee all business operations of both the Electronic Measurement (EM) and Semiconductor & Board Test (SBT) segments.

Agilent president and CEO Bill Sullivan said, “Ron’s experience and strong record of performance make him ideally qualified to lead Agilent’s Electronic Measurement Group, particularly as we navigate through difficult economic times.”

Nersesian, 49, has 27 years of experience in engineering, marketing and general management at Agilent, Hewlett-Packard Company and other high-tech companies.

Nersesian earned a Bachelor of Science degree in electrical engineering from Lehigh University in Pennsylvania, and an MBA from New York University’s School of Business.

Agilent Technologies Inc. (NYSE: A) today announced a major restructuring of its Electronic Measurement businesses in response to the most severe global downturn in the company’s history. Fiscal 2009 revenue in the company’s Electronic Measurement Segment is expected to be down roughly 30 percent from 2008 to the lowest level in the company’s 10-year history. Revenue in the Semiconductor & Board Test Segment is expected to be down over 50 percent from last year and off 65 percent from its peak volume.

“We have been very aggressive to date in addressing the downturn in electronic measurement markets,” said Bill Sullivan, Agilent president and chief executive officer. “However, business remains severely depressed, and there are no prospects for a meaningful recovery in the foreseeable future. Therefore, we have no choice but to resize our electronic measurement businesses for the realities of the marketplace.”

The company announced it would reduce costs in its Electronic Measurement Segment by an annualized $300 million over the course of the next four quarters, sizing the Segment to achieve a 12 percent operating margin and a 21 percent ROIC at annualized revenues of $2.3 billion. It also announced a further restructuring of its Semiconductor & Board Test Segment to reduce annual costs by an additional $10 million. This restructuring will affect approximately 2,700 employees and have a cash cost of about $160 million.

Said Sullivan, “For Agilent to realize its full potential, we must have a financially healthy company and a solidly profitable Electronic Measurement business. We will move quickly to resize the EM businesses to the new business levels, align resources to the best market opportunities, and position the company for the new economic environment.”

In order to fully fund the restructuring and conserve cash in an environment of severely constrained financial markets, the company also announced it was temporarily suspending its share repurchase program until the end of its 2009 fiscal year.

Like this article! ‹ Interview: Elżbieta Bieńkowska Minister of Regional Development, Poland What is IQ Hedge Multi-Strategy Tracker ETF (QAI)? ›
Share this Post: Get It Delivered To Your Inbox