PALO ALTO – Agilent’s first-quarter revenues fell 16% year-over-year to $1.16 billion. Operating profits were down $69 million.

Semiconductor and board test sales were down 49% from last year to $45 million. Electronic measurement was down 23%. Semiconductor equipment and board test orders were $32 million, down 66% from last year.

By region, revenues in the Americas were off 10%, Europe was down 21% and Asia was down 18% from a year ago.

Cash flow from operations was $17 million during the period, while return on invested capital fell eight points to 11%. Gross margins fell about 100 basis points to 54.3% overall, while semiconductor and board test gross margins were down 13 points to 38%.

On a conference call yesterday with analysts, the company announced a global restructuring that will pare 600 jobs worldwide and save about $150 million in annual expenses.

Asked during the call to quantify the board inspection businesses Agilent is exiting, CEO and president Bill Sullivan responded, “Honestly it is very little at the moment because there is a literal buyer strike among all contract manufacturers for virtually any equipment, so it is [minimal] at this point.”

[F]or the second year in a row, [the inspection] business has been down and the reality is the customer, again the customer just does what their [OEM] customers say. The idea of spending money for inspection, particularly x-ray inspection, vs. the risk of warranty or failure … people are opting to do less inspection in this environment.”

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