Agilent Slips on Acquisition Plan

Agilent Technologies was down 6 U.S. cents at $34.69 in morning trading Monday after the company said it would buy some assets and intellectual property from Wavefront Research, a privately held optical component company.

Agilent, a Palo Alto, California-based maker of testing equipment, said the purchase is part of its "ongoing investment in the high-growth, fiber-optic communications area."

Said Agilent vice president John O'Rourke: "This acquisition continues Agilent's focus on fiber-optic technology used in communications networks."

Wavefront has five engineers that work on developing optical systems and technologies, Agilent said.

Agilent, which was spun off from high-tech giant Hewlett-Packard (NYSE: HPQ) in 1999, has also recently acquired MVT, an Ireland-based testing equipment manufacturer.

For the first quarter ended January 31st, Agilent, which provides testing services for the communications, electronics and life sciences industry, reported revenue of $2.8 billion. Earnings before goodwill and other items totaled $237 million, or 51 cents per share.

The company said that orders grew at a slower pace during the quarter because of a weaker economy and lower demand for wireless and semiconductor test products, as well as wireless and imaging components.

Optical testing and optical components were among the quarter's stronger performers, Agilent said.

The company said it expects full-year revenue growth of 10 to 15 percent, with results held back by a "high level of uncertainty" in its markets and in the global economy. However, Agilent says it has taken steps to cut costs and position itself for growth in the future.