Agilent Technologies, Sonoma County's largest high-tech employer, saw sales continue to slow this summer but executives at its Santa Rosa unit said there are signs that business is picking up.
The company, which announced plans in May to lay off 450 workers around the globe, reported that profits fell to $168 million in the quarter ending July 31, down 31 percent from a year ago.
Sales fell 4 percent, to $1.7 billion.
Revenues in the electronic measurements unit, which is the main focus of the company's Santa Rosa location, tumbled 17 percent during the same period, largely because the company lost a contract with a wireless manufacturer in a previous quarter. Slower defense spending in the United States also contributed to the decline, said Guy Séné, president of the Electronic Measurements Group.
“All in all, I think it was a solid quarter within this environment that is extremely volatile and difficult to predict,” Séné said. “While orders and revenue at the company were down, we were still able to perform by being very proactive and managing our expenses.”
In the defense sector, the company was successful outside the U.S., making good deals in Europe and Japan, Séné said. But stateside, the ongoing sequestration has hurt the budgets of the Defense Department and the companies that serve as its vendors, he said.
Defense spending tends to increase in the fourth quarter when government agencies have to finish spending their budgets, Séné said. Even so, he was cautious about the future.
“In terms of business, we expect a difficult quarter,” Séné said. “The same uncertainties that I mentioned are still here.”
In addition, orders for testing equipment from personal computer and notebook manufacturers slowed as those companies faced increasing competition from tablets and netbooks, which require different testing technologies.