Agilent Technologies Q4 2021 Earnings Call Transcript

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Provided by Quartr
November 21, 2021

There are 14 speakers on the call.

Operator

Good afternoon, and welcome to the Agilent Technologies 4th Quarter Earnings Conference Call. My name is Bethany, and I will be the operator for today's call. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end. And now, I'd like to introduce you to the host for today's call, Paramit Ahuja, Vice President of Investor Relations. Sir, please go ahead.

Speaker 1

Thank you, Bethany, and welcome everyone to Agilent's 4th quarter conference call for fiscal year 2021. With me are Mike McMullen, Agilent's President and CEO and Bob McMahon, Agilent's Senior Vice President and CFO. Joining in the Q and A after Mike and Bob's comments will be Jacob Tyson, President of Agilent's Life Science and Applied Markets Group Sam Raha, President of Agilent's Diagnostics and Genomics Group and Parekh McDonnell, President of the Agilent CrossLab Group. This presentation is being webcast live. The news release, investor presentation and information to supplement today's discussion, along with the recording of this webcast, are made available on our website at www.investor.

Speaker 2

Agilent.com.

Speaker 1

Today's comments by Mike and Bob will refer to non GAAP financial measures. You will find the most directly comparable GAAP financial metrics and reconciliations on our website. Unless otherwise noted, all references to increases or decreases in financial metrics are year over year and references to revenue growth are on a core basis. Core revenue growth excludes the impact of currency and the acquisitions and divestitures completed within the past 12 months. Guidance is based on exchange rates as of October 31.

Speaker 1

We will also make forward looking statements about the financial performance of the company. These statements are subject to risks and uncertainties and are only valid as of today. The company assumes no obligation to update them. Please look at the company's recent SEC filings for a more complete picture of our risk and other factors. And now, I'd like to turn the call over to Mike.

Speaker 3

Thanks, Parmit, and thanks, everyone, for joining our call today. The Agilent team delivered another excellent quarter to close out an outstanding record setting 2021 At $6,320,000,000 for fiscal 20 21, revenues are almost $1,000,000,000 higher than last year. Full year core growth is up 15% on top of growing 1% last year. The strength is broad based with our 3 business units all growing more than 10% core for the year. Our full year operating margins were up 200 basis points.

Speaker 3

Earnings per share of $4.34 are up 32%. Let's now take a closer look at our strong finish to 2021 and review Q4 results. Our momentum continues as orders increased faster than revenue in Q4. And at the same time, we delivered our 4th straight quarter of double digit revenue growth. At 1,660,000,000 Revenues are up 12% on a reported basis.

Speaker 3

Our core revenues grew 11%, exceeding our expectations. This is on top of 6% core growth last year. Our Q4 operating margin is 26.5%. This is up 160 basis points from last year. EPS is $1.21 up 23% year over year.

Speaker 3

Our earnings growth also exceeded our expectations. We continue to perform extremely well in pharma, our largest market, Growing 21%, driven by our biopharma business. Total pharma now represents 36% of our overall revenue. This compares to 31% of our revenues just 2 years ago. The strong growth in our Chemical and Energy business continues As we delivered 11% growth in the quarter.

Speaker 3

This is on top of growing 3% in Q4 of last year. PMI numbers are positive, and we expect that Chemical Energy will continue its strong growth trajectory into fiscal 2022. In Diagnostics and Clinical, revenues grew 11% on top of growing 1% last year as testing volume started to recover. On a geographic basis, our results led by a strong performance in the Americas and China. Our business in the Americas grew 15% on top of 5% last year.

Speaker 3

China grew 8% core on top of strong 13% growth in Q4 of last year. China order growth outpaced revenue growth for the Q3 in a row. Now looking at our performance by business unit, The Life Science and Applied Markets Group generated revenue of $747,000,000 LSAG is up 11% on both the reported and a core basis. LSAG's growth was broad based and led by strength in liquid chromatography and cell analysis. The pharma and chemical energy markets were particularly strong for new instrument purchases.

Speaker 3

Our Cell Analysis business crossed the $100,000,000 revenue mark in the quarter for the first time. During the quarter, the LSAG team announced a new ion Mobility LC Q TOF and enhancements to our Vworks Automation Software Suite. These new Well received offerings are used to improve the analysis of proteins and peptides to speed development of new protein based therapeutics. The Agilent CrossLab Group posted revenue of $572,000,000 This is up a reported 10% 9% core. Growth is broad based, driven by strength in service contracts and on demand services as well as for chemistries and supplies.

Speaker 3

Our focus on increasing connect rates continues to pay off for us. The strong expansion of our installed base in 2021 and increasing connect rates bodes well for continued strength in our ACG business moving forward. Our ability to drive growth and leverage our scale to produce operating margins of roughly 30%, up more than 200 basis points from the prior year. The Diagnostics and Genomics Group delivered revenue of $341,000,000 up 16% reported and up 13% core. Our NASD Oligo business led the way with robust double digit growth in the quarter and achieved full year revenues exceeding 225,000,000 We expect another year of strong double digit growth as the team continues to do a great job in increasing throughput with existing capacity.

Speaker 3

The expansion of our Train B alligator manufacturing facility in Frederick, Colorado is proceeding as planned. We expect this additional capacity to come online by the end of calendar year 2022. Moving on from our other business group updates, There are several other significant developments for Agilent this quarter. We announced our commitment to achieving net 0 greenhouse gas emissions by 2,050. We believe our approach delivers the same rigor, sustainability that we apply to everything else we do.

Speaker 3

We also believe these actions are not only the right thing to do, but fundamental to achieving long term success. Our sustainable leadership continues to be prominently recognized as well. You may have seen that Investors Business Daily recently named Agilent to its top 100 ESG Companies list. We're also a company where diversity and inclusion represent a company priority and is a core element of our culture. During the quarter, we achieved recognition by Forbes as one of the world's best employers and as a best workplace for women.

Speaker 3

While the Agilent team has a strong track record of delivering above market growth and leading customer satisfaction, we're always looking to do more. To further accelerate growth and strengthen our focus on customers, we are implementing a new one Agilent commercial organization, Combining for the first time all customer facing activities under one leader, the new organization brings together and strengthens our sales, marketing, digital channel and services team. The new enterprise level commercial organization is led by Purik McDonnell. Porek will continue to lead the Agilent Crosstab Group as Business Group President as well as serve as Agilent's first ever Chief Commercial Officer. The way I like to characterize this move is to say we are doubling down on the success we've achieved with ACG, applying a holistic, customer focused approach to all aspects of our business.

Speaker 3

We're also moving the Chemistries and Supplies division to LSAG. This close organizational alignment between instrument and chemistries development will further accelerate our progress on instrument connect rates for chemistries and consumables. We believe that structure follows strategy and that this new organizational structure will further enhance our customer focus and the execution of our growth strategies. Looking ahead to the coming year, we are in a strong position to continue to deliver on our Build and Buy Grow strategy. Agilent's business remains strong.

Speaker 3

We ended the New Year with a robust backlog and have multiple growth drivers coupled with the proven execution excellence of the Agilent team. A year ago, during our Agilent Investor Day, We raised our long term annual growth outlook to the 5% to 7% range, while reaffirming our commitment to annual operating margin improvement and double digit EPS growth. We are now 1 year in and well on our way to achieving these long term goals. Bob will provide more details, but for fiscal 2022, our initial full year guide Calls for core growth in the range of 5.5% to 7%. We expect to continue our top line growth As we launch market leading products and services, invest in fast growing businesses and deliver outstanding customer service, My confidence in the unstoppable One Agilent team and our ability to execute and deliver remains firmly intact.

Speaker 3

This is our formula for delivering solid financial results, outstanding shareholder returns and continued strong growth. We are very pleased with our performance in 2021, but not satisfied. As I tell the Agilent team, The best is yet to come for our customers, our team and our shareholders. Thank you for being on the call today, and I look forward to your questions. I will now hand the call off

Speaker 4

to Bob. Bob? Thanks, Mike, and good afternoon, everyone. In my remarks today, I'll provide some additional details on revenue and take you through the income statement and some other key financial metrics. I'll then finish up with our initial outlook for the upcoming year and for the Q1.

Speaker 4

Unless otherwise noted, my remarks will focus on non GAAP results. As Mike mentioned, we had very strong results in the 4th quarter. Revenue was $1,660,000,000 reflecting reported growth of 12%. And before I get into the details, I want to acknowledge our supply chain team, which has been doing a great job managing in a very challenging global environment. Core revenue growth at 11% was a point above our top end guidance range.

Speaker 4

Currency accounted for 0.8% of growth, while M and A contributed 0.5 point of growth during Q4. And as expected, COVID-nineteen related revenues were roughly flat sequentially and resulted in just over a point headwind to the quarterly revenue growth. Late in the quarter, we did see transit times that were in certain cases greater than anticipated, resulting in some revenues being deferred into Q1. Our results were driven by a continuation of outstanding momentum in pharma and in biopharma in particular, while chemical and energy and diagnostics and clinical also delivered strong results for us. Our largest market farm up grew 21% during the quarter against a tough compare of 12% last year.

Speaker 4

The small molecule Segment delivered mid teens growth, while Large Molecule grew 31%. Pharma was a standout all year, growing 24% for the full year after growing 6% in 2020. And in FY 2022, We expect our pharma business to grow in the high single digits. Chemical and Energy continue to serve strengths, growing 11% with instrument growth in the mid teens during the quarter. This impressive performance was against a 3% increase last year.

Speaker 4

The C and E business grew 12% for the year after declining 3% in 2020. Growth was driven by continued momentum in And we expect our C and E business to continue to grow solidly next year in the high single digits. Diagnostics and clinical grew 11% with all three groups growing nicely during the quarter. While the largest dollar contributor to this market is DDG, Driven by our pathology related businesses, the LSAG business continues to penetrate the clinical market and drive growth with strong performances by cell analysis and mass spec. We saw mid teens growth in the Americas and strong growth in China, albeit off a small base.

Speaker 4

For the year, the Diagnostics and Clinical business grew 15 set for the year after declining slightly by 1% in 2020, and we expect to continue to grow in the mid to high single digits in 2022. Academia and government, which can be lumpy and represents less than 10% of our business, was up 1% in Q4 versus a flat growth last year. Most research labs continue to remain open globally and increase capacity to pre pandemic levels. China came in at low single digits, while the Americas and Europe were roughly flat. For the year, we grew 7% after declining 4% last year.

Speaker 4

We expect this market will continue to improve slightly in fiscal year 2022 and expect growth of low to mid single digits. Food was flat during the quarter against a very tough 16% compare. Europe and the Americas grew, while China declined. For the year, food grew 13% after growing 7% in 2020. Looking forward, we Expect food to return to historical growth rates in the low single digits.

Speaker 4

And rounding out the markets, environmental and forensics declined 2% in the 4th quarter, off a 5% decline last year as growth in environmental was overshadowed by a decline in forensics. For the year, we grew 5% off a 2% decline in 2020. And looking forward, like food, Environmental and Forensics to grow in the low single digits in the coming year. For Agilent overall, on a geographic basis, All regions again grew in Q4, led by Americas at 15%, China grew 8% and Europe grew 4%. And for the year, Americas led the way with 21% growth, followed by China at 13% and Europe at 12%.

Speaker 4

Now let's turn to the rest of the P and L. 4th quarter gross margin was 55.9%, up 90 basis points from a year ago. Gross margin performance, along with continued operating expense leverage, resulted in an operating margin for the Q4 of 26.5%, improving 160 basis points over last year. Putting it all together, we delivered EPS of 1.21 up 23% versus last year. And during the quarter, we benefited from some additional tax savings resulting in a quarterly tax rate of 13%, and our full year tax rate was 14.25%.

Speaker 4

Our share count was 305,000,000 shares as expected. And for the year, EPS came in at $4.34 an increase of 32% from 2020. We continued our strong cash flow generation, resulting in $441,000,000 for the quarter, an increase of 17% versus last year. For all of 2021, we generated almost $1,500,000,000 in operating cash and invested $188,000,000 in capital expenditures. During the quarter, we returned $195,000,000 to our shareholders, paying out $59,000,000 in dividends and repurchasing roughly 830,000 shares for $136,000,000 And for the year, we returned over $1,000,000,000 to shareholders in the forms of dividends and share repurchases.

Speaker 4

And we ended the year with $1,500,000,000 in cash and $2,700,000,000 in outstanding debt and a net leverage ratio of 0.7 times. All in all, a great end to an outstanding year. Now let's move on to the outlook for fiscal 2022. While we are still dealing with the pandemic and we have the additional challenges around logistics And in inflationary pressures, we entered the year with strong backlog and momentum. For the full year, we're expecting revenue to range between $6,650,000,000 $6,730,000,000 representing reported growth of 5% to 6.5% and core growth of 5.5% to 7% consistent with our long range goals.

Speaker 4

And this incorporates absorbing roughly 0.5 point headwind associated with COVID related revenues with the majority of that impact coming in Q1. We're expecting all three of our businesses to grow led by DGG. We expect DGG to grow high single digits with the continued contribution of NASD in cancer diagnostics. We expect ACG to grow in high single digits with both services and our chemistries and supplies businesses growing comparably, while LSAG is expected to grow in mid single digits. We expect operating margin expansion of 60 to 80 basis points for the year as we absorb the build out costs of Train B at our Frederick, Colorado

Speaker 5

NASD site.

Speaker 4

And in helping you build out your models, We're planning for a tax rate of 14.25 percent consistent with current tax policies and 305,000,000 fully diluted shares outstanding. All this translates to a fiscal 2022 non GAAP EPS expected to be between $4.76 to $4.86 per share, resulting in double digit growth. And finally, we expect operating cash flow of an approximately $1,400,000,000 to $1,500,000,000 and capital expenditures of $300,000,000 This capital investment represents an increase over 2021 As we continue our focus on growth, bringing our NASD Train B expansion online and expanding consumables manufacturing capacity for our Cell Analysis and Genomics businesses. We have also announced raising our dividend by 8%, continuing an important streak of dividend increases and providing another source of value to our shareholders. Now let's move on to our Q1 guidance.

Speaker 4

But before I get into the specifics, Some additional context. Lunar New Year is February 1 this year, a shift from last year when it was in mid February. As a result, we expect some Q1 revenue to shift to the Q2 this year as customers shut down ahead of the holiday. In addition, as I mentioned, we do expect to see the largest impact of COVID related revenue headwinds in the Q1. We estimate these two factors will impact Our base business growth by 2 to 3 points and a roughly equal in impact.

Speaker 4

For Q1, We are expecting revenue to range from $1,640,000,000 to $1,660,000,000 representing reported and core growth of 5.9% to 7.2%. Adjusting for the timing of Lunar New Year and COVID related headwinds, core growth would be roughly 8% to 10% in the quarter. 1st quarter 2022 non GAAP earnings are expected to be in the range of 1.16 to $1.18 And a couple of additional points before opening the call for questions. In conjunction with the new One Agilent commercial organization Mike talked about, we will be reporting under the new structure starting in Q1. In addition, we'll be providing a recast of certain LSAG and ACG historical financials to account for the segment changes after the filing of our annual report on Form 10 ks in December.

Speaker 4

I am extremely proud of what the Agilent team achieved in 2021 and look forward to another strong performance in 2022. With that, Parmit, back to you for Q and A.

Speaker 1

Thanks, Bob. Bethany, if you could please provide instructions for the Q and A

Operator

now. Certainly. Before asking your question, we will pause here briefly to allow questions to generate in queue. The first question comes from the line of Vijay Kumar with Evercore. You may proceed.

Speaker 6

Hey, guys. Congrats on a nice spring here and thanks for taking my question. Maybe my first one on Mike, maybe my first one on the guidance here. A lot of questions around supply chain, inflationary environment. The guide of 5.5% to 7% core growth for fiscal 2022, what is it assuming for Pricing versus volume and does it assume any contribution from Intisiran?

Speaker 4

Vijay, this is Bob. I didn't get the last part of your question. Inclisiran maybe? Inclisiran. Yes.

Speaker 4

So on the price, We do have built in roughly a point of price into our plan, which was slightly higher than what we had this year, BJ. And In terms of inclusion, we won't get into individual customer products, but what I would say is NASD is expecting another year of very strong growth.

Speaker 6

And just on that last point, Bob. Maybe Mike for you. I think the Analyst Day outlook had NASDAQ ramping up quite meaningfully. Has anything changed on NASDAQ? Did this In the capacity ramp up, our timing changed at all.

Speaker 6

And I'm curious on Invisalign, anything changed post the CRL response letter

Speaker 3

Not at all. What I would say the one big change is the business is doing even better than we had communicated in December of last year. So I Really appreciate the question. As you know, in my we've been talking about the new capacity coming online, and that's still going right per schedule. In fact, we just reviewed it earlier last week, and that's due to come online by the end of calendar 2022.

Speaker 3

But I think the team has just done a fabulous Which is we're going to be able to grow double digit in 2022 even without that new capacity because they're able to We continue to drive process improvements, broaden our book of business and larger batches. So the business is really on fire. I mean, we are very, very happy with it.

Speaker 4

Yes, Vijay, if we looked at our order backlog, we're taking orders for 2023 already.

Speaker 3

Yes. I mentioned this to Bob the other day, Vijay, that year ago, we were talking about could we fill out the factory, could it ramp, and we've blown right through that.

Speaker 6

Yes, that's fantastic, Mike. And just sorry to clarify, post the complete response letter to Novartis, no change In inclisiran, assumptions for you guys are correct?

Speaker 2

No. No. Fantastic. Thank you, guys.

Speaker 3

You're welcome. Appreciate the feedback.

Operator

Thank you, Mr. Kumar. The next question comes from the line of Tycho Peterson with JPMorgan. You may proceed.

Speaker 2

Great. Why don't we jump to the next

Speaker 3

in the queue?

Speaker 2

All

Operator

right. The next question comes from the line of Brandon Couillard with Jefferies. You may proceed.

Speaker 5

Hey, thanks. Good afternoon.

Speaker 3

Hey, Brandon.

Speaker 5

Mike, maybe just starting with the guide for next year, just kind of talk through some

Speaker 2

of the variables upside to downside that you considered when building the outlook and be curious what you've embedded for China specifically as well?

Speaker 3

Yes. So when I talk about the what we see is the potential upside in the guide. And Bob, maybe you can Talk about our China assumptions. And by the way, we hope it came through. We're very happy with the momentum we have in China.

Speaker 3

I think the upside sits With our 2 largest end markets, pharma and chemical energy. And as Bob Indicated in his script, we are assuming high singles, I believe, Bob, for the pharma market, really coming off this toward growth here in 2021. If that high level growth continues, that would represent upside in our biggest market. And Got a lot of really positive things happening in pharma. So I'd say pharma, I'd say C and E as well, right, Bao?

Speaker 3

So we've always I think this is the most bullish language that I've had in the call for some time about So you can imagine there's been even some caution about not over plan it too much, but I'd say the 2 our 2 large Zen markets represent the highest Where we think we may have some upside relative to our initial first guide for the year. And Bob, can you remind me what we had assumed for China? Brandon, it's

Speaker 4

a good question on China. We continue to be very positive on China. If we look at our backlog, Our order growth rate has increased higher than our revenue for the last three quarters. We exited 2021 with a record backlog going into 2022 for China. And our guidance comprehends high single digit growth in China.

Speaker 4

So both being led from a geographic basis, Growth will be led by Americas and China going forward.

Speaker 5

Okay. And then Mike, in terms of the new organizational structure,

Speaker 2

Why need the CLO role now? And then correct me if I'm wrong, are you planning to collapse ACG Into the LSAG segment entirely? Because I can't Yes, no.

Speaker 3

So thanks for that clarifying question. So Let me handle the second part of your question first, which is the ACG Group will be 100% services in 2022. And then we're moving over the CSD portion, the chemistry and supplies portion of that business over to Jacob For two reasons. One is just the breadth of responsibilities that Porg would have if we had made that change, but we think it's actually going to be a driver of growth. And And I'll ask Jacob to make a comment on that here in a second, because we think by having these teams even closer together, we're going to be able to Even further accelerate our connect rates on instruments for our chemistry products.

Speaker 3

Why the change? Hey, it's best to make when things are going really well, It's really time to put down the hammer and really go as hard as you can. And that's what we're doing here. So as you may know, when I first came in as CEO, I had 5 sales forces. I collapsed those into 2.

Speaker 3

This is the next evolution of that overall transformation of the company with this one Agilent Culture behind it. The real belief is that the segmentation of our markets really calls for a much more of a customer orientation as opposed to product centric view of how we want to sell and reach our customers. And you think about the scale you get with the digital platforms, digital infrastructure, our services organization, this makes sense to do this While things are going well, we thought it was really time to pit the solar down even further. And Jacob, you wouldn't mind just a comment or 2 what you're thinking about your new responsibilities?

Speaker 7

Yes. Thanks for that, Mike. And I'm certainly excited. I think that With now the CSC, the consumables business being part of the SSD, close to instruments, we can truly build those end to end solutions That will really drive customer expectations. And I think Corig and the team have over the past few years actually shown that The design and consumables that we can really drive a tremendous connect rate.

Speaker 7

So I think that already shown the path forward and now being completely into LSAT,

Speaker 3

And hey, thanks for that, Jacob. And then maybe just to close off this line of Response, Porg, any thoughts about your additional new responsibilities?

Speaker 8

Yes. Thanks, Mike. First of all, really excited about the new role and I think at unified commercial Strategy and organization will really continue to strengthen Agilent's customer focus and help us to align capabilities The future where we're going to kind of maximize the connect rate and customer lifetime value. And also, I think accelerate execution of our digital ambitions for to both deliver near term growth and strategic deals that's for the future. So very excited and already building on what is a great capability in the company.

Speaker 2

Okay, that's helpful. Thank you.

Speaker 3

Thanks, Ben. Appreciate the question.

Operator

Thank you, Mr. Collier. The next question comes from the line of Derik De Bruin with Bank of America. You may proceed.

Speaker 2

Hi, good afternoon.

Speaker 5

Hey, Derek.

Speaker 2

Hey, good. Just making sure I'm there. So a couple of questions. I guess, can you talk a little bit about the margin expansion, 68 basis points is And just sort of tease that out, I mean, you've got some inflationary pressures, you've got some FX, you've got some COVID headwind coming off. Can you just sort of like tease out what's The underlying margin expansion is just sort of normalized.

Speaker 2

You also have obviously the capacity coming out in Colorado. Just How should we think about the margins and just the different pieces?

Speaker 3

Bob, do you want to take that?

Speaker 4

Yes. Thanks, Eric. It's a great question. And what we've been able to do Even in this last quarter in the face of inflationary pressures is be able to drive pretty significant margin expansion Our businesses and so as we think about that 60 to 80 basis points just to put kind of perspective, we're anticipating roughly 15 basis point headwind associated with that Train B build up and that's hiring the people and getting it the product coming online and so forth. And so if we think about that, that's closer to 75 to close to that 100 basis points.

Speaker 4

A lot of that's going to come through SG and A operating leverage and the activities associated with just not growing our business expenses as fast as the top line. And we are going to be looking to cover some of the inflationary pressures on the top line with that price that I talked about before, which we didn't really have And any significant price in 2021, we have started to see that. We took Quick action earlier this year to reflect that. And so a combination of it, most of it being in OpEx leverage, But there will be some small operating leverage of the top line as well if you take out the excuse me, at the gross margin, if you take out the NASD expenses as a result of covering our costs through pricing increases.

Speaker 2

Thanks. And then just a couple of quick follow ups. Any evidence of stocking about transportation, supply chains, particularly in the consumable side? And just an update on Brent's bio that looks like it's still, gliding a bit versus our initial expectations. Thank you.

Speaker 3

Hey, Derek. A follow-up on those two questions. So and I'll have Sam come in on the second question. So We've not seen any real evidence of stocking on the consumables. So I think that's a pretty fair statement, right, Bob?

Speaker 3

That's correct. And then, what you're going to hear from Sam in a minute, he'll find a little bit more color. We remain very, very bullish about the long term prospects with ResBio and a lot of the work is being done to develop new opportunities with our pharma partners. But where are we on short term as well? Sam?

Speaker 9

Yes. Hey, thanks, Mike. In terms of Q4, whereas the revenue came in a little bit below expectations and that's driven in part by COVID-nineteen related delays in clinical trial enrollment, overall, the interest that we're seeing both from our existing customers on The pharma side that we've been doing IHC work with as well as new customers, that's very, very real. In fact, we've now signed an agreement, which is our first with a large existing customer giving evidence to The interest that's there in terms of the work that we're doing on the PMAs. These are approvals related to existing agreements with our Evolution Bioscience business, we're making good progress on that.

Speaker 9

And so a lot of momentum in a number of areas. So very pleased to Have them as part of our business to really bring together the strategy we've had, which is to be the companion diagnostic development and commercialization partner, leveraging multiple modalities, including immunohistochemistry and next generation sequencing.

Speaker 2

Thanks, Sam.

Operator

Thank you, Mr. De Bruin. The next question comes from the line of Tycho Peterson. I do apologize. Next question comes from the line of Dan Leonard with Wells Fargo.

Operator

You may proceed.

Speaker 2

Hi, good afternoon.

Speaker 3

Good afternoon, Dan.

Speaker 4

Hey, Dan.

Speaker 2

So my first question relates to the 2022 guide. What are some of the factors that might pull performance back down to the mid single digit range, specifically something that would start with a

Speaker 4

5 handle. Yes. I think What I would say is, first of all, I think our guidance is prudent given the beginning of the year. If we saw continued greater than expected disruptions in the supply chain that may impact demand, particularly in some of the Applied markets that could do it, although we haven't seen that to be very clear, Dan. We feel very good about where we are given our forecast and backlog.

Speaker 4

So we're I would say our we have bias towards the upside in our forecast as opposed to bias towards the downside.

Speaker 2

Appreciate that. And then a follow-up on the shift in chemicals and supplies from ACG to LSAG. If the logic behind the move is to increase the connect rate, can you remind me where is the connect rate today and where you want it to be over some period of time?

Speaker 4

Yes, it's a great question and the team continues to do a great job under Porg's leadership, Pierre, to do that both at the Purchase and then on the ongoing aftermarket. What I would say is right now if you look at the overall attach rate, it's probably in the mid-20s right now. And If you look at the attach rates, year on year, we saw very nice growth on the new placements. So all the new instruments that Jacob and team have been able to sell, that's why we feel very good about the ACG business Going forward, so we still have a long way to go there in terms of opportunity across both the services as well as the consumables. Some of our competitors are higher than that and so we've got aspirations that are well above that mid-20s.

Speaker 3

Yes. Dan, I'd just like to make sure it's clear. We're not making this change because we were dissatisfied with the improvements in our connect rate. This is just icing on top of the cake to further accelerate it as we look to balance The span of control and business responsibilities with the real driver was the 1 commercial creation of the 1 commercial organization. And I think this is a nice Secondary benefit that we're actually going to get, we think, even more focus and tighter alignment between our product development groups on the CST side and instrument side.

Speaker 2

Helpful clarification, Mike. Thank you.

Speaker 3

You're welcome.

Operator

Thank you, Mr. Leonard. The next question comes from the line of Kuneet Souda with SVB Leerink. You may proceed.

Speaker 10

Yes. Hi, Mike. Thanks for taking the question.

Speaker 8

Sure, buddy.

Speaker 10

Thanks. So first one is on environmental. I mean you have a leading Position there with a number of products across the LSAG product line. Maybe just could you elaborate a bit More for us what's going on there, specifically related to China, the timing in China. Is that just Lunar New Year?

Speaker 10

Is there Something more that we need to consider?

Speaker 3

Yes. I think there's maybe I'll start Bob and you can jump in on this. So I think when we talk about we talked about Environmental and forensics, I think is a sort of a tale of 2 cities. So buried in that number is a decline in forensics. And I think that's probably really tied to Governments prioritize other investments in this COVID-nineteen world.

Speaker 3

The demand is just not there. I think relative to China, it's been more about priorities. Right now, they're shifting some of their priorities towards The pharma and other COVID-nineteen related type investments. So I think that's probably I mean Yes. The only thing

Speaker 4

I would add on that Mike is there is some shift, But it's also timing. Yes. Yes. So there are some Yes. There is some budget that we've seen that has shifted into our fiscal Q1 and into FY 2022, in particular in China.

Speaker 4

I think long term, we still see The importance of environmental testing in China and around the world remains to be seen or is still intact, Puneet. And it's more a function of timing than anything else.

Speaker 3

Yes. Thanks for jumping in on that, Bob, because we still are very confident about our ability To grow environment builds in China, I think is well known the government's real emphasis on continuing to make improvements in the quality of life of their citizens.

Speaker 10

Got it. And then just on the liquid chromatography, just staying on that point. I really appreciate your comments on the chemistry columns and consumables now being part of LSAG. But When we look at the business overall today, you obviously have a strong 1200 series offering. We're also seeing pickup from another Competitor in the market space that has lost some share over the last few years and there seems like they're gaining some back.

Speaker 10

But just wondering what you are seeing in the field and in terms of further competition in this side of the market. I appreciate any thoughts. Thank you.

Speaker 3

Yes. Hi, Jacob. How do I lead off on here? And I mean, first, I want to say is, the Key competitors in the LC market remain unchanged. There's nobody new in the market.

Speaker 3

And what I can tell you is that

Speaker 2

We're

Speaker 3

very, very happy with where we are in the liquid chromatography. So we're not playing any kind of catch up game at all here. We delivered high teens growth in the quarter It exited the year with record backlog and our growth rate in orders was significantly higher than our revenue growth rate. And I think, Jake, it's fair to say that the strength is both on the large and small molecule size with a real standout of China geographically, and I think you exited the year with what we see as record backlog. So we're really bullish on our LC business and maybe you want to have some additional comments.

Speaker 7

Yes. Thanks, Mike. It's something we're really proud of, and I feel really good where we are right now. As you said, we We have grown very strongly as I can see. When I look into the market, we are in a very strong position versus our competition also.

Speaker 7

And just a reminder, we have few 12 ago, we did announce that we have expanded our BioLC portfolio substantially. So we really have the full range of BioLC Biography is out there, but we also have 2 DLCs and also online LCs to really drive growth in that area. So our Biography really came With all the investment that goes into last month's just right now. So I truly believe we have momentum and we'll continue with that over the next period of time.

Speaker 2

Great. Thanks guys. Thanks

Speaker 3

Jacob.

Operator

Thank you, Mr. Sudhak. The next question comes from the line of Patrick Donnelly with Citi. You may proceed.

Speaker 2

Hey guys, thanks for taking the questions.

Speaker 5

Good morning, Patrick.

Speaker 2

Bob, maybe one for you Well, Walt, one for you to start. Just on the margin side, I know you talked about 60 to 80 bps of expansion. It sounds like the NSAD facility might be A little bit of a headwind. Can you just talk through the moving pieces there? I know you called out price a little bit as well.

Speaker 2

Can you just talk about the levers? How much of an offset Facility is just so we can kind of think about the underlying number as well.

Speaker 4

Yes. So I would say maybe on NASD, If I look at it and I could break it into 2 components. If I look at it with the existing capacity, that team not only has driven top line growth, but if we looked at the margin, It actually is accretive to the overall Agilent margin. So that team has done a fabulous job ramping up. Accretive, right?

Speaker 4

Accretive, yes. Very nicely. So and so we're making the investment on Train B. It's roughly 15 basis points that's inclusive of that 60 to 80. So it's a roughly $10,000,000 to $15,000,000 of incremental costs associated with the training and investments, as the lines come on board.

Speaker 4

And so we're seeing that take that to aside because those are kind of discrete. And if I look at the business, what we're seeing is the Faster growing areas. We actually are seeing the benefit of mix. And so we talked a little bit about cell analysis, but also cell analysis in LSAG It's been very accretive both on the gross margin as well as the operating profit side. And so we've got these faster growing businesses That are helping with mix and then we're adding on the incremental price to cover the inflationary pressures that we are seeing and so forth.

Speaker 4

But we've also got Productivity measures in place and this is where I think the one Agilent approach to our systems and Our infrastructure really pays dividends because we're able to leverage those costs across a larger base. And because a lot of that is internal, we don't have that same level of pressure or cost as we are seeing in some other areas. And so it's a combination of Product mix, that price, I talked about 1% price and then leverage in the operating expense side.

Speaker 2

That's helpful. Thanks, Bob. And then Mike, maybe one for you on C and E. I know in the script you kind of called out Maybe having the most positive tone you've had in a little while here on that segment. Obviously, the end market health seems pretty high from the customers.

Speaker 2

Can you just talk about, I guess the conversations you're having there, visibility, again, guiding to high single for next year off a pretty strong 2021 is encouraging. So maybe just your confidence and then again, it sounds like maybe there's

Speaker 3

Yes, sure, Patrick. So we're seeing really good end market demand for and I think Bob highlighted a lot of those like Advanced Materials and Chemicals, it really speaks to the overall recovery economically on a global basis. And the fact that this in particular, this customer base had deferred a lot of investments for some period of time. So they're in a reinvestment mode, And we have pretty good visibility to the funnel. So, I think we probably got at least a 6 month lead view on what's coming down on instrument purchases.

Speaker 3

So, We're feeling really good about the C and E business as well as there's an ACG story here as well of Where we're continuing to increase services in this segment, which is historically more of a self maintainer kind of market as well as the chemistries and consumable side. So I think we got pretty good visibility given our confidence and be able to put this kind of number out there in a full year guide at this point in time. Anything else you'd add to that? I know we spent a lot of time talking about this.

Speaker 4

No, I think you got it. You said it well.

Speaker 3

Great.

Speaker 8

Thanks, Mike.

Speaker 3

You're quite welcome.

Operator

Thank you, Mr. Donnelly. The next question comes from the line of Josh Waldman with Cleveland Research. You may proceed.

Speaker 2

Hi, thanks for taking my questions. Wanted to start with a follow-up on supply chain. Yes, hey Bob. Wanted to start with a quick follow-up on supply chain. Wondered if you could give us the magnitude of the push out you referenced?

Speaker 2

And is this all LSAG?

Speaker 3

Well, I'm going to pass it to Bob here in a second, but let's be really clear in terms of our language. When I use supply chain that means material constraints and then we have logistics. I think the issues that Bob you were high the trends at times was really logistics issuers. In terms of our ability to get product to customers and get the raw materials, we feel pretty good about what's been going on there. So Yes, exactly.

Speaker 4

So it was more just longer delivery times. And Josh, it was in the LSAG business, as you would expect. It was roughly a point in the quarter.

Speaker 2

Okay. And given the transient nature, it Sounds like you're assuming this all hits in the Q1. Is that kind of what's embedded in your guide?

Speaker 4

We're assuming that we will get Better over the course of the first half of next year or first half of the fiscal year. So not all of it will come back in Q1.

Speaker 2

Got it. Okay. And we wanted to follow-up on your comments within the LCMS franchise. I believe in your prepared remarks, You highlighted stronger install rates in this franchise in the 4th quarter. Just wondered if you could provide any additional color on that, maybe what's driving Is it higher or faster kind of accelerated refresh levels At legacy accounts or maybe you're seeing kind of increased win rates at new accounts?

Speaker 2

I'm going to great question. I'm going

Speaker 3

to pass that to our expert on this topic. Jacob, maybe talk about what's going on in the LC MS front.

Speaker 7

Yes, certainly, Mike. And as you mentioned, we had great success with our new ion mobility, the 6560 C that we launched here at ASMS, and we had A fantastic worker and a user meeting also that was really all subscribed. But as you also speak to, we have tremendous traction on our triple quarter and our 2nd quarter businesses. And particularly in the biopharma space, we see a lot of smaller accounts also coming alive, More mid sized accounts that are starting to build up their capabilities within the analytical instrument business. So we see a lot of tremendous momentum there, but obviously also the bigger concept is more in a refresh mode.

Speaker 3

So I think part of the story, Josh, is new customers, right, particularly on the biopharma side and also doing very well on the refresh side with existing customers. Right.

Speaker 2

Got it. Yes, really appreciate it guys.

Speaker 3

You're quite welcome.

Operator

Thank you, Mr. Waldman. Our next question comes from the line of Michael Gauquet with KeyBanc Capital Markets. You may proceed.

Speaker 2

Hey Mike, it's Paul Knight.

Speaker 3

Hey Paul, good morning.

Speaker 2

Good, good. On the Avantor agreement, Is there any way you can talk about does that give you another 5% of addressable market? What are your thoughts around that deal? Yes.

Speaker 3

Hey, thanks for noticing that we had worked with Michael's team and have a agreement we're really excited about. And I'm actually going to pass it over to Agilent's new commercial officer to his view on that question.

Speaker 5

Go ahead.

Speaker 7

Yes, I

Speaker 8

think just thanks Mike. Thanks, Mike. I think we see that it's a really mutually beneficial arrangement that we're going to see not only Different customers, but at different spaces within customers. And it also helps with overall the addressable market and coverage. So the Agilent team and the Avantor team will be able to share leads and so on, so we'll be able to cover the market better.

Speaker 8

We'll also be able to use our digital capabilities to be able to Find new customers and also increase the wallet share on customer side. So all around a very positive development.

Speaker 3

And Paul, it's hard to put an exact Percentage on the question, but we wouldn't be doing it if it was on the margin.

Speaker 4

Yes. And I was going to say, Paul, this is Bob, just to add. I mean, We didn't really see any revenue. That's all future opportunity for us. And I think one of the areas that Avantor is strong is in the research area,

Speaker 7

Thank you.

Operator

Thank you. The next question comes from the line of Dan Brennan with Cowen. You may proceed.

Speaker 11

Hey, Mike. Hey, Bob. How are you guys doing?

Speaker 2

All right, Dan. How about yourself?

Speaker 3

Thank you. Thank you.

Speaker 11

Doing well. Doing well. Maybe first question on NASD, maybe I missed it. Did you guys give a number for 22, what's implied?

Speaker 4

We did not. We but what we did say is we would expect strong double digit growth. Leave it at that. What I can tell you is we exited at a run rate that was higher than the if

Speaker 3

you took

Speaker 4

our $225,000,000 that we talked about and divided by 4, our run rate was higher than that. So we continue to ramp. Yes.

Speaker 3

Thanks for that question. We were it was hard to explain it in the call narrative, but the as Bob mentioned, our Q4 exit rate is higher than the full year number.

Speaker 11

And maybe could you give a little color there? I think Bob you mentioned in the prepared remarks or in Q and A that you're taking orders to 23. Could you just give us a sense like what the utilization is today of your capacity that's available and any color about demand trends, book of business, things of that nature?

Speaker 4

Yes. In short, we're running 20 fourseven at both our Frederick facility as well as our Boulder Which was a legacy facility and we are feel very good about our ability to continue to expand capacity. What Brian and team have been able to do is increase both throughput as well as yield. And so that's really helped us drive additional capacity with the existing footprint or the existing Manufacturing facility. And the Train B as we talked about has the opportunity to add more than $100,000,000 of incremental Volume coming online starting at the end of this our fiscal our calendar 2022.

Speaker 11

Got it.

Speaker 4

And then maybe on the

Speaker 2

1 Agilent, Mike and Bob, could you just give us I know, Mike, You

Speaker 11

got there. You made some changes to the sales force that have made under your predecessor and now you're going further. So how should we see this manifest From the outside over the next, I don't know, 1 to 2 years, is this could this lead to stronger growth? Is it going to lead to more better margins, more durable growth? Just Obviously, the customers are going to see something, but how will that manifest in reported results, do you think?

Speaker 3

I think it's a check for each one of the things you listed there, but the number one reason why we're doing this is Drive more growth. And it's just a natural evolution of the transformation of the sales force I started a number of years ago. And it really points to the fact that we have this broad based portfolio that's selling into the same customer base. And Why have 2 separate sales forces and have to go do all the coordination between across sales forces? And then the big push that we made over the last several years in terms of digital, This will allow us, I believe, to even go faster on realizing our digital ambitions.

Speaker 3

And then you've got the voice of the customer will be right in the CEO staff. And on Porex Staff, we'll be Head of the Service Delivery Organization. So everything relative to the customer facing that we do in this company will be under 1 leader. We just think it's going to find ways to accelerate our growth, increase our customer satisfaction. And And I think as we push more and more of our business because customers want to buy that way through digital, it will have a natural knock on effect of efficiency gains in the P and L.

Speaker 11

Great. And then maybe one more. Obviously, balance sheet is in great shape. So the proverbial question about M and A, just wondering What does the funnel look like? Any update on the strategy?

Speaker 11

I know you've been pretty, cognizant of not wanting to go too big here and kind of Not disrupt what you built there, but just give us a sense of what the needs are today and what is the outlook for M and A in 'twenty two?

Speaker 3

Yes, sure, Dan. So I've used this been using this for the last several years of the build and buy growth strategy. So We're still very interested on the buy element of fueling future growth. And for example, in this past year, We did the ResBio acquisition, really got us into liquid biopsy and really allows us to play to our strengths that we already have from our CDX and IHC business. So we're going to look for continued opportunities such as those where you're in Higher growth markets and the total company average, where they can really benefit by being part of Agilent We have differentiated technology and differentiated teams.

Speaker 3

We will stay in our lane, so to speak, on valuations. I'd say that the and you know this better than I do, perhaps Dan. The market is still very robust. We're very active, and we just want to Make sure that the deal works for our shareholders, but deploying capital for M and A is part of our story going forward. And it's all up.

Speaker 3

Great.

Speaker 5

Thanks, Jack.

Speaker 11

Excellent. Great. Thank you.

Operator

Thank you, Mr. Brennan. The next question comes from the line of Jack Meehan with Nephron Research. You may proceed. Thanks.

Speaker 7

Good afternoon. Hey.

Speaker 12

Hey. I wanted to dig in a little bit more on cell analysis. So, heard cleared $100,000,000 in the quarter. What was the 2021 contribution? And Similar to the line of questioning on NASD, what's the target there for 2022 growth?

Speaker 4

Yes. So I'll start with the Cell Analysis business and I'll bring in Jacob here because It has just done a fantastic job and it's really continued the momentum that we saw at the beginning throughout 2020. So it ended just short of $400,000,000 for the full year and it grew in the mid-20s. And I would expect us to, looking forward, if we think about where the market is headed in the fundamental demand there, that'll be Growing double digits for sure going forward. And as I mentioned before, the beauty of that business is it's right in grain with where the research and technologies are going and where a lot of money is being put in, but it's also an extremely well run and profitable business

Speaker 3

for us. And Jacob, maybe you can give some insights in terms of where are the end markets that you think that are driving been driving the growth and where do we think it's going to come from in the future?

Speaker 7

Yes, thanks for that. It's a really good question. Obviously, it's something I really like to talk about. The Seline Health business has been super successful in the past years. And Our focus on the immuno oncology space has really paid off.

Speaker 7

We continue to see opportunities there, and we continue to see that our portfolio of The information in live cells is required to really drive the research forward. So where we really see the opportunities is in the Between biopharma and also the academic market there, that's where we see the biggest and the biggest momentum going forward. While we have seen here in the past The diagnostic business, particularly with our flow cytometry is picking up good speed, but I would say the main opportunity sits In the biopharma space.

Speaker 3

And Greg, did you ask a question about NASD?

Speaker 12

No. Okay. I will not. Continue down that line just from the comparison.

Speaker 3

Okay. All

Speaker 12

right. You're right, Bob. My My follow-up was going to be a lot of discussion obviously around driving growth. I was hoping to just get your philosophy on CapEx. So I think the guidance implies about 4.5% of sales for 2022.

Speaker 12

That'd be higher You've done the last few years. Do you expect this is going to remain elevated more kind of in the medium term? Or is this Just kind of some of the near term opportunities coming through.

Speaker 4

Yes. Jack, that's a great question. And what I would say is if we look at where our There's different kinds of CapEx and not all it's not all created equal, but the reason that it's being increased is really to fund that growth and capacity expansion, whether that be Train B and NASD or the capacity expansions in places like genomics and cell analysis. And I would say given our growth trajectory in those areas, I would expect us to continue At probably an elevated level to incorporate that growth. As Mike said, we've got this buy and build strategy And that's part of the build strategy and it has paid off in spades with NASD.

Speaker 4

And what I would say is, we're not there's more letters in the alphabet Then B, it doesn't end at B. But what I would say is there's we're going to be prudent about it, but also be aggressive about going forward.

Speaker 12

Thank you.

Operator

Thank you, Mr. Meehan. The last question is from the line of Catherine Schulz with Baird. You may proceed.

Speaker 13

Hey guys, thanks for the questions. Hey Kevin. First on the LSAT guide for mid single digits, I think on the last call you talked about GC replacement cycle coming back on maybe being in the midst of an LC replacement cycle on small molecule. And you'll now have chemistries in there as well. So should we think about this as being more towards the upper end of that mid single digit range for 2022?

Speaker 13

Or is there some sort of catch up spend in 2021 that maybe is a headwind as we get into 2022? Yes.

Speaker 4

I think you're Spot on, Catherine. It's the former, not the latter. Think about it as a higher end. And that's where I would say if we think about where our opportunities for upside Are in the instrumentation business and continuing their strong momentum that we've seen. Now we're also going up against, I think a 15% core growth rate year on year, but we feel very good about the momentum in that business, particularly in the areas that you just talked about in We continue to believe that the pharma business coming out of COVID is structurally a higher growth market.

Speaker 4

And as we Continue to place our focus on the biopharma or the large molecule if you look at that throughout 2021 that was much growing much faster than the overall pharma business. And so we would expect that We feel very good about that business going forward.

Speaker 13

Okay. And then maybe one more. You've had a lot of success on NASD. Do you have any interest in entering other areas of manufacturing components for biopharma, whether it's GMP reagents or DNA plasmids or other areas and is that something that you might get into in 2022?

Speaker 3

Well, Catherine, we're always looking for new drivers of growth that would make sense for Agilent to be directly involved in. So nothing to report for 2022. We've got a handful adding different additional Letters, if you will, to the alphabet that we serve in NASD, but never say never to the pieces of your question.

Speaker 13

Great. Thank you.

Speaker 3

You're quite welcome.

Operator

Thank you, Ms. Schulz. And the last question is from the line of Noah Berhance with JPMorgan. You may proceed.

Speaker 5

Hey, can you guys hear me?

Speaker 3

Yes. Hey, Tycho. Hey, Tycho.

Speaker 5

How are you doing? It's Tycho. Sorry about the phone issues.

Speaker 4

No problem. No problem at all.

Speaker 5

Sure. So, Dapo, appreciate the China color. Obviously, people are focused on China tenders at the moment. It doesn't sound like you're flagging any issues there specifically for DATCO, but can you talk about what you're Kind of staying on the ground there for China. And then how big is the CDx business?

Speaker 5

You mentioned that earlier, Mike. And you obviously had a bunch of press releases during the quarter about New approvals for CDX.

Speaker 3

Yes. So, Sam, I know this is something you've been talking to your team about relative specifically about What may be happening in the China diagnostics market and what's going on there. So we think we've got a pretty good protective position, but why don't you elaborate a bit more?

Speaker 9

Yes, happy to Mike. Tycho, thanks for the question. We've had another just overall for our pathology business, The former Daqo business, if you will, a really good quarter, including in China. And you may be referring Tycho The by China requirements that we're all aware of that are happening, specifically to our former Daqo business, if you will, The relative unique position, particularly with PD L1 and having a minimal number of local competitors really differentiates us. So we haven't felt Really pressure from the Buy China impacting our business.

Speaker 9

But we have continued to see really good interest not only in PD-one Companion Diagnostics, but more broadly speaking, in China for our diagnostic products.

Speaker 3

Yes. Sam, if I recall, you've got your PD L1 registered in China, right?

Speaker 9

Yes, we do. I mean, we registered that almost Exactly 2 years ago, becoming the 1st ever companion diagnostic in China, and it's doing well for us there in China. We've actually now Trained over 400 different pathologists throughout China to utilize our companion diagnostic.

Speaker 4

Yes. Hey, and Tycho, maybe just a follow-up. If I looked at our business in China, for DGG for the year, it grew in the 30s And it was actually in excess of that for Q4. So it had very positive momentum and CDX is roughly $100,000,000 ex the ResBio acquisition.

Speaker 5

Great. And then on teleanalysis, Mike, I know one of the priorities you Talked about is moving that portfolio downstream. Can you talk about those efforts, how actively you're looking at kind of pushing that into QAQC and further downstream?

Speaker 3

Yes. So Jacob, why don't you follow-up with some thoughts here?

Speaker 7

So, Taeq, when you say downstream, can you tell it more?

Speaker 5

More on the bioproduction ratio versus R and D,

Speaker 7

yes. On the bioprocessing, R and D, yes. So we see a big opportunity in the bioprocessing Both for our Cell Analysis business, but also for our Analytical Instrument business. So I think that's something we will continue to invest in going forward.

Speaker 4

Yes. I think what we're seeing right now, Tycho, is moving from truly research into Development area and then that will then lead into the QAQC. So I think you see a multi step process here. And so as Jacob said, it's just early days here From that standpoint, and, but making great progress across all three of those kind of sub businesses, and have high hopes for that

Speaker 3

to continue. Similar flow that we've seen in pharma for years, right, which is you start in our R and D then actually works its way into QAQC. And, Tycho, I think we built this great business through a series of acquisitions and the way we integrate into making it one business. And this would be an area of obviously future focus for us on the M and A front as well.

Speaker 5

Great. Just one last one on the new Agilent and I've got a number of questions on the kind of rollout here. Are there new services you're introducing In conjunction with that, are you broadening the service portfolio?

Speaker 3

Not yet, but stay tuned. Sony, this is a few weeks old.

Speaker 5

Fair enough. All right. Thanks.

Speaker 3

Okay. Thanks a lot, Tycho. Glad you could get on the call.

Operator

Thank you, Mr. Peterson. There are no additional questions waiting at this time. I would like to pass the conference back to Paramit Ahuja for any closing remarks.

Speaker 1

Thanks, Bethany, and thanks, everyone. With that, we would like to wrap up the call for today. Have a great rest of your day.

Operator

That concludes the Agilent Technologies 4th quarter earnings conference call. I hope you all enjoy the rest of your day. You may now disconnect your lines.

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Agilent Technologies Q4 2021
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