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    Agilent Reports First-Quarter Fiscal Year 2025 Financial Results

    2/26/25 4:04:00 PM ET
    $A
    Biotechnology: Laboratory Analytical Instruments
    Industrials
    Get the next $A alert in real time by email

    Delivers solid Q1 results, confirms core growth and EPS for 2025 fiscal year

    First-quarter fiscal year 2025

    • Revenue of $1.68 billion for the first quarter ended Jan. 31, 2025, representing growth of 1.4% reported and up 1.2% on a core(1) basis compared with the first quarter of 2024.
    • GAAP net income of $318 million; earnings per share (EPS) of $1.11, down 6% from the first quarter of 2024.
    • Non-GAAP(2) net income of $377 million; EPS of $1.31, up 2% from the first quarter of 2024.

    Outlook for full 2025 fiscal year and Q2

    • Full-year revenue outlook is now in the range of $6.68 billion to $6.76 billion, representing a range of up 2.6% to 3.8% reported and 2.5% to 3.5% core(1). Non-GAAP EPS(3) is expected in the range of $5.54 to $5.61 per share.
    • Q2 revenue outlook is expected to be in the range of $1.61 billion to $1.65 billion, an increase of 2.4% to 4.9% reported and up 2.5% to 5.0% core(1). Non-GAAP EPS(3) is expected in the range of $1.25 to $1.28 per share.

     

    Agilent Technologies Inc. (NYSE:A) today reported revenue of $1.68 billion for the first quarter ended Jan. 31, 2025, representing growth of 1.4% reported and up 1.2% core(1) compared to the first quarter of 2024.

    First-quarter GAAP net income was $318 million, or $1.11 per share. This compares with $348 million, or $1.18 per share, in the first quarter of fiscal year 2024. Non-GAAP(2) net income was $377 million, or $1.31 per share during the quarter, compared with $380 million or $1.29 per share during the year-ago quarter.

    "The Agilent team delivered better than our expectations in Q1. As a result of a solid start to the year, we're maintaining our core growth and EPS expectations for the year," said Agilent President and CEO Padraig McDonnell. "We have moved from planning to execution on our market-first strategy we introduced at our Analyst and Investor Day and are seeing the early benefits of our Ignite Transformation to become nimbler and make decisions faster in service to our customers."

    Financial Highlights

    In the first quarter of 2025, Agilent implemented certain changes to its segment reporting structure. Prior period segment information has been recast to reflect these changes. These changes have no impact on Agilent's consolidated financial statements.

    Life Sciences and Diagnostics Markets Group

    Agilent's Life Sciences and Diagnostics Markets Group (LDG) reported first-quarter revenue of $647 million, an increase of 4% reported and 1% core(1) year-over-year. LDG's operating margin for the quarter was 18.1%.

    Agilent CrossLab Group

    The Agilent CrossLab Group (ACG) reported first-quarter revenue of $696 million, an increase of 1% reported and 3% core(1) year-over-year. ACG's operating margin for the quarter was 31.8%.

    Applied Markets Group

    The Applied Markets Group (AMG) reported first-quarter revenue of $338 million, a decrease of 4% reported and 2% core(1) year-over-year. AMG's operating margin for the quarter was 25.0%.

    Full Year 2025 and Second-Quarter Outlook

    Full-year revenue outlook is now in the range of $6.68 billion to $6.76 billion, representing growth of 2.6% to 3.8% reported, while maintaining growth of 2.5% to 3.5% core(1). Non-GAAP EPS(3) is still expected in the range of $5.54 to $5.61 per share.

    The outlook for second-quarter revenue is expected to be in the range of $1.61 billion to $1.65 billion, representing growth of 2.4% to 4.9% reported and up 2.5% to 5.0% core(1). Non-GAAP EPS(3) is expected in the range of $1.25 to $1.28 per share.

    The outlook is based on forecasted currency exchange rates.

    Conference Call

    Agilent's management will present additional details regarding the company's first-quarter 2025 financial results on a conference call with investors today at 1:30 p.m. PT. This event will be broadcast live online in listen-only mode. To listen to the webcast, select the "Q1 2025 Agilent Technologies Inc. Earnings Conference Call" link on the Agilent Investor Relations website. The replay of the call will remain on the company site for 90 days.

    About Agilent Technologies

    Agilent Technologies Inc. (NYSE:A) is a global leader in analytical and clinical laboratory technologies, delivering insights and innovation that help our customers bring great science to life. Agilent's full range of solutions includes instruments, software, services, and expertise that provide trusted answers to our customers' most challenging questions. The company generated revenue of $6.51 billion in fiscal year 2024 and employs approximately 18,000 people worldwide. Information about Agilent is available at www.agilent.com. To receive the latest Agilent news, subscribe to the Agilent Newsroom. Follow Agilent on LinkedIn and Facebook.

    Forward-Looking Statements

    This news release contains forward-looking statements as defined in the Securities Exchange Act of 1934 and is subject to the safe harbors created therein. The forward-looking statements contained herein include, but are not limited to, information regarding Agilent's growth prospects, business, financial results, revenue, non-GAAP earnings guidance for Q2 and fiscal year 2025, and the effects of its new organizational structure, operational transformation and market-focused strategy. These forward-looking statements involve risks and uncertainties that could cause Agilent's results to differ materially from management's current expectations. Such risks and uncertainties include, but are not limited to, unforeseen changes in the strength of Agilent's customers' businesses; unforeseen changes in the demand for current and new products, technologies, and services; unforeseen changes in the currency markets; customer purchasing decisions and timing; and the risk that Agilent is not able to realize the savings expected from integration and restructuring activities. In addition, other risks that Agilent faces in running its operations include the ability to execute successfully through business cycles; the ability to meet and achieve the benefits of its operational transformation, market-focused strategy and cost-reduction goals and otherwise successfully adapt its cost structures to continuing changes in business conditions; ongoing competitive, pricing and gross-margin pressures; the risk that its cost-cutting initiatives will impair its ability to develop products and remain competitive and to operate effectively; the impact of geopolitical uncertainties and global economic conditions on its operations, its markets and its ability to conduct business; the ability to improve asset performance to adapt to changes in demand; the ability of its supply chain to adapt to changes in demand; the ability to successfully introduce new products at the right time, price and mix; the ability of Agilent to successfully integrate recent acquisitions; the ability of Agilent to successfully comply with certain complex regulations; and other risks detailed in Agilent's filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the fiscal year ended October 31, 2024. Forward-looking statements are based on the beliefs and assumptions of Agilent's management and on currently available information. Agilent undertakes no responsibility to publicly update or revise any forward-looking statement.

    (1) Core revenue growth excludes the impact of currency and acquisitions and divestitures within the past 12 months. Core revenue is a non-GAAP measure. Reconciliations between GAAP revenue and core revenue for Q1 fiscal year 2025 are set forth on page 6 of the attached tables along with additional information regarding the use of this non-GAAP measure. Core revenue growth rate as projected for Q2 fiscal year 2025 and full fiscal year 2025 excludes the impact of currency and acquisitions and divestitures within the past 12 months. Most of the excluded amounts pertain to events that have not yet occurred and are not currently possible to estimate with a reasonable degree of accuracy and could differ materially. Therefore, no reconciliation to GAAP amounts has been provided for the projection.

    (2) Non-GAAP net income and non-GAAP earnings per share primarily exclude the impacts of restructuring and other related costs, asset impairments, intangibles amortization, transformational initiatives, acquisition and integration costs and pension settlement loss. Agilent also excludes any tax benefits or expenses that are not directly related to ongoing operations, and which are either isolated or are not expected to occur again with any regularity or predictability. A reconciliation between non-GAAP net income and GAAP net income is set forth on page 4 of the attached tables along with additional information regarding the use of this non-GAAP measure.

    (3) Non-GAAP earnings per share as projected for Q2 fiscal year 2025 and full fiscal year 2025 exclude primarily the estimated impacts of non-cash intangibles amortization, transformational initiatives, and acquisition and integration costs. Agilent also excludes any tax benefits or expenses that are not directly related to ongoing operations, and which are either isolated or are not expected to occur again with any regularity or predictability. Most of these excluded amounts pertain to events that have not yet occurred and are not currently possible to estimate with a reasonable degree of accuracy and could differ materially. Therefore, no reconciliation to GAAP amounts has been provided. Future amortization of intangibles is expected to be approximately $27 million per quarter.

    AGILENT TECHNOLOGIES, INC.
    CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
    (In millions, except per share data)
    (Unaudited)
    PRELIMINARY
     
     
    Three Months Ended
    January 31,

     

    2025

     

     

    2024

     

     
    Net revenue

    $

    1,681

     

    $

    1,658

     

     
    Costs and expenses:
    Cost of products and services

     

    782

     

     

    750

     

    Research and development

     

    113

     

     

    128

     

    Selling, general and administrative

     

    410

     

     

    396

     

    Total costs and expenses

     

    1,305

     

     

    1,274

     

     
    Income from operations

     

    376

     

     

    384

     

     
    Interest income

     

    15

     

     

    18

     

    Interest expense

     

    (28

    )

     

    (22

    )

    Other income (expense), net

     

    4

     

     

    23

     

     
    Income before taxes

     

    367

     

     

    403

     

     
    Provision for income taxes

     

    49

     

     

    55

     

     
    Net income

    $

    318

     

    $

    348

     

     
     
     
    Net income per share:
    Basic

    $

    1.12

     

    $

    1.19

     

    Diluted

    $

    1.11

     

    $

    1.18

     

     
    Weighted average shares used in computing net income per share:
    Basic

     

    285

     

     

    293

     

    Diluted

     

    287

     

     

    294

     

     
     
    The preliminary income statement is estimated based on our current information.
     
     
    Page 1
    AGILENT TECHNOLOGIES, INC.
    CONDENSED CONSOLIDATED BALANCE SHEET
    (In millions, except par value and share data)
    (Unaudited)
    PRELIMINARY
     
     
    January 31, October 31,

     

    2025

     

     

    2024

     

    ASSETS
     
    Current assets:
    Cash and cash equivalents

    $

    1,467

     

    $

    1,329

     

    Accounts receivable, net

     

    1,328

     

     

    1,324

     

    Inventory

     

    997

     

     

    972

     

    Other current assets

     

    315

     

     

    334

     

    Total current assets

     

    4,107

     

     

    3,959

     

     
    Property, plant and equipment, net

     

    1,816

     

     

    1,778

     

    Goodwill

     

    4,429

     

     

    4,477

     

    Other intangible assets, net

     

    514

     

     

    547

     

    Long-term investments

     

    173

     

     

    175

     

    Other assets

     

    875

     

     

    910

     

    Total assets

    $

    11,914

     

    $

    11,846

     

     
    LIABILITIES AND EQUITY
     
    Current liabilities:
    Accounts payable

    $

    547

     

    $

    540

     

    Employee compensation and benefits

     

    258

     

     

    368

     

    Deferred revenue

     

    612

     

     

    544

     

    Short-term debt

     

    16

     

     

    45

     

    Other accrued liabilities

     

    436

     

     

    398

     

    Total current liabilities

     

    1,869

     

     

    1,895

     

     
    Long-term debt

     

    3,347

     

     

    3,345

     

    Retirement and post-retirement benefits

     

    120

     

     

    130

     

    Other long-term liabilities

     

    551

     

     

    578

     

    Total liabilities

     

    5,887

     

     

    5,948

     

     
    Total Equity:
    Stockholders' equity:
    Preferred stock; $0.01 par value; 125,000,000 shares authorized; none issued and outstanding

     

    —

     

     

    —

     

    Common stock; $0.01 par value, 2,000,000,000 shares authorized; 285,232,190 shares at January 31, 2025 and 285,193,011 shares at October 31, 2024, issued and outstanding

     

    3

     

     

    3

     

    Additional paid-in-capital

     

    5,489

     

     

    5,450

     

    Retained earnings

     

    916

     

     

    750

     

    Accumulated other comprehensive loss

     

    (381

    )

     

    (305

    )

    Total stockholders' equity

     

    6,027

     

     

    5,898

     

    Total liabilities and stockholders' equity

    $

    11,914

     

    $

    11,846

     

     
     
    The preliminary balance sheet is estimated based on our current information.
     
     
    Page 2
    AGILENT TECHNOLOGIES, INC.
    CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
    (In millions)
    (Unaudited)
    PRELIMINARY
     
     
    Three Months Ended
    January 31, January 31,

     

    2025

     

     

    2024

     

    Cash flows from operating activities:
    Net income

    $

    318

     

    $

    348

     

     
    Adjustments to reconcile net income to net cash provided by operating activities:
    Depreciation and amortization

     

    72

     

     

    62

     

    Share-based compensation

     

    40

     

     

    44

     

    Deferred taxes expense (benefit)

     

    (10

    )

     

    —

     

    Excess and obsolete inventory related charges

     

    10

     

     

    11

     

    Net (gain) loss on equity securities

     

    (1

    )

     

    (3

    )

    Asset impairment charges

     

    —

     

     

    8

     

    Other non-cash (income) expense, net

     

    —

     

     

    (6

    )

    Changes in assets and liabilities:
    Accounts receivable, net

     

    (30

    )

     

    10

     

    Inventory

     

    (40

    )

     

    (9

    )

    Accounts payable

     

    3

     

     

    84

     

    Employee compensation and benefits

     

    (104

    )

     

    (104

    )

    Other assets and liabilities

     

    173

     

     

    40

     

    Net cash provided by operating activities (a)

     

    431

     

     

    485

     

     
    Cash flows from investing activities:
    Payments to acquire property, plant and equipment

     

    (97

    )

     

    (90

    )

    Payments in exchange for convertible note

     

    (1

    )

     

    (5

    )

    Payments to acquire businesses and intangible assets, net of cash acquired

     

    4

     

     

    —

     

    Net cash used in investing activities

     

    (94

    )

     

    (95

    )

     
    Cash flows from financing activities:
    Proceeds from issuance of common stock under employee stock plans

     

    30

     

     

    34

     

    Payment of taxes related to net share settlement of equity awards

     

    (22

    )

     

    (25

    )

    Payments for repurchase of common stock

     

    (90

    )

     

    —

     

    Payments of dividends

     

    (71

    )

     

    (69

    )

    Proceeds from issuance of long-term debt

     

    4

     

     

    —

     

    Repayments of long-term debt

     

    (1

    )

     

    (180

    )

    Net proceeds from (repayment of) short-term debt

     

    (30

    )

     

    —

     

    Net cash used in financing activities

     

    (180

    )

     

    (240

    )

     
    Effect of exchange rate movements

     

    (19

    )

     

    7

     

     
    Net increase (decrease) in cash, cash equivalents and restricted cash

     

    138

     

     

    157

     

     
    Cash, cash equivalents and restricted cash at beginning of period

     

    1,332

     

     

    1,593

     

     
    Cash, cash equivalents and restricted cash at end of period

    $

    1,470

     

    $

    1,750

     

     
     
    Reconciliation of cash, cash equivalents and restricted cash to the condensed consolidated balance sheet:
     
    Cash and cash equivalents

    $

    1,467

     

    $

    1,748

     

    Restricted cash, included in other assets

     

    3

     

     

    2

     

    Total cash, cash equivalents and restricted cash

    $

    1,470

     

    $

    1,750

     

     
     
    (a) Cash payments included in operating activities:
     
    Income tax payments, net of refunds received

    $

    19

     

    $

    24

     

    Interest payments, net of capitalized interest

    $

    3

     

    $

    14

     

     
     
     
    The preliminary cash flow is estimated based on our current information.
     
     
    Page 3
    AGILENT TECHNOLOGIES, INC.
    NON-GAAP NET INCOME AND DILUTED EPS RECONCILIATIONS
    (In millions, except per share data)
    (Unaudited)
    PRELIMINARY
     
    Three Months Ended
    January 31,

    2025

     

    2024

     

    Net Income Diluted EPS Net Income Diluted EPS
     
    GAAP net income

    $

    318

     

    $

    1.11

     

    $

    348

     

    $

    1.18

     

    Non-GAAP adjustments:
    Restructuring and other related costs

     

    1

     

     

    —

     

     

    3

     

     

    0.01

     

    Asset impairments

     

    —

     

     

    —

     

     

    8

     

     

    0.03

     

    Intangible amortization

     

    28

     

     

    0.10

     

     

    26

     

     

    0.09

     

    Transformational initiatives

     

    6

     

     

    0.02

     

     

    3

     

     

    0.01

     

    Acquisition and integration costs

     

    9

     

     

    0.03

     

     

    2

     

     

    0.01

     

    Pension settlement loss

     

    14

     

     

    0.05

     

     

    —

     

     

    —

     

    Other

     

    6

     

     

    0.02

     

     

    (6

    )

     

    (0.02

    )

    Adjustment for taxes (a)

     

    (5

    )

     

    (0.02

    )

     

    (4

    )

     

    (0.02

    )

    Non-GAAP net income

    $

    377

     

    $

    1.31

     

    $

    380

     

    $

    1.29

     

     
     
    (a) The adjustment for taxes excludes tax expense (benefits) that management believes are not directly related to on-going operations and which are either isolated, temporary or cannot be expected to occur again with any regularity or predictability such as the realized gain/loss due to sale of a business, windfall benefits on stock compensation, and the impact of R&D capitalization under section 174 of the Tax Cuts and Jobs Act of 2017. For the three months ended January 31, 2025, management used a non-GAAP effective tax rate of 12.50%. For the three months ended January 31, 2024, management used a non-GAAP effective tax rate of 13.50%.



    We provide non-GAAP net income and non-GAAP net income per share amounts in order to provide meaningful supplemental information regarding our operational performance and our prospects for the future. These supplemental measures exclude, among other things, charges related to restructuring and other related costs, asset impairments, amortization of intangibles, transformational initiatives, acquisition and integration costs and pension settlement loss.



    Restructuring and other related costs include incremental expenses incurred in the period associated with restructuring programs, usually aimed at changes in business and/or cost structure. Such costs may include one-time termination benefits, facility-related costs and contract termination fees.
     
    Asset impairments include assets that have been written down to their fair value.
     
    Transformational initiatives include expenses associated with targeted cost reduction activities such as manufacturing transfers including costs to move manufacturing, site consolidations, legal entity and other business reorganizations, insourcing or outsourcing of activities. Such costs may include move and relocation costs, one-time termination benefits and other one-time reorganization costs. Included in this category are also expenses associated with company programs to transform our product lifecycle management (PLM) system and human resources and financial systems.
     
    Acquisition and integration costs include all incremental expenses incurred to effect a business combination. Such acquisition costs may include advisory, legal, tax, accounting, valuation, and other professional or consulting fees. Such integration costs may include expenses directly related to integration of business and facility operations, the transfer of assets and intellectual property, information technology systems and infrastructure and other employee-related costs.
     
    Pension settlement loss resulted from the transfer of the Netherlands defined benefit plan to an unaffiliated insurance company.
     
    Other includes certain legal costs and settlements, special compliance costs, acceleration of stock-based compensation expense and other miscellaneous adjustments.
     
    Our management uses non-GAAP measures to evaluate the performance of our core businesses, to estimate future core performance and to compensate employees. Since management finds this measure to be useful, we believe that our investors benefit from seeing our results "through the eyes" of management in addition to seeing our GAAP results. This information facilitates our management's internal comparisons to our historical operating results as well as to the operating results of our competitors.
     
    Our management recognizes that items such as amortization of intangibles can have a material impact on our cash flows and/or our net income. Our GAAP financial statements including our statement of cash flows portray those effects. Although we believe it is useful for investors to see core performance free of special items, investors should understand that the excluded items are actual expenses that may impact the cash available to us for other uses. To gain a complete picture of all effects on the company's profit and loss from any and all events, management does (and investors should) rely upon the GAAP income statement. The non-GAAP numbers focus instead upon the core business of the company, which is only a subset, albeit a critical one, of the company's performance.
     
    Readers are reminded that non-GAAP numbers are merely a supplement to, and not a replacement for, GAAP financial measures. They should be read in conjunction with the GAAP financial measures. It should be noted as well that our non-GAAP information may be different from the non-GAAP information provided by other companies.
     
    The preliminary non-GAAP net income and diluted EPS reconciliation is estimated based on our current information.
     
    Page 4
    AGILENT TECHNOLOGIES, INC.
    SEGMENT INFORMATION
    (In millions, except where noted)
    (Unaudited)
    PRELIMINARY
     
     
    Quarter-over-Quarter
     
    Life Sciences and Diagnostics Markets Segment
    Q1'25 Q1'24
    Revenue

    $

    647

     

    $

    620

     

    Gross Margin, %

     

    52.8

    %

     

    54.9

    %

    Income from Operations

    $

    117

     

    $

    114

     

    Operating margin, %

     

    18.1

    %

     

    18.4

    %

     
     
    Agilent CrossLab Segment
    Q1'25 Q1'24
    Revenue

    $

    696

     

    $

    686

     

    Gross Margin, %

     

    56.1

    %

     

    56.9

    %

    Income from Operations

    $

    221

     

    $

    222

     

    Operating margin, %

     

    31.8

    %

     

    32.4

    %

     
     
    Applied Markets Segment
    Q1'25 Q1'24
    Revenue

    $

    338

     

    $

    352

     

    Gross Margin, %

     

    55.8

    %

     

    56.4

    %

    Income from Operations

    $

    84

     

    $

    92

     

    Operating margin, %

     

    25.0

    %

     

    26.1

    %

     
     
    Income from operations reflect the results of our reportable segments under Agilent's management reporting system which are not necessarily in conformity with GAAP financial measures. Income from operations of our reporting segments exclude, among other things, charges related to restructuring and other related costs, asset impairments, amortization of intangibles, transformational initiatives and acquisition and integration costs.
     
    Readers are reminded that non-GAAP numbers are merely a supplement to, and not a replacement for, GAAP financial measures. They should be read in conjunction with the GAAP financial measures. It should be noted as well that our non-GAAP information may be different from the non-GAAP information provided by other companies.
     
    The preliminary segment information is estimated based on our current information.
     
     
    Page 5
    AGILENT TECHNOLOGIES, INC.
    RECONCILIATIONS OF REVENUE BY SEGMENT
    EXCLUDING ACQUISITIONS, DIVESTITURES AND THE IMPACT OF CURRENCY ADJUSTMENTS (CORE)
    (In millions)
    (Unaudited)
    PRELIMINARY
     
    Year-over-Year
     
    GAAP
    Year-over-Year
    GAAP Revenue by Segment Q1'25 Q1'24 % Change
     
    Life Sciences and Diagnostics Markets Segment

    $

    647

    $

    620

    4

    %

    Agilent CrossLab Segment

     

    696

     

    686

    1

    %

    Applied Markets Segment

     

    338

     

    352

    (4

    %)

    Agilent

    $

    1,681

    $

    1,658

    1

    %

     
     
     
     
    Non-GAAP

    (excluding Acquisitions & Divestitures)
    Year-over-Year

    at Constant Currency (a)
    Year-over-Year Year-over-Year Percentage Point Impact from Currency Current Quarter Currency Impact (b)
    Non GAAP Revenue by Segment Q1'25 Q1'24 % Change % Change
     
    Life Sciences and Diagnostics Markets Segment

    $

    621

    $

    620

    —

     

    1

    %

    -1 ppt

    $

    (6

    )

    Agilent CrossLab Segment

     

    696

     

    686

    1

    %

    3

    %

    -2 ppts

     

    (11

    )

    Applied Markets Segment

     

    338

     

    352

    (4

    %)

    (2

    %)

    -2 ppts

     

    (5

    )

    Agilent (Core)

    $

    1,655

    $

    1,658

    —

     

    1

    %

    -1 ppt

    $

    (22

    )

     
     
     
    We compare the year-over-year change in revenue excluding the effect of recent acquisitions and divestitures and foreign currency rate fluctuations to assess the performance of our underlying business.
     
    (a) The constant currency year-over-year growth percentage is calculated by recalculating all periods in the comparison period at the foreign currency exchange rates used for accounting during the last month of the current quarter and then using those revised values to calculate the year-over-year percentage change.
     
    (b) The dollar impact from the current quarter currency impact is equal to the total year-over-year dollar change less the constant currency year-over-year change.
     
    The preliminary reconciliation of GAAP revenue adjusted for recent acquisitions and divestitures and impact of currency is estimated based on our current information.
     
     
    Page 6

     

    View source version on businesswire.com: https://www.businesswire.com/news/home/20250226303369/en/

    Investor Contact:

    Parmeet Ahuja

    +1 408-345-8948

    [email protected]

    Media Contact:

    Andréa Topper

    +1 408-709-0060

    [email protected]

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