The 20 Quarter OPS Diagnostics chart shows three positive to negative pattern breaks (Items A, B and C) shows that Agilent's condition has been steadily worsening over its last 20 quarters. Agilent's first pattern break from positive (Green) to negative (Red) occurred in Q2 2000 and its shares closed at a price of $67.56. See item A. For Agilent's Q1 2001 a second pattern is broken from positive to negative. See item B. For that same quarter Agilent was also diagnosed with the "EPS Syndrome"* and its shares closed at $37.07. Agilent has a third OPS pattern break in Q1 2002 (see item C) with both its OPS and EPS turning negative (red & gray) and its shares closing at $26.37. Agilent's negative OPS for three consecutive quarters warrants' great concern (compare to Lucent's OPS Diagnostics chart). Its share price closed at $17.01 as of November 20, 2002, and has respectively declined by %74.82, %54.11 and %35.99 when compared to its share price at each of the OPS pattern breaks.

Be concerned when large companies such as Lucent or Agilent begin to generate consecutive quarters of negative OPS. Large companies, unlike small ones, generally have depreciable assets that generate substantial cash flow. They also have the latitude and should have the discipline to significantly cut operating expenses to conserve cash (large layoffs, etc.) as they go from generating a net profit to a loss. Cisco Systems, Inc., (NASDAQ: CSCO) is a good example of a large company that cut its costs so that it could maintain positive