AP NEWS

Keysight Technologies Reports Third Quarter 2018 Results

August 21, 2018

SANTA ROSA, Calif.--(BUSINESS WIRE)--Aug 21, 2018--Keysight Technologies, Inc. (NYSE: KEYS) today reported financial results for the third fiscal quarter of 2018 ended July 31, 2018.

“We delivered another excellent quarter with record Q3 orders of $1 billion and record revenue of $1 billion, and we are raising our core revenue outlook for the year. Third quarter GAAP revenue growth of 21 percent, or 15 percent on a non-GAAP core basis, was driven by broad-based order strength for our differentiated solutions as customers accelerate development in our key focus areas including 5G, automotive & energy and aerospace & defense,” said Ron Nersesian, Keysight president and CEO.

Third Quarter Financial Summary

GAAP revenue grew 21 percent to reach $1,004 million, when compared with $832 million last year. Non-GAAP revenue, which excludes the impact of fair value adjustments to acquisition-related deferred revenue balances, grew 17 percent to reach $1,008 million. Non-GAAP core revenue, which also excludes the impact of foreign currency changes and revenue associated with businesses acquired or divested within the last twelve months, increased 15 percent. GAAP net income was $121 million, or $0.63 per share, compared with a GAAP net loss of $18 million, or a loss of $0.10 per share, in the third quarter of 2017. Non-GAAP net income was $170 million, or $0.89 per share using 191 million weighted average shares, compared with $115 million, or $0.61 per share using 188 million weighted average shares in the third quarter of 2017. As of July 31, 2018, cash and cash equivalents totaled $742 million.

Reporting Segments

Communications Solutions Group (CSG)

CSG reported third quarter revenue of $515 million, up 23 percent, driven by 5G-related R&D spending across the wireless ecosystem, early investment in next-generation 400G and PAM-4 network test and strong growth in the aerospace, defense and government end market.

Electronic Industrial Solutions Group (EISG)

EISG revenue grew 19 percent in the third quarter to $258 million, driven by solid double-digit growth for automotive and energy, general electronics and semiconductor measurement solutions.

Ixia Solutions Group (ISG)

ISG revenue was $119 million in the third quarter, compared with $120 million in the prior year third quarter. ISG’s revenue improved sequentially following extensive integration activities last quarter. ISG’s pipeline of activities continued to grow, including increased demand for visibility and 400G Ethernet test solutions.

Services Solutions Group (SSG)

SSG revenue grew 9 percent in the third quarter to $116 million, driven by growth in our calibration, remarketed and repair services and solutions.

Outlook

Keysight’s fourth fiscal quarter of 2018 GAAP revenue is expected to be in the range of $996 million to $1,016 million and non-GAAP revenue for the fourth fiscal quarter of 2018 is expected to be in the range of $1,000 million to $1,020 million.

Non-GAAP earnings per share for the fourth fiscal quarter of 2018 are expected to be in the range of $0.85 to $0.91, which exclude items that pertain to future events and are not currently estimable with a reasonable degree of accuracy. Therefore, no reconciliation to GAAP amounts has been provided. Further information is discussed in the section titled “Use of Non-GAAP Financial Measures” below.

Webcast

Keysight’s management will present more details about its third quarter FY2018 financial results and its fourth quarter FY2018 outlook on a conference call with investors today at 1:30 p.m. PT. This event will be webcast in listen-only mode. Listeners may log on to the call at www.investor.keysight.com under the “ Upcoming Events ” section and select “ Q3 2018 Keysight Technologies Inc. Earnings Conference Call ” to participate or dial +1 866-393-4306 (U.S. only) or +1 734-385-2616 (International) and enter passcode 1275356.

The webcast will remain on the company site for 90 days. A telephone replay of the conference call will be available at approximately 4:30 p.m. PT after the call and remain available for one week. The replay may be accessed by dialing +1 855-859-2056 (or +1 404-537-3406 from outside the U.S.) and entering passcode 1275356.

Forward-Looking Statements

This communication contains forward-looking statements as defined in the Securities Exchange Act of 1934 and is subject to the safe harbors created therein. These forward-looking statements involve risks and uncertainties that could significantly affect the expected results and are based on certain key assumptions of Keysight’s management and on currently available information. Due to such uncertainties and risks, no assurances can be given that such expectations or assumptions will prove to have been correct, and readers are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof. Keysight undertakes no responsibility to publicly update or revise any forward-looking statement. The forward-looking statements contained herein include, but are not limited to, information and future guidance on the company’s goals, priorities, revenues, demand, financial condition, earnings, the continued strengths and expected growth of the markets the company sells into, operations, operating earnings, and tax rates that involve risks and uncertainties that could cause Keysight’s results to differ materially from management’s current expectations. Such risks and uncertainties include, but are not limited to, changes in the demand for current and new products, technologies, and services; customer purchasing decisions and timing, and the risk that we are not able to realize the savings or benefits expected from integration or restructuring activities. The words “estimate,” “expect,” “intend,” “will,” “should,” “forecast,” and similar expressions, as they relate to the company, are intended to identify forward-looking statements.

In addition to the risks above, other risks that Keysight faces include those detailed in Keysight’s filings with the Securities and Exchange Commission, including our Form 10-K for the fiscal year ended Oct. 31, 2017 and Keysight’s quarterly report on Form 10-Q for the period ended April 30, 2018.

Segment Data

Segment data reflects the results of our reportable segments under our management reporting system. Segment revenue and income from operations are consistent with the respective non-GAAP measures as explained below and in the attached supplemental schedules. Segment data are provided on page 6 of the attached tables.

Use of Non-GAAP Financial Measures

In addition to financial information prepared in accordance with U.S. GAAP (“GAAP”), this document also contains certain non-GAAP financial measures based on management’s view of performance, including:

Non-GAAP Revenue Non-GAAP Core Revenue Non-GAAP Net Income Non-GAAP Diluted EPS

See the attached supplemental schedules for reconciliations of each non-GAAP financial measure to its most directly comparable GAAP financial measure for the three months ended July 31, 2018 and for projected non-GAAP revenue amounts for the three months ended October 31, 2018. Following the reconciliations is a discussion of the items adjusted from our non-GAAP financial measures and the company’s reasons for including or excluding certain categories of income or expenses from our non-GAAP results.

About Keysight Technologies

Keysight Technologies, Inc. (NYSE: KEYS) is a leading technology company that helps enterprises, service providers, and governments accelerate innovation to connect and secure the world. Keysight’s solutions optimize networks and bring electronic products to market faster and at a lower cost with offerings from design simulation, to prototype validation, to manufacturing test, to optimization in networks and cloud environments. Customers span the worldwide communications ecosystem, aerospace and defense, automotive, energy, semiconductor and general electronics end markets. Keysight generated revenues of $3.2B in fiscal year 2017. In April 2017, Keysight acquired Ixia, a leader in network test, visibility, and security. More information is available at www.keysight.com.

Additional information about Keysight Technologies is available in the newsroom at  www.keysight.com/go/news  and on  FacebookGoogle+LinkedInTwitter  and  YouTube.

Source: IR-KEYS

This article has been truncated. You can see the rest of this article by visiting http://www.businesswire.com/news/home/20180821005669/en.

AP RADIO
Update hourly