Keysight Technologies Reports Third Quarter 2017 Results

SANTA ROSA, Calif. — (BUSINESS WIRE) — August 30, 2017 — Keysight Technologies, Inc. (NYSE: KEYS) today reported financial results for the third fiscal quarter of 2017 ended July 31, 2017.

“We delivered strong third quarter results. Order growth accelerated to 8 percent on a core basis driven by strength in our key focus areas, and cash generated from operations was $98 million. We are pleased with the momentum we are building in the market with new and existing customers developing leading-edge technologies such as 5G, next-gen Wi-Fi, high-speed datacenters, and automotive and energy,” said Ron Nersesian, Keysight president and CEO.

Third Quarter Financial Summary

  • GAAP revenue grew 16 percent to reach $832 million, when compared with $715 million last year. Non-GAAP revenue, which excludes the impact of fair value adjustment to acquisition-related deferred revenue balances, grew 20 percent to reach $863 million, when compared with $718 million in the third quarter of 2016. Non-GAAP core revenue, which excludes the impact of currency and revenue from acquisitions completed within the last twelve months, grew 4 percent year-over-year.
  • GAAP operating margin was -0.4 percent, compared with 15 percent in the third quarter of 2016. Non-GAAP operating margin was 19 percent, compared with 20 percent in the third quarter of 2016.
  • GAAP net loss was $18 million, or a loss of $0.10 per share, compared with net income of $91 million, or $0.53 per share in the third quarter of 2016. Non-GAAP net income was $115 million, or $0.61 per share, compared with $108 million, or $0.63 per share in the third quarter of 2016.
  • As of July 31, 2017, cash and cash equivalents totaled $873 million.

Reporting Segments

  • Communications Solutions Group (CSG)

CSG revenue was $418 million in the third quarter, compared to $424 million in the prior year third quarter. Growth in commercial communications and 5G was offset by a decline in aerospace, defense and government.

  • Electronic Industrial Solutions Group (EISG)

EISG revenue was $218 million in the third quarter, up 14 percent when compared to $191 million in the third quarter of 2016. EISG growth was driven by strong demand for general electronics, semiconductor, and automotive and energy solutions.

  • Ixia Solutions Group (ISG)

ISG revenue was $120 million in the third quarter. ISG revenue was impacted by continued challenging market conditions with its network equipment manufacturers customers in the U.S., while demand for visibility and application and security solutions was strong among service provider customers.

  • Services Solutions Group (SSG)

SSG revenue in the third quarter grew 4 percent year-over-year to $107 million when compared with $103 million in the third quarter of 2016. Services growth was driven by remarketed solution sales.

Fourth Quarter Outlook

Keysight provides guidance based on current market conditions and expectations.

Keysight’s fourth quarter 2017 GAAP revenue is expected to be in the range of $850 million to $880 million and non-GAAP revenue is expected to be in the range of $875 million to $905 million. Fourth quarter non-GAAP earnings per share are expected to be in the range of $0.59 to $0.69. Non-GAAP earnings per share as projected for the fourth quarter of fiscal year 2017 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 “Non-GAAP Measures” below.

Webcast

Keysight’s management will present more details about its third quarter FY2017 financial results and its fourth quarter FY2017 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 2017 Keysight Technologies Inc. Earnings Conference Call to participate. 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, Aug. 30 through Sept. 6 by dialing +1 800-585-2056 (or +1 416-621-4642 from outside the U.S.) and entering pass code 51903852.

1 | 2 | 3  Next Page »



© 2024 Internet Business Systems, Inc.
670 Aberdeen Way, Milpitas, CA 95035
+1 (408) 882-6554 — Contact Us
ShareCG™ is a trademark of Internet Business Systems, Inc.

Report a Bug Report Abuse Make a Suggestion About Privacy Policy Contact Us User Agreement Advertise