Keysight reports fourth quarter and fiscal 2017 results

  • Keysight Technologies reported financial results for the fourth fiscal quarter and fiscal year ended Oct. 31, 2017.
  • Its fourth quarter GAAP revenue grew 17% to reach $878 million.
  • Its fiscal year GAAP revenue grew 9% over last year and totaled $3.2 billion.
  • Keysight’s first quarter 2018 GAAP revenue is expected to be in the range of 762 to $802 million.

 

Fourth Quarter Financial Summary

  • GAAP revenue grew 17% to reach $878 million, when compared with $751 million last year.
  • GAAP operating margin was 4.4%, compared with 14% in the fourth quarter of 2016.
  • GAAP net loss was $38 million, compared with net income of $92 million, in the fourth quarter of 2016.

 

Fiscal Year 2017 Financial Summary

  • GAAP revenue grew 9% over last year and totaled $3.2 billion.
  • GAAP operating margin was 7%, compared with 14% in fiscal 2016.
  • GAAP net income was $102 million, compared with $335 million, in fiscal 2016.
  •  Non-GAAP net income was $462 million compared with $419 million in fiscal 2016.

 

(*) GAAP : Generally Accepted Accounting Principles.
 

Reporting Segments

  • Communications Solutions Group (CSG)
    CSG revenue grew 4 percent in the fourth quarter to $462 million when compared with $442 million in the fourth quarter of 2016. CSG revenue growth was driven by R&D solutions for new technologies including 5G, 4.9G and Wi-Fi test that was partially offset by a decline in revenue from aerospace, defense and government, despite strong order growth in this end-market.
    For fiscal 2017, CSG generated $1.7 billion in revenue, compared with revenue of $1.8 billion in fiscal 2016.

 

  • Electronic Industrial Solutions Group (EISG)
    EISG revenue grew 3 percent in the fourth quarter to $206 million when compared with $201 million in the fourth quarter of 2016. Automotive & Energy led the growth for EISG followed closely by General Electronics Measurement.
    For fiscal 2017, EISG revenue generated $836 million in revenue, compared with revenue of $776 million in fiscal 2016.

 

  • Ixia Solutions Group (ISG)
    ISG revenue was $124 million in the fourth quarter. ISG saw solid demand for its high-speed Ethernet test solutions, including 400G, and strong orders for its security and applications solutions. Additionally, visibility sales to its service provider customers were strong, offset by softness in enterprise accounts.
    For fiscal 2017, ISG revenue totaled $256 million.

 

  • Services Solutions Group (SSG)
    SSG revenue in the fourth quarter grew 2 percent year-over-year to reach $110 million when compared to $108 million in the fourth quarter of 2016. Growth in calibration and remarketed solution sales were partially offset by a decline in repair revenue.
    For fiscal 2017, SSG revenue generated $419 million in revenue, compared with revenue of $402 million in fiscal 2016.
    First Half Fiscal 2018 Outlook

 

First Half Fiscal 2018 Outlook
Keysight provides guidance based on current market conditions and expectations. Given Keysight’s headquarters was under mandatory evacuation for more than three weeks due to the northern California wildfires, the seasonality of revenue will be impacted in the next few quarters and the company is focusing its guidance on the first half of fiscal year 2018.

Keysight’s first half of 2018 GAAP revenue is expected to be approximately $1,748 million and non-GAAP revenue for the first half of 2018 is expected to be approximately $1,775 million. Keysight’s first quarter 2018 GAAP revenue is expected to be in the range of $762 million to $802 million and non-GAAP revenue is expected to be in the range of $780 million to $820 million, reflecting unusual seasonality due to the impact to operations from the northern California wildfires.