- Keysight Technologies reported financial results for the second fiscal quarter of 2018 ended April 30, 2018.
- The company reports revenue of $990 million for its second fiscal quarter of 2018.
- Keysight’s third fiscal quarter of 2018 GAAP revenue is expected to be in the range of $937 million to $967 million.
GAAP : Generally Accepted Accounting Principles
# Keysight’s Second Quarter 2018 Financial Summary
GAAP revenue grew 31 percent to reach $990 million, when compared with $753 million last year. Non-GAAP revenue, which excludes the impact of fair value adjustments to acquisition-related deferred revenue balances, grew 32 percent to reach $999 million. Non-GAAP core revenue, which also excludes the impact of foreign currency changes and revenue associated with businesses acquired within the last twelve months, increased 18 percent.
GAAP net income was $64 million, or $0.34 per share, compared with $49 million in the second quarter of 2017. Non-GAAP net income was $158 million compared with $114 million in the second quarter of 2017. As of April 30, 2018, cash and cash equivalents totaled $784 million.
# Keysight’s First Half of Fiscal Year 2018 Financial Summary
GAAP revenue grew 24 percent to reach $1,827 million, when compared with $1,479 million last year. Non-GAAP revenue grew 25 percent to reach $1,855 million and non-GAAP core revenue increased 8 percent.
GAAP net income was $158 million compared with $158 million last year. Non-GAAP net income was $255 million compared with $212 million in the 2017 period.
Cash flow from operations was $282 million. Deployed capital by repaying $260 million of pre-payable debt and repurchasing 770,000 shares for $40 million under the $350 million share repurchase program authorization.
# Keysight’s Second Quarter 2018 Financial Summary by Segments
- Communications Solutions Group (CSG)
CSG revenue grew 27 percent in the second quarter and 11 percent in the first half of fiscal year 2018. CSG reported second quarter revenue of $536 million, driven by 5G-related R&D spending across the wireless ecosystem, early investment in next-generation 400G and PAM-4 network test and strong 27 percent year-over-year growth in the aerospace, defense and government end market.
- Electronic Industrial Solutions Group (EISG)
EISG revenue grew 16 percent in the second quarter and 11 percent in the first half of fiscal year 2018. EISG reported second quarter revenue of $255 million, driven by strong growth for automotive and energy and general electronics measurement solutions.
- Ixia Solutions Group (ISG)
ISG revenue was $90 million in the second quarter and $217 million in the first half of fiscal year 2018. ISG market conditions remained consistent with the prior quarter; however, second quarter ISG results were impacted by extensive integration efforts in the quarter. Many of these integration issues are now resolved and the expected annual cost synergies are ramping as planned.
- Services Solutions Group (SSG)
SSG revenue grew 15 percent in the second quarter and 11 percent in the first half of fiscal year 2018. SSG reported record revenue of $118 million in the second quarter, driven by double-digit growth for our calibration, remarketed and repair services and solutions.