- Keysight Technologies has released its financial results for the third fiscal quarter of 2020, which ended July 31, 2020.
- Its revenue, which reached $1,011 million in the third quarter of 2020, are expected to be in the range of $1,170 to $1,190 million for the fourth fiscal quarter of 2020.
According to Ron Nersesian, Chairman, President and CEO of Keysight, the U.S. company’s results are “stronger than expected for the third quarter” with a return to “near 100% capacity by the end of the quarter ». “Despite the short-term uncertainty, we expect to achieve year-over-year sales and earnings growth in the fourth quarter,” said Ron Nersesian .
# Third Quarter Financial Summary
- Orders were $1,067 million, compared with $1,110 million last year, a decrease of 4%.
- GAAP revenue was $1,011 million, compared with $1,087 million last year.
- Non-GAAP revenue decreased 7 percent on a core basis, which excludes the impact of foreign currency changes and revenue associated with businesses acquired or divested within the last twelve months.
- GAAP net income was $176 million compared with GAAP net income of $159 million in the third quarter of 2019.
- Non-GAAP net income was $226 million compared with $239 million in the third quarter of 2019.
- As of July 31, 2020, cash and cash equivalents totaled $1,697 million.
(*) GAAP : Generally Accepted Accounting Principles
# Reporting Segments
- Communications Solutions Group (CSG)
CSG reported third quarter revenue of $760 million, down 4 percent, due to a challenging macroeconomic environment. From a demand perspective, investment continued in next-generation technologies such as 5G, with growth in 5G network rollouts and commercial launches, as well as 400G-related data center investment. Demand remained strong in the U.S. for aerospace defense and government solutions.
- Electronic Industrial Solutions Group (EISG)
EISG reported revenue of $251 million in the third quarter, down 15 percent, due to a challenging macroeconomic environment. Weakness in general electronics and automotive markets was slightly offset by continued investment in advanced semiconductor process node technologies.