Keysight Technologies reports second quarter 2017 results

Keysight Technologies reported financial results for the second fiscal quarter of 2017 ended April 30, 2017. Its GAAP revenue grew to $753 million and its third quarter 2017 GAAP revenue is expected to be in the range of $810 million to $850 million.

 

Keysight second quarter financial summary : 

  • GAAP(*) revenue grew to $753 million, when compared with $731 million last year. Non-GAAP revenue, which excludes the impact of fair value adjustment to acquisition-related deferred revenue balances, grew to $758 million when compared with $735 million in the second quarter of 2016.
  • Non-GAAP core revenue, which excludes the impact of currency and revenue from acquisitions completed within the last twelve months, increased 2 percent year-over-year.
  • GAAP operating margin was 6 percent, compared with 13 percent in the second quarter of 2016.
  • Non-GAAP operating margin was 19 percent, compared with 18 percent in the second quarter of 2016.
  • GAAP net income was $49 million, compared with $88 million in the second quarter of 2016.
  • Non-GAAP net income was $114 million compared with $106 million in the second quarter of 2016.
  • As of April 30, 2017, cash and cash equivalents totaled $983 million.

(*) GAAP : Generally Accepted Accounting Principles

 

Reporting Keyight segments : 

Communications Solutions Group (CSG)
CSG revenue was $424 million in the second quarter, compared to $446 million in the prior year second quarter. Strong growth for 5G and optical solutions was offset by declines in 4G and aerospace, defense and government.

Electronic Industrial Solutions Group (EISG)
EISG revenue was $220 million in the second quarter, up 14 percent when compared to $193 million in the second quarter of 2016. EISG growth was driven by increased demand for semiconductor measurement and automotive and energy solutions.

Ixia Solutions Group (ISG)
Keysight completed the acquisition of Ixia on April 18 and financial results from the acquired business are reported in the Ixia Solutions Group (ISG). ISG revenue for the period of April 18 through April 30 was $12 million.

Services Solutions Group (SSG)
SSG revenue in the second quarter grew 6 percent year-over-year to $102 million when compared with $96 million in the second quarter of 2016. SSG revenue growth was driven by an increase in remarketed solution sales and repair and calibration services.

Third fiscal quarter outlook
Keysight’s third quarter 2017 GAAP revenue is expected to be in the range of $810 million to $850 million and non-GAAP revenue is expected to be in the range of $840 million to $880 million.