Keysight Technologies, Inc. reported financial results for the first fiscal quarter ended January 31, 2024.
“Keysight delivered first quarter results above the high end of our guidance, reflecting strong execution and discipline given current market conditions,” said Satish Dhanasekaran, Keysight’s President and CEO. “While the overall demand environment remains constrained, orders grew in aerospace, defense, and government solutions, as well as AI-driven network and data center applications. We were also pleased to complete the ESI acquisition ahead of schedule in January. ”
First Quarter Financial Summary
- Revenue was $1.26 billion, compared with $1.38 billion in the first quarter of 2023.
- GAAP net income was $172 million, or $0.98 per share, compared with $260 million, or $1.45 per share, in the first quarter of 2023.
- Non-GAAP net income was $286 million, or $1.63 per share, compared with $363 million, or $2.02 per share in the first quarter of 2023.
- Cash flow from operations was $328 million, compared to $366 million last year. Free cash flow was $281 million, compared to $306 million in the first quarter of 2023.
- As of January 31, 2024, cash and cash equivalents totaled $1.75 billion.
Reporting Segments
- Communications Solutions Group (CSG)
CSG reported revenue of $839 million in the first quarter, down 11 percent over last year, reflecting a 14 percent decline in commercial communications, while aerospace, defense, and government decreased 5 percent.
- Electronic Industrial Solutions Group (EISG)
EISG reported revenue of $420 million in the first quarter, down 5 percent over last year, reflecting continued constraint in semiconductor and manufacturing-related customer spending, partially offset by the addition of ESI.
Outlook
Keysight’s second fiscal quarter of 2024 revenue is expected to be in the range of $1.19 billion to $1.21 billion. Non-GAAP earnings per share for the second fiscal quarter of 2024 are expected to be in the range of $1.34 to $1.40, based on a weighted diluted share count of approximately 175 million shares. Certain items impacting the GAAP tax rate pertain to future events and are not currently estimable with a reasonable degree of accuracy; therefore, no reconciliation of GAAP earnings per share to non-GAAP has been provided. Further information is discussed in the section titled “Use of Non-GAAP Financial Measures” below.
Webcast
Keysight’s management will present more details about its first quarter FY2024 financial results and its second quarter FY2024 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 “Q1 2024 Keysight Technologies Inc. Earnings Conference Call” to participate. The call can also be accessed by dialing 1-404-975-4839 or 1-833-470-1428 toll-free (access code 263424). The webcast will remain on the company site for 90 days.
