Keysight Technologies, Inc. reported financial results for the second fiscal quarter ended April 30, 2024.
“Keysight executed well and delivered second quarter results above the high end of our guidance in a market environment that was consistent with the prior quarter,” said Satish Dhanasekaran, Keysight’s President and CEO. “We saw pockets of growth and stability across multiple end markets even as customer spending remained constrained. Our full-year outlook is unchanged and assumes modest order growth in the second half."
Second Quarter Financial Summary
- Revenue was $1.22 billion, compared with $1.39 billion in the second quarter of 2023.
- GAAP net income was $126 million, or $0.72 per share, compared with $283 million, or $1.58 per share, in the second quarter of 2023.
- Non-GAAP net income was $247 million, or $1.41 per share, compared with $380 million, or $2.12 per share in the second quarter of 2023.
- Cash flow from operations was $110 million, compared to $423 million last year. Free cash flow was $74 million, compared to $370 million in the second quarter of 2023.
- As of April 30, 2024, cash and cash equivalents totaled $1.66 billion.
Reporting Segments
- Communications Solutions Group (CSG)
CSG reported revenue of $840 million in the second quarter, down 10 percent from the prior year, reflecting a 10 percent decline in commercial communications, while aerospace, defense, and government decreased 11 percent.
- Electronic Industrial Solutions Group (EISG)
EISG reported revenue of $376 million in the second quarter, down 17 percent from the prior year, reflecting continued constraint in semiconductor and manufacturing-related customer spending.
Outlook
Keysight’s third fiscal quarter of 2024 revenue is expected to be in the range of $1.18 billion to $1.20 billion. Non-GAAP earnings per share for the third fiscal quarter of 2024 are expected to be in the range of $1.30 to $1.36, 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 second quarter FY2024 financial results and its third 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 “Q2 FY24 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 996630). The webcast will remain on the company site for 90 days.
