Keysight Technologies, Inc. reported financial results for the fourth fiscal quarter and fiscal year ended October 31, 2024.
“Keysight executed well and delivered fourth quarter revenue and earnings per share above the high end of guidance under market conditions which remained consistent with our expectations,” said Satish Dhanasekaran, Keysight’s President and CEO. “As we look ahead, the strength of our differentiated portfolio, deep engagement with customers, and the accelerating pace of technology innovation give us confidence in our ability to outperform as markets recover.”
Fourth Quarter Financial Summary
- Revenue was $1.29 billion, compared with $1.31 billion last year.
- GAAP net loss was $73 million, or $0.42 per share, compared with a GAAP net income of $226 million, or $1.28 per share, in the fourth quarter of 2023. This loss reflects a $315 million tax expense related to a new Singapore tax incentive and corresponding decrease in deferred tax assets.
- Non-GAAP net income was $288 million, or $1.65 per share, compared with $352 million, or $1.99 per share in the fourth quarter of 2023.
- Cash flow from operations was $359 million, compared with $378 million last year. Free cash flow was $328 million, compared with $340 million in the fourth quarter of 2023.
- As of October 31, 2024, cash and cash equivalents totaled $1.80 billion.
Fiscal Year 2024 Financial Summary
- Revenue was $4.98 billion, compared with $5.46 billion last year.
- GAAP net income was $0.61 billion, or $3.51 per share, compared with $1.06 billion, or $5.91 per share in fiscal 2023.
- Non-GAAP net income was $1.10 billion, or $6.27 per share, compared with $1.49 billion, or $8.33 per share in fiscal year 2023.
- Cash flow from operations was $1.05 billion, compared with $1.41 billion last year. Free cash flow was $0.91 billion, compared with $1.21 billion in fiscal year 2023.
Reporting Segments
- Communications Solutions Group (CSG)
CSG reported revenue of $894 million in the fourth quarter, flat over last year, reflecting 4 percent growth in commercial communications driven by AI-related investment, while aerospace, defense, and government declined 6 percent versus a record high quarter last year. - Electronic Industrial Solutions Group (EISG)
EISG reported revenue of $393 million in the fourth quarter, down 6 percent over last year, reflecting ongoing constraint in manufacturing-related customer spending.
Outlook
Keysight’s first fiscal quarter of 2025 revenue is expected to be in the range of $1.265 billion to $1.285 billion. Non-GAAP earnings per share for the first fiscal quarter of 2025 are expected to be in the range of $1.65 to $1.71. 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 fourth quarter and fiscal year 2024 financial results and its first quarter FY2025 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 “ Q4 2024 Keysight Technologies Inc. Earnings Conference Call ” to participate or dial +1 833-470-1428 (Toll-Free) or +1 404-975-4839 (Local) and enter passcode 116445. The webcast will remain on the company site for 90 days.
