Keysight Technologies, Inc. reported financial results for the third fiscal quarter of 2019 ended July 31, 2019.
“Keysight delivered another excellent quarter with both revenue and earnings exceeding the high-end of our guidance. Record third-quarter revenue was driven by growth across the majority of our end markets as we continued to capture a significant portion of the demand we see in the marketplace,” said Ron Nersesian, Keysight president and CEO.
“We are also driving strong earnings growth with our commitment to operational excellence and raising our revenue outlook for the year. Given our differentiated portfolio of solutions, software and services and broad market reach, we believe we are well-positioned to continue to expand our leadership even as our markets evolve,” said Nersesian.
Third Quarter Financial Summary
- GAAP revenue grew 8 percent to reach $1,087 million, when compared with $1,004 million last year.
- Non-GAAP revenue grew 8 percent to reach $1,088 million. Non-GAAP core revenue, which also excludes the impact of foreign currency changes and revenue associated with businesses acquired or divested within the last twelve months, increased 9 percent.
- GAAP net income was $159 million, or $0.83 per share, compared with GAAP net income of $121 million, or $0.63 per share, in the third quarter of 2018. This represents 32 percent year-over-year growth in GAAP earnings per diluted share.
- Non-GAAP net income was $239 million, or $1.25 per share, compared with $170 million, or $0.89 per share in the third quarter of 2018. This represents 41 percent year-over-year growth in non-GAAP earnings per diluted share.
- As of July 31, 2019, cash and cash equivalents totaled $1,394 million.
Reporting Segments
- Communications Solutions Group (CSG)
CSG reported revenue of $683 million in the third quarter, up 13 percent, driven by strong demand for 5G solutions across the wireless ecosystem.
- Electronic Industrial Solutions Group (EISG)
EISG reported revenue of $295 million in the third quarter, up 3 percent, driven by strength in automotive and general electronics across a broad set of industries, offset by softness in the semiconductor market as expected.
- Ixia Solutions Group (ISG)
ISG revenue was $110 million in the third quarter, a 7 percent decrease when compared with $119 million in the prior year third quarter, reflecting softness in the network test market, offset by high-single-digit year-over-year growth in network visibility.
Outlook
Keysight’s fourth fiscal quarter of 2019 GAAP revenue is expected to be in the range of $1,078 million to $1,098 million and non-GAAP revenue for the fourth fiscal quarter of 2019 is expected to be in the range of $1,080 million to $1,100 million.
Non-GAAP earnings per share for the fourth fiscal quarter of 2019 are expected to be in the range of $1.14 to $1.20, which exclude items that pertain to future events and are not currently estimable with a reasonable degree of accuracy. Therefore, no reconciliation to GAAP amounts has been provided. Further information is discussed in the section titled “Use of Non-GAAP Financial Measures” below.
For more information, visit: www.keysight.com
