Keysight Technologies Reports First Quarter 2019 Results
Record First Quarter GAAP Revenue of $1B Grew 20 Percent
GAAP Earnings Per Diluted Share Grew 21 Percent
SANTA ROSA, Calif., Feb. 21, 2019 - Keysight Technologies, Inc. (NYSE: KEYS) today reported financial results for the first fiscal quarter of 2019 ended Jan. 31, 2019.
“Keysight delivered an outstanding first quarter with both revenue and earnings exceeding the high-end of our guidance. Revenue grew 20 percent on a GAAP and non-GAAP core basis to surpass $1.0 billion, while GAAP and non-GAAP earnings grew 21 and 81 percent respectively. We continue to see broad-based momentum across multiple end markets with our differentiated solutions. Given our strategic positioning in key areas of the market, we believe we are well-positioned to continue to build on our success and expand our leadership,” said Ron Nersesian, Keysight president and CEO.
First Quarter Financial Summary
GAAP revenue grew 20 percent to reach $1,006 million, when compared with $837 million last year. Non-GAAP revenue, which excludes the impact of fair value adjustments to acquisition-related deferred revenue balances, grew 18 percent to reach $1,009 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 20 percent.
GAAP net income was $114 million, or $0.60 per share, compared with GAAP net income of $94 million, or $0.50 per share, in the first quarter of 2018.
Non-GAAP net income was $176 million, or $0.93 per share, compared with $97 million, or $0.51 per share in the first quarter of 2018.
As of January 31, 2019, cash and cash equivalents totaled $1,098 million.
As previously announced, Keysight recently completed an organizational change to align its services business with its customers and end markets. With this change, services, which was previously reported as Services Solutions Group (SSG), is now reported in the segment in which the services are delivered. Keysight reports results for three operating segments: Communications Solutions Group (CSG), Electronic Industrial Solutions Group (EISG) and Ixia Solutions Group (ISG). Additional information regarding Keysight’s new reporting segments and prior period results are available on the company’s website at investor.keysight.com.
Communications Solutions Group (CSG)
CSG reported revenue of $623 million in the first quarter, up 25 percent, driven by demand for 5G R&D across the wireless ecosystem, data center related next-generation 400GbE digital test and aerospace, defense and government.
Electronic Industrial Solutions Group (EISG)
EISG revenue grew 13 percent in the first quarter to $257 million, driven by strength in automotive and emerging IoT applications, while the semiconductor market moderated as expected.
Ixia Solutions Group (ISG)
ISG revenue was $129 million in the first quarter, compared with $127 million in the prior year first quarter, driven by network visibility solutions, while test revenue remained inline with last year.
The following information was filed by Keysight Technologies, Inc. (KEYS) on Thursday, February 21, 2019 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.