Keysight Technologies Reports Second Quarter 2019 Results
Record GAAP Revenue of $1.09B Grew 10 Percent
GAAP Earnings Per Diluted Share Grew 137 Percent
Announces $500 Million Share Repurchase Program
SANTA ROSA, Calif., May 29, 2019 - Keysight Technologies, Inc. (NYSE: KEYS) today reported financial results for the second fiscal quarter of 2019 ended April 30, 2019.
“Keysight delivered another record quarter with both revenue and earnings exceeding the high-end of our guidance. In the second quarter, we saw growth across most end markets as customers continued R&D investments in next-generation technologies. We are capturing a significant portion of the demand we see in the marketplace with our broad and differentiated portfolio of solutions, software and services. In addition to expanding our leadership position, we are driving strong earnings growth with our commitment to operational excellence defined by our Keysight Leadership Model,” said Ron Nersesian, Keysight president and CEO.
“Looking into the third quarter, we are complying with the recent United States Department of Commerce export control regulations with China. While this will have some impact on revenue, we expect to deliver revenue growth between 7 and 8 percent for the year and are ahead of schedule on our margin expansion plan,” said Nersesian.
Second Quarter Financial Summary
GAAP revenue grew 10 percent to reach $1,090 million, when compared with $990 million last year. Non-GAAP revenue, grew 9 percent to reach $1,093 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 12 percent.
GAAP net income was $153 million, or $0.80 per share, compared with GAAP net income of $64 million, or $0.34 per share, in the second quarter of 2018.
Non-GAAP net income was $233 million, or $1.22 per share, compared with $158 million, or $0.83 per share in the second quarter of 2018.
As of April 30, 2019, cash and cash equivalents totaled $1,277 million.
Communications Solutions Group (CSG)
CSG reported revenue of $676 million in the second quarter, up 8 percent, driven by demand for 5G R&D across the wireless ecosystem and data center related next-generation 400GbE digital test.
Electronic Industrial Solutions Group (EISG)
EISG reported revenue of $299 million in the second quarter, up 6 percent, driven by strength in automotive, general electronics and next-generation parametric test.
Ixia Solutions Group (ISG)
ISG revenue was $118 million in the second quarter, up 32 percent when compared with $90 million in the prior year second quarter, driven by application and security sales along with large visibility renewals.
Share Repurchase Program
Keysight also announced today that its Board of Directors authorized a new share repurchase program for up to $500 million of its common stock. The new repurchase program is effective immediately and replaces the previously authorized $350 million program from 2018 of which $160 million remained. Shares may be purchased from time to time, subject to general business and market conditions and other investment opportunities, through open market
The following information was filed by Keysight Technologies, Inc. (KEYS) on Wednesday, May 29, 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.