Highlights:
- GAAP net income of $88 million, or $0.51 per share
- Non-GAAP net income of $106 million, or $0.61 per share(1)
- GAAP revenue of $731 million
- Non-GAAP revenue of $735 million(2)
SANTA ROSA, Calif. — (BUSINESS WIRE) — May 19, 2016 — Keysight Technologies, Inc. (NYSE: KEYS) today reported GAAP revenue of $731 million and non-GAAP revenue of $735 million for the second fiscal quarter ended April 30, 2016.(2)
“Keysight delivered second quarter results with revenue and earnings at the high-end of our guidance range as we continued to successfully navigate a challenging market environment and execute on our strategy to transform our business. We achieved measurable progress on our key growth initiatives while maintaining our focus on operating discipline,” said Ron Nersesian, Keysight president and CEO.
“We repurchased $42 million of common stock under the share repurchase program we initiated in February, reflecting our confidence in our long-term market opportunities and demonstrating our commitment to create value for shareholders,” added Nersesian.
Total revenue declined 1 percent year-over-year, or 7 percent on a non-GAAP core basis.(2) Compared with the second quarter of last year, communications market revenue was flat, or grew 2 percent on a non-GAAP basis,(2) driven by the acquisition of Anite and increased 5G sales, which was partially offset by the expected cautious capital spending sentiment. Aerospace & Defense market revenue grew 3 percent driven by strength in Asia combined with consistent spend among prime contractor customers in North America. Industrial, computer and semiconductor market revenue declined 4 percent driven by market softness in the computer and semiconductor markets. From a geographic perspective, total revenue grew year-over-year in Europe and Asia excluding Japan, and declined in the Americas and Japan.
Second quarter GAAP gross margin of 55.5 percent, compared with 56.3 percent in the second quarter of 2015. Non-GAAP gross margin of 57.8 percent increased 70 basis points as the mix of R&D and software revenue improved.(1)
Second quarter GAAP income from operations was $95 million, or 13.0 percent of revenue and non-GAAP income from operations was $135 million, or 18.3 percent of revenue.(1)
Second quarter GAAP net income was $88 million, or $0.51 per share. Second quarter non-GAAP net income was $106 million, or $0.61 per share,(1) which excludes net adjustments of $18 million.
Third Fiscal Quarter Outlook
Keysight provides guidance based on current market conditions and expectations.
Keysight’s third quarter 2016 non-GAAP revenue is expected to be in the range of $697 million to $737 million.(2) Third quarter non-GAAP earnings per share are expected to be in the range of $0.50 to $0.64.(3)
Webcast
Keysight’s management will present more details about its second quarter FY2016 financial results and its third quarter FY2016 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 and select Q2 2016 Keysight Technologies Inc. Earnings Conference Call in the Investor News & Events – Upcoming Events section at www.investor.keysight.com. The webcast will remain on the company site for 90 days.
A telephone replay of the conference call will be available at approximately 4:30 p.m. PT, May 19 through May 26 by dialing +1 855-859-2056 (or +1 404-537-3406 from outside the U.S.) and entering pass code 85416330.
About Keysight Technologies
Keysight Technologies (NYSE: KEYS) is a global electronic measurement technology and market leader helping to transform its customers’ measurement experience through innovations in wireless, modular, and software solutions. Keysight’s electronic measurement instruments, systems, software and services are used in the design, development, manufacture, installation, deployment and operation of electronic equipment. The business had revenue of $2.9 billion in fiscal year 2015. Information about Keysight is available at www.keysight.com.
Forward-Looking Statements
This news release contains forward-looking statements as defined in the
Securities Exchange Act of 1934 and is subject to the safe harbors
created therein. The forward-looking statements contained herein
include, but are not limited to, information regarding Keysight’s future
revenues, earnings and profitability; the future demand for the
company’s products and services; and customer expectations. These
forward-looking statements involve risks and uncertainties that could
cause Keysight’s results to differ materially from management’s current
expectations. Such risks and uncertainties include, but are not limited
to, unforeseen changes in the strength of our customers’ businesses;
unforeseen changes in the demand for current and new products,
technologies, and services; customer purchasing decisions and timing,
and the risk that we are not able to realize the savings or benefits
expected from integration and restructuring activities.
