10-KPeriod: FY2015

Keysight Technologies, Inc. Annual Report, Year Ended Oct 31, 2015

Filed December 21, 2015For Securities:KEYS

Summary

Keysight Technologies, Inc. operates as a dedicated measurement company, spun off from Agilent Technologies in November 2014. For the fiscal year ended October 31, 2015, the company reported net revenue of $2.86 billion, a slight decrease from the previous year. The company experienced a net income of $513 million, a significant increase driven by a substantial tax benefit. A key strategic move during the year was the acquisition of Anite for $558 million, which strengthened Keysight's wireless software and network testing capabilities. The business is structured into two segments: Measurement Solutions, which generates the majority of revenue through hardware and software products, and Customer Support and Services, providing repair and calibration. Keysight serves diverse markets including communications, aerospace and defense, and industrial, computer, and semiconductor sectors. The company emphasizes its long history of technological leadership, a broad product portfolio, and a global sales channel as key strengths. While facing competitive pressures and market cyclicality, Keysight is focused on investing in R&D for new wireless and modular solutions to drive future growth.

Financial Statements
Beta
Revenue$2.86B
Cost of Revenue$1.27B
Gross Profit$1.59B
R&D Expenses$387.00M
SG&A Expenses$787.00M
Operating Expenses$2.42B
Operating Income$431.00M
Interest Expense$46.00M
Net Income$513.00M
EPS (Basic)$3.04
EPS (Diluted)$3.00
Shares Outstanding (Basic)169.00M
Shares Outstanding (Diluted)171.00M

Key Highlights

  • 1Keysight Technologies became an independent public company on November 1, 2014, following its separation from Agilent Technologies.
  • 2Net revenue for fiscal year 2015 was $2.86 billion, a decrease of 3% from fiscal year 2014.
  • 3Net income significantly increased to $513 million in fiscal year 2015, up from $392 million in fiscal year 2014, largely due to a tax benefit.
  • 4The company acquired Anite for $558 million in August 2015 to enhance its wireless software design and test portfolio and expand into Network Test.
  • 5Keysight operates two reportable segments: Measurement Solutions (generating the vast majority of revenue) and Customer Support and Services.
  • 6The company is investing in R&D for new wireless communication measurement solutions, modular solutions, and software enhancements.
  • 7Keysight has a strong global sales channel, with 65% of its 2015 revenue generated outside the United States.

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