Summary
Keysight Technologies, Inc. reported strong performance in fiscal year 2021, with total revenue reaching $4.94 billion, a significant 17% increase year-over-year. This growth was primarily driven by robust demand across both its Communications Solutions Group (CSG) and Electronic Industrial Solutions Group (EISG) segments, reflecting strong customer investments in key technology areas like 5G, automotive, and semiconductors. The company's strategy to expand its software-centric solutions and focus on recurring revenue streams, alongside investments in first-to-market solutions and complete customer offerings, appears to be paying off. Keysight demonstrated improved profitability with operating margins increasing to 21.9% in 2021. Furthermore, the company ended the fiscal year with a strong backlog of $2.115 billion, indicating continued demand for its products and services. Financially, Keysight generated substantial operating cash flow and maintained a healthy liquidity position. The company also actively repurchased its stock under an authorized program, signaling confidence in its financial health and commitment to shareholder returns. Looking ahead, Keysight remains optimistic about long-term secular market growth trends, despite ongoing monitoring of macroeconomic factors and supply chain challenges.
Financial Highlights
53 data points| Revenue | $4.94B |
| Cost of Revenue | $1.87B |
| Gross Profit | $3.07B |
| R&D Expenses | $811.00M |
| SG&A Expenses | $1.20B |
| Operating Expenses | $3.86B |
| Operating Income | $1.08B |
| Interest Expense | $79.00M |
| Net Income | $894.00M |
| EPS (Basic) | $4.84 |
| EPS (Diluted) | $4.78 |
| Shares Outstanding (Basic) | 185.00M |
| Shares Outstanding (Diluted) | 187.00M |
Key Highlights
- 1Total revenue increased by 17% to $4.94 billion in fiscal year 2021, driven by strong demand in both Communications Solutions Group and Electronic Industrial Solutions Group.
- 2Operating income increased by 42% year-over-year, reflecting improved profitability and operational efficiency.
- 3The company's backlog grew significantly to $2.115 billion by the end of fiscal year 2021, indicating robust future demand.
- 4Keysight is strategically expanding its software-centric solutions and subscription-based business models to drive recurring revenue and enhance customer value.
- 5Acquisitions of Sanjole and Eggplant in fiscal years 2021 and 2020 respectively, are expected to strengthen Keysight's capabilities in wireless test and software test automation.
- 6Operating cash flow reached $1.32 billion, demonstrating strong cash generation from operations.
- 7Keysight continued to return capital to shareholders through stock repurchases, with $673 million repurchased in fiscal year 2021 under an expanded program.