01—Abstract
Summary
Summary of the 10-K filed December 15, 2022. Cited figures are marked; the original filing is the authoritative source.
Keysight Technologies, Inc. reported strong revenue growth in fiscal year 2022, reaching $5.4 billiona, a 10% increase from the previous year, driven by robust demand across both its Communications Solutions Group and Electronic Industrial Solutions Group.
The company's strategic focus on electronic design and test solutions for evolving technologies like 5G, electric vehicles, and digital transformation continues to yield positive results, with significant investments in R&D to maintain its technology leadership. The company demonstrated solid profitability with net income of $1.12 billionb, up 26% year-over-year.
Keysight's diversified customer base across various industries, including commercial communications, aerospace, defense, automotive, and energy, contributes to its resilience. Despite macroeconomic headwinds such as inflation and supply chain disruptions, Keysight managed these challenges effectively through product redesign and alternate sourcing, maintaining a strong backlog of $2.55 billionc at year-end.
02—Key points
Key Highlights
- Revenue increased by 10% to $5.42 billion in fiscal year 2022.
- Net income grew by 26% to $1.12 billion.
- Operating margin improved to 24.6% from 21.9% in the prior year.
- Backlog increased to $2.55 billion, indicating strong future demand.
- The company successfully navigated supply chain disruptions through strategic measures.
- Investments in R&D continue to focus on next-generation technologies like 5G/6G and automotive.
- No single customer accounted for more than 10% of total revenue, highlighting revenue diversification.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2022, Keysight Technologies, Inc. kept $0.21.
- Revenue$5.42B100.0%
- Cost of revenue−$1.97B36.3%
- Gross profit$3.45B63.7%
- Operating costs−$2.12B39.0%
- Operating income$1.33B24.6%
- Interest, other & tax−$210.0M3.9%
- Net income$1.12B20.7%
Where FY2022 revenue went
$5.42B- Cost of revenue: $1.97B, 36% of revenue
- SG&A: $1.28B, 24% of revenue
- Net income: $1.12B, 21% of revenue
- R&D: $841.0M, 16% of revenue
- Interest, other & tax: $210.0M, 3.9% of revenue
Kept 21% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2022filed December 15, 2022Financial Statements
FY2022 against FY2021
| Line item | FY2022FY2021 | Change |
|---|---|---|
| Revenue | $5.42B$4.94B | +9.7% |
| Cost of Revenue | $1.97B$1.87B | +5.2% |
| Gross Profit | $3.45B$3.07B | +12.4% |
| R&D Expenses | $841.00M$811.00M | +3.7% |
| SG&A Expenses | $1.28B$1.20B | +7.4% |
| Operating Expenses | $4.09B$3.86B | +5.8% |
| Operating Income | $1.33B$1.08B | +23.5% |
| Interest Expense | $79.00M$79.00M | 0.0% |
| Net Income | $1.12B$894.00M | +25.7% |
| EPS (Basic) | $6.23$4.84 | +28.7% |
| EPS (Diluted) | $6.18$4.78 | +29.3% |
| Shares Outstanding (Basic) | 180.00M185.00M | −2.7% |
| Shares Outstanding (Diluted) | 182.00M187.00M | −2.7% |
05—Questions
Frequently Asked Questions
What are Keysight's primary business segments?
Keysight Technologies operates through two main segments: the Communications Solutions Group (CSG), which serves commercial communications, aerospace, defense, and government markets, and the Electronic Industrial Solutions Group (EISG), which focuses on automotive, energy, and general electronics industries.
How did Keysight perform financially in fiscal year 2022?
In fiscal year 2022, Keysight reported a 10% increase in revenue to $5.42 billion and a 26% increase in net income to $1.12 billion. The operating margin also improved to 24.6%.
What are the key growth drivers for Keysight?
Keysight's growth is driven by investments in next-generation technologies such as 5G/6G wireless communications, electric and autonomous vehicles, industrial IoT, and defense modernization. Their strategy of delivering first-to-market solutions in these areas is a key growth enabler.
How is Keysight managing supply chain challenges?
Keysight has employed strategies such as product redesign and sourcing from alternative suppliers to mitigate the impact of global supply chain disruptions. The company also maintains strong engagement with suppliers and customers to navigate these challenges.
06—Continue