Summary
Keysight Technologies, Inc. reported net revenue of $701 million for the three months ended January 31, 2015, an increase of 4% compared to the prior year period, or 7% excluding currency fluctuations. Net income for the quarter was $70 million, a slight decrease from $74 million in the same period last year. The company is operating as an independent entity following its separation from Agilent Technologies on November 1, 2014. This transition has introduced new operational dynamics, including separation costs and the establishment of independent financial reporting. Overall, the company is navigating its new status as a public company while facing a mixed market environment with growth in some segments like aerospace and defense, and declines in others such as industrial, computer, and semiconductor test. Key financial metrics show a slight sequential increase in cash and cash equivalents to $887 million, offset by a decrease in net cash provided by operating activities to $92 million from $135 million in the prior year. The company has $1.1 billion in long-term debt. While revenue growth is present, increased R&D and SG&A expenses, partly due to separation costs, have impacted operating margins. Investors should note the ongoing integration and costs associated with operating as a standalone entity, alongside the company's strategic focus on product development to address evolving market needs.
Financial Highlights
50 data points| Revenue | $701.00M |
| Cost of Revenue | $318.00M |
| Gross Profit | $383.00M |
| R&D Expenses | $96.00M |
| SG&A Expenses | $206.00M |
| Operating Expenses | $614.00M |
| Operating Income | $87.00M |
| Interest Expense | $12.00M |
| Net Income | $70.00M |
| EPS (Basic) | $0.42 |
| EPS (Diluted) | $0.41 |
| Shares Outstanding (Basic) | 168.00M |
| Shares Outstanding (Diluted) | 170.00M |
Key Highlights
- 1Net revenue for the three months ended January 31, 2015 was $701 million, up 4% year-over-year (7% excluding currency).
- 2Net income decreased slightly to $70 million from $74 million in the comparable prior year period.
- 3The company completed its separation from Agilent Technologies on November 1, 2014, and is now operating as an independent public company.
- 4Cash and cash equivalents increased to $887 million as of January 31, 2015, from $810 million as of October 31, 2014.
- 5Net cash provided by operating activities decreased to $92 million from $135 million in the prior year period.
- 6Total orders decreased by 1% year-over-year (up 1% excluding currency).
- 7The company has $1.099 billion in long-term debt, consisting of two senior notes issuances.