Summary
Keysight Technologies, Inc. reported revenue of $665 million for the third quarter of fiscal year 2015, a decrease of 12% compared to the same period last year. Net income for the quarter was $70 million, down from $107 million in the prior year. The decline in revenue and net income reflects challenges in key markets and the ongoing transition as a newly independent public company following its separation from Agilent Technologies. The company is focusing on investing in product development to address evolving customer needs driven by faster data rates and new technology standards. However, overall orders decreased by 5% year-over-year for the quarter. Management highlights strategic investments in wireless communications and software, further bolstered by the recent acquisition of Anite. Despite the revenue decline, the company is implementing cost-saving measures, including workforce reductions, and maintains a strong cash position.
Financial Highlights
53 data points| Revenue | $665.00M |
| Cost of Revenue | $295.00M |
| Gross Profit | $370.00M |
| R&D Expenses | $90.00M |
| SG&A Expenses | $183.00M |
| Operating Expenses | $565.00M |
| Operating Income | $100.00M |
| Interest Expense | $12.00M |
| Net Income | $70.00M |
| EPS (Basic) | $0.41 |
| EPS (Diluted) | $0.41 |
| Shares Outstanding (Basic) | 169.00M |
| Shares Outstanding (Diluted) | 172.00M |
Key Highlights
- 1Total net revenue for the three months ended July 31, 2015 was $665 million, a 12% decrease year-over-year.
- 2Net income for the quarter was $70 million, compared to $107 million in the prior year's same quarter.
- 3Total orders decreased by 5% year-over-year for the three months ended July 31, 2015.
- 4The company announced a workforce reduction program affecting approximately 85 employees and a voluntary pre-retirement program for about 160 employees.
- 5Keysight acquired Anite plc in August 2015 to expand its offerings in wireless communications design and test, and network test.
- 6Cash and cash equivalents increased to $1,000 million as of July 31, 2015, up from $810 million at October 31, 2014.
- 7Interest expense of $12 million was recorded for the quarter, compared to no interest expense in the prior year, due to senior notes issued in October 2014.