Summary
Keysight Technologies, Inc. (KEYS) reported mixed financial results for the six months ended April 30, 2017. While total net revenue saw a modest increase of 2% year-over-year to $1,479 million, net income decreased slightly to $158 million compared to $152 million in the prior year period. This period was significantly impacted by the acquisition of Ixia on April 18, 2017, for $1,622 million, which added substantial goodwill and intangible assets to the balance sheet. The acquisition drove a significant increase in cash used for investing activities, offset by a large inflow from financing activities. Operationally, the Communications Solutions Group (CSG) experienced a revenue decline, while the Electronic Industrial Solutions Group (EISG) and Services Solutions Group (SSG) showed growth. The newly integrated Ixia Solutions Group (ISG) contributed minimally to revenue in its first 13 days of operation within the reporting period. The company's balance sheet reflects the impact of the Ixia acquisition, with total assets increasing to $6,014 million from $3,796 million. Significant debt was incurred to finance the acquisition, leading to higher interest expenses.
Financial Highlights
55 data points| Revenue | $753.00M |
| Cost of Revenue | $340.00M |
| Gross Profit | $413.00M |
| R&D Expenses | $119.00M |
| SG&A Expenses | $256.00M |
| Operating Expenses | $711.00M |
| Operating Income | $42.00M |
| Interest Expense | $24.00M |
| Net Income | $49.00M |
| EPS (Basic) | $0.28 |
| EPS (Diluted) | $0.27 |
| Shares Outstanding (Basic) | 177.00M |
| Shares Outstanding (Diluted) | 179.00M |
Key Highlights
- 1Total net revenue increased by 2% to $1,479 million for the six months ended April 30, 2017, compared to $1,452 million in the prior year.
- 2Net income for the six months ended April 30, 2017 was $158 million, a slight increase from $152 million in the same period last year.
- 3The company completed the acquisition of Ixia for $1,622 million on April 18, 2017, significantly increasing goodwill and intangible assets.
- 4Total assets grew substantially to $6,014 million as of April 30, 2017, up from $3,796 million at October 31, 2016, largely due to the Ixia acquisition.
- 5Net cash used in investing activities was $1,642 million for the six months ended April 30, 2017, primarily driven by the Ixia acquisition.
- 6Net cash provided by financing activities was $1,690 million for the six months ended April 30, 2017, reflecting proceeds from debt and equity issuances to fund the acquisition.
- 7The Communications Solutions Group (CSG) revenue decreased by 3% year-over-year for the six months, while the Electronic Industrial Solutions Group (EISG) revenue grew by 7%.