Summary
Keysight Technologies, Inc. (KEYS) reported its financial results for the nine months ended July 31, 2017. The company experienced revenue growth, driven significantly by the acquisition of Ixia completed in April 2017. Total net revenue increased by 7% year-over-year to $2,311 million, with Ixia contributing 5 percentage points to this growth. However, net income saw a decline, reporting $140 million for the nine months compared to $243 million in the prior year. This decrease was primarily attributed to unfavorable impacts from the amortization of acquisition-related balances related to the Ixia acquisition. The company's balance sheet shows a substantial increase in total assets, rising to $5,840 million from $3,796 million at fiscal year-end 2016, largely due to the Ixia acquisition which significantly increased goodwill and other intangible assets. Cash flow from operations was $249 million for the nine months, a slight decrease from the prior year, while investing activities were heavily impacted by the Ixia acquisition, resulting in net cash used of $1,646 million. Financing activities provided $1,482 million in cash, largely from debt and equity issuances to fund the acquisition.
Financial Highlights
55 data points| Revenue | $832.00M |
| Cost of Revenue | $421.00M |
| Gross Profit | $411.00M |
| R&D Expenses | $132.00M |
| SG&A Expenses | $286.00M |
| Operating Expenses | $836.00M |
| Operating Income | -$4.00M |
| Interest Expense | $22.00M |
| Net Income | -$18.00M |
| EPS (Basic) | $-0.10 |
| EPS (Diluted) | $-0.10 |
| Shares Outstanding (Basic) | 186.00M |
| Shares Outstanding (Diluted) | 186.00M |
Key Highlights
- 1Revenue increased 7% year-over-year to $2,311 million for the nine months ended July 31, 2017, boosted by the acquisition of Ixia.
- 2Net income decreased to $140 million for the nine months ended July 31, 2017, down from $243 million in the prior year, primarily due to acquisition-related amortization costs.
- 3Total assets grew significantly to $5,840 million from $3,796 million, largely due to the Ixia acquisition which added $1,114 million in goodwill and $744 million in intangible assets.
- 4Operating cash flow was $249 million for the nine months, showing a slight decrease from $277 million in the prior year.
- 5Investing activities reflect a major outflow of $1,646 million due to the $1.62 billion acquisition of Ixia.
- 6Financing activities provided $1,482 million, primarily from new debt and equity issuances to fund the Ixia acquisition.
- 7Gross margin for the nine months declined to 53.1% from 55.6% year-over-year, impacted by amortization and warranty expenses.