Summary
Keysight Technologies, Inc. reported strong financial results for the second quarter and first half of fiscal year 2021, demonstrating significant year-over-year growth. Total revenue for the second quarter increased by 36% to $1.221 billion, and for the first half of the year, it grew by 21% to $2.401 billion. This growth was driven by robust performance in both the Communications Solutions Group (CSG) and Electronic Industrial Solutions Group (EISG), with revenue increases across all regions and end markets. Net income also saw a substantial rise, more than doubling in the second quarter to $186 million ($0.99 diluted EPS) and increasing by over 50% in the first half to $358 million ($1.91 diluted EPS). The company's operational efficiency improved, with gross margin increasing and operating margin expanding significantly in both segments. This performance highlights Keysight's ability to navigate market dynamics and capitalize on opportunities in key growth areas such as 5G, automotive, and IoT. The company's strong cash flow generation and solid balance sheet provide a stable foundation for continued investment in innovation and strategic growth initiatives.
Financial Highlights
52 data points| Revenue | $1.22B |
| Cost of Revenue | $484.00M |
| Gross Profit | $737.00M |
| R&D Expenses | $209.00M |
| SG&A Expenses | $297.00M |
| Operating Expenses | $986.00M |
| Operating Income | $235.00M |
| Interest Expense | $19.00M |
| Net Income | $186.00M |
| EPS (Basic) | $1.01 |
| EPS (Diluted) | $0.99 |
| Shares Outstanding (Basic) | 185.00M |
| Shares Outstanding (Diluted) | 187.00M |
Key Highlights
- 1Revenue increased by 36% year-over-year to $1.221 billion for the second quarter and by 21% to $2.401 billion for the first half of fiscal year 2021.
- 2Net income more than doubled in the second quarter to $186 million, with diluted earnings per share of $0.99, up from $0.37 in the prior year period.
- 3Both Communications Solutions Group (CSG) and Electronic Industrial Solutions Group (EISG) showed strong revenue growth across all regions and end markets.
- 4Gross margin improved to 60.4% in the second quarter and 60.1% for the first half, indicating enhanced operational efficiency.
- 5Operating margin expanded significantly, rising 8 percentage points to 19.3% in the second quarter and 3 percentage points to 18.6% in the first half.
- 6The company generated strong operating cash flow of $697 million for the first six months of the fiscal year, an increase of $202 million compared to the prior year period.
- 7Keysight repurchased $240 million of its common stock during the first six months of the fiscal year, demonstrating a commitment to returning value to shareholders.