Summary
Keysight Technologies, Inc. reported a revenue of $1.217 billion for the third quarter of fiscal year 2024, a 12% decrease compared to the same period last year. Net income for the quarter was $389 million, or $2.22 per diluted share, a significant increase from $288 million in the prior year, largely driven by a substantial income tax benefit from discrete items. For the first nine months of fiscal 2024, revenue was $3.692 billion, down 11% year-over-year, with net income at $687 million, a decrease from $831 million in the prior year. The company completed several acquisitions during the period, including ESI Group, Riscure Holding B.V., and AnaPico AG, which contributed to an increase in goodwill and intangible assets. Despite a challenging macroeconomic environment impacting demand, Keysight remains focused on strategic investments in R&D and long-term growth opportunities in areas like 5G, 6G, AI, and automotive. Financially, the company demonstrated operational discipline, with cash flow from operations at $693 million for the nine-month period, though this was lower than the previous year. Investing activities were significantly impacted by acquisitions, totaling $781 million. Financing activities also saw increased usage of cash, notably for the acquisition of non-controlling interests. The company maintained a strong balance sheet with $1.632 billion in cash and cash equivalents. The company also announced its intention to acquire Spirent Communications PLC for approximately $1.463 billion, indicating continued strategic inorganic growth focus.
Financial Highlights
53 data points| Revenue | $1.22B |
| Cost of Revenue | $462.00M |
| Gross Profit | $755.00M |
| R&D Expenses | $226.00M |
| SG&A Expenses | $329.00M |
| Operating Expenses | $1.01B |
| Operating Income | $205.00M |
| Net Income | $389.00M |
| EPS (Basic) | $2.23 |
| EPS (Diluted) | $2.22 |
| Shares Outstanding (Basic) | 174.00M |
| Shares Outstanding (Diluted) | 175.00M |
Key Highlights
- 1Total revenue for Q3 FY24 decreased 12% year-over-year to $1.217 billion.
- 2Net income for Q3 FY24 increased to $389 million ($2.22/share) from $288 million ($1.61/share) in Q3 FY23, primarily due to a significant $179 million discrete tax benefit.
- 3For the nine months ended July 31, 2024, revenue declined 11% to $3.692 billion, and net income decreased 17% to $687 million ($3.92/share).
- 4The company made significant acquisitions, including ESI Group, Riscure Holding B.V., and AnaPico AG, leading to a substantial increase in goodwill and intangible assets.
- 5Operating margin for Q3 FY24 compressed to 16.8% from 26.4% in the prior year, reflecting lower revenue and increased operating expenses.
- 6Cash flow from operations for the nine months ended July 31, 2024 was $693 million, down from $1.030 billion in the prior year, impacted by lower net income and changes in working capital.
- 7Keysight announced its intention to acquire Spirent Communications PLC for approximately $1.463 billion, signaling continued strategic growth ambitions.