Keysight Technologies reports Q4 and FY 2022 results

Keysight Technologies, Inc. reported financial results for the fourth fiscal quarter and fiscal year ended October 31, 2022.

“Keysight’s exceptional fourth quarter performance capped off an outstanding record year. Strong execution by our teams again delivered results ahead of expectations, while navigating supply, geopolitical, and macro dynamics,” said Satish Dhanasekaran, Keysight’s President and CEO. “We achieved record orders in the quarter and fiscal year, which underscored broad-based demand for Keysight’s high-value, differentiated solutions. Despite an uncertain macro environment, we remain confident in the resilience of our business, and the long-term secular growth trends across our markets.”

Fourth Quarter Financial Summary

• Revenue grew 11 percent to reach $1.44 billion, compared with $1.29 billion last year, or 15 percent on a core basis, which excludes the impact of foreign currency changes and revenue associated with businesses acquired or divested within the last twelve months.
• GAAP net income was $299 million, or $1.66 per share, compared with $282 million, or $1.52 per share, in the fourth quarter of 2021.
• Non-GAAP net income was $386 million, or $2.14 per share, compared with $338 million, or $1.82 per share in the fourth quarter of 2021.
• Cash flow from operations was $398 million, compared with $368 million last year. Free cash flow was $340 million, compared with $295 million in the fourth quarter of 2021.
• As of October 31, 2022, cash and cash equivalents totaled $2.04 billion.

Fiscal Year 2022 Financial Summary

• Revenue grew 10 percent and totaled $5.42 billion, compared with $4.94 billion last year, or 12 percent on a core basis.
• GAAP net income was $1.12 billion, or $6.18 per share, compared with $894 million, or $4.78 per share in fiscal 2021.
• Non-GAAP net income was $1.39 billion, or $7.63 per share, compared with $1.16 billion, or $6.23 per share in fiscal year 2021.
• Cash flow from operations was $1.14 billion, compared with $1.32 billion last year. Free cash flow was $959 million, compared with $1.15 billion in fiscal year 2021.

Reporting Segments

Communications Solutions Group (CSG)
CSG reported revenue of $992 million in the fourth quarter, up 8 percent over last year, driven by 5G platform strength, continued O-RAN adoption, and investment in 800G and 1.6 Terabit R&D, as well as spectrum operations, cybersecurity, space, and satellite solutions. CSG reported growth across all regions.

Electronic Industrial Solutions Group (EISG)
EISG reported revenue of $451 million in the fourth quarter, up 20 percent over last year, driven by next-generation automotive and energy technologies, general electronics, and semiconductor solutions. EISG reported growth across all regions.

Outlook

Keysight’s first fiscal quarter of 2023 revenue is expected to be in the range of $1.36 billion to $1.38 billion. Non-GAAP earnings per share for the first fiscal quarter of 2023 are expected to be in the range of $1.81 to $1.87. Certain items impacting the GAAP tax rate pertain to future events and are not currently estimable with a reasonable degree of accuracy; therefore, no reconciliation of GAAP earnings per share to non-GAAP has been provided. Further information is discussed in the section titled “Use of Non-GAAP Financial Measures” below.

CT Bureau