Keysight Technologies Inc (KEYS) Reports Record Full Year Revenue Despite Quarterly Declines
- Full year revenue reached a record $5.46 billion, a slight increase from the previous year.
- Fourth quarter revenue saw a decrease to $1.31 billion, down from $1.44 billion in the same quarter last year.
- Non-GAAP net income for the fiscal year rose to $1.49 billion, with a per-share increase from $7.63 to $8.33.
- Free cash flow for the fiscal year improved significantly to $1.21 billion, up from $0.96 billion in fiscal year 2022.
On November 20, 2023, Keysight Technologies Inc (
KEYS, Financial) released its 8-K filing, announcing its financial results for the fourth fiscal quarter and the full fiscal year ended October 31, 2023. Despite a challenging macroeconomic environment, the company achieved record full-year revenue, gross margin, and operating margin, according to Satish Dhanasekaran, Keysight’s President and CEO.
Fiscal Year and Fourth Quarter Highlights
For the fiscal year 2023, Keysight Technologies Inc (
KEYS, Financial) reported a revenue of $5.46 billion, marking a modest increase from $5.42 billion in the previous year. The company's GAAP net income for the year was $1.06 billion, or $5.91 per share, a slight decrease from $1.12 billion, or $6.18 per share, in fiscal 2022. However, on a non-GAAP basis, net income increased to $1.49 billion, or $8.33 per share, up from $1.39 billion, or $7.63 per share in the prior year.
The fourth quarter saw a revenue decline to $1.31 billion compared to $1.44 billion in the same quarter of the previous year. GAAP net income for the quarter was $226 million, or $1.28 per share, compared with $299 million, or $1.66 per share, in the fourth quarter of 2022. Non-GAAP net income was $352 million, or $1.99 per share, compared with $386 million, or $2.14 per share in the fourth quarter of 2022.
Segment Performance and Outlook
The Communications Solutions Group (CSG) reported a revenue of $891 million in the fourth quarter, a decrease of 10 percent from the previous year, while the Electronic Industrial Solutions Group (EISG) saw a 7 percent decline to $420 million. The company expects first fiscal quarter 2024 revenue to be in the range of $1.235 billion to $1.255 billion, with non-GAAP earnings per share expected to be between $1.53 and $1.59.
Financial Statements Analysis
Keysight Technologies Inc (
KEYS, Financial) ended the fiscal year with strong cash and cash equivalents totaling $2.47 billion. The balance sheet reflects a solid financial position with total assets increasing to $8.68 billion from $8.09 billion the previous year. The company's total liabilities and equity also saw an increase, indicating a healthy growth in the overall financial structure.
The cash flow statement shows a robust cash flow from operations at $1.41 billion for the fiscal year, up from $1.14 billion last year. Free cash flow also improved significantly to $1.21 billion, compared with $0.96 billion in fiscal year 2022, demonstrating the company's ability to generate cash and maintain liquidity.
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