Highlights:
- Revenues of $762 million, up 8 percent year-over-year
- Full-year revenues of $2.93 billion, up 2 percent year-over-year
- GAAP operating margin of 17 percent
- Non-GAAP operating margin of 21 percent(1)
- First-quarter fiscal year 2015 revenue guidance of $675 million to $715 million
- Completed separation from Agilent Technologies Inc.
- Listed on NYSE, ticker symbol KEYS
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SANTA ROSA, Calif., Nov 17, 2014
Keysight Technologies, Inc. (NYSE: KEYS) today reported revenues of $762 million for the fourth fiscal quarter ended Oct. 31, 2014, up eight percent compared with one year ago. Fourth-quarter GAAP operating margin was 17 percent. Fourth-quarter non-GAAP operating margin was 21 percent. Full-year revenues of $2.93 billion were up 2 percent year-over-year.
Keysight completed its separation from Agilent Technologies on November 1 and began trading on the NYSE under the ticker symbol KEYS on Nov. 3. Full financial results for the fiscal quarter were reported today by Agilent Technologies.
"Fourth quarter revenues and operating margin were above the mid-point of our guidance range as we delivered another quarter of solid financial results while launching Keysight as an independent public company," said Ron Nersesian, Keysight president and CEO.
"Consistent with what we have said over the past year, our strategic intent is to drive growth through wireless, modular and software solutions. We will continue to focus on these areas going forward, as well as on meeting our commitments as we did this quarter," Nersesian added.
Keysight's first-quarter 2015 revenues are expected to be in the range of $675 million to $715 million. First-quarter non-GAAP operating margin is expected to be in the range of 14 to 17 percent
(1).
About Keysight Technologies
Keysight Technologies (NYSE:KEYS) is a global electronic measurement technology and market leader helping to transform its customers' measurement experience through innovations in wireless, modular, and software solutions. Keysight's electronic measurement instruments, systems, software and services are used in the design, development, manufacture, installation, deployment and operation of electronic equipment. The business had revenues of $2.9 billion in fiscal year 2014. Information about Keysight is available at www.keysight.com.
Keysight's management will present more details about its fourth-quarter FY2014 financial results on a conference call with investors today at 1:15 p.m. PST. This event will be webcast in listen-only mode. Listeners may log on and select "Q4 2014 Keysight Technologies, Inc. Results Conference Call" in the "Investor News & Events — Upcoming Events" section at www.investor.keysight.com. The webcast will remain on the company site for 90 days.
A telephone replay of the conference call will be available at approximately 4:15 p.m. PST, Nov. 17 through Nov. 30 by dialing +1 855 859 2056 (or +1 404 537 3406 from outside the United States) and entering pass code 14790761.
Forward-Looking Statements
This news release contains forward-looking statements as defined in the Securities Exchange Act of 1934 and is subject to the safe harbors created therein. The forward-looking statements contained herein include, but are not limited to, information regarding Keysight's separation of the electronic measurement business; future revenues, earnings and profitability; the future demand for the company's products and services; and customer expectations. These forward-looking statements involve risks and uncertainties that could cause Keysight's results to differ materially from management's current expectations. Such risks and uncertainties include, but are not limited to, unforeseen changes in the strength of our customers' businesses; unforeseen changes in the demand for current and new products, technologies, and services; customer purchasing decisions and timing, and the risk that we are not able to realize the savings expected from integration and restructuring activities.
In addition, other risks that Keysight faces include those detailed in Keysight's filings with the Securities and Exchange Commission, including our Form 10, and amendments thereto. Forward-looking statements are based on the beliefs and assumptions of Keysight's management and on currently available information. Keysight undertakes no responsibility to publicly update or revise any forward-looking statement.
Non-GAAP Measures
Keysight uses a number of different financial measures, both GAAP and non-GAAP, in analyzing and assessing the overall performance of the business, for making operating decisions and for forecasting and planning for future periods. The definition of these non-GAAP financial measures may differ from similarly titled measures used by others, and such non-GAAP measures should be considered supplemental to and not a substitute for financial information prepared in accordance with GAAP. Keysight generally uses non-GAAP financial measures to facilitate management's comparisons to historic operating results, to competitors' operating results and to guidance provided to investors. In addition, Keysight believes that the use of these non-GAAP financial measures provide greater transparency to investors of information used by management in its financial and operational decision-making.
(1) Non-GAAP operating margin exclude the impacts of acquisition and integration costs, pre- separation costs, transformational initiatives, asset impairment charges, restructuring-related costs, and non-cash intangibles amortization. A reconciliation between GAAP operating margin and non-GAAP operating margin is set forth on the attached tables.
With respect to guidance, most of these excluded amounts pertain to events that have not yet occurred and are not currently possible to estimate with a reasonable degree of accuracy. Therefore, no reconciliation to GAAP amounts has been provided.
# # #
Financial Statements for Fourth-Quarter Fiscal 2014
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KEYSIGHT TECHNOLOGIES, INC. AND SUBSIDIARIES
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ORDERS, REVENUE AND INCOME FROM OPERATIONS
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(In millions)
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(Unaudited)
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PRELIMINARY
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|
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|
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Year Ended
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Three Months Ended
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October 31,
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October 31,
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|
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2014
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2013
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2014
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2013
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Orders
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$
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2,963
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$
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2,866
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$
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760
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$
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742
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Revenue
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$
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2,933
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$
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2,888
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$
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762
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$
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705
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Non-GAAP income from operations
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$
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559
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$
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544
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$
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160
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$
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134
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Percentage of revenue
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|
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19%
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19%
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21%
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19%
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GAAP income from operations
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$
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469
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$
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496
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$
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130
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$
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128
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Percentage of revenue
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16%
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17%
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17%
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18%
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Non-GAAP Income from operations reflects our results under our
management reporting system. These results are not necessarily in
conformity with US GAAP financial measures. Readers are reminded that
non-GAAP numbers are merely a supplement to, and not a replacement for,
GAAP financial measures. They should be read in conjunction with the
GAAP financial measures. It should be noted as well that our non-GAAP
information may be different from the non-GAAP information provided by
other companies.
The preliminary Orders, Revenue and Income from operations information
is estimated based on our current information.
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KEYSIGHT TECHNOLOGIES, INC. AND SUBSIDIARIES
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NON-GAAP INCOME FROM OPERATIONS RECONCILIATION
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(In millions)
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(Unaudited)
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PRELIMINARY
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Year Ended
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Three Months Ended
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October 31,
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October 31,
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2014
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2013
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2014
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2013
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Non-GAAP income from operations
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$
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559
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$
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544
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$
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160
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$
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134
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Restructuring related reversals/(expense)
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3
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(15
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)
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-
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2
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Asset impairment charges
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-
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(1
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)
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-
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-
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Acceleration of share-based compensation expense related to
workforce reduction
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-
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(1
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)
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-
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(1
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)
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Transformational program expense
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(1
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)
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(4
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)
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-
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-
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Amortization of intangibles
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(8
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)
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(9
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)
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(2
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)
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(2
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)
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Acquisition and integration expenses
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(1
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)
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(8
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)
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-
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(1
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)
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Non-recurring pre-separation and transaction expenses
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(78
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)
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(2
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)
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(27
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)
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(2
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)
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Other
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(5
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)
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(8
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)
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(1
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)
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(2
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)
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GAAP income from operations
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$
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469
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$
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496
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$
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130
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$
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128
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Download Financial Statements for Fourth-Quarter Fiscal 2014
Financial Tables (23KB)
Contacts
Editorial Contact:
Amy Flores
+1 408 236 1594
amy_flores@keysight.com
Investor Contact:
Jason Kary
+1 707 577 6916
jason_kary@keysight.com
