Highlights:
- GAAP net income of $70 million, or $0.41 per share
- Non-GAAP net income of $96 million, or $0.56 per share(1)
- Revenues of $701 million, up 4 percent year-over-year
- GAAP operating margin of 12 percent; non-GAAP operating margin of 17 percent(1)
- Second-quarter fiscal year 2015 revenue guidance of $720 million to $760 million; non-GAAP earnings guidance of $0.56 to $0.70 per share(2)
SANTA ROSA, Calif. — (BUSINESS WIRE) — February 19, 2015 — Keysight Technologies, Inc. (NYSE: KEYS) today reported revenues of $701 million for the first fiscal quarter ended Jan. 31, 2015, up 4 percent compared with one year ago. First-quarter GAAP net income was $70 million, or $0.41 per share. First-quarter GAAP operating margin was 12 percent.
During the first quarter, Keysight had share-based compensation of $29 million, separation costs of $7 million, intangible amortization of $2 million, and a tax benefit of $11 million. Excluding these items and $1 million of other net benefits, Keysight reported first-quarter non-GAAP net income of $96 million, or 0.56 per share.(1) First-quarter non-GAAP operating margin was 17 percent.(1)
“I was very pleased with our performance in our first quarter as an independent company,” said Ron Nersesian, Keysight president and CEO. “Our team did an exceptional job in executing the separation with no significant issues. In parallel, we delivered revenue and profit above the midpoint of our guidance.
“Looking ahead, our solid stabilization and strong operating performance allows us to focus even more intently on accelerating growth while maintaining our business model,” Nersesian added.
Keysight generated $92 million in cash from operations in the quarter. First-quarter ROIC was 30 percent.(3)
Keysight’s second-quarter 2015 revenues are expected to be in the range of $720 million to $760 million. Second-quarter non-GAAP earnings are expected to be in the range of $0.56 to $0.70 per share.(2)
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 first-quarter FY2015 financial results on a conference call with investors today at 1:30 p.m. PT. This event will be webcast in listen-only mode. Listeners may log on and select Q1 2015 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. PT, Feb. 19 through March 3 by dialing +1 855 859 2056 (or +1 404 537 3406 from outside the United States) and entering pass code 56366702.
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 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-K for the fiscal year ended Oct. 31, 2014. 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
