Keysight technologies reports second quarter 2021 results
Santa rosa, calif.--(business wire)--keysight technologies, inc. (nyse: keys) today reported financial results for the second fiscal quarter of 2021 ended april 30, 2021. “keysight delivered an exceptional quarter and achieved all-time record orders, revenue, and free cash flow. our second quarter results are indicative of our leadership position across a diverse set of markets,” said ron nersesian, keysight’s chairman, president and ceo. “as an enabler of leading-edge disruptive innovation, keysight is well-positioned to capitalize on multiple waves of technology that are fueling our growth for the long term.” second quarter financial summary orders grew 22 percent to reach $1.33 billion, compared with $1.09 billion last year. revenue grew 36 percent to reach $1.22 billion, compared with $895 million last year, or 33 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 $186 million, or $0.99 per share, compared with $71 million, or $0.37 per share, in the second quarter of 2020. non-gaap net income was $270 million, or $1.44 per share, compared with $148 million, or $0.78 per share in the second quarter of 2020. cash flow from operations was $402 million, compared with $298 million last year. free cash flow was $369 million, compared with $275 million in the second quarter of 2020. reporting segments communications solutions group (csg) csg reported revenue of $877 million in the second quarter, up 34 percent over last year, driven by ongoing investments across the 5g lifecycle and strong demand in space, satellite, signal monitoring, and early 6g research applications. electronic industrial solutions group (eisg) eisg reported revenue of $344 million in the second quarter, up 42 percent over last year, driven by strength in our semiconductor measurement, general electronics, and automotive and energy solutions, particularly in asia pacific. outlook keysight’s third fiscal quarter of 2021 revenue is expected to be in the range of $1.205 billion to $1.225 billion. non-gaap earnings per share for the third fiscal quarter of 2021 are expected to be in the range of $1.39 to $1.45, which exclude items that pertain to future events and are not currently estimable with a reasonable degree of accuracy. therefore, no reconciliation to gaap amounts has been provided. further information is discussed in the section titled “use of non-gaap financial measures” below. webcast keysight’s management will present more details about its second quarter fy2021 financial results and its third quarter fy2021 outlook 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 to the call at www.investor.keysight.com under the “upcoming events” section and select “q2 2021 keysight technologies inc. earnings conference call” to participate or dial +1 833-968-2178 (u.s. only) or +1 778-560-2837 (international) and enter passcode 3294649. the webcast will remain on the company site for 90 days. forward-looking statements this communication contains forward-looking statements as defined in the securities exchange act of 1934 and is subject to the safe harbors created therein. the words “expect,” “intend,” “will,” “should,” “forecast,” and similar expressions, as they relate to the company, are intended to identify forward-looking statements. these forward-looking statements involve risks and uncertainties that could significantly affect the expected results and are based on certain key assumptions of keysight’s management and on currently available information. due to such uncertainties and risks, no assurances can be given that such expectations or assumptions will prove to have been correct, and readers are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof. keysight undertakes no responsibility to publicly update or revise any forward-looking statement. the forward-looking statements contained herein include, but are not limited to, predictions, future guidance, projections, beliefs, and expectations about the company’s goals, revenues, financial condition, earnings, impacts of us export control regulations, and operations that 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 impacts to the supply chain; government mandates related to pandemic conditions; changes in the demand for current and new products, technologies, and services; customer purchasing decisions and timing; and order cancellations. in addition to the risks above, other risks that keysight faces include those detailed in keysight’s filings with the securities and exchange commission on keysight’s annual report on form 10-k for the fiscal year ended october 31, 2020 and keysight’s quarterly report on form 10-q for the period ended january 31, 2021. segment data segment data reflects the results of our reportable segments under our management reporting system. segment data are provided on page 6 of the attached tables. use of non-gaap financial measures in addition to financial information prepared in accordance with u.s. gaap (“gaap”), this document also contains certain non-gaap financial measures based on management’s view of performance, including: core revenue non-gaap net income non-gaap net income per share free cash flow income per share is based on weighted average diluted share count. see the attached supplemental schedules for reconciliations of each non-gaap financial measure to its most directly comparable gaap financial measure for the three months ended april 30, 2021. following the reconciliations is a discussion of the items adjusted from our non-gaap financial measures and the company’s reasons for including or excluding certain categories of income or expenses from our non-gaap results. about keysight technologies keysight delivers advanced design and validation solutions that help accelerate innovation to connect and secure the world. keysight’s dedication to speed and precision extends to software-driven insights and analytics that bring tomorrow’s technology products to market faster across the development lifecycle, in design simulation, prototype validation, automated software testing, manufacturing analysis, and network performance optimization and visibility in enterprise, service provider and cloud environments. our customers span the worldwide communications and industrial ecosystems, aerospace and defense, automotive, energy, semiconductor and general electronics markets. keysight generated revenues of $4.2b in fiscal year 2020. for more information about keysight technologies (nyse: keys), visit us at www.keysight.com. additional information about keysight technologies is available in the newsroom at www.keysight.com/go/news and on facebook, linkedin, twitter and youtube. source: ir-keys three months ended april 30, percent 2021 2020 inc/(dec) $ 1,332 $ 1,089 22 % $ 1,221 $ 895 36 % 484 379 28 % 209 166 25 % 297 251 18 % (4 ) (3 ) 12 % 986 793 24 % 235 102 131 % - 4 (87 )% (19 ) (20 ) 1 % (8 ) 22 - 208 108 92 % 22 37 (41 )% $ 186 $ 71 164 % $ 1.01 $ 0.38 $ 0.99 $ 0.37 185 187 187 189 six months ended april 30, percent 2021 2020 inc/(dec) $ 2,555 $ 2,230 15 % $ 2,401 $ 1,990 21 % 957 819 17 % 408 353 15 % 598 551 8 % (9 ) (38 ) (76 )% 1,954 1,685 16 % 447 305 47 % 1 10 (89 )% (39 ) (39 ) 1 % (6 ) 34 - 403 310 30 % 45 76 (41 )% $ 358 $ 234 53 % $ 1.93 $ 1.25 $ 1.91 $ 1.23 185 188 188 190 april 30, october 31, 2021 2020 $ 1,993 $ 1,756 676 606 774 757 275 255 3,718 3,374 598 595 236 182 1,608 1,537 316 361 65 61 712 740 433 368 $ 7,686 $ 7,218 $ 248 $ 224 359 289 488 391 82 64 42 43 69 70 1,288 1,081 1,790 1,789 358 362 172 175 200 149 333 365 4,141 3,921 - - 2 2 (992 ) (752 ) 2,152 2,110 2,894 2,536 (511 ) (599 ) 3,545 3,297 $ 7,686 $ 7,218 six months ended april 30, 2021 2020 $ 358 $ 234 57 50 115 109 64 54 (18 ) 27 14 12 16 - - (32 ) 7 (10 ) (61 ) 178 (23 ) (63 ) 18 (67 ) 51 (36 ) 89 51 7 1 4 (6 ) (1 ) (7 ) 697 495 (61 ) (55 ) (136 ) (5 ) - 32 (197 ) (28 ) 29 26 (51 ) (50 ) (240 ) (196 ) (2 ) - (264 ) (220 ) 6 (4 ) 242 243 1,767 1,600 $ 2,009 $ 1,843 $ 37 $ 38 $ 55 $ 47 $ 1,221 $ 895 36 % (11 ) - (16 ) - $ 1,194 $ 895 33 % $ 877 $ 653 34 % 64.7 % 63.1 % $ 222 $ 114 25 % 18 % q2'21 q2'20 $ 344 $ 242 42 % 64.0 % 62.0 % $ 98 $ 59 28 % 24 % three months ended six months ended april 30, april 30, 2021 2020 2021 2020 net income diluted eps net income diluted eps net income diluted eps net income diluted eps $ 186 $ 0.99 $ 71 $ 0.37 $ 358 $ 1.91 $ 234 $ 1.23 56 0.30 54 0.28 114 0.61 113 0.59 22 0.11 15 0.08 65 0.35 54 0.29 3 0.02 2 0.01 6 0.03 4 0.02 - - - - - - (32 ) (0.17 ) 2 0.01 1 0.01 3 0.01 3 0.01 16 0.09 (12 ) (0.06 ) 22 0.12 (11 ) (0.06 ) (15 ) (0.08 ) 17 0.09 (28 ) (0.15 ) 23 0.13 $ 270 $ 1.44 $ 148 $ 0.78 $ 540 $ 2.88 $ 388 $ 2.04 187 189 188 190 three months ended six months ended april 30, april 30, 2021 2020 2021 2020 $ 402 $ 298 $ 697 $ 495 (33 ) (23 ) (61 ) (55 ) $ 369 $ 275 $ 636 $ 440
