Fri, May 31, 8:09 PM (56 days ago)
For the quarter ending April 30, 2024, Keysight Technologies reported a decline in both revenue and net income compared to the same period in the previous year. Revenue decreased by 13% to $1,216 million, primarily due to lower demand and challenging macroeconomic conditions. The company's gross margin decreased by 3 percentage points to 62.8%, impacted by lower revenue volume and higher amortization of acquisition-related balances. Operating income fell by 50% to $177 million, with an operating margin of 14.6%, down from 25.4% the previous year. Net income was $126 million, a 55% decrease from $283 million in the same quarter last year. The company completed the acquisition of ESI Group SA, contributing $26 million in revenue for the quarter but resulting in a net loss attributable to Keysight shareholders of $22 million. The acquisition expanded Keysight's simulation capabilities, critical for accelerating innovation in multiple end markets. Keysight's balance sheet showed a decrease in cash and cash equivalents to $1,657 million from $2,472 million at the end of October 2023, primarily due to acquisition expenses. The company's debt remained stable at $1,795 million. Despite the challenging environment, Keysight remains confident in its long-term strategy, focusing on R&D investments and maintaining operational discipline.