Strong execution drives above guidance results

SANTA ROSA, Calif.: $KEYS #Keysight--Keysight Technologies, Inc. (NYSE: KEYS) today reported financial results for the fourth fiscal quarter and fiscal year ended October 31, 2024.

“Keysight executed well and delivered fourth quarter revenue and earnings per share above the high end of guidance under market conditions which remained consistent with our expectations,” said Satish Dhanasekaran, Keysight’s President and CEO. “As we look ahead, the strength of our differentiated portfolio, deep engagement with customers, and the accelerating pace of technology innovation give us confidence in our ability to outperform as markets recover.”

Fourth Quarter Financial Summary

• Revenue was $1.29 billion, compared with $1.31 billion last year.
• GAAP net loss was $73 million, or $0.42 per share, compared with a GAAP net income of $226 million, or $1.28 per share, in the fourth quarter of 2023. This loss reflects a $315 million tax expense related to a new Singapore tax incentive and corresponding decrease in deferred tax assets.
• Non-GAAP net income was $288 million, or $1.65 per share, compared with $352 million, or $1.99 per share in the fourth quarter of 2023.
• Cash flow from operations was $359 million, compared with $378 million last year. Free cash flow was $328 million, compared with $340 million in the fourth quarter of 2023.
• As of October 31, 2024, cash and cash equivalents totaled $1.80 billion.

Fiscal Year 2024 Financial Summary

• Revenue was $4.98 billion, compared with $5.46 billion last year.
• GAAP net income was $0.61 billion, or $3.51 per share, compared with $1.06 billion, or $5.91 per share in fiscal 2023.
• Non-GAAP net income was $1.10 billion, or $6.27 per share, compared with $1.49 billion, or $8.33 per share in fiscal year 2023.
• Cash flow from operations was $1.05 billion, compared with $1.41 billion last year. Free cash flow was $0.91 billion, compared with $1.21 billion in fiscal year 2023.

Reporting Segments

• Communications Solutions Group (CSG)
  CSG reported revenue of $894 million in the fourth quarter, flat over last year, reflecting 4 percent growth in commercial communications driven by AI-related investment, while aerospace, defense, and government declined 6 percent versus a record high quarter last year.
• Electronic Industrial Solutions Group (EISG)
  EISG reported revenue of $393 million in the fourth quarter, down 6 percent over last year, reflecting ongoing constraint in manufacturing-related customer spending.

Outlook

Keysight’s first fiscal quarter of 2025 revenue is expected to be in the range of $1.265 billion to $1.285 billion. Non-GAAP earnings per share for the first fiscal quarter of 2025 are expected to be in the range of $1.65 to $1.71. Certain items impacting the GAAP tax rate pertain to future events and are not currently estimable with a reasonable degree of accuracy; therefore, no reconciliation of GAAP earnings per share to non-GAAP 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 fourth quarter and fiscal year 2024 financial results and its first quarter FY2025 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 “Q4 2024 Keysight Technologies Inc. Earnings Conference Call” to participate or dial +1 833-470-1428 (Toll-Free) or +1 404-975-4839 (Local) and enter passcode 116445. 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 "assume," “expect,” “intend,” “will,” “should,” "outlook" 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, 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 of global economic conditions such as inflation or recession, uncertainty relating to the impact of election results in the U.S. and U.K., slowing demand for products or services, volatility in financial markets, reduced access to credit, changes in interest rates; impacts of geopolitical tension and conflict outside of the U.S., export control regulations and compliance; net zero emissions commitments; 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 yearly report on Form 10-K for the period ended October 31, 2023, and Keysight’s quarterly report on Form 10-Q for the period ended July 31, 2024.

Segment Data

Segment data reflects the results of our reportable segments under our management reporting system. Segment data are provided on page 5 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:

• Non-GAAP Net Income/Earnings
• Non-GAAP Net Income per share/Earnings 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 October 31, 2024 and fiscal year 2024. 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

At Keysight (NYSE: KEYS), we inspire and empower innovators to bring world-changing technologies to life. As an S&P 500 company, we're delivering market-leading design, emulation, and test solutions to help engineers develop and deploy faster, with less risk, throughout the entire product lifecycle. We're a global innovation partner enabling customers in communications, industrial automation, aerospace and defense, automotive, semiconductor, and general electronics markets to accelerate innovation to connect and secure the world. Learn more at Keysight Newsroom and www.keysight.com.

KEYSIGHT TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEET
(In millions, except par value and share data)
(Unaudited)
PRELIMINARY
	October 31, 2024				October 31, 2023
ASSETS
Current assets:
Cash and cash equivalents	$	1,796			$	2,472
Accounts receivable, net		857				900
Inventory		1,022				985
Other current assets		582				452
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