On November 20, 2023, Keysight Technologies Inc (KEYS, Financial) released its 8-K filing, announcing its financial results for the fourth fiscal quarter and the full fiscal year ended October 31, 2023. Despite a challenging macroeconomic environment, the company achieved record full-year revenue, gross margin, and operating margin, according to Satish Dhanasekaran, Keysight’s President and CEO.
Fiscal Year and Fourth Quarter Highlights
For the fiscal year 2023, Keysight Technologies Inc (KEYS, Financial) reported a revenue of $5.46 billion, marking a modest increase from $5.42 billion in the previous year. The company's GAAP net income for the year was $1.06 billion, or $5.91 per share, a slight decrease from $1.12 billion, or $6.18 per share, in fiscal 2022. However, on a non-GAAP basis, net income increased to $1.49 billion, or $8.33 per share, up from $1.39 billion, or $7.63 per share in the prior year.
The fourth quarter saw a revenue decline to $1.31 billion compared to $1.44 billion in the same quarter of the previous year. GAAP net income for the quarter was $226 million, or $1.28 per share, compared with $299 million, or $1.66 per share, in the fourth quarter of 2022. Non-GAAP net income was $352 million, or $1.99 per share, compared with $386 million, or $2.14 per share in the fourth quarter of 2022.
Segment Performance and Outlook
The Communications Solutions Group (CSG) reported a revenue of $891 million in the fourth quarter, a decrease of 10 percent from the previous year, while the Electronic Industrial Solutions Group (EISG) saw a 7 percent decline to $420 million. The company expects first fiscal quarter 2024 revenue to be in the range of $1.235 billion to $1.255 billion, with non-GAAP earnings per share expected to be between $1.53 and $1.59.
Financial Statements Analysis
Keysight Technologies Inc (KEYS, Financial) ended the fiscal year with strong cash and cash equivalents totaling $2.47 billion. The balance sheet reflects a solid financial position with total assets increasing to $8.68 billion from $8.09 billion the previous year. The company's total liabilities and equity also saw an increase, indicating a healthy growth in the overall financial structure.
The cash flow statement shows a robust cash flow from operations at $1.41 billion for the fiscal year, up from $1.14 billion last year. Free cash flow also improved significantly to $1.21 billion, compared with $0.96 billion in fiscal year 2022, demonstrating the company's ability to generate cash and maintain liquidity.
Investor and Media Information
Keysight Technologies Inc (KEYS, Financial) has made further details about its fourth quarter and fiscal year 2023 financial results available through a conference call with investors, which was webcast on the same day as the earnings release. The webcast will remain available on the company's website for 90 days.
In conclusion, Keysight Technologies Inc (KEYS, Financial) has navigated a challenging economic landscape to deliver a record full year revenue and strong financial performance. The company's strategic customer engagement and diverse market positioning have set a solid foundation for future growth, as reflected in the optimistic outlook for the upcoming fiscal quarter.
Explore the complete 8-K earnings release (here) from Keysight Technologies Inc for further details.
