Q2 2024 Keysight Technologies Inc Earnings Call Transcript
Key Points
- Keysight Technologies Inc (KEYS) exceeded the high end of their guidance with revenue of $1.2 billion and earnings per share of $1.41.
- The company saw strong demand for AI infrastructure solutions, including test and validation of 400 and 800 gig transceivers and ultra high-speed interconnects in GPU-based compute systems.
- Keysight Technologies Inc (KEYS) deepened its R&D collaboration with NVIDIA on next-generation communication technologies.
- The company expanded its global battery test footprint with a new large Gigafactory customer in Europe.
- Software and services orders and revenue growth continued to outpace overall Keysight, now representing approximately 39% of total revenue.
- Communications Solutions Group revenue declined versus the prior year, impacted by a robust backlog conversion.
- Electronic Industrial Solutions Group orders and revenue declined double digits as expected, with customer spending and market conditions remaining muted.
- The semiconductor industry outlook is improving but recovery is projected for 2025, indicating a delay in immediate revenue growth.
- Customer spending remains constrained in general electronics markets, particularly in manufacturing, China, and the distribution channel.
- Operating expenses of $496 million were down only 2% year-over-year despite the addition of ESI and Riscure, indicating limited cost reduction.
Good day, ladies and gentlemen, and welcome to Keysight Technologies Fiscal Second Quarter 2024 Earnings Conference Call. My name is Sierra, and I will be your lead operator today. (Operator Instructions). This call is being recorded today, Monday, May 20, 2024, at 1:30 p.m. Pacific Time.
I would now like to hand the call over to Jason Kary, Vice President, Treasurer and Investor Relations. Please go ahead, Mr. Kary.
Thank you, and welcome, everyone, to Keysight's Second Quarter Earnings Conference Call for Fiscal year 2024. Joining me are Keysight's President and CEO, Satish Dhanasekaran; and our CFO, Neil Dougherty. In the Q&A session, we'll be joined by Chief Customer Officer, Mark Wallace. The press release and information to supplement today's discussion are on our website at investor.keysight.com under Financial Information and Quarterly Reports.
Today's comments will refer to non-GAAP financial measures. We will also make reference to core growth, which excludes the
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