Keysight Technologies Inc. · NYSE:KEYS
Keysight Technologies — Q1 2022 Earnings Presentation
19 slides from Keysight Technologies's earnings presentation, Feb 17, 2022
Slide 1: Keysight Technologies Q1 Fiscal Year 2022 Results
Keysight Technologies Q1 Fiscal Year 2022 Results
Slide 2: Forward-looking statements safe harbor
This communication contains forward-looking statements as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and is subject to the safe harbors created therein. Statements preceded by, followed by, or that otherwise i
Slide 3: All-time record orders and record first quarter revenue and earnings
All-time record orders and record first quarter revenue and earnings • Orders of $1.5B grew 22%, or 23% on a core* basis; double-digit order growth across all end markets and regions • Revenue of $1.25B grew 6% y/y, or 7% on a core* basis, and exceeded high end of guidance • Non-GAAP EPS of $1.65 (s
Slide 4: Orders, Revenue, Operating Margin, EPS
Orders Revenue Operating Margin EPS $1.495B $1.250B 28.0% $1.65 +22%y/y (+23% core*) +6%y/y (+7% core*) +90 basis points y/y +15%y/y * Core growth excludes the impact of currency, acquisitions or divestitures closed in last twelve months, reconciliations included. 4 Reconciliations to closest GAAP e
Slide 5: Q1'22 Revenue: $1,250M by segment and region
nevenue MY VCYCIIt & VY INGUYIVII iid By Segment By Region Asia Pacific 43% KEYSIGHT
Slide 6: Regional Highlights (Y/Y Revenue Growth)
+3% (+3% core*): Strength in CC and EI; +12% (+12% core*): Strength in EI and +6% (+8% core*): Strength in ADG and EI; softness in ADG CC; softness in ADG softness in CC Regional Highlights (Y/Y Revenue Growth*) Key: ADG – Aerospace, Defense & Government 6 CC – Commercial Communications * Core reven
Slide 7: Communications Solutions Group results
Revenue • Record first quarter CSG orders and revenue $878M • Commercial Communications: Record first quarter orders and revenue driven +3% y/y (+3% core*) by continued 5G, O-RAN, and 400G/800G/terabit ethernet investments • Aerospace, Defense & Government: Record first quarter orders driven by Oper
Slide 8: Electronic Industrial Solutions Group results
Revenue • All-time record orders and record first quarter revenue $372M • Continued investment in advanced technology nodes and capacity expansion +13% y/y (+15% core*) drove record semiconductor solutions orders and record first quarter revenue • Record automotive and energy orders and first quarte
Slide 9: End Market Revenue YoY %
End Market Revenue YoY % Commercial $584M +5% Communications Aerospace, Defense & $294M — Government Electronic Industrial $372M +13% Solutions Total $1,250M +6% 9
Slide 10: Q2'22 Guidance and FY22 Financial Considerations
Q2'22 Guidance Revenue $1.290B - $1.310B Revenue Growth +6% to +7% Non-GAAP Earnings per share $1.63 - $1.69 FY22 Financial Considerations • Net Interest and Other Income/Expense: $4M - $6M net expense / quarter • Non-GAAP tax rate of 12% • Guidance assumes Q2 weighted average diluted share count of
Slide 11: Five-year annual trend: Orders, Revenue, Operating Margin, EPS
Orders Revenue Operating Margin EPS $5.356B $4.941B 27.9% $6.23 12% CAGR 11% CAGR +950 basis points 25% CAGR 11 5-Year annual trend represents 2017-2021. Reconciliations to closest GAAP equivalent provided for all non-GAAP measures.. Non-GAAP revenue excludes the impact of fair-value adjustments to
Slide 12: Investor Day March 2020 Videos
Investor Day March 2020 Videos (single-click access to each executive’s presentation) Company Overview and Strategic Direction Ron Nersesian Chairman, President and CEO (36 minutes) Culture and Talent Transformation Ingrid Estrada SVP, CAO (13 minutes) Technology Leadership and Software Differentiat
Slide 13: Reconciliations
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Slide 14: Non-GAAP Operating Margin Reconciliation
KEYSIGHT TECHNOLOGIES, INC. NON-GAAP OPERATING MARGIN RECONCILIATION (In millions, except where noted) (Unaudited) PRELIMINARY Three months ended January 31, 2022 2021 Income from operations, as reported $ 271 $ 212 Amortization of acquisition-related balances 26 58 Share-based compensation 51 43 Ac
Slide 15: Non-GAAP Net Income and Diluted EPS Reconciliation
KEYSIGHT TECHNOLOGIES, INC. NON-GAAP NET INCOME AND DILUTED EPS RECONCILIATION (In millions, except per share data) (Unaudited) PRELIMINARY Three months ended January 31, 2022 2021 Diluted Diluted Net Income EPS Net Income EPS GAAP Net income $ 229 $ 1.24 $ 172 $ 0.92 Non-GAAP adjustments: Amortizat
Slide 16: Reconciliation of Core Revenue
KEYSIGHT TECHNOLOGIES, INC. RECONCILIATION OF CORE REVENUE (In millions) (Unaudited) PRELIMINARY Year-over-year compare Percent Q1'22 Q1'21 Inc/(Dec) Revenue $ 1,250 $ 1,180 6% Adjustments: Revenue from acquisitions or divestitures (4) - Currency impacts 12 - Core Revenue $ 1,258 $ 1,180 7% Refer to
Slide 17: Reconciliations of Core Revenue by Segment and Region
KEYSIGHT TECHNOLOGIES, INC. RECONCILIATIONS OF CORE REVENUE BY SEGMENT AND REGION (In millions) (Unaudited) PRELIMINARY Year-over-Year Revenue from acquisitions or Currency Revenue divestitures Adjustments Core Revenue Revenue by Segment Q1'22 Q1'21 YoY % Chg. Q1'22 Q1'21 Q1'22 Q1'22 Q1'21 YoY % Chg
Slide 18: Revenue by End Markets
KEYSIGHT TECHNOLOGIES, INC. REVENUE BY END MARKETS (In millions) (Unaudited) PRELIMINARY Percent Q1'22 Q1'21 Inc/(Dec) Aerospace, Defense and Government $ 294 $ 294 - Commercial Communications 584 558 5% Electronic Industrial 372 328 13% Total Revenue $ 1,250 $ 1,180 6% Refer to non-GAAP financial m
Slide 19: Non-GAAP Financial Measures
Non-GAAP Financial Measures Management uses both GAAP and non-GAAP financial measures to analyze and assess the overall performance of the business, to make operating decisions and to forecast and plan for future periods. We believe that our investors benefit from seeing our results “through the eye
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