Keysight Technologies Inc. · NYSE:KEYS
Keysight Technologies — Q2 2022 Earnings Presentation
21 slides from Keysight Technologies's earnings presentation, May 19, 2022
Slide 1: Keysight Technologies Q2 Fiscal Year 2022 Results
Keysight Technologies Q2 Fiscal Year 2022 Results
Slide 2: Forward-looking statements
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: Record second quarter orders; all-time record revenue and earnings per share
Record second quarter orders; all-time record revenue and earnings per share • Orders of $1.5B grew 9%, or 11% on a core* basis • Revenue of $1.4B grew 11% y/y, or 12% on a core* basis, and exceeded high end of guidance • Gross margin of 65% and operating margin of 29% – monetizing differentiation a
Slide 4: Q2 Orders, Revenue, Operating Margin and EPS
Orders Revenue Operating Margin EPS $1.458B $1.351B 28.8% $1.83 +9%y/y (+11% core*) +11%y/y (+12% core*) +260 basis points y/y +27%y/y * Core growth excludes the impact of currency, acquisitions or divestitures closed in last twelve months, reconciliations included. 4 Reconciliations to closest GAAP
Slide 5: Q2'22 Revenue by Segment & by Region
Revenue by Segment & by Region iia By Segment By Region Asia Pacific 42% KEYSIGHT °
Slide 6: Revenue growth by region
+16% y/y (+16% core*): Strength in CC, +9% y/y (+12% core*): Strength in EI and +6% y/y (+9% core*): Strength in CC and EI, and ADG ADG EI Key: * Core revenue growth excludes the impact of currency, acquisitions or divestitures closed in last twelve months, reconciliations included. ADG – Aerospace,
Slide 7: Communications Solutions Group results
Revenue • Record second quarter CSG orders and all-time record revenue $963M • Commercial Communications: Record orders and revenue driven by +10% y/y (+11% core*) continued 5G, O-RAN, and 400G/800G/terabit ethernet investments • Aerospace, Defense & Government: Record second quarter revenue driven
Slide 8: Electronic Industrial Solutions Group results
• Record second quarter orders and all-time record revenue Revenue • Automotive: Record Q2 orders and all-time record revenue driven by continued $388M investment in new EV and AV technology +13% y/y (+15% core*) • Semiconductor: Advanced node technologies and capacity expansion drove record Q2 orde
Slide 9: End Market Revenue YoY %
End Market Revenue YoY % Commercial $672M +11% Communications Aerospace, Defense & $291M +7% Government Electronic Industrial $388M +13% Solutions Total $1,351M +11% 9
Slide 10: Corporate Social Responsibility: FY21 Results
Accelerating Innovation to Employing a Global CSR Connect & Secure the World Business Framework Helping customers deliver purposeful technologies and Through ethical, environmentally sustainable, meet their Corporate Social Responsibility (CSR) goals and socially responsible operations Clean Tech Cl
Slide 11: Q3'22 Guidance
Q3'22 Guidance Revenue $1.330B - $1.350B Revenue Growth +7% to +8% Non-GAAP Earnings per share $1.74 - $1.80 FY22 Financial Considerations • Non-GAAP tax rate of 12% • Guidance assumes Q3 weighted average diluted share count of approximately 181M shares • Expected 2022 capital expenditures of $240M
Slide 12: 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 12 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 13: 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 14: Reconciliations
Reconciliations “WW KEYSIGHT 14
Slide 15: Non-GAAP Operating Margin Reconciliation
KEYSIGHT TECHNOLOGIES, INC. NON-GAAP OPERATING MARGIN RECONCILIATION (In millions, except where noted) (Unaudited) PRELIMINARY Three months ended Six months ended April 30, April 30, 2022 2021 2022 2021 Income from operations, as reported $ 327 $ 235 $ 598 $ 447 Amortization of acquisition-related b
Slide 16: Non-GAAP Gross Margin Reconciliation
KEYSIGHT TECHNOLOGIES, INC. NON-GAAP GROSS MARGIN RECONCILIATION (In millions, except where noted) (Unaudited) PRELIMINARY Three months ended Six months ended April 30, April 30, 2022 2021 2022 2021 Gross Profit, as reported $ 859 $ 737 $ 1,663 $ 1,444 Amortization of acquisition-related balances 13
Slide 17: 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 Six months ended April 30, April 30, 2022 2021 2022 2021 Net Diluted Net Diluted Net Diluted Net Diluted Income EPS Income EPS Income EPS Inc
Slide 18: Reconciliation of Core Revenue
KEYSIGHT TECHNOLOGIES, INC. RECONCILIATION OF CORE REVENUE (In millions) (Unaudited) PRELIMINARY Year-over-year compare Percent Q2'22 Q2'21 Inc/(Dec) Revenue $ 1,351 $ 1,221 11% Adjustments: Revenue from acquisitions or divestitures (3) — Currency impacts 20 — Core Revenue $ 1,368 $ 1,221 12% Refer
Slide 19: 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 Q2'22 Q2'21 YoY % Chg. Q2'22 Q2'21 Q2'22 Q2'22 Q2'21 YoY % Chg
Slide 20: Revenue by End Markets
KEYSIGHT TECHNOLOGIES, INC. REVENUE BY END MARKETS (In millions) (Unaudited) PRELIMINARY Percent Q2'22 Q2'21 Inc/(Dec) Aerospace, Defense and Government $ 291 $ 271 7% Commercial Communications 672 606 11% Electronic Industrial 388 344 13% Total Revenue $ 1,351 $ 1,221 11% Refer to non-GAAP financia
Slide 21: 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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