Keysight Technologies Inc. · NYSE:KEYS
Keysight Technologies — Q4 2022 Earnings Presentation
20 slides from Keysight Technologies's earnings presentation, Nov 17, 2022
Slide 1: Keysight Technologies Q4 Fiscal Year 2022 Results
Keysight Technologies Q4 Fiscal Year 2022 Results
Slide 2: Forward-looking statements and non-GAAP disclosure
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 quarterly and full-year orders, revenue and EPS
Record quarterly and full-year orders • Q4 orders of $1.57B grew 5% y/y, or 9% on a core* basis • FY22 orders of $5.98B grew 12%, or 14% on a core* basis • Record backlog of $2.55B exiting the fiscal year Record quarterly and full-year revenue • Q4 revenue of $1.44B grew 11% y/y, or 15% on a core* b
Slide 4: Q4 orders, revenue, operating margin and EPS
Orders Revenue Operating Margin EPS $1.570B $1.443B 29.9% $2.14 +5%y/y (+9% core*) +11%y/y (+15% core*) -80 basis points y/y +18%y/y Orders Revenue** $1.6 $1.6 $1.4 $1.4 $ in billions $ in billions $1.2 $1.2 $1.0 $1.0 $0.8 $0.8 $0.6 $0.6 $0.4 $0.4 Q4'19 Q1'20 Q2'20Q3'20 Q4'20Q1'21 Q2'21 Q3'21Q4'21 Q
Slide 5: Q4'22 Revenue by Segment and Region
Q4'22 REVENUE: $1,443M By Segment By Region EISG 31% Asia Pacific Americas 43% 41% CSG 69% Europe 16% 5
Slide 6: Regional Highlights: Americas, Europe, Asia Pacific
Americas Europe Asia Pacific $563 $562 $594 $600 $546 $300 $483 $800 $ in millions $226 $231 $618 $ in millions $607 $ in millions $217 $207 $555 $541 $571 $450 $225 $193 $600 $300 $150 $400 $150 $75 $200 $— $— $— Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q4'21 Q1'22 Q2'22 Q3'22 Q4
Slide 7: Communications Solutions Group results
Revenue • Record CSG revenue; second highest order quarter $992M +8% y/y (+11% core*) • Commercial Communications: Record Q4 revenue driven by 5G platform strength, continued O-RAN adoption, and investment in 800G / 1.6 Terabit R&D Operating Margin • Aerospace, Defense & Government: Second highest o
Slide 8: Electronic Industrial Solutions Group results
Revenue • Record EISG revenue and orders $451M • Record automotive orders and revenue driven by strong investments in EV and +20% y/y (+25% core*) AV technologies; over $500M in orders in FY22 • Sustained demand for semiconductor wafer test and precision positioning Operating Margin solutions drove
Slide 9: End Market Revenue YoY %
End Market Revenue YoY % Commercial Electronic $681M +10% Industrial Communications Solutions 31% Commercial Comms Aerospace, Defense & $311M +4% 47% Government Electronic Industrial Aerospace, $451M +20% Defense & Solutions Government 22% Total $1,443M +11% 9
Slide 10: Fiscal year 2018-2022 trends
Orders Revenue Operating Margin EPS $5.984B $5.420B 29.3% $7.63 10% CAGR 8% CAGR +1,050 basis points 24% CAGR Orders Revenue* $7 $6 $5.4 $6.0 $4.9 $6 $5.4 $ in billions $5 $4.3 $ in billions $4.4 $4.5 $4.2 $5 $4.1 $3.9 $4 $4 $3 $3 $2 $2 $1 $0 $1 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 Oper
Slide 11: Q1'23 Guidance and FY23 Financial Considerations
Q1'23 Guidance Revenue $ 1.36B - $1.38B Revenue Growth +8.8% to +10.4% Non-GAAP Earnings per share $1.81 - $1.87 FY23 Financial Considerations • Net Interest and Other Income/Expense: ~$1M net expense / quarter • Non-GAAP tax rate of 12% • Guidance assumes Q1 weighted average diluted share count of
Slide 12: Recent Reports and Quick Links
Recent Reports Quick Links 2021 CSR Report: OUR STRATEGY, PROGRESS, AND Why Keysight ACCOUNTABILITY Recent Investor Presentations and Webcasts The Keysight Leadership Model 2021 DEI Report: YEAR IN REVIEW Corporate Social Responsibility Investor Day March 2020 Videos (single-click access to each exe
Slide 13: Reconciliations
Reconciliations AW KEYSIGHT 13
Slide 14: Non-GAAP Gross Margin Reconciliation
KEYSIGHT TECHNOLOGIES, INC. NON-GAAP GROSS MARGIN RECONCILIATION (In millions, except where noted) (Unaudited) PRELIMINARY Three months ended Year ended October 31, October 31, 2022 2021 2022 2021 Gross Profit, as reported $ 910 $ 837 $ 3,450 $ 3,069 Amortization of acquisition-related balances 11 1
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 Year ended October 31, October 31, 2022 2021 2022 2021 Income from operations, as reported $ 379 $ 349 $ 1,334 $ 1,080 Amortization of acquisition-related
Slide 16: 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 Year ended October 31, October 31, 2022 2021 2022 2021 Net Diluted Net Diluted Net Diluted Net Diluted Income EPS Income EPS Income EPS Incom
Slide 17: Reconciliation of Core Revenue
KEYSIGHT TECHNOLOGIES, INC. RECONCILIATION OF CORE REVENUE (In millions) (Unaudited) PRELIMINARY Year-over-year compare Year-over-year compare Percent Inc/ Percent Inc/ Q4'22 Q4'21 (Dec) FY22 FY21 (Dec) Revenue $ 1,443 $ 1,294 11% $ 5,420 $ 4,941 10% Adjustments: Revenue from acquisitions or divesti
Slide 18: 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(a) Core Revenue Revenue by Segment Q4'22 Q4'21 YoY % Chg. Q4'22 Q4'21 Q4'22 Q4'22 Q4'21 YoY %
Slide 19: Revenue by End Markets
KEYSIGHT TECHNOLOGIES, INC. REVENUE BY END MARKETS (In millions) (Unaudited) PRELIMINARY Percent Q4'22 Q4'21 Inc/(Dec) Aerospace, Defense and Government $ 311 $ 297 4% Commercial Communications 681 622 10% Electronic Industrial 451 375 20% Total Revenue $ 1,443 $ 1,294 11% 19 Refer to non-GAAP finan
Slide 20: 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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