Slide 1: Keysight Technologies Q1 Fiscal Year 2023 Results
Keysight Technologies Q1 Fiscal Year 2023 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: Strong first quarter financial results
Strong first quarter financial results • Record Q1 revenue of $1.38B grew 10% y/y, or 14% on a core* basis, and exceeded high end of guidance • Gross margin* of 65% and operating margin* of 30%; non-GAAP EPS of $2.02 grew 22% y/y and exceeded high end of guidance Orders of $1.3B declined 13% y/y, or
Slide 4: Orders, Revenue, Operating Margin, EPS
Orders Revenue Operating Margin EPS $1.300B $1.381B 29.7% $2.02 -13%y/y (-10% core*) +10%y/y (+14% core*) +170 basis points y/y +22%y/y * Core growth excludes the impact of currency, acquisitions or divestitures closed in last twelve months, reconciliations included. 4 Reconciliations to closest GAA
Slide 5: Q1'23 Revenue: $1,381M by Segment and Region
ING VUCIIUGS MY SVU EIG A MY Pye a By Segment By Region KEYSIGHT °
Slide 6: Revenue growth by region
+16% y/y (+16% core*): Strength in EI, +14% y/y (+20% core*): Strength in EI, +4% y/y (+10% core*): Strength in EI and CC, and ADG ADG, and CC CC Key: * Core revenue growth excludes the impact of currency, acquisitions or divestitures closed in last twelve months, reconciliations included. ADG – Aer
Slide 7: Communications Solutions Group
Revenue • Record first quarter CSG revenue $939M • Commercial Communications: Record first quarter revenue driven by 5G, +7% y/y (+10% core*) O-RAN, 800G and terabit communications solutions Operating Margin • Aerospace, Defense & Government: Record first quarter revenue driven by increased U.S. gov
Slide 8: Electronic Industrial Solutions Group
Revenue • Record Q1 revenue; 10th consecutive quarter of DD revenue growth $442M • Automotive: All-time record revenue driven by continued investment in new EV +19% y/y (+23% core*) and AV technology Operating Margin • Semiconductor: Orders sustained by continued capacity investments 31.8% • General
Slide 9: End Market Revenue YoY %
End Market Revenue YoY % Commercial $629M +8% Communications Aerospace, Defense & $310M +5% Government Electronic Industrial $442M +19% Solutions Total $1,381M +10% 9
Slide 10: Five-year annual trend: Orders, Revenue, Margin, EPS
Orders Revenue Operating Margin EPS $5.984B $5.420B 29.3% $7.63 10% CAGR 8% CAGR +1,050 basis points 24% CAGR 5-Year annual trend represents 2018-2022. Reconciliations to closest GAAP equivalent provided for all non-GAAP measures.. Non-GAAP revenue excludes the impact of fair-value adjustments to ac
Slide 11: Q2'23 Guidance and FY23 Financial Considerations
Q2'23 Guidance Revenue $1.37B – $1.39B Revenue Growth 1% – 3% Non-GAAP Earnings per share $1.91 – $1.97 FY23 Financial Considerations • Net Interest and Other Income/Expense: $6M – $8M net income / quarter • Non-GAAP tax rate of 12% • Guidance assumes Q2 weighted average diluted share count of appro
Slide 12: Investor resources 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
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, 2023 2022 Income from operations, as reported $ 322 $ 271 Amortization of acquisition-related balances 23 26 Share-based compensation 55 51 Ac
Slide 15: Non-GAAP Gross Margin Reconciliation
KEYSIGHT TECHNOLOGIES, INC. NON-GAAP GROSS MARGIN RECONCILIATION (In millions, except where noted) (Unaudited) PRELIMINARY Three months ended January 31, 2023 2022 Gross Profit, as reported $ 883 $ 804 Amortization of acquisition-related balances 9 12 Share-based compensation 9 8 Non-GAAP Gross Prof
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 January 31, 2023 2022 Net Income Diluted EPS Net Income Diluted EPS GAAP Net income $ 260 $ 1.45 $ 229 $ 1.24 Non-GAAP adjustments: Amortizat
Slide 17: Reconciliation of Core Revenue
KEYSIGHT TECHNOLOGIES, INC. RECONCILIATION OF CORE REVENUE (In millions) (Unaudited) PRELIMINARY Year-over-year Percent Q1'23 Q1'22 Inc/(Dec) Revenue $ 1,381 $ 1,250 10% Adjustments: Revenue from acquisitions or divestitures (2) — Currency impacts 49 — Core Revenue $ 1,428 $ 1,250 14% Refer to non-G
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 Core Revenue Revenue by Segment Q1'23 Q1'22 YoY % Chg. Q1'23 Q1'22 Q1'23 Q1'23 Q1'22 YoY % Chg
Slide 19: Revenue by End Markets
KEYSIGHT TECHNOLOGIES, INC. REVENUE BY END MARKETS (In millions) (Unaudited) PRELIMINARY Percent Q1'23 Q1'22 Inc/(Dec) Aerospace, Defense and Government $ 310 $ 294 5% Commercial Communications 629 584 8% Electronic Industrial 442 372 19% Total Revenue $ 1,381 $ 1,250 10% Refer to non-GAAP financial
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