Ronald S Nersesian, president and CEO of Keysight Technologies, tried to explain the key reasons for 12 percent dip in revenue and 34 percent drop in net income.
The wireless testing company posted 12 percent drop in revenues to $665 million, while net income declined to $94 million in the third fiscal quarter ended July 31, 2015 from $70 million.
Keysight said its Q4 2015 revenues will be $735 million — $775 million, while 2015 revenues will be $2.84 billion — $2.88 billion including the impact of the Anite acquisition.
The Q3 revenue of Keysight Technologies decreased due to factors such as poor sales in Greater China and currency fluctuations.
In modular, Keysight’s PXI and AXIe modular business continues to generate strong growth year-over-year, driven by new products and our success in the Wireless segment.
Keysight Technologies generated 37 percent of revenues from the Americas, 18 percent from Europe and 45 percent from Asia.
Q3 revenue fell 11 percent in the Americas, dropped 5 percent in Europe, dipped 14 percent in Asia excluding Japan, and rose 14 percent in Japan. China revenues dipped in double-digits. Incidentally, China Mobile, China Unicom and China Telecom are expanding their 4G LTE subscriber base.
Keysight said measurement solutions revenue fell 11 percent to $564 million, while the customer support and services revenue rose 4 percent to of $101 million.
In FY 2016, Keysight Technologies currently expects the electronic design and test market to grow at a rate of approximately 2 percent. The acquisition of Anite will result in $20 million of run rate cost synergies by the end of year two and enable to generate a 15 percent return on invested capital within five years.