Keysight said it will achieve the increased its long-term operating model expectations by no later than 2021.
# Organic revenue growth at 4-5 percent CAGR against 4 percent CAGR earlier
# Non-GAAP operating margin of 22-23 percent against 18-19 percent earlier
# Non-GAAP earnings per share to grow greater than or equal to 10 percent against 8-10 percent earlier
Ron Nersesian, chief executive officer of Keysight said: “With our first-to-market advantage and end-to-end portfolio of solutions, we are well-aligned with growing market trends where customers are investing in next-generation electronic technologies such as 5G, automotive, IoT and data centers.”
Keysight revenue grew 15 percent to $837 million with net income of $94 million in the first fiscal quarter of 2018 ended January 31, 2018.
Ron Nersesian said the company’s order growth accelerated to 39 percent overall and 16 percent on a core basis driven by strength in key focus areas including 5G, automotive & energy and aerospace and defense.
Keysight’s Communications Solutions Group (CSG) revenue was $420 million compared to $434 million — impacted by the disruption in production due to the Northern California wildfires. Order growth for this segment was strong across both of its end-markets, resulting in growing backlog.
Electronic Industrial Solutions Group (EISG) revenue grew 6 percent to $203 million led by automotive & energy and semiconductor measurement solutions, offset by a slight decline in general electronics measurement.
Ixia Solutions Group (ISG) revenue was $127 million in the first quarter. ISG saw increased shipments for its high-speed Ethernet 400G test solutions and overall, support renewals reached a new record.
Services Solutions Group (SSG) revenue grew 6 percent to $106 million driven by increase in sales for remarketed solutions and calibration and regional strength in the Americas and Asia Pacific.