Keysight targets revenue of $1.2 bn in third fiscal quarter

Keysight Technologies has reported revenue of $1.22 billion vs $1.39 billion and net income of $126 million vs $283 million for the second fiscal quarter ended April 30, 2024.
Keysight 5G testing solutions
Keysight Technologies has generated revenue of $496 million (representing 41 percent of its sales) revenue from Asia Pacific, $493 million (representing 40 percent) from Americas and $227 million (representing 19 percent) from Europe.

Keysight Technologies has generated revenue of $563 million (down 10 percent) from
Commercial Communications, $277 million (down 11 percent) from Aerospace, Defense & Government, and $376 million (down 17 percent) from Electronic Industrial
Solutions.

“Keysight executed well and delivered second quarter results above the high end of our guidance in a market environment that was consistent with the prior quarter,” said Satish Dhanasekaran, Keysight’s President and CEO.

Keysight’s Communications Solutions Group (CSG) reported revenue of $840 million, down 10 percent from the prior year, reflecting a 10 percent decline in commercial communications, while aerospace, defense, and government decreased 11 percent.

Keysight’s Electronic Industrial Solutions Group (EISG) reported revenue of $376 million in the second quarter, down 17 percent from the prior year, reflecting continued constraint in semiconductor and manufacturing-related customer spending.

Keysight’s third fiscal quarter of 2024 revenue is expected to be in the range of $1.18 billion to $1.20 billion.

ACHIEVEMENTS

Keysight said orders were flat year-over-year and grew four percent on a sequential basis. Investment in defense modernization drove activity in aerospace, defense and government. Keysight said commercial communications orders grew for the first time after 6 consecutive quarters of declines.

Keysight said wireline orders grew on demand for AI data center solutions. These include a new AI Test Platform that is being used by several industry leaders to emulate AI workloads and benchmark network performance.

Keysight noted that hyperscaler customer engagement remained high as they accelerated their AI application development. Keysight deepened R&D collaboration with Nvidia on next-generation communication technologies this quarter.

Keysight has experienced strong demand for AI infrastructure solutions, including test and validation of 400 and 800 “gig” transceivers, and ultra-highspeed interconnects in GPU-based compute systems. Its advancement of network innovation was on display at the Optical Fiber Conference. Keysight has demonstrated the industry’s first 1.6 terabit Ethernet test solution.

Keysight’s 5G solutions are enabling investment in the evolution of 5G standards, non-terrestrial networks, and Open RAN.

Keysight secured key wins with several customers in the U.S. during the first round of NTIA grants to enhance testing of interoperability, performance, and security of Open RAN networks.

Keysight noticed demand for chipset R&D, as well as component production.