Keysight Technologies Faces Revenue Dip in First Quarter of Fiscal Year 2024

Keysight Technologies, a leading company in test and measurement business, has reported its financial results for the first fiscal quarter ending January 31, 2024.
Keysight solution for satellite operatorsKeysight has disclosed a revenue of $1.26 billion for the quarter, compared with $1.38 billion in the corresponding period of 2023.

Segment Performance Analysis

In the Communications Solutions Group (CSG), revenue stood at $839 million, marking an 11 percent decrease compared to the previous year. This decline was primarily driven by a 14 percent drop in commercial communications, while aerospace, defense, and government sectors experienced a more modest 5 percent decrease.

Meanwhile, the Electronic Industrial Solutions Group (EISG) reported revenue of $420 million, reflecting a 5 percent decrease from the previous year. This decline was attributed to constraints in semiconductor and manufacturing-related customer spending, partially offset by the addition of Electronic System Integration (ESI).

Outlook for Second Quarter

Looking ahead to the second fiscal quarter of 2024, Keysight Technologies anticipates revenue in the range of $1.19 billion to $1.21 billion. Despite the overall demand environment remaining constrained, the company has observed growth in orders for aerospace, defense, and government solutions, as well as in AI-driven network and data center applications.

Keysight CEO Satish Dhanasekaran commented on the results, acknowledging the challenges posed by the current market conditions while highlighting areas of growth within specific segments. Dhanasekaran’s remarks underscore the company’s commitment to navigating through these challenges and leveraging opportunities for expansion in key sectors.