Latest news with #CSG
Forbes
3 days ago
- Business
- Forbes
Dell Earnings Preview - Will AI Impact Sales?
Close-up of signage at the regional headquarters of Dell Computers in the Silicon Valley town of ... More Santa Clara, California, July 25, 2017. (Photo via Smith Collection/Gado/Getty Images). Dell Technologies is scheduled to report earnings after Thursday's close. The stock hit a record high near $179.70/share in 2024 and, as of this writing, it is currently trading near $113. The stock is prone to big moves after reporting earnings and can easily gap up if the numbers are strong. Conversely, if the numbers disappoint, the stock can easily gap down. To help you prepare, here is what the Street is expecting: The company is expected to report a gain of $1.69/share on $23.10 billion in revenue. Meanwhile, the so-called Whisper number is a gain of $1.76/share. The Whisper number is the Street's unofficial view on earnings. Charts & Data Courtesy MarketSurge The company's earnings have been volatile over the last few years but are projected to grow going forward. In 2020, the company earned $7.35/share. In 2021, the company earned $4.88. In 2022, earnings grew to $6.22 and in 2023 earnings came in at $7.61. In 2024, the company earned $7.37. Looking forward, earnings are expected to grow to $8.14 in 2025, $9.21 in 2026, and $10.37 in 2027, largely due to AI. Meanwhile, the stock sports a price to earnings ratio of only 14 which is 0.6x the S&P 500. Technically, the stock has been in a downtrend since May 2024 but is currently trying to bottom. It managed to get above its declining 50 and 200 day moving average lines which is a welcomed sign for the bulls. The stock is 36% below its 52-week high which means it still has a lot of ground to recover. After earnings, the bulls want to see the stock gap up and rally and the bears want to see it gap down and fall. Here's the company profile, according to Yahoo! Finance: Dell Technologies Inc. designs, develops, manufactures, markets, sells, and supports various comprehensive and integrated solutions, products, and services in the Americas, Europe, the Middle East, Asia, and internationally. The company operates in two segments, Infrastructure Solutions Group (ISG) and Client Solutions Group (CSG). The ISG segment provides modern and traditional storage solutions, including all-flash arrays, scale-out file, object platforms, hyper-converged infrastructure, and software-defined storage; and general-purpose and AI-optimized servers. This segment also offers networking products and services comprising wide area network infrastructure, data center and edge networking switches, and cables and optics that help its business customers to transform and modernize their infrastructure and complementing its server and storage solutions; and software, peripherals, and services, including consulting and support, and deployment. The CSG segment provides notebooks, desktops, and workstations and branded peripherals that include displays, docking stations, keyboards, mice, webcam and audio devices, and third-party software and peripherals; and configuration, support and deployment, and extended warranties services. The company is involved in originating, collecting, and servicing customer financing arrangements; and offers payment and consumption solutions and services, such as as-a-Service, subscription, utility, leases, and loans, as well as fixed-term loans. It serves enterprises, governmental agencies and other public institutions, educational institutions, healthcare organizations, small and medium-sized businesses, and consumers. The company was formerly known as Denali Holding Inc. and changed its name to Dell Technologies Inc. in August 2016. Dell Technologies Inc. was founded in 1984 and is headquartered in Round Rock, Texas. From where I sit, the most important trait I look for during earnings season is how the market and a specific company reacts to the news. Remember, always keep your losses small and never argue with the tape. Disclosure: The stock has been featured on
IOL News
4 days ago
- Business
- IOL News
Straining to support: South Africa's social grants are vital but can the state keep up?
Economic challenges and the future of social grants in South Africa Image: Tracy Adams Social relief of distress, or social grants, is a key part of South Africa's welfare system; however, recent data indicates that its role is increasingly strained, raising concerns about sustainability, economic growth, and social cohesion. According to the latest General Household Survey released by Statistics South Africa (Stats SA), an unprecedented 40.1% of the population - approximately 25.4 million individuals-now rely on social grants. This marks a significant increase from previous years and reflects a steady rise in dependence, particularly amid persistent unemployment and economic challenges. Risenga Maluleke, Statistician-General of South Africa, noted that the country's official unemployment rate hit 32.9% in the first quarter of 2025. Such figures highlight the stark depth of economic hardship many face, with social grants serving as a vital safety net without sufficient employment opportunities. Paul Maritz, Director at Free SA, a foundation advocating for rights, equality, and systemic reform, highlighted the gravity of this dependence. 'The growing reliance on social grants - now affecting over 25 million people — highlights deep socio-economic challenges and the urgent need for structural change,' he explained. 'Our proposed Power to the People Amendment aims to address these issues by reducing waste, devolving policing, and breaking monopolies that hinder economic opportunity.' Maritz warned that 'sustained dependence on grants without parallel investment in job creation risks entrenching a welfare economy that stifles individual potential and hampers long-term growth.' He warned that if current trends persist, South Africa's economy could face stagnation, shrinking tax bases, and rising inequality-all threatening social stability. The fiscal burden of social grants is significant. In 2011, the South African government allocated around 3.5% of GDP to social assistance, which has grown over the years. The Centre for Global Development estimated that expenditure on social grants, particularly the Child Support Grant (CSG), reached nearly ZAR31 billion (approximately US$4.2 billion) in 2010-11. Instead, they argued that they serve as a necessary-but insufficient-measure to support those unable to provide for themselves. "While grants have helped improve food security, children's well-being, and school attendance,' Maritz warned that they are not a long-term solution to poverty. 'Overdependence can distort labor markets. When social assistance becomes a substitute for employment, it can disincentivize active job-seeking and skills development. 'Countries with more developed economies often implement prerequisites or conditions tied to grants, encouraging recipients to pursue upskilling or community participation.' He added that the current approach risks creating a stagnating workforce and reducing overall productivity in South Africa, thereby hindering economic growth and perpetuating inequality. 'Ironically, the system designed to reduce inequality may inadvertently reinforce it if not paired with empowerment strategies. 'Without access to meaningful employment, quality education, and secure communities, social mobility remains elusive for many beneficiaries.' Furthermore, dependence on grants without addressing the root causes-unemployment, corruption, and inefficient public services-could erode trust in institutions. Maritz warned that 'a society where millions feel trapped and unheard is inherently unstable,' stressing the need for comprehensive reforms.
Business Wire
21-05-2025
- Business
- Business Wire
Churchill Stateside Group Closes $10,120,000 Tax-Exempt Permanent Loan for 122-Unit Senior Housing Development in Stonecrest, GA
CLEARWATER, Fla.--(BUSINESS WIRE)--Churchill Stateside Group, LLC ('CSG'), a real estate and renewable energy financial services company, is pleased to announce the closing of a $10,120,000 tax exempt permanent loan on a new 122-unit affordable 4% Low Income Housing Tax Credit senior housing community located in Stonecrest, Georgia. The financing was provided by Churchill Mortgage Investment LLC ('CMI') under CSG's Churchill Private Tax-Exempt Loan Program ('Churchill PTEL'). The project will deliver high-quality, affordable housing for seniors through the development of a modern apartment complex consisting of 20 one-bedroom units and 102 two-bedroom units. All units will be income-restricted to residents earning no more than 60% of the Area Median Income (AMI). The development also received 4% Loan Income Housing Tax Credits. Situated just east of Atlanta in one of Georgia's fastest-growing areas, the community offers close proximity to medical facilities, retail centers such as The Mall at Stonecrest, public transportation, local parks, and entertainment—enhancing access and quality of life for senior residents. Dan Duda, EVP, National Director of Originations and Acquisitions for CSG, stated, 'We are proud to support the creation of quality, affordable housing that allows senior residents to age with dignity and independence in a vibrant community. This project exemplifies our mission to bring lasting impact to underserved populations through strategic financial solutions. Our Churchill Private Tax Exempt Loan program is a great tool for developers to capitalize on long term low interest rate fixed financing.' Keith Gloeckl, Chief Executive Officer of CSG, added, 'With a growing demand for affordable senior housing in Georgia, this community development is a critical step toward addressing the needs of this underserved community. We're proud to partner with a sponsor who shares our commitment to creating high-quality, affordable housing in communities where it's needed most. This closing is a testament to the expertise of our team and our continued focus on financing solutions that make a real difference.' Churchill Stateside Group remains dedicated to providing financial solutions that promote sustainable, inclusive housing opportunities across the nation. Looking to finance your next affordable housing project? Visit or contact our production team at production@ to learn how Churchill can help support your project's success. About Churchill Stateside Group Churchill Stateside Group and its wholly owned affiliates (CSG) serve the affordable housing and commercial renewable energy industries. CSG sponsors tax credit equity investment funds for institutional investors and provides a variety of construction, permanent, and bond financing solutions. With over $6.5 Billion of assets under management, CSG has long-standing and successful investment relationships with numerous corporate investors. The company's investor and developer clients benefit from our experienced staff, prominent and proactive senior leadership, and attractive debt and equity platforms. The company, through its subsidiary Churchill Mortgage Investment LLC (CMI), is an approved USDA Rural Development and HUD/FHA MAP and LEAN lender and Ginnie Mae Issuer, seller, and servicer.
Yahoo
20-05-2025
- Business
- Yahoo
Keysight Technologies Reports Second Quarter 2025 Results
Achieves above guidance results, full-year outlook improved SANTA ROSA, Calif., May 20, 2025--(BUSINESS WIRE)--Keysight Technologies, Inc. (NYSE: KEYS) today reported financial results for the second fiscal quarter ended April 30, 2025. "Keysight delivered strong second quarter results with revenue and earnings per share above the high end of guidance. This quarter's performance underscores the strength of our long-term strategy, deep customer engagement and disciplined execution," said Satish Dhanasekaran, Keysight's President and CEO. "Even as we are monitoring the overall macroeconomic environment, we continue to see a healthy funnel of opportunities and are raising full-year growth expectations to the midpoint of our long-term 5-7% target." Second Quarter Financial Summary Revenue was $1.31 billion, compared with $1.22 billion in the second quarter of 2024. GAAP net income was $257 million, or $1.49 per share, compared with $126 million, or $0.72 per share, in the second quarter of 2024. Non-GAAP net income was $295 million, or $1.70 per share, compared with $247 million, or $1.41 per share in the second quarter of 2024. Cash flow from operations was $484 million, compared to $110 million last year. Free cash flow was $457 million, compared to $74 million in the second quarter of 2024. As of April 30, 2025, cash and cash equivalents totaled $3.12 billion. Reporting Segments Communications Solutions Group (CSG) CSG reported revenue of $913 million in the second quarter, up 9 percent from the prior year, reflecting 9 percent growth in commercial communications and 9 percent growth in aerospace, defense, and government. Electronic Industrial Solutions Group (EISG) EISG reported revenue of $393 million in the second quarter, up 5 percent from the prior year, reflecting growth in semiconductor and general electronics, which was partially offset by a decline in automotive and energy. Outlook Keysight's third fiscal quarter of 2025 revenue is expected to be in the range of $1.305 billion to $1.325 billion. Non-GAAP earnings per share for the third fiscal quarter of 2025 are expected to be in the range of $1.63 to $1.69, based on a weighted diluted share count of approximately 173 million shares. Certain items impacting the GAAP tax rate pertain to future events and are not currently estimable with a reasonable degree of accuracy; therefore, no reconciliation of GAAP earnings per share to non-GAAP has been provided. Further information is discussed in the section titled "Use of Non-GAAP Financial Measures" below. Webcast Keysight's management will present more details about its second quarter FY2025 financial results and its third quarter FY2025 outlook on a conference call with investors today at 1:30 p.m. PT. This event will be webcast in listen-only mode. Listeners may log on to the call at under the "Upcoming Events" section and select "Q2 FY25 Keysight Technologies Inc. Earnings Conference Call" to participate. The call can also be accessed by dialing 1-404-975-4839 or 1-833-470-1428 toll-free (access code 420906). The webcast will remain on the company site for 90 days. Forward-Looking Statements This communication contains forward-looking statements as defined in the Securities Exchange Act of 1934 and is subject to the safe harbors created therein. The words "assume," "expect," "intend," "will," "should," "outlook" and similar expressions, as they relate to the company, are intended to identify forward-looking statements. These forward-looking statements involve risks and uncertainties that could significantly affect the expected results and are based on certain key assumptions of Keysight's management and on currently available information. Due to such uncertainties and risks, no assurances can be given that such expectations or assumptions will prove to have been correct, and readers are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof. Keysight undertakes no responsibility to publicly update or revise any forward-looking statement. The forward-looking statements contained herein include, but are not limited to, predictions, future guidance, projections, beliefs, and expectations about the company's goals, revenues, financial condition, earnings, and operations that involve risks and uncertainties that could cause Keysight's results to differ materially from management's current expectations. Such risks and uncertainties include, but are not limited to, impacts of global economic conditions such as inflation or recession, slowing demand for products or services, volatility in financial markets, reduced access to credit, increased interest rates; impacts of geopolitical tension and conflict outside of the U.S., export control regulations and compliance; net zero emissions commitments; customer purchasing decisions and timing; and order cancellations. In addition to the risks above, other risks that Keysight faces include those detailed in Keysight's filings with the Securities and Exchange Commission on Keysight's annual report on Form 10-K for the period ended October 31, 2024 and Keysight's quarterly report on Form 10-Q for the period ended January 31, 2025. Segment Data Segment data reflect the results of our reportable segments under our management reporting system. Segment data are provided on page 5 of the attached tables. Use of Non-GAAP Financial Measures In addition to financial information prepared in accordance with U.S. GAAP ("GAAP"), this document also contains certain non-GAAP financial measures based on management's view of performance, including: Non-GAAP Net Income/Earnings Non-GAAP Net Income per share/Earnings per share Free Cash Flow Net Income per share is based on weighted average diluted share count. See the attached supplemental schedules for reconciliations of each non-GAAP financial measure to its most directly comparable GAAP financial measure for the three and six months ended April 30, 2025. Following the reconciliations is a discussion of the items adjusted from our non-GAAP financial measures and the company's reasons for including or excluding certain categories of income or expenses from our non-GAAP results. About Keysight Technologies At Keysight (NYSE: KEYS), we inspire and empower innovators to bring world-changing technologies to life. As an S&P 500 company, we're delivering market-leading design, emulation, and test solutions to help engineers develop and deploy faster, with less risk, throughout the entire product lifecycle. We're a global innovation partner enabling customers in communications, industrial automation, aerospace and defense, automotive, semiconductor, and general electronics markets to accelerate innovation to connect and secure the world. Learn more at Keysight Newsroom and Source: IR-KEYS KEYSIGHT TECHNOLOGIES, INC. CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (In millions, except per share data) (Unaudited) PRELIMINARY Three months ended Six months ended April 30, April 30, 2025 2024 2025 2024 Orders $ 1,316 $ 1,219 $ 2,579 $ 2,439 Revenue $ 1,306 $ 1,216 $ 2,604 $ 2,475 Costs and expenses: Cost of products and services 492 453 970 899 Research and development 250 228 499 460 Selling, general and administrative 360 361 721 723 Other operating expense (income), net (3 ) (3 ) (11 ) (5 ) Total costs and expenses 1,099 1,039 2,179 2,077 Income from operations 207 177 425 398 Interest income 21 18 40 41 Interest expense (20 ) (20 ) (40 ) (40 ) Other income (expense), net 112 — 94 5 Income before taxes 320 175 519 404 Provision for income taxes 63 49 93 106 Net income $ 257 $ 126 $ 426 $ 298 Net income per share: Basic $ 1.49 $ 0.73 $ 2.47 $ 1.71 Diluted $ 1.49 $ 0.72 $ 2.45 $ 1.70 Weighted average shares used in computing net income per share: Basic 172 174 173 175 Diluted 173 175 174 175 Page 1 KEYSIGHT TECHNOLOGIES, INC. CONDENSED CONSOLIDATED BALANCE SHEET (In millions, except par value and share data) (Unaudited) PRELIMINARY April 30, 2025 October 31, 2024 ASSETS Current assets: Cash and cash equivalents $ 3,118 $ 1,796 Accounts receivable, net 758 857 Inventory 1,026 1,022 Other current assets 578 582 Total current assets 5,480 4,257 Property, plant and equipment, net 769 774 Operating lease right-of-use assets 226 234 Goodwill 2,433 2,388 Other intangible assets, net 556 607 Long-term investments 138 110 Long-term deferred tax assets 379 378 Other assets 568 521 Total assets $ 10,549 $ 9,269 LIABILITIES AND EQUITY Current liabilities: Accounts payable $ 317 $ 313 Employee compensation and benefits 319 295 Deferred revenue 626 561 Income and other taxes payable 175 90 Operating lease liabilities 46 43 Other accrued liabilities 145 125 Total current liabilities 1,628 1,427 Long-term debt 2,532 1,790 Retirement and post-retirement benefits 82 81 Long-term deferred revenue 218 206 Long-term operating lease liabilities 187 197 Other long-term liabilities 425 463 Total liabilities 5,072 4,164 Stockholders' equity: Preferred stock; $0.01 par value; 100 million shares authorized; none issued and outstanding — — Common stock; $0.01 par value; 1 billion shares authorized; 202 million and 201 million shares issued, respectively 2 2 Treasury stock, at cost; 29.9 million shares and 28.4 million shares, respectively (3,648 ) (3,422 ) Additional paid-in-capital 2,765 2,664 Retained earnings 6,651 6,225 Accumulated other comprehensive loss (293 ) (364 ) Total stockholders' equity 5,477 5,105 Total liabilities and equity $ 10,549 $ 9,269 Page 2 KEYSIGHT TECHNOLOGIES, INC. CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (In millions) (Unaudited) PRELIMINARY Six months ended April 30, 2025 2024 Cash flows from operating activities: Net income $ 426 $ 298 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 64 62 Amortization 70 76 Share-based compensation 98 82 Deferred tax expense (benefit) (40 ) (9 ) Excess and obsolete inventory-related charges 22 18 Unrealized loss (gain) on equity and other investments (23 ) (6 ) Other non-cash expenses (income), net 2 1 Changes in assets and liabilities, net of effects of businesses acquired: Accounts receivable 109 121 Inventory (18 ) (50 ) Accounts payable 7 (11 ) Employee compensation and benefits 20 (26 ) Deferred revenue 66 14 Income taxes payable 56 (35 ) Other assets and liabilities 3 (97 ) Net cash provided by operating activities(a) 862 438 Cash flows from investing activities: Investments in property, plant and equipment (59 ) (83 ) Acquisitions of businesses and intangible assets, net of cash acquired (3 ) (556 ) Other investing activities (4 ) 8 Net cash used in investing activities (66 ) (631 ) Cash flows from financing activities: Proceeds from issuance of common stock under employee stock plans 31 33 Payment of taxes related to net share settlement of equity awards (29 ) (28 ) Proceeds from issuance of long-term debt 748 — Acquisition of non-controlling interests — (458 ) Treasury stock repurchases, including excise tax payments (228 ) (139 ) Debt issuance costs (7 ) (5 ) Repayment of debt — (24 ) Net cash provided by (used in) financing activities 515 (621 ) Effect of exchange rate movements 10 — Net increase (decrease) in cash, cash equivalents, and restricted cash 1,321 (814 ) Cash, cash equivalents, and restricted cash at beginning of period 1,814 2,488 Cash, cash equivalents, and restricted cash at end of period $ 3,135 $ 1,674 (a) Cash payments included in operating activities: Interest payments $ 39 $ 38 Income tax paid, net $ 44 $ 146 Page 3 KEYSIGHT TECHNOLOGIES, INC. NET INCOME AND DILUTED EPS RECONCILIATION (In millions, except per share data) (Unaudited) PRELIMINARY Three months ended Six months ended April 30, April 30, 2025 2024 2025 2024 Net Income Diluted EPS Net Income Diluted EPS Net Income Diluted EPS Net Income Diluted EPS GAAP Net income $ 257 $ 1.49 $ 126 $ 0.72 $ 426 $ 2.45 $ 298 $ 1.70 Non-GAAP adjustments: Amortization of acquisition-related balances 34 0.19 37 0.21 67 0.38 75 0.43 Share-based compensation 37 0.22 36 0.21 99 0.57 86 0.49 Acquisition and integration costs (benefits) (74 ) (0.42 ) 27 0.15 24 0.14 40 0.23 Restructuring and others 26 0.15 23 0.14 2 0.01 38 0.22 Adjustment for taxes(a) 15 0.07 (2 ) (0.02 ) (6 ) (0.03 ) (4 ) (0.03 ) Non-GAAP Net income $ 295 $ 1.70 $ 247 $ 1.41 $ 612 $ 3.52 $ 533 $ 3.04 Weighted average shares outstanding - diluted 173 175 174 175 (a) For the three and six months ended April 30, 2025, management uses a non-GAAP effective tax rate of 14% and for the three and six months ended April 30, 2024, management uses a non-GAAP effective tax rate of 17%. Please refer to the last page for details on the use of non-GAAP financial measures. Page 4 KEYSIGHT TECHNOLOGIES, INC. SEGMENT RESULTS INFORMATION (In millions, except where noted) (Unaudited) PRELIMINARY Communications Solutions Group Percent Q2'25 Q2'24 Inc/(Dec) Revenue $ 913 $ 840 9% Gross margin, % 67 % 68 % Income from operations $ 236 $ 223 Operating margin, % 26 % 27 % Electronic Industrial Solutions Group Percent Q2'25 Q2'24 Inc/(Dec) Revenue $ 393 $ 376 5% Gross margin, % 59 % 58 % Income from operations $ 92 $ 71 Operating margin, % 23 % 19 % Segment revenue and income from operations are consistent with the respective non-GAAP financial measures as discussed on last page. Page 5 KEYSIGHT TECHNOLOGIES, INC. FREE CASH FLOW (In millions) (Unaudited) PRELIMINARY Three months ended Six months ended April 30, April 30, 2025 2024 2025 2024 Net cash provided by operating activities $ 484 $ 110 $ 862 $ 438 Less: Investments in property, plant and equipment (27 ) (36 ) (59 ) (83 ) Free cash flow $ 457 $ 74 $ 803 $ 355 Please refer to the last page for details on the use of non-GAAP financial measures. Page 6 KEYSIGHT TECHNOLOGIES, INC. REVENUE BY END MARKETS (In millions) (Unaudited) PRELIMINARY Percent Q2'25 Q2'24 Inc/(Dec) Aerospace, Defense and Government $ 301 $ 277 9% Commercial Communications 612 563 9% Electronic Industrial 393 376 5% Total Revenue $ 1,306 $ 1,216 7% Page 7 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 eyes of management" in addition to seeing our GAAP results. This information enhances investors' understanding of the continuing performance of our business and facilitates comparison of performance to our historical and future periods. Our non-GAAP financial measures may not be comparable to similarly titled measures used by other companies, including industry peer companies, limiting the usefulness of these measures for comparative purposes. These non-GAAP measures should be considered supplemental to and not a substitute for financial information prepared in accordance with GAAP. The discussion below presents information about each of the non-GAAP financial measures and the company's reasons for including or excluding certain categories of income or expenses from our non-GAAP results. In future periods, we may exclude such items and may incur income and expenses similar to these excluded items. Accordingly, adjustments for these items and other similar items in our non-GAAP presentation should not be interpreted as implying that these items are non-recurring, infrequent or unusual. Core Revenue is revenue excluding the impact of foreign currency changes and revenue associated with acquisitions or divestitures completed within the last twelve months. We exclude the impact of foreign currency changes as currency rates can fluctuate based on factors that are not within our control and can obscure revenue growth trends. As the nature, size and number of acquisitions can vary significantly from period to period and as compared to our peers, we exclude revenue associated with recently acquired businesses to facilitate comparisons of revenue growth and analysis of underlying business trends. Free cash flow includes cash provided by operating activities adjusted for net investments in property, plant & equipment. Non-GAAP Income from Operations, Non-GAAP Net Income and Non-GAAP Diluted EPS may include the following types of adjustments: Acquisition-related Items: We exclude the impact of certain items recorded in connection with business combinations from our non-GAAP financial measures that are either non-cash or not normal, recurring operating expenses due to their nature, variability of amounts and lack of predictability as to occurrence or timing. These amounts may include non-cash items such as the amortization of acquired intangible assets and amortization of items associated with fair value purchase accounting adjustments. We also exclude other acquisition and integration costs associated with business acquisitions that are not normal recurring operating expenses, including gain/loss on foreign exchange contracts and legal, accounting and due diligence costs. We exclude these charges to facilitate a more meaningful evaluation of our current operating performance and comparisons to our past operating performance. Share-based Compensation Expense: We exclude share-based compensation expense from our non-GAAP financial measures because share-based compensation expense can vary significantly from period to period based on the company's share price, as well as the timing, size and nature of equity awards granted. Management believes the exclusion of this expense facilitates the ability of investors to compare the company's operating results with those of other companies, many of which also exclude share-based compensation expense in determining their non-GAAP financial measures. Restructuring and others: We exclude incremental expenses associated with restructuring initiatives including those of acquired entities, usually aimed at material changes in the business or cost structure. Such costs may include employee separation costs, asset impairments, facility-related costs, contract termination fees, and costs to move operations from one location to another. These activities can vary significantly from period to period based on the timing, size and nature of restructuring plans; therefore, we do not consider such costs to be normal, recurring operating also exclude "others", not normal, recurring, cash operating income/expenses from our non-GAAP financial measures. Such items are evaluated on an individual basis, based on both quantitative and qualitative factors and generally represent items that we do not anticipate occurring as part of our normal business. While not all-inclusive, examples of such items would include net unrealized gains on equity investments still held, significant non-recurring events like realized gains or losses associated with our employee benefit plans, costs and recoveries related to unusual events, gain on sale of assets/divestitures, adjustment attributable to non-controlling interest, etc. We believe that these costs do not reflect expected future operating expenses and do not contribute to a meaningful evaluation of the company's current operating performance or comparisons to our operating performance in other periods. Estimated Tax Rate: We utilize a consistent methodology for long-term projected non-GAAP tax rate. When projecting this long-term rate, we exclude any tax benefits or expenses that are not directly related to ongoing operations and which are either isolated or cannot be expected to occur again with any regularity or predictability. Additionally, we evaluate our current long-term projections, current tax structure and other factors, such as existing tax positions in various jurisdictions and key tax holidays in major jurisdictions where Keysight operates. This tax rate could change in the future for a variety of reasons, including but not limited to significant changes in geographic earnings mix including acquisition activity, or fundamental tax law changes in major jurisdictions where Keysight operates. The above reasons also limit our ability to reasonably estimate the future GAAP tax rate and provide a reconciliation of the expected non-GAAP earnings per share for the third quarter of fiscal 2025 to the GAAP equivalent. Management recognizes these items can have a material impact on our cash flows and/or our net income. Our GAAP financial statements, including our Condensed Consolidated Statement of Cash Flows, portray those effects. Although we believe it is useful for investors to see core performance free of special items, investors should understand that the excluded costs are actual expenses that may impact the cash available to us for other uses. To gain a complete picture of all effects on the company's profit and loss from any and all events, management does (and investors should) rely upon the Condensed Consolidated Statement of Operations prepared in accordance with GAAP. The non-GAAP measures focus instead upon the core business of the company, which is only a subset, albeit a critical one, of the company's performance. Page 8 View source version on Contacts INVESTOR CONTACT:Investor Relations+1 MEDIA CONTACT:Andrea Mueller+ 1 Sign in to access your portfolio
Business Wire
20-05-2025
- Business
- Business Wire
Keysight Technologies Reports Second Quarter 2025 Results
SANTA ROSA, Calif.--(BUSINESS WIRE)-- Keysight Technologies, Inc. (NYSE: KEYS) today reported financial results for the second fiscal quarter ended April 30, 2025. 'Keysight delivered strong second quarter results with revenue and earnings per share above the high end of guidance. This quarter's performance underscores the strength of our long-term strategy, deep customer engagement and disciplined execution,' said Satish Dhanasekaran, Keysight's President and CEO. 'Even as we are monitoring the overall macroeconomic environment, we continue to see a healthy funnel of opportunities and are raising full-year growth expectations to the midpoint of our long-term 5-7% target.' Second Quarter Financial Summary Revenue was $1.31 billion, compared with $1.22 billion in the second quarter of 2024. GAAP net income was $257 million, or $1.49 per share, compared with $126 million, or $0.72 per share, in the second quarter of 2024. Non-GAAP net income was $295 million, or $1.70 per share, compared with $247 million, or $1.41 per share in the second quarter of 2024. Cash flow from operations was $484 million, compared to $110 million last year. Free cash flow was $457 million, compared to $74 million in the second quarter of 2024. As of April 30, 2025, cash and cash equivalents totaled $3.12 billion. Reporting Segments Communications Solutions Group (CSG) CSG reported revenue of $913 million in the second quarter, up 9 percent from the prior year, reflecting 9 percent growth in commercial communications and 9 percent growth in aerospace, defense, and government. Electronic Industrial Solutions Group (EISG) EISG reported revenue of $393 million in the second quarter, up 5 percent from the prior year, reflecting growth in semiconductor and general electronics, which was partially offset by a decline in automotive and energy. Outlook Keysight's third fiscal quarter of 2025 revenue is expected to be in the range of $1.305 billion to $1.325 billion. Non-GAAP earnings per share for the third fiscal quarter of 2025 are expected to be in the range of $1.63 to $1.69, based on a weighted diluted share count of approximately 173 million shares. Certain items impacting the GAAP tax rate pertain to future events and are not currently estimable with a reasonable degree of accuracy; therefore, no reconciliation of GAAP earnings per share to non-GAAP has been provided. Further information is discussed in the section titled 'Use of Non-GAAP Financial Measures' below. Webcast Keysight's management will present more details about its second quarter FY2025 financial results and its third quarter FY2025 outlook on a conference call with investors today at 1:30 p.m. PT. This event will be webcast in listen-only mode. Listeners may log on to the call at under the ' Upcoming Events ' section and select ' Q2 FY25 Keysight Technologies Inc. Earnings Conference Call ' to participate. The call can also be accessed by dialing 1-404-975-4839 or 1-833-470-1428 toll-free (access code 420906). The webcast will remain on the company site for 90 days. Forward-Looking Statements This communication contains forward-looking statements as defined in the Securities Exchange Act of 1934 and is subject to the safe harbors created therein. The words "assume," 'expect,' 'intend,' 'will,' 'should,' "outlook" and similar expressions, as they relate to the company, are intended to identify forward-looking statements. These forward-looking statements involve risks and uncertainties that could significantly affect the expected results and are based on certain key assumptions of Keysight's management and on currently available information. Due to such uncertainties and risks, no assurances can be given that such expectations or assumptions will prove to have been correct, and readers are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof. Keysight undertakes no responsibility to publicly update or revise any forward-looking statement. The forward-looking statements contained herein include, but are not limited to, predictions, future guidance, projections, beliefs, and expectations about the company's goals, revenues, financial condition, earnings, and operations that involve risks and uncertainties that could cause Keysight's results to differ materially from management's current expectations. Such risks and uncertainties include, but are not limited to, impacts of global economic conditions such as inflation or recession, slowing demand for products or services, volatility in financial markets, reduced access to credit, increased interest rates; impacts of geopolitical tension and conflict outside of the U.S., export control regulations and compliance; net zero emissions commitments; customer purchasing decisions and timing; and order cancellations. In addition to the risks above, other risks that Keysight faces include those detailed in Keysight's filings with the Securities and Exchange Commission on Keysight's annual report on Form 10-K for the period ended October 31, 2024 and Keysight's quarterly report on Form 10-Q for the period ended January 31, 2025. Segment Data Segment data reflect the results of our reportable segments under our management reporting system. Segment data are provided on page 5 of the attached tables. Use of Non-GAAP Financial Measures In addition to financial information prepared in accordance with U.S. GAAP ('GAAP'), this document also contains certain non-GAAP financial measures based on management's view of performance, including: Non-GAAP Net Income/Earnings Non-GAAP Net Income per share/Earnings per share Free Cash Flow Net Income per share is based on weighted average diluted share count. See the attached supplemental schedules for reconciliations of each non-GAAP financial measure to its most directly comparable GAAP financial measure for the three and six months ended April 30, 2025. Following the reconciliations is a discussion of the items adjusted from our non-GAAP financial measures and the company's reasons for including or excluding certain categories of income or expenses from our non-GAAP results. About Keysight Technologies At Keysight (NYSE: KEYS), we inspire and empower innovators to bring world-changing technologies to life. As an S&P 500 company, we're delivering market-leading design, emulation, and test solutions to help engineers develop and deploy faster, with less risk, throughout the entire product lifecycle. We're a global innovation partner enabling customers in communications, industrial automation, aerospace and defense, automotive, semiconductor, and general electronics markets to accelerate innovation to connect and secure the world. Learn more at Keysight Newsroom and Source: IR-KEYS KEYSIGHT TECHNOLOGIES, INC. CONDENSED CONSOLIDATED BALANCE SHEET (In millions, except par value and share data) (Unaudited) PRELIMINARY October 31, 2024 ASSETS Current assets: Cash and cash equivalents $ 3,118 $ 1,796 Accounts receivable, net 758 857 Inventory 1,026 1,022 Other current assets 578 582 Total current assets 5,480 4,257 Property, plant and equipment, net 769 774 Operating lease right-of-use assets 226 234 Goodwill 2,433 2,388 Other intangible assets, net 556 607 Long-term investments 138 110 Long-term deferred tax assets 379 378 Other assets 568 521 Total assets $ 10,549 $ 9,269 LIABILITIES AND EQUITY Current liabilities: Accounts payable $ 317 $ 313 Employee compensation and benefits 319 295 Deferred revenue 626 561 Income and other taxes payable 175 90 Operating lease liabilities 46 43 Other accrued liabilities 145 125 Total current liabilities 1,628 1,427 Long-term debt 2,532 1,790 Retirement and post-retirement benefits 82 81 Long-term deferred revenue 218 206 Long-term operating lease liabilities 187 197 Other long-term liabilities 425 463 Total liabilities 5,072 4,164 Stockholders' equity: Preferred stock; $0.01 par value; 100 million shares authorized; none issued and outstanding — — Common stock; $0.01 par value; 1 billion shares authorized; 202 million and 201 million shares issued, respectively 2 2 Treasury stock, at cost; 29.9 million shares and 28.4 million shares, respectively (3,648 ) (3,422 ) Additional paid-in-capital 2,765 2,664 Retained earnings 6,651 6,225 Accumulated other comprehensive loss (293 ) (364 ) Total stockholders' equity 5,477 5,105 Total liabilities and equity $ 10,549 $ 9,269 Page 2 Expand KEYSIGHT TECHNOLOGIES, INC. CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (In millions) (Unaudited) PRELIMINARY Six months ended April 30, 2025 2024 Cash flows from operating activities: Net income $ 426 $ 298 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 64 62 Amortization 70 76 Share-based compensation 98 82 Deferred tax expense (benefit) (40 ) (9 ) Excess and obsolete inventory-related charges 22 18 Unrealized loss (gain) on equity and other investments (23 ) (6 ) Other non-cash expenses (income), net 2 1 Changes in assets and liabilities, net of effects of businesses acquired: Accounts receivable 109 121 Inventory (18 ) (50 ) Accounts payable 7 (11 ) Employee compensation and benefits 20 (26 ) Deferred revenue 66 14 Income taxes payable 56 (35 ) Other assets and liabilities 3 (97 ) Net cash provided by operating activities (a) 862 438 Cash flows from investing activities: Investments in property, plant and equipment (59 ) (83 ) Acquisitions of businesses and intangible assets, net of cash acquired (3 ) (556 ) Other investing activities (4 ) 8 Net cash used in investing activities (66 ) (631 ) Cash flows from financing activities: Proceeds from issuance of common stock under employee stock plans 31 33 Payment of taxes related to net share settlement of equity awards (29 ) (28 ) Proceeds from issuance of long-term debt 748 — Acquisition of non-controlling interests — (458 ) Treasury stock repurchases, including excise tax payments (228 ) (139 ) Debt issuance costs (7 ) (5 ) Repayment of debt — (24 ) Net cash provided by (used in) financing activities 515 (621 ) Effect of exchange rate movements 10 — Net increase (decrease) in cash, cash equivalents, and restricted cash 1,321 (814 ) (a) Cash payments included in operating activities: Interest payments $ 39 $ 38 Income tax paid, net $ 44 $ 146 Page 3 Expand KEYSIGHT TECHNOLOGIES, INC. NET INCOME AND DILUTED EPS RECONCILIATION (In millions, except per share data) (Unaudited) PRELIMINARY Three months ended Six months ended April 30, April 30, 2025 2024 2025 2024 Net Income Diluted EPS Net Income Diluted EPS Net Income Diluted EPS Net Income Diluted EPS GAAP Net income $ 257 $ 1.49 $ 126 $ 0.72 $ 426 $ 2.45 $ 298 $ 1.70 Non-GAAP adjustments: Amortization of acquisition-related balances 34 0.19 37 0.21 67 0.38 75 0.43 Share-based compensation 37 0.22 36 0.21 99 0.57 86 0.49 Acquisition and integration costs (benefits) (74 ) (0.42 ) 27 0.15 24 0.14 40 0.23 Restructuring and others 26 0.15 23 0.14 2 0.01 38 0.22 Adjustment for taxes (a) 15 0.07 (2 ) (0.02 ) (6 ) (0.03 ) (4 ) (0.03 ) Non-GAAP Net income $ 295 $ 1.70 $ 247 $ 1.41 $ 612 $ 3.52 $ 533 $ 3.04 Weighted average shares outstanding - diluted 173 175 174 175 (a) For the three and six months ended April 30, 2025, management uses a non-GAAP effective tax rate of 14% and for the three and six months ended April 30, 2024, management uses a non-GAAP effective tax rate of 17%. Please refer to the last page for details on the use of non-GAAP financial measures. Page 4 Expand KEYSIGHT TECHNOLOGIES, INC. SEGMENT RESULTS INFORMATION (In millions, except where noted) (Unaudited) PRELIMINARY Communications Solutions Group Percent Q2'25 Q2'24 Inc/(Dec) Revenue $ 913 $ 840 9% Gross margin, % 67 % 68 % Income from operations $ 236 $ 223 Operating margin, % 26 % 27 % Electronic Industrial Solutions Group Percent Q2'25 Q2'24 Inc/(Dec) Revenue $ 393 $ 376 5% Gross margin, % 59 % 58 % Income from operations $ 92 $ 71 Operating margin, % 23 % 19 % Segment revenue and income from operations are consistent with the respective non-GAAP financial measures as discussed on last page. Page 5 Expand KEYSIGHT TECHNOLOGIES, INC. FREE CASH FLOW (In millions) (Unaudited) PRELIMINARY Three months ended Six months ended April 30, April 30, 2025 2024 2025 2024 Net cash provided by operating activities $ 484 $ 110 $ 862 $ 438 Less: Investments in property, plant and equipment (27 ) (36 ) (59 ) (83 ) Free cash flow $ 457 $ 74 $ 803 $ 355 Please refer to the last page for details on the use of non-GAAP financial measures. Page 6 Expand 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 eyes of management' in addition to seeing our GAAP results. This information enhances investors' understanding of the continuing performance of our business and facilitates comparison of performance to our historical and future periods. Our non-GAAP financial measures may not be comparable to similarly titled measures used by other companies, including industry peer companies, limiting the usefulness of these measures for comparative purposes. These non-GAAP measures should be considered supplemental to and not a substitute for financial information prepared in accordance with GAAP. The discussion below presents information about each of the non-GAAP financial measures and the company's reasons for including or excluding certain categories of income or expenses from our non-GAAP results. In future periods, we may exclude such items and may incur income and expenses similar to these excluded items. Accordingly, adjustments for these items and other similar items in our non-GAAP presentation should not be interpreted as implying that these items are non-recurring, infrequent or unusual. Core Revenue is revenue excluding the impact of foreign currency changes and revenue associated with acquisitions or divestitures completed within the last twelve months. We exclude the impact of foreign currency changes as currency rates can fluctuate based on factors that are not within our control and can obscure revenue growth trends. As the nature, size and number of acquisitions can vary significantly from period to period and as compared to our peers, we exclude revenue associated with recently acquired businesses to facilitate comparisons of revenue growth and analysis of underlying business trends. Free cash flow includes cash provided by operating activities adjusted for net investments in property, plant & equipment. Non-GAAP Income from Operations, Non-GAAP Net Income and Non-GAAP Diluted EPS may include the following types of adjustments: Acquisition-related Items: We exclude the impact of certain items recorded in connection with business combinations from our non-GAAP financial measures that are either non-cash or not normal, recurring operating expenses due to their nature, variability of amounts and lack of predictability as to occurrence or timing. These amounts may include non-cash items such as the amortization of acquired intangible assets and amortization of items associated with fair value purchase accounting adjustments. We also exclude other acquisition and integration costs associated with business acquisitions that are not normal recurring operating expenses, including gain/loss on foreign exchange contracts and legal, accounting and due diligence costs. We exclude these charges to facilitate a more meaningful evaluation of our current operating performance and comparisons to our past operating performance. Share-based Compensation Expense: We exclude share-based compensation expense from our non-GAAP financial measures because share-based compensation expense can vary significantly from period to period based on the company's share price, as well as the timing, size and nature of equity awards granted. Management believes the exclusion of this expense facilitates the ability of investors to compare the company's operating results with those of other companies, many of which also exclude share-based compensation expense in determining their non-GAAP financial measures. Restructuring and others: We exclude incremental expenses associated with restructuring initiatives including those of acquired entities, usually aimed at material changes in the business or cost structure. Such costs may include employee separation costs, asset impairments, facility-related costs, contract termination fees, and costs to move operations from one location to another. These activities can vary significantly from period to period based on the timing, size and nature of restructuring plans; therefore, we do not consider such costs to be normal, recurring operating expenses. We also exclude 'others', not normal, recurring, cash operating income/expenses from our non-GAAP financial measures. Such items are evaluated on an individual basis, based on both quantitative and qualitative factors and generally represent items that we do not anticipate occurring as part of our normal business. While not all-inclusive, examples of such items would include net unrealized gains on equity investments still held, significant non-recurring events like realized gains or losses associated with our employee benefit plans, costs and recoveries related to unusual events, gain on sale of assets/divestitures, adjustment attributable to non-controlling interest, etc. We believe that these costs do not reflect expected future operating expenses and do not contribute to a meaningful evaluation of the company's current operating performance or comparisons to our operating performance in other periods. Estimated Tax Rate: We utilize a consistent methodology for long-term projected non-GAAP tax rate. When projecting this long-term rate, we exclude any tax benefits or expenses that are not directly related to ongoing operations and which are either isolated or cannot be expected to occur again with any regularity or predictability. Additionally, we evaluate our current long-term projections, current tax structure and other factors, such as existing tax positions in various jurisdictions and key tax holidays in major jurisdictions where Keysight operates. This tax rate could change in the future for a variety of reasons, including but not limited to significant changes in geographic earnings mix including acquisition activity, or fundamental tax law changes in major jurisdictions where Keysight operates. The above reasons also limit our ability to reasonably estimate the future GAAP tax rate and provide a reconciliation of the expected non-GAAP earnings per share for the third quarter of fiscal 2025 to the GAAP equivalent. Management recognizes these items can have a material impact on our cash flows and/or our net income. Our GAAP financial statements, including our Condensed Consolidated Statement of Cash Flows, portray those effects. Although we believe it is useful for investors to see core performance free of special items, investors should understand that the excluded costs are actual expenses that may impact the cash available to us for other uses. To gain a complete picture of all effects on the company's profit and loss from any and all events, management does (and investors should) rely upon the Condensed Consolidated Statement of Operations prepared in accordance with GAAP. The non-GAAP measures focus instead upon the core business of the company, which is only a subset, albeit a critical one, of the company's performance. Page 8
