Keysight Technologies, Inc. Q4 FY2023 results: revenue $1.3 billion, down 9.1% on the year

Keysight Technologies, Inc. (KEYS) reported revenue of $1.3 billion for Q4 FY2023, the quarter ended 31 October 2023, down 9.1% on the same quarter a year earlier. Net income was $226 million, down 24.4% on the year, and diluted earnings per share $1.27. The figures are the company's own, from the 10-K it filed with the SEC on 15 December 2023.

Revenue$1.3 billiondown 9.1%

Net income$226 milliondown 24.4%

Diluted EPS$1.27

QuarterQ4 FY2023ended 31 October 2023

The quarter, against the one before and a year earlier

Line	Q4 FY2023	Quarter before	A year earlier	Change on the year
Revenue	1,311	n/a	n/a	n/a
Cost of revenue	467	n/a	n/a	n/a
Gross profit	844	n/a	n/a	n/a
Gross margin	64.4%	n/a	n/a
Research and development	218	n/a	n/a	n/a
Selling, general and administrative	313	n/a	n/a	n/a
Operating income	317	n/a	n/a	n/a
Operating margin	24.2%	n/a	n/a
Interest expense	20.0	n/a	n/a	n/a
Pre-tax income	276	n/a	n/a	n/a
Income tax	50.0	n/a	n/a	n/a
Effective tax rate	18.1%	n/a	n/a
Net income	226	n/a	n/a	n/a
Net margin	17.2%	n/a	n/a
Diluted EPS	$1.27	n/a	n/a	n/a

$ million except per share. Fourth quarters are the year less the first three quarters. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow and capital returned

Line	Q4 FY2023	Quarter before	A year earlier	Change on the year
Operating cash flow	378	n/a	n/a	n/a
Capital expenditure	38.0	n/a	n/a	n/a
Free cash flow	340	n/a	n/a	n/a
Free cash flow margin	25.9%	n/a	n/a
Depreciation and amortisation	49.0	n/a	n/a	n/a
Share-based compensation	25.0	n/a	n/a	n/a
Buybacks	426	n/a	n/a	n/a
Diluted shares, weighted	179m	n/a	n/a	n/a
Shares outstanding at period end	175m	n/a	n/a	n/a

Cash flow lines for the quarter; where the company files them year to date, the quarter is the difference between two filings.

Balance sheet at quarter end

Line	Q4 FY2023	Quarter before	A year earlier	Change on the year
Total assets	8,683	n/a	n/a	n/a
Cash and equivalents	2,472	n/a	n/a	n/a
Receivables	900	n/a	n/a	n/a
Inventory	985	n/a	n/a	n/a
Goodwill	1,640	n/a	n/a	n/a
Long-term debt	1,794	n/a	n/a	n/a
Operating lease liabilities	192	n/a	n/a	n/a
Shareholders' equity	4,654	n/a	n/a	n/a

Quarterly results, the last 12 quarters

	Q4 FY2023 *	Q1 FY2024	Q2 FY2024	Q3 FY2024	Q4 FY2024 *	Q1 FY2025	Q2 FY2025	Q3 FY2025	Q4 FY2025 *	Q1 FY2026	Q2 FY2026	Q3 FY2026
Revenue	1,311	1,259	1,216	1,217	1,287	1,298	1,306	1,352	1,419	1,600	1,717	1,846
Cost of revenue	467	446	453	462	485	478	492	518	550	605	539	630
Gross profit	844	813	763	755	802	820	814	834	869	995	1,178	1,216
Gross margin	64%	65%	63%	62%	62%	63%	62%	62%	61%	62%	69%	66%
R&D	218	232	228	226	233	249	250	250	258	303	320	312
SG&A	313	362	361	329	343	361	360	354	399	447	456	446
Operating income	317	221	177	205	230	218	207	234	217	248	407	461
Operating margin	24%	18%	15%	17%	18%	17%	16%	17%	15%	16%	24%	25%
Interest expense	20.0	20.0	20.0	21.0	23.0	20.0	20.0	28.0	28.0	29.0	25.0	26.0
Pre-tax income	276	229	175	213	248	199	320	241	322	198	418	477
Tax rate	18%	25%	28%	-83%	129%	15%	20%	21%	22%	-42%	17%	17%
Net income	226	172	126	389	-73.0	169	257	191	233	281	349	397
Net margin	17%	14%	10%	32%	-6%	13%	20%	14%	16%	18%	20%	22%
Diluted EPS	$1.27	$0.98	$0.72	$2.22	-$0.41	$0.97	$1.49	$1.10	$1.35	$1.63	$2.02	$2.30
Operating cash flow	378	328	110	255	359	378	484	322	225	441	501	437
Capital expenditure	38.0	47.0	36.0	33.0	38.0	32.0	27.0	31.0	38.0	34.0	29.0	34.0
Free cash flow	340	281	74.0	222	321	346	457	291	187	407	472	403
Buybacks	426	93.0	46.0	150	150	75.0	150	50.0	100	87.0	220	210
Shares outstanding	175m	175m	175m	174m	173m	173m	172m	172m	172m	172m	171m	170m
Filing	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q

* The fourth quarter is the full year less the first three quarters, because the company files the year and not the quarter on its own. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and the share count are as they are. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Cash flow lines filed year to date are the difference between two filings. Shares outstanding are at the period end where the balance sheet tags them, otherwise the count on the filing's cover page. A derived fourth-quarter EPS is left blank when a split in the year makes the arithmetic meaningless.

Source

10-K for the period ended 31 October 2023, filed 15 December 2023, accession 0001601046-23-000134: the filing on EDGAR. All of Keysight Technologies, Inc.'s filings: EDGAR company page.

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