Keysight Technologies concluded its best year as an independent company, reporting $3.9 billion in GAAP revenue for fiscal 2018, 22 percent above fiscal 2017’s revenue.
For the fiscal fourth quarter (Q4), revenue set another record: slightly over $1.0 billion, reflecting 19 percent year-over-year growth and 4 percent above the prior quarter’s revenue.
Except for the Ixia Solutions segment, Keysight’s businesses grew revenue at least 10 percent year-over-year (see slide). The company cited strong demand across all markets, with 5G achieving record orders and triple-digit growth.
Ixia’s performance suffered from continuing delays moving products to a new contract manufacturer. Revenue declined 7 percent year-over-year and 3 percent sequentially, and Keysight wrote off some $700 million in good will from the acquisition, “primarily due to weaker than expected market dynamics,” according to Neil Dougherty, Keysight’s CFO.
Ron Nersessian, Keysight’s CEO, said “The Ixia integration has become a bigger job than we had thought it originally,” adding, “We still have a lot of confidence in the business.”
In Q4, Keysight’s non-GAAP net income was $193 million, or $1.01 per share, compared to $135 million, or $0.71 per share, in Q4 of 2017.
Keysight ended the fiscal year with cash and equivalents of $913 million.