SANTA ROSA, Calif. -- Keysight Technologies, Inc. (NYSE: KEYS) today reported financial results for the third fiscal quarter ended July 31, 2023.

"Keysight delivered solid third quarter results, demonstrating the strength of our portfolio and the resilience of our financial model," said Satish Dhanasekaran, Keysight's President and CEO. "Despite near-term macro challenges, Keysight's diversified business, strong customer engagement through our differentiated solutions portfolio, and durable operating model give us confidence in our ability to capitalize on the long-term secular growth trends of our markets, as well as outperform in a variety of market conditions."

Third Quarter Financial Summary 

• Revenue of $1.38 billion was flat compared with last year, and grew 1 percent on a core basis, which excludes the impact of foreign currency changes and revenue associated with businesses acquired or divested within the last twelve months.
• GAAP net income was $288 million, or $1.61 per share, compared with $338 million, or $1.87 per share, in the third quarter of 2022.
• Non-GAAP net income was $393 million, or $2.19 per share, compared with $363 million, or $2.01 per share in the third quarter of 2022.
• As of July 31, 2023, cash and cash equivalents totaled $2.57 billion.

Reporting Segments

CSG reported revenue of $918 million in the third quarter, down 5 percent over last year, reflecting a 12 percent decline in commercial communications, while aerospace, defense, and government increased 11 percent driven by technology modernization, space and satellite, radar, and research in 5G and 6G technologies.

• Communications Solutions Group (CSG)

EISG reported revenue of $464 million in the third quarter, up 14 percent over last year, driven by growth across semiconductor solutions, general electronics, and next-generation automotive and energy technologies.

• Electronic Industrial Solutions Group (EISG)

Outlook

Keysight's fourth fiscal quarter of 2023 revenue is expected to be in the range of $1.29 billion to $1.31 billion. Non-GAAP earnings per share for the fourth fiscal quarter of 2023 are expected to be in the range of $1.83 to $1.89.  Full-year 2023 revenue at the midpoint of our guidance is $5.45 billion. Full-year 2023 earnings per share at the midpoint of our guidance are $8.19. 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.