Keysight Technologies(KEYS) - 2024 Q4 - Annual Results

Financial Performance - Fourth quarter revenue was $1.29 billion, a slight decrease from $1.31 billion in the same quarter last year [3]. - GAAP net loss for the fourth quarter was $73 million, or $0.42 per share, compared to a net income of $226 million, or $1.28 per share in Q4 2023 [4]. - Non-GAAP net income for the fourth quarter was $288 million, or $1.65 per share, down from $352 million, or $1.99 per share in Q4 2023 [4]. - Fiscal year 2024 revenue totaled $4.98 billion, down from $5.46 billion in fiscal year 2023 [5]. - GAAP net income for fiscal year 2024 was $0.61 billion, or $3.51 per share, compared to $1.06 billion, or $5.91 per share in fiscal year 2023 [5]. - Non-GAAP net income for fiscal year 2024 was $1.10 billion, or $6.27 per share, down from $1.49 billion, or $8.33 per share in fiscal year 2023 [5]. - Net income for the year ended October 31, 2024, was $614 million, down from $1,057 million in 2023, representing a decrease of 42% [26]. - The company reported a diluted EPS of $3.51 for the year ended October 31, 2024, down from $5.91 in 2023 [29]. Cash Flow and Assets - Cash flow from operations for fiscal year 2024 was $1.05 billion, compared to $1.41 billion in the previous year [6]. - Free cash flow for the year ended October 31, 2024, was $905 million, compared to $1,212 million in 2023, a decline of 25.3% [34]. - Total current assets decreased from $4,809 million in 2023 to $4,257 million in 2024, a decline of approximately 11.4% [23]. - Cash and cash equivalents decreased from $2,472 million in 2023 to $1,796 million in 2024, a reduction of 27.4% [23]. Liabilities and Equity - Total liabilities increased from $4,029 million in 2023 to $4,164 million in 2024, an increase of approximately 3.3% [23]. - Long-term debt increased from $1,195 million in 2023 to $1,790 million in 2024, an increase of 49.7% [23]. - The company’s total stockholders' equity rose from $4,654 million in 2023 to $5,105 million in 2024, an increase of 9.7% [23]. Segment Performance - The Communications Solutions Group reported revenue of $894 million in Q4, flat year-over-year, with a 4% growth in commercial communications [7]. - The Electronic Industrial Solutions Group reported revenue of $393 million in Q4, down 6% year-over-year due to manufacturing-related spending constraints [8]. - Aerospace, Defense and Government revenue decreased by 6% to $303 million in Q4'24 compared to $323 million in Q4'23, and decreased by 8% to $1,149 million for FY24 compared to $1,250 million for FY23 [38]. - Commercial Communications revenue increased by 4% to $591 million in Q4'24 compared to $568 million in Q4'23, but decreased by 7% to $2,271 million for FY24 compared to $2,435 million for FY23 [38]. - Electronic Industrial revenue decreased by 6% to $393 million in Q4'24 compared to $420 million in Q4'23, and decreased by 12% to $1,559 million for FY24 compared to $1,779 million for FY23 [38]. - Total revenue for Q4'24 was $1,287 million, a decrease of 2% from $1,311 million in Q4'23, and total revenue for FY24 was $4,979 million, down 9% from $5,464 million in FY23 [38]. Future Projections - For the first fiscal quarter of 2025, revenue is expected to be between $1.265 billion and $1.285 billion, with non-GAAP earnings per share projected between $1.65 and $1.71 [10]. Non-GAAP Financial Measures - Management emphasizes the use of non-GAAP financial measures to provide a clearer view of the company's performance, excluding certain items like acquisition-related costs and share-based compensation [40]. - Core Revenue excludes the impact of foreign currency changes and revenue from recent acquisitions, aiding in the analysis of underlying business trends [40]. - Free cash flow is defined as cash provided by operating activities adjusted for net investments in property, plant, and equipment [40]. - Non-GAAP measures are intended to enhance investors' understanding of the company's ongoing performance and facilitate comparisons with historical data [40]. - Management acknowledges that excluded costs from non-GAAP measures are actual expenses that may impact cash availability [40]. - The company plans to continue evaluating its long-term projected non-GAAP tax rate based on various factors, including geographic earnings mix and tax law changes [40].