EX-99.1 2 exhibit991.htm EXHIBIT 99.1 Exhibit


Exhibit 99.1

KEYSIGHT TECHNOLOGIES, INC.
COMMUNICATIONS SOLUTIONS GROUP (CSG)
RESTATED FOR IXIA SOLUTIONS GROUP (ISG) REALIGNMENT
(in millions, except where noted)
(Unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
FY 2019
 
 
Q1
 
Q2
 
Q3
 
Q4
 
Total
Net revenue
 
$
752

 
$
794

 
$
793

 
$
838

 
$
3,177

Gross margin %
 
62.8
%
 
64.6
%
 
64.1
%
 
64.3
%
 
64.0
%
Research and development
 
128

 
125

 
125

 
133

 
511

Selling, general and administrative
 
197

 
199

 
195

 
199

 
790

Other operating expense (income), net
 
(2
)
 
(3
)
 
(2
)
 
(4
)
 
(11
)
Income from operations
 
150

 
190

 
192

 
211

 
743

Operating margin %
 
19.9
%
 
24.0
%
 
24.1
%
 
25.2
%
 
23.4
%
Segment assets
 
$
3,466

 
$
3,529

 
$
3,589

 
$
3,671

 
$
3,671

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
FY 2018
 
 
Q1
 
Q2
 
Q3
 
Q4
 
Total
Net revenue
 
$
627

 
$
717

 
$
723

 
$
776

 
$
2,843

Gross margin %
 
60.9
%

60.4
%
 
61.0
%
 
61.6
%
 
61.0
%
Research and development
 
109

 
120

 
116

 
119

 
464

Selling, general and administrative
 
194

 
194

 
199

 
202

 
789

Other operating expense (income), net
 
(2
)
 
(3
)
 
(2
)
 
(2
)
 
(9
)
Income from operations
 
81

 
122

 
129

 
158

 
490

Operating margin %
 
12.9
%
 
17.0
%
 
17.8
%
 
20.4
%
 
17.2
%
Segment assets
 
$
3,996

 
$
4,073

 
$
4,095

 
$
3,442

 
$
3,442

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
FY 2017
 
 
Q1
 
Q2
 
Q3
 
Q4
 
Total
Net revenue
 
$
510

 
$
514

 
$
624

 
$
672

 
$
2,320

Gross margin %

57.2
%

58.1
%
 
61.7
%
 
62.5
%
 
60.1
%
Research and development
 
78

 
79

 
99

 
105

 
361

Selling, general and administrative
 
137

 
143

 
185

 
189

 
654

Other operating expense (income), net
 
(2
)
 
(3
)
 
(2
)
 
(2
)
 
(9
)
Income from operations
 
79

 
79

 
104

 
127

 
389

Operating margin %

15.6
%

15.4
%
 
16.6
%
 
18.9
%
 
16.8
%
Segment assets
 
$
1,859

 
$
3,840

 
$
3,964

 
$
4,039

 
$
4,039

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Segment data reflect the results of our reportable segments under Keysight's management reporting system which are not necessarily in conformity with GAAP financial measures. Net revenue for Communications Solutions Group excludes the impact of fair value adjustments to acquisition-related deferred revenue balances for the Ixia and Anite acquisitions, please refer page 4 for details. Income from operations of our reporting segments exclude, among other things, charges related to the amortization of acquisition-related balances, share based compensation, restructuring and related costs, acquisition and integration costs, Northern California wildfire-related costs and Goodwill impairment.
The sum of the quarters may not tie to total due to rounding.



1


KEYSIGHT TECHNOLOGIES, INC.
ELECTRONIC INDUSTRIAL SOLUTIONS GROUP (EISG)
(in millions, except where noted)
(Unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
FY 2019
 
 
Q1
 
Q2
 
Q3
 
Q4
 
Total
Net revenue
 
$
257

 
$
299

 
$
295

 
$
284

 
$
1,135

Gross margin %
 
58.9
%
 
61.3
%
 
61.5
%
 
62.4
%
 
61.1
%
Research and development
 
39

 
42

 
39

 
39

 
159

Selling, general and administrative
 
59

 
64

 
61

 
60

 
244

Other operating expense (income), net
 
(1
)
 
(1
)
 
(1
)
 
(1
)
 
(4
)
Income from operations
 
54

 
78

 
83

 
79

 
294

Operating margin %
 
20.9
%
 
26.1
%
 
28.1
%
 
27.9
%
 
25.9
%
Segment assets
 
$
875

 
$
912

 
$
939

 
$
928

 
$
928

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
FY 2018
 
 
Q1
 
Q2
 
Q3
 
Q4
 
Total
Net revenue
 
$
229

 
$
282

 
$
285

 
$
275

 
$
1,071

Gross margin %
 
56.6
%
 
59.0
%
 
60.9
%
 
58.7
%
 
58.9
%
Research and development
 
34

 
37

 
37

 
37

 
145

Selling, general and administrative
 
58

 
63

 
63

 
61

 
245

Other operating expense (income), net
 
(1
)
 
(1
)
 
(1
)
 
(1
)
 
(4
)
Income from operations
 
38

 
68

 
75

 
64

 
245

Operating margin %
 
16.9
%
 
23.9
%
 
26.5
%
 
23.3
%
 
22.9
%
Segment assets
 
$
846

 
$
888

 
$
905

 
$
888

 
$
888

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
FY 2017
 
 
Q1
 
Q2
 
Q3
 
Q4
 
Total
Net revenue
 
$
216

 
$
244

 
$
239

 
$
230

 
$
929

Gross margin %
 
57.6
%
 
60.0
%
 
58.7
%
 
59.6
%
 
59.0
%
Research and development
 
28

 
32

 
30

 
33

 
123

Selling, general and administrative
 
53

 
55

 
55

 
56

 
219

Other operating expense (income), net
 
(1
)
 
(1
)
 
(1
)
 
(1
)
 
(4
)
Income from operations
 
44

 
61

 
56

 
48

 
209

Operating margin %
 
20.4
%
 
24.8
%
 
23.4
%
 
21.0
%
 
22.5
%
Segment assets
 
$
805

 
$
827

 
$
837

 
$
866

 
$
866

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Segment data reflect the results of our reportable segments under Keysight's management reporting system which are not necessarily in conformity with GAAP financial measures. Income from operations of our reporting segments exclude, among other things, charges related to the amortization of acquisition-related balances, share based compensation, restructuring and related costs, acquisition and integration costs, Northern California wildfire-related costs and Goodwill impairment.
The sum of the quarters may not tie to total due to rounding.


2


KEYSIGHT TECHNOLOGIES, INC.
REVENUE BY SEGMENT & SUBMARKET
RESTATED FOR IXIA SOLUTIONS GROUP (ISG) REALIGNMENT
(in millions, except where noted)
(Unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
FY 2017
 
FY 2018
FY 2019
Revenue
 
Q1
 
Q2
 
Q3
 
Q4
 
Total
 
Q1
 
Q2
 
Q3
 
Q4
 
Total
 
Q1
 
Q2
 
Q3
 
Q4
 
Total
Aerospace, Defense & Government
 
$
216

 
$
205

 
$
204

 
$
223

 
$
848

 
$
216

 
$
254

 
$
246

 
$
256

 
$
972

 
$
223

 
$
245

 
$
243

 
$
263

 
$
974

Commercial Communications
 
294

 
309

 
420

 
449

 
1,472

 
411

 
463

 
477

 
520

 
1,871

 
529

 
549

 
550

 
575

 
2,203

Communications Solutions Group
 
510

 
514

 
624

 
672

 
2,320

 
627

 
717

 
723

 
776

 
2,843

 
752

 
794

 
793

 
838

 
3,177

Electronic Industrial Solutions Group
 
216

 
244

 
239

 
230

 
929

 
229

 
282

 
285

 
275

 
1,071

 
257

 
299

 
295

 
284

 
1,135

TOTAL(1)
 
$
726

 
$
758

 
$
863

 
$
902

 
$
3,249

 
$
856

 
$
999

 
$
1,008

 
$
1,051

 
$
3,914

 
$
1,009

 
$
1,093

 
$
1,088

 
$
1,122

 
$
4,312

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
FY 2018
FY 2019
Year-over-Year %
 
 
 
 
 
 
 
 
 
 
 
Q1
 
Q2
 
Q3
 
Q4
 
Total
 
Q1
 
Q2
 
Q3
 
Q4
 
Total
Aerospace, Defense & Government
 
 
 
 
 
 
 
 
 
 
 
—
%
 
24
%
 
20
%
 
15
%
 
15
%
 
3
%
 
(4
)%
 
(1
)%
 
3
%
 
—
%
Commercial Communications
 
 
 
 
 
 
 
 
 
 
 
40
%
 
50
%
 
14
%
 
16
%
 
27
%
 
29
%
 
19
 %
 
15
 %
 
11
%
 
18
%
Communications Solutions Group
 
 
 
 
 
 
 
 
 
 
 
23
%
 
39
%
 
16
%
 
15
%
 
23
%
 
20
%
 
11
 %
 
10
 %
 
8
%
 
12
%
Electronic Industrial Solutions Group
 
 
 
 
 
 
 
 
 
 
 
6
%
 
15
%
 
20
%
 
20
%
 
15
%
 
13
%
 
6
 %
 
3
 %
 
3
%
 
6
%
TOTAL(2)
 
 
 
 
 
 
 
 
 
 
 
18
%
 
32
%
 
17
%
 
16
%
 
20
%
 
18
%
 
9
 %
 
8
 %
 
7
%
 
10
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1)Non-GAAP revenue. Reconciliation to GAAP equivalent provided.
(2)Historical segment revenue growth not adjusted for currency, acquisitions or divestitures.


3


KEYSIGHT TECHNOLOGIES, INC.
RECONCILIATION OF NON-GAAP REVENUE BY END MARKETS
RESTATED FOR IXIA SOLUTIONS GROUP (ISG) REALIGNMENT
(in millions)
(Unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
FY 2017
 
FY 2018
FY 2019
 
 
Q1
 
Q2
 
Q3
 
Q4
 
Total
 
Q1
 
Q2
 
Q3
 
Q4
 
Total
 
Q1
 
Q2
 
Q3
 
Q4
 
Total
Aerospace, Defense & Government
 
$
216

 
$
205

 
$
204

 
$
223

 
$
848

 
$
216

 
$
254

 
$
246

 
$
256

 
$
972

 
$
223

 
$
245

 
$
243

 
$
263

 
$
974

Commercial Communications
 
294

 
304

 
389

 
425

 
1,412

 
392

 
454

 
473

 
516

 
1,835

 
526

 
546

 
549

 
573

 
2,194

Electronic Industrial
 
216

 
244

 
239

 
230

 
929

 
229

 
282

 
285

 
275

 
1,071

 
257

 
299

 
295

 
284

 
1,135

Total GAAP Revenue
 
726

 
753

 
832

 
878

 
3,189

 
837

 
990

 
1,004

 
1,047

 
3,878

 
1,006

 
1,090

 
1,087

 
1,120

 
4,303

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial Communications
 
—

 
5

 
31

 
24

 
60

 
19

 
9

 
4

 
4

 
36

 
3

 
3

 
1

 
2

 
9

Amortization of acquisition-related balances
 
—

 
5

 
31

 
24

 
60

 
19

 
9

 
4

 
4

 
36

 
3

 
3

 
1

 
2

 
9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Aerospace, Defense & Government
 
216

 
205

 
204

 
223

 
848

 
216

 
254

 
246

 
256

 
972

 
223

 
245

 
243

 
263

 
974

Commercial Communications
 
294

 
309

 
420

 
449

 
1,472

 
411

 
463

 
477

 
520

 
1,871

 
529

 
549

 
550

 
575

 
2,203

Electronic Industrial
 
216

 
244

 
239

 
230

 
929

 
229

 
282

 
285

 
275

 
1,071

 
257

 
299

 
295

 
284

 
1,135

Total Non-GAAP Revenue
 
$
726

 
$
758

 
$
863

 
$
902

 
$
3,249

 
$
856

 
$
999

 
$
1,008

 
$
1,051

 
$
3,914

 
$
1,009

 
$
1,093

 
$
1,088

 
$
1,122

 
$
4,312

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-GAAP revenue excludes the fair value adjustments to Anite and Ixia acquisition-related deferred revenue balances.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


4