SANTA ROSA, Calif.--(BUSINESS WIRE)--Keysight Technologies, Inc. (NYSE: KEYS), a leading technology company that helps enterprises, service providers and governments accelerate innovation to connect and secure the world, announced highlights of its investor day that it held today in New York City.
During today's event members of Keysight's senior management team provided an in-depth overview of the company and its business segments, as well as outlined Keysight's:
- Strategy to drive profitable growth
- Capital allocation priorities
- Increased long-term operating model expectations
- Keysight Leadership Model
“Over the past three years, we have executed our strategy to transform Keysight for growth, which included shifting to a solution-centric go-to-market approach, developing many industry-first innovations in key segments of the market and strengthening our portfolio through acquisitions,” said Ron Nersesian, president and chief executive officer. “With our first-to-market advantage and end-to-end portfolio of solutions, we are well-aligned with growing market trends where customers are investing in next-generation electronic technologies such as 5G, automotive, IoT and data centers.”
Nersesian continued, “Our vision of combining over 75 years of experience at the forefront of the communication revolution with software and people to deliver leading-edge insights and solutions for our customers is yielding results. We are also pleased to be in a position to return capital to shareholders through a new $350 million share repurchase program.”
Increasing Long-Term Targets
Based on the Company’s strategic execution to date and strong momentum, Keysight increased its long-term operating model expectations, which it expects to achieve by no later than 2021.
- Organic revenue growth is now expected to be sustainable at a 4 to 5 percent CAGR, compared with the prior model of a 4 percent CAGR
- Non-GAAP operating margin is expected to be in the range of 22 percent to 23 percent, compared with the prior model of 18 percent to 19 percent
- Non-GAAP earnings per share is expected to grow greater than or equal to 10 percent, compared with the prior model of 8 percent to 10 percent
Keysight Leadership Model
Keysight customers are leaders in technology. They are the visionaries and innovators who have achieved breakthroughs that connect and secure the world. To accelerate their innovation, Keysight must anticipate technology trends and be ready with leading-edge solutions ahead of market windows, forging deep relationships to provide them the insights to be first and best. The Keysight Leadership Model (KLM) is the company's enabler to continuously deliver greater value to customers, shareholders and employees. It is the philosophy that permeates every aspect of our operations - driving innovation, speed and excellence in execution.
The investor day presentation and related materials are available at www.investor.keysight.com.
This communication contains forward-looking statements as defined in the Securities Exchange Act of 1934 and is subject to the safe harbors created therein. These forward-looking statements involve risks and uncertainties that could significantly affect the expected results and are based on certain key assumptions of Keysight’s management and on currently available information. Due to such uncertainties and risks, no assurances can be given that such expectations or assumptions will prove to have been correct and readers are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof. Keysight undertakes no responsibility to publicly update or revise any forward-looking statement. The forward-looking statements contained herein include, but are not limited to, information and future guidance on the company’s share repurchase program, capital allocation, goals, priorities, demand, the continued strengths and expected growth of the markets the company sells into, operations, financial condition, revenues, earnings, operating margins, operating earnings and tax rates that involve risks and uncertainties that could cause Keysight’s results to differ materially from management’s current expectations. Such risks and uncertainties include, but are not limited to, changes in the demand for current and new products, technologies and services; customer purchasing decisions and timing, and the risk that we are not able to realize the savings or benefits expected from integration or restructuring activities. The words “estimate,” “expect,” “intend,” “will,” “should,” “forecast” and similar expressions, as they relate to the company, are intended to identify forward-looking statements.
In addition to the risks above, other risks that Keysight faces include those detailed in Keysight’s filings with the Securities and Exchange Commission, including our Form 10-K for the fiscal year ended Oct. 31, 2017.
About Keysight Technologies
Keysight Technologies, Inc. (NYSE: KEYS) is a leading technology company that helps its engineering, enterprise and service provider customers accelerate innovation to connect and secure the world. Keysight’s solutions optimize networks and bring electronic products to market faster and at a lower cost with offerings from design simulation, to prototype validation, to manufacturing test, to optimization in networks and cloud environments. Customers span the worldwide communications ecosystem, aerospace and defense, automotive, energy, semiconductor and general electronics end markets. Keysight generated revenues of $3.2B in fiscal year 2017. In April 2017, Keysight acquired Ixia, a leader in network test, visibility and security. More information is available at www.keysight.com