Keysight Technologies Inc (NYSE: KEYS) stock surged 12.6% on May 31st, 2018 (As of 1:32 PM GMT-4; Source: Google finance) after the company in the second quarter of FY 18 has reported the adjusted earnings per share of 83 cents, which is in line with the analysts’ estimates for the adjusted earnings per share of 83 cents. The company had reported the adjusted revenue growth of 31 percent and 18 percent growth on a core basis to $900 million in the second quarter of FY 18 driven by broad-based core order strength as customers accelerate development in the key focus areas including 5G, automotive & energy and aerospace and defense.
Moreover, in the second quarter 2018, KEYS has delivered the Non-GAAP net income of $158 million, compared with $114 million, in the second quarter of 2017. As of April 30th, 2018, cash and cash equivalents totaled $784 million. In the first half of 2018, the Cash flow from operations is of $282 million. The company has deployed capital by repaying $260 million of pre-payable debt and repurchasing 770,000 shares for $40 million under the $350 million share repurchase program authorization.
Additionally in the third quarter 2018, Communications Solutions Group (CSG) revenue grew due to 5G-related R&D spending across the wireless ecosystem, early investment in next-generation 400G and PAM-4 network test and strong 27 percent year-over-year growth in the aerospace, defense and government end market. Electronic Industrial Solutions Group (EISG) revenue in the second quarter is driven by strong growth for automotive and energy and general electronics measurement solutions. Ixia Solutions Group (ISG) market conditions remained consistent with the prior quarter; however, the second quarter ISG results were affected due to an extensive integration efforts in the second quarter. Many of these integration issues are now resolved and the expected annual cost synergies are ramping as planned. Further, Services Solutions Group (SSG) in the second quarter, the revenue is driven by double-digit growth for our calibration, remarketed and repair services and solutions.
For the third quarter 2018, KEYS expect revenue to to be in the range of $942 million to $972 million. Non-GAAP earnings per share for the third fiscal quarter of 2018 are expected to be in the range of $0.72 to $0.82, which exclude items that pertain to future events and are not currently estimable with a reasonable degree of accuracy.