Keysight Technologies Inc (NYSE: KEYS) stock fell over 2.6% on 21st August, 2020 post its fiscal third quarter. KEYS in the second quarter of FY 20 has reported the adjusted earnings per share of $1.19, while reported 7 percent fall in the adjusted revenue to $1.01 billion in the second quarter of FY 20. The company received the Orders of $1.067 billion, which is down 4% on a reported and core basis and were steady through the quarter in aggregate. Regionally, the demand grew in Asia and began to stabilize in the U.S., while Europe lagged as the pandemic continues to hamper their economic recovery. The company has reported gross margin of 64% with improved mix and lower discretionary spending, offsetting the impact of lower revenue.
The company’s end-to-end solutions for the 5G life cycle across both wired and wireless domain and from R&D and high-value manufacturing are enabling the ecosystem to scale from product development to deployments. 5G commercialization is progressing and on track to add a projected 190 million subscribers in 2020. Further, the company saw strong demand for the high-speed digital and optical solutions driven by 400G manufacturing, expansion and an uptick in R&D investments in 800G. In aerospace defense and government, the company got solid orders in the U.S., which is offset by lower investment in Europe, and to a lesser extent, in Asia. The company has delivered the net income $226 million in the third quarter. The company has ended the third quarter with $1.7 billion in cash and cash equivalents, with additional liquidity available under the undrawn revolving credit facility of $450 million. The second quarter end cash balance reflects the impact of the $319 million net of cash acquisition of Eggplant. The company has reported cash flow from operations of $183 million and free cash flow of $151 million. The company did not repurchase any shares during the quarter.
For the fourth fiscal quarter of 2020, the company expects revenue to be in the range of $1,170 million to $1,190 million. Non-GAAP earnings per share for the fourth fiscal quarter of 2020 are expected to be in the range of $1.42 to $1.48, which exclude items that pertain to future events and are not currently estimable with a reasonable degree of accuracy.