Keysight Technologies, the Santa Rosa-based subsidiary of Agilent Technologies, reported Thursday that quarterly revenues from its electronic measurement business increased 8 percent from a year ago.
Keysight, Sonoma County’s largest tech employer, reported revenues of $757 million in the third quarter results ending July 31.
Ron Nersesian, the subsidiary’s president and CEO, told investors in a joint call with Agilent officials that the communication and aerospace/defense markets “were the drivers” leading Keysight’s growth. Revenues increased 16 percent for the quarter for the communications segment and 13 percent for aerospace/defense.
However, Nersesian noted that future business may be curtailed in Russia by recent sanctions put in place by the U.S. and some European countries.
Such restrictions “may halt growth in one of our fastest growing regions,” he said.
Russia last year amounted to 3 percent of the subsidiary’s revenues.
Keysight, with its headquarters at the current facility on Fountaingrove Parkway in Santa Rosa, will become its own publicly traded company in November. With a global workforce of 9,500 and $2.9 billion in annual sales, Keysight will be the largest company ever based in the county.
For the quarter, Agilent reported total revenues increased 7 percent to $1.77 billion. Net income declined 13 percent to $147 million, or 43 cents a share. Excluding pre-separation expenses and other one-time costs, adjusted net income amounted to 78 cents a share.
For the fiscal year, Keysight is projecting revenue growth of about 2 percent. While 2014 was not particularly strong for the entire electronic measurement industry, the company has stated its desire for greater results in the years to come.
“Our strategy is to get back to market growth,” said Senior Vice President Guy Séné. Over time, that would mean annual increases of 3 to 4 percent.
While revenues grew in some segments, the company said that sales to mobile phone makers have been curtailed by strong competition and the consolidation of manufacturers.
“There’s really only a few companies in that area that have a very strong buying power,” Séné said.
Keysight’s staff performed well while making all the preparations needed to become an Agilent subsidiary on Aug. 1, he said. And officials and workers are looking forward to the day when Keysight becomes a standalone company.
“We believe we are on track for early November,” Séné said.
You can reach Staff Writer Robert Digitale at 521-5285 or email@example.com. On Twitter @rdigit
EDITOR’S NOTE: Keysight Technologies increased its aerospace/defense revenues by 13 percent in the third quarter, compared to a year ago. An earlier version of this story contained an incorrect figure.