Strong orders, fast fire recovery for Keysight Technologies

Santa Rosa-based Keysight Technologies on Thursday reported double-digit growth in quarterly orders and a faster-than-expected recovery from last fall’s wildfires.

“2018 is off to a great start,” President and CEO Ron Nersesian told analysts in an afternoon conference call to discuss results for the quarter ending Jan. 31.

Orders last quarter grew to $964 million, an increase of 39 percent from a year earlier, or 16 percent when excluding acquisitions and currency fluctuations. The results amounted to the fourth consecutive quarter of such growth.

Keysight reported $7 million in costs related to the wildfires, which damaged facilities at its Santa Rosa campus off Fountaingrove Boulevard. The company previously has announced leasing 104,000 square feet in Rohnert Park at SOMO Village, enough space to house 900 of its 1,300 workers in the county.

“Our Santa Rosa production capacity is running above pre-fire levels,” Nersesian said.

Keysight, the world’s largest electronics measurement company, is the biggest business based in Sonoma County.

The company’s net revenue increased 15 percent to $837 million. Keysight’s Communications Solutions Group, the division most impacted by the fire, reported a 3 percent decline in revenue to $420 million

Net income amounted to 51 cents a share, based on one-time adjustments, compared to 57 cents a year earlier.

Officials said the recent total still exceeded previous guidance, and they forecast an adjusted net income for the current quarter of 76 to 86 cents a share.

The company reported order growth in such sectors as aerospace, defense, automotive and energy. Orders hit a record level for communications’ research and development.

Officials predicted strong growth potential for business related to coming 5G technology and automotive technology for both electric and autonomous vehicles.

Nersesian said during the previous round of cellular innovations, when the company was part of Agilent Technologies, “we did not invest in 4G like we need to in order to be the top leader.” He said Keysight, now an independent company, has “established a strong leadership position in 5G.”

Keysight stock closed Thursday at $46.58 a share, a decrease of 43 cents.

You can reach Staff Writer Robert Digitale at 707-521-5285 or robert.digitale@pressdemocrat.com. On Twitter @rdigit.