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May 26, 2020, 4:39 p.m. EDT

Keysight shares fall 7% on steep drop in revenue

Keysight Technologies Inc. (NYS:KEYS) shares sank 7% in after-hours trading Tuesday after the maker of electronics test and measurement equipment and software reported fiscal second-quarter results that badly missed Wall Street estimates. Keysight reported net income of $71 million, or 37 cents a share, compared with net income of $153 million, or 80 cents a share, in the year-ago quarter. Adjusted earnings were 78 cents a share, down from $1.22 a share a year ago. Revenue tumbled 18% to $895 million from $1.09 billion a year ago. "While supply chain disruptions dampened our revenue performance during the second half of the quarter, which includes April, our results demonstrated the resiliency of our operating model and durable cash generation as we reached a record cash balance of $1.8 billion," Keysight Chief Executive Ron Nersesian said in a statement announcing the results. Analysts surveyed by FactSet had expected adjusted earnings of $1.14 a share on sales of $1.064 billion. Keysight shares are up 0.8% this year. The broader S&P 500 index (S&P:SPX) is down 7.4% in 2020.

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