Market-Defining and Diversified Innovations Driving Value Creation
Positioned to Outperform in Current Macro Environment
Durable and resilient financial model
-10%
-300 to 400bps
Operating Margin¹
Revenue Scenarios
FY22 BASELINE
Revenue $5.4B
OM1 29%
Enabled by a Flexible
Cost Structure
•
•
100% of employees on variable pay
~50% of production is outsourced
Model Durability Proven in
2020 Pandemic
•
•
~20%+ of sales via indirect channels
•
Strategic use of flexible staffing
•
NEW: Zero-based budgeting program to
•
drive efficiencies and synergies
Flexible cost structure and financial playbook
preserved margins and liquidity as planned
Q2 FY20 revenue down 18% YoY, while
maintaining 19% operating margin1, down
only 520bps YoY; ~$900M FY20 FCF1
Strong topline growth leveraged cost
structure for margin expansion through
pandemic (FY20-FY22)
.
+5-7%
40%
Core Operating Leverage²
Resiliency of Financial Model
Supported by:
•
Increased software and services
(recurring revenue)
Favorable and strong secular growth drivers
(e.g., 5G/6G, new mobility, digitization)
Strong free cash flow generation
Flexible and defensive balance sheet
•
$2.5B backlog exiting Q1 FY23
✔ KEYSIGHT
1. Non-GAAP measure, see appendix for reconciliations; 2. Core: Excludes FX and acquisitions or divestures completed within the last 12 months
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