(Reuters) – Electronic equipment maker Keysight Technologies on Tuesday forecast quarterly profit below estimates, as demand in electronics industrial markets remained weak amid high borrowing costs, sending its shares down over 6% in extended trading.
Keysight, which provides electronic design, testing and software products such as oscilloscopes and network emulators, reported an 11% decline in first-quarter revenue in its communications solutions segment, which accounted for 67% of its total revenue in 2023.
Revenue in its electronic industrial solutions segment fell 5%, reflecting continued constraint in semiconductor and manufacturing-related customer spending.
“While the overall demand environment remains constrained, orders grew in aerospace, defense, and government solutions, as well as AI-driven network and data center applications,” Keysight CEO Satish Dhanasekaran said.
The California-based company forecast second-quarter adjusted profit to be between $1.34 and $1.40 per share, lower than analysts’ estimates of $1.61, according to LSEG data.
The company, however, beat first-quarter profit estimates, while its overall revenue fell about 9% to $1.26 billion.
It reported an adjusted profit of $1.63 per share, beating estimates of $1.59 per share.
(Reporting by Nathan Gomes and Kannaki Deka in Bengaluru; Editing by Pooja Desaiand Maju Samuel)
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