Keysight third-quarter revenue rises 8%; Russia market to drop

SANTA ROSA -- As part of fiscal third-quarter results reported Thursday, Agilent Technologies (NYSE: A) said its Santa Rosa-based Keysight Technologies test-and-measurement business spinoff had revenue growth of 8 percent from a year before.

[caption id="attachment_96592" align="alignleft" width="300"] Ron Nersesian, CEO, Keysight Technologies[/caption]

Orders for the quarter ending in July rose 7 percent, and operating margins were 20 percent, according to Ron Nersesian, CEO and president of Keysight.

The new company could be hit by restrictions on trade with Russia imposed by the United States after Russia's aggressive conduct toward Ukraine. Russia has been a customer particularly for instruments related to aerospace defense, satellites and microwave technology. "Russia up to now is about 3 percent" of Keysight's business, said Guy Sene, senior vice president of measurement solutions and worldwide sales, based in Santa Rosa.

"With the current situation in Ukraine," Mr. Sene said, "we see our business growth to really slow down there. We keep selling, but with the sanctions most western countries are applying to Russia," there are new restrictions on sales of certain instruments.

"If we would stop completely selling to Russia, it would be difficult to make up" the lost business, Mr. Sene said.

As the U.S. federal budget has started flowing after temporary sequestration related to budget wrangles in Washington, domestic aerospace defense spending has resumed. "The place we see growth is aerospace defense in the U.S.," Mr. Sene said. The company's business usually is strongest in its fourth quarter, which just started at the beginning of August.

[caption id="attachment_96604" align="alignleft" width="300"] Guy Sene, Keysight senior vice president, measurement solutions and worldwide sales[/caption]

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