SANTA ROSA, Calif. - Keysight Technologies , Inc. (NYSE: NYSE:KEYS) has announced that its Signaling Field-To-Lab (S-FTL) solution has been adopted by Samsung (KS:005930) Semiconductor India Research (SSIR) to enhance its 5G testing capabilities. The S-FTL solution aims to improve the quality of experience (QoE) for end-users by expediting the replication, analysis, and troubleshooting of 5G field issues within a lab setting.
As the deployment of 5G networks advances, ensuring a high QoE has become crucial. One of the main challenges in this regard is the replication of complex field issues in a controlled lab environment. Traditional methods involve the laborious task of parsing through field logs, which can be incomplete or inaccurate, to recreate these issues for further study.
SSIR's Bengaluru lab will now utilize the Keysight S-FTL solution to automate the creation of test cases from real-world device logs. This tool is part of the 5G Protocol R&D Toolset and is designed to analyze logs for 5G, 4G, and IMS, adjust protocols to ensure compliance, and then replicate the field scenario as a test script.
The adoption of this technology by SSIR has reportedly led to a significant reduction in the time required to replicate field scenarios in the lab, thereby allowing engineers to dedicate more time to enhancing user experience. The solution has been instrumental in addressing a broad spectrum of real-world issues such as voice and data calls, network handovers, and carrier aggregation across various deployment scenarios.
Balajee Sowrirajan, Corporate EVP & MD at SSIR, highlighted the benefits of the collaboration with Keysight, emphasizing the solution's contribution to reliability and cost-effectiveness, which are paramount in the fast-evolving telecom sector.
Cao Peng, Vice President and General Manager for Keysight's Wireless Test Group, expressed his company's commitment to supporting SSIR's strategic objectives during the ongoing phase of 5G network rollout and integration testing.
Keysight Technologies, an S&P 500 company, is recognized for providing leading-edge design, emulation, and testing solutions that support innovators across multiple industries, including communications and electronics.
This initiative is expected to facilitate the swift resolution of connectivity issues for SSIR's wireless modem customers, ultimately contributing to the broader goal of enhancing 5G networks' performance and reliability. The information for this article is based on a press release statement.
In other recent news, Keysight Technologies showcased a strong performance in the fiscal second quarter of 2024, with revenues reaching $1.2 billion and earnings per share (EPS) of $1.41, surpassing analyst expectations.
JPMorgan (NYSE:JPM), however, has reduced Keysight's price target due to concerns about margin outcomes within the Electronic Industrial Solutions Group. The firm also adjusted its fiscal year 2025 EPS estimate for Keysight to $6.50 from the previous $6.70.
Conversely, Baird increased its price target on Keysight shares, citing stable end demand and anticipating a broader recovery starting in fiscal year 2025. Goldman Sachs (NYSE:GS) also raised its price target for Keysight, maintaining a Buy rating on the stock. The firm noted a stable book-to-bill ratio and expressed optimism about Keysight's long-term outlook.
Edward Jones maintained a Buy rating on Keysight stock, highlighting growth opportunities in the automotive electronics and electric vehicle sectors. The firm also underscored Keysight's role in the data networking equipment market and its early involvement in quantum computing. These recent developments provide a snapshot of the varied perspectives on Keysight's performance and future prospects.
InvestingPro Insights
Amidst the advancements in 5G technology and the strategic collaborations shaping the telecom industry, Keysight Technologies, Inc. (NYSE: KEYS) presents a compelling case for investors tracking the communication sector. The company's recent adoption by Samsung Semiconductor India Research (SSIR) to enhance 5G testing capabilities underscores its pivotal role in the evolution of next-generation networks.
From an investment perspective, Keysight's financial health is reflected in its market capitalization of 23.77 billion USD, with a Price/Earnings (P/E) Ratio of 29.76, which aligns with the industry average, indicating a balanced valuation relative to its earnings. The company's gross profit margin stands at an impressive 64.16% for the last twelve months as of Q2 2024, highlighting its efficiency in managing costs relative to revenue.
Still, it is worth noting that analysts have revised their earnings downwards for the upcoming period, and anticipate a sales decline in the current year. This outlook is matched with a revenue growth decrease of 7.55% over the last twelve months and a more substantial quarterly decline of 12.52% as of Q2 2024. Despite these challenges, Keysight's liquid assets exceed its short-term obligations, suggesting financial resilience and the ability to navigate through market fluctuations.
For investors considering a deeper dive into Keysight Technologies, there are additional InvestingPro Tips available, which provide insights such as the company's low price volatility and moderate level of debt, indicating a stable investment option. Moreover, analysts predict the company will remain profitable this year, which may provide some assurance against the backdrop of declining sales.
To further explore Keysight Technologies' investment potential, including a total of 9 detailed InvestingPro Tips, visit https://www.investing.com/pro/KEYS. Don't forget to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking a wealth of expert analysis and real-time data that can guide your investment decisions.
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