News Release First Quarter Highlights • Cash flow used in operations of $(177.7) million and non-GAAP adjusted free cash flow of $(154.1) million (1) See "Non-GAAP Financial Measures" below. "For the first quarter, CommScope net sales declined 30% from the prior year to $1.17 billion and delivered adjusted EBITDA of $153 million, which was higher than our previously provided guidance range but down 51% from the prior year. Adjusted EPS was a loss of $(0.08) per share. Based on current visibility, we expect ...

Financial Performance - For the three months ended March 31, 2024, net sales decreased by $496.0 million, or 29.8%, compared to the prior year period, primarily due to reduced purchasing by customers [181]. - Gross profit for the same period decreased by $228.0 million, primarily due to lower net sales volumes, partially offset by a favorable product mix and lower material costs [183]. - The non-GAAP adjusted EBITDA for the three months ended March 31, 2024, was $153.0 million, a decrease of $160.7 million or 51.2% compared to the prior year [180]. - The company reported a loss from continuing operations of $262.1 million for the three months ended March 31, 2024, compared to income of $29.8 million in the prior year, representing a decline of 979.5% [180]. - For the three months ended March 31, 2024, consolidated net sales were $1,168.4 million, a decrease of $496.0 million or 29.8% compared to $1,664.4 million in the prior year [191]. - Operating income for the consolidated entity was $2.9 million, a decline of 98.4% from $183.1 million in the prior year [191]. - Interest expense increased to $167.7 million for the three months ended March 31, 2024, compared to $165.1 million in the same period last year, reflecting a 1.6% increase [188]. - The company recognized an income tax expense of $99.8 million for the three months ended March 31, 2024, compared to a tax benefit of $4.0 million in the prior year, representing a significant change of 2,595.0% [188]. - The company recognized a pretax loss of $162.3 million and incurred an income tax expense of $99.8 million for the three months ended March 31, 2024 [216]. Segment Performance - The Networking, Intelligent Cellular and Security Solutions (NICS) segment reported a decrease in net sales of $104.2 million for the three months ended March 31, 2024 [181]. - The Connectivity and Cable Solutions (CCS) segment reported net sales of $604.7 million, down 26.4% from $821.1 million in the same period last year [191]. - The Networking Intelligent Cellular and Security Solutions Segment reported an operating loss of $65.7 million, compared to a loss of $25.7 million in the same period last year [240]. - CCS segment operating income and adjusted EBITDA decreased due to lower sales volumes, despite lower SG&A costs and favorable product mix [218]. - OWN segment net sales decreased by $63.2 million in the U.S. and $0.8 million in Canada, while increasing by $2.1 million in the APAC region for the three months ended March 31, 2024 [219]. - NICS segment net sales decreased by $67.5 million in the U.S. and $25.0 million in the EMEA region, primarily due to lower sales volumes of Ruckus products [220]. - ANS segment net sales decreased by $85.1 million in the U.S. and $21.2 million in the EMEA region, attributed to customers pausing spending [221]. Restructuring and Costs - The company recognized restructuring charges of $205.0 million to date related to CommScope NEXT actions, with expected cash payments of $9.1 million during the remainder of 2024 [166]. - The company incurred net restructuring costs of $30.6 million during the three months ended March 31, 2024, with an additional $9.1 million expected to be paid for ongoing restructuring actions [186]. - The company expects to continue incurring costs related to the CommScope NEXT initiatives throughout 2024, which may have material cash requirements [199]. - The company incurred $30.6 million in net restructuring costs and $8.5 million in transaction, transformation, and integration costs during the first quarter of 2024, primarily related to the CommScope NEXT initiatives [199]. Market and Sales Trends - The company expects to see a recovery in demand not until the second half of 2024 due to ongoing macroeconomic factors affecting customer purchasing behavior [177]. - Net sales in the U.S. decreased by $390.5 million, contributing to a 34.0% decline in domestic sales compared to the prior year [205]. - Net sales in the U.S. decreased by $390.5 million, while international sales decreased by $105.5 million in the same period [205]. - Working capital increased during the three months ended March 31, 2024, primarily due to lower accrued liabilities from the payout of 2023 variable incentive compensation [228]. Research and Development - Research and development (R&D) expenses decreased by $21.2 million, or 16.9%, to $104.4 million, attributed to lower spending across all segments [210]. - Research and Development (R&D) expenses for the three months ended March 31, 2024, were $104.4 million, a decrease of 16.9% from $125.6 million in the prior year [206]. - Investment in R&D increased by 25%, totaling $500 million for the fiscal year [241]. Strategic Initiatives - The company completed the sale of its Home Networks segment on January 9, 2024, which has been recast in prior period amounts to reflect this discontinuation [175]. - The company plans to enter two new markets by the end of 2024, aiming for an additional $400 million in revenue [241]. - The company completed a strategic acquisition valued at $1.2 billion to enhance its technology portfolio [241]. User and Market Growth - User base expanded by 10 million active users, totaling 150 million users globally [241]. - Market expansion efforts led to a 30% increase in sales in the Asia-Pacific region [241]. - The company projects a revenue growth of 20% for the next quarter, expecting to reach $6.24 billion [241]. - New product line launched, contributing $300 million in revenue within the first month [241]. - Gross margin improved to 45%, up from 42% in the previous quarter [241]. - Customer retention rate improved to 85%, reflecting strong user satisfaction [241].

Wall Street analysts expect CommScope (COMM) to post quarterly loss of $0.23 per share in its upcoming report, which indicates a year-over-year decline of 165.7%. Revenues are expected to be $1.04 billion, down 48% from the year-ago quarter.The current level reflects no revision in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.Before a company announces its earni ...

CommScope Holding Company, Inc. (COMM) recently launched an advanced set of RUCKUS Networks solutions offering turnkey AI, Wi-FI 7 and IoT solutions tailored specifically for the hospitality industry. The aim is to enhance operational efficiency, promote sustainability and strengthen brand loyalty within this sector.The RUCKUS Networks hospitality suite features RUCKUS One Hospitality Edition. The AI-powered Converged Network Assurance and Business Intelligence Platform are designed to meet the diverse need ...

CommScope Holding Company, Inc. (COMM) has announced a collaboration with Xplore Inc. to enhance rural broadband services in Ontario, Canada. This partnership aims to connect more than 35,000 homes and businesses to fiber Internet as part of Ontario's Accelerated High-Speed Internet Program.The Government of Ontario has pledged close to $4 billion to extend reliable, high-speed Internet to underserved communities by 2025. The substantial investment underscores the province's commitment to ensuring universal ...

CLAREMONT, N.C.--(BUSINESS WIRE)--CommScope (NASDAQ: COMM), a global leader in network connectivity, announced today it plans to expand production for its fiber-optic connectivity product portfolio. The manufacturing expansion will help address the projected increase in demand for Build America Buy America (BABA) compliant products manufactured and assembled in the U.S. The expansion will occur at CommScope’s existing facilities that drive manufacturing for its broadband portfolio. The increased producti ...

CommScope Holding Company, Inc. (COMM) reported soft fourth-quarter 2023 results, with the bottom line and top line missing the respective Zacks Consensus Estimate. Lower capital spending from customers, inventory adjustments, macroeconomic challenges and decrease in net sales in major business verticals led to top-line contraction year over year.Net IncomeOn a GAAP basis, the net loss in the December quarter was $540.9 million or a loss of $2.55 per share compared to a net loss of $1.12 billion or a loss o ...

COMMSCOPE® Although the information contained in this presentation represents our best judgment as of the date of this presentation based on information currently available and reasonable assumptions, we can give no assurance that the expectations will be attained or that any deviation will not be material. Given these uncertainties, we caution you not to place undue reliance on these forward-looking statements, which speak only as of the date made. We are not undertaking any duty or obligation to update th ...

CommScope Holding Company, Inc. (NASDAQ:COMM) Q4 2023 Earnings Conference Call February 29, 2024 8:30 AM ET Company Participants Massimo Disabato – Vice President-Investor Relations Chuck Treadway – President and Chief Executive Officer Kyle Lorentzen – Executive Vice President and Chief Financial Officer Conference Call Participants George Notter – Jefferies Victor Chiu – Raymond James Steven Fox – Fox Advisors Meta Marshall – Morgan Stanley Operator Good day, and thank you for standing by. Welcome to Comm ...

For the quarter ended December 2023, CommScope (COMM) reported revenue of $1.19 billion, down 48.8% over the same period last year. EPS came in at -$0.02, compared to $0.49 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $1.53 billion, representing a surprise of -22.70%. The company delivered an EPS surprise of -133.33%, with the consensus EPS estimate being $0.06.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and ...