Financial Performance - Revenues for the year ended December 31, 2023 were $5.79 billion, with a loss from continuing operations of $851.3 million[30] - Consolidated net sales decreased by $1,735.5 million (23.1%) to $5,789.2 million in 2023, with significant declines in CCS and OWN segments[293] - CCS segment net sales decreased by $1,079.4 million (28.5%) in 2023, primarily due to lower sales volumes in the U.S. and EMEA regions[293][294] - NICS segment net sales increased by $178.0 million (18.9%) in 2023, driven by higher sales volumes and increased pricing[293][297] - ANS segment net sales decreased by $246.2 million (18.5%) in 2023, with declines in the U.S., CALA, and APAC regions[293][298] - Consolidated operating loss improved by $500.2 million (81.6%) to $112.9 million in 2023, driven by reduced losses in the ANS segment[293] - Non-GAAP consolidated adjusted EBITDA decreased by $224.4 million (18.3%) to $999.0 million in 2023, reflecting lower performance across core segments[293] - Non-GAAP pro forma adjusted EBITDA for 2023 was $1,101.2 million, including annualized savings of $102.2 million from cost reduction initiatives[306] - Non-GAAP adjusted EBITDA for 2023 was $999.0 million, compared to $1,223.4 million in 2022, with adjustments including $571.4 million in asset impairments and $327.1 million in amortization of purchased intangible assets[316] Debt and Financial Obligations - The company has substantial indebtedness, with $3.1 billion in variable rate debt, leading to increased interest costs due to rising rates in 2023[105] - The company has approximately $9.3 billion of indebtedness as of December 31, 2023, with $688.0 million remaining availability under its Revolving Credit Facility[117] - The company may need to refinance or restructure its $1.3 billion of 6.0% senior notes due June 15, 2025, in 2024[111] - Interest payments on long-term debt are expected to total $1,831.1 million over the duration, with $643.0 million due in 2024[282] - The company repurchased $133.1 million of 8.25% senior notes due 2027, $58.4 million of 7.125% senior notes due 2028, and $25.4 million of 6.00% senior notes due 2025, totaling $142.6 million in cash consideration[312] - Net cash used in financing activities in 2023 was $181.7 million, primarily due to $142.6 million in long-term debt repurchases and $32.0 million in long-term debt repayments[318] Cash Flow and Liquidity - Cash and cash equivalents increased by $170.8 million in 2023, with 44% held outside the U.S. as of December 31, 2023[285] - Net cash generated by operating activities increased by $99.9 million (52.6%) to $289.9 million in 2023, driven by reduced inventory purchases and cost-saving initiatives[286][288] - Net cash generated by investing activities improved by $120.4 million to $38.3 million in 2023, primarily due to $71.2 million from the sale of property, plant, and equipment[286][289] - Cash and cash equivalents increased in 2023 primarily due to $289.9 million generated from operating activities and $71.2 million from the sale of property, plant, and equipment, partially offset by $142.6 million in debt repurchases and $53.3 million in capital expenditures[308] - As of December 31, 2023, the company had $688.0 million in remaining availability under its Revolving Credit Facility, with a borrowing base of $785.9 million reduced by $97.9 million in letters of credit[313] Business Segments and Market Trends - The OWN segment focuses on macro and metro cell markets, including base station antennas, RF filters, and wireless spectrum management[32] - The ANS segment provides solutions like CMTS, video infrastructure, and cloud solutions for residential and metro distribution networks[33] - Network convergence trends are driving operators to combine voice, video, and data into single converged networks[34] - Private LTE and 5G networks are becoming critical for enterprises, shifting demand toward wireless solutions[38] - Small cell and DAS solutions are addressing indoor capacity and speed requirements, improving overall network performance[39] - The company is developing technologies to address industry shifts, such as the transition to 5G and distributed access architecture (DAA), but faces risks of losing market share[100] Operational Risks and Challenges - The company's business is highly dependent on third-party capital spending for data, communication, and entertainment equipment, with reductions potentially adversely affecting operations[83] - A significant portion of the company's sales is derived from a limited number of key customers and channel partners, increasing vulnerability to their financial conditions[83][97] - The company faces competitive pressures across all major product groups, with competitors potentially offering more complete solutions or innovative products[88][98] - The company's ability to sell products is highly dependent on the quality of post-sale support services, with inadequate support potentially harming business[91] - The company's performance is tied to the cyclical nature of capital spending in the communications industry, which experienced a significant decrease in 2023[94] - The company's reliance on open standards and third-party technology providers may limit its ability to commercialize products and recapture R&D investments[101] - The company's support organization faces challenges in delivering high-quality support across international operations, potentially impacting business performance[102] - Changes in the regulatory environment and government-funded programs, such as the Infrastructure Investment and Jobs Act (IIJA), could negatively impact customer capital spending decisions[103] - The company may recognize additional impairment charges related to goodwill, identified intangible assets, fixed assets, and right of use assets, which could have a material adverse effect on its financial condition and results of operations[108][121] - The company relies on unaffiliated contract manufacturers, which exposes it to risks such as reduced control over quality assurance, product supply, and costs[110] - The company is dependent on certain raw materials and components linked to commodity markets, such as aluminum, copper, steel, and silicon chips, which are subject to price volatility and supply shortages[123] - The company has historically relied on acquisitions for growth, such as the acquisition of ARRIS in 2019 and TE Connectivity's Broadband Network Solutions business in 2015, but there is no guarantee of future acquisition opportunities[130] - The company may incur significant additional indebtedness in the future, which could exacerbate risks associated with its substantial financial leverage[119] - The company's ability to generate sufficient cash flow to service its indebtedness and pay dividends on preferred stock depends on factors beyond its control, including earnings from subsidiaries[115] - The company's reliance on sole suppliers for certain components increases the risk of product issues or failures, which could negatively impact its results of operations[136] - The company's strategic alliances with leading technology companies are not guaranteed to continue, and the loss of any such relationship could have a material adverse effect on its business[133] - Goodwill and identified intangible assets represented approximately 55% of total assets as of December 31, 2023, with impairment charges of $571.4 million in 2023 and $1,119.6 million in 2022[138] - The company relies on a limited number of key suppliers for raw materials and components, with risks including supply shortages and increased costs, particularly for memory devices, capacitors, and silicon chips post-COVID-19[140] - Potential adverse impacts on earnings due to changes in U.S. or international trade laws, including new tariffs or trade restrictions[141] - Capacity constraints or production delays in global manufacturing operations could lead to lost sales opportunities and customer relations issues[142] - The CommScope NEXT transformation plan aims to drive stakeholder value but carries risks such as lost customers, higher costs, and supply chain disruptions[145] - Manufacturing realignment initiatives may result in lost sales, increased operating costs, and customer relations problems if not successfully implemented[147] - Acquisitions, such as ARRIS, involve risks including integration challenges, unanticipated costs, and potential failure to achieve expected growth prospects[148] - Carlyle owns approximately 17% of the company's common stock and has significant influence on business decisions, potentially leading to conflicts of interest with other stockholders[150] - The company faces risks in innovation efforts, including delays in product development, failure to meet customer preferences, and inability to compete with market-accepted products[151][152][153] - Cybersecurity incidents, including data breaches and ransomware, could disrupt operations, result in financial losses, and damage the company's reputation[159] - Climate change risks, including extreme weather events, could disrupt operations, increase costs, and impact financial performance[161][176] - The company faces risks related to counterfeit products, which could harm reputation and reduce net sales[167] - Labor-related risks, including strikes or work stoppages, could disrupt manufacturing and supply chain operations[162][178] - The company is exposed to foreign currency rate fluctuations, particularly in Chinese yuan, E.U. euro, and British pound sterling, which could impact sales and earnings[181] - The company is subject to export and import controls, including compliance with the Uyghur Forced Labor Prevention Act (UFLPA), which could result in penalties or loss of sales opportunities[182] - Intellectual property litigation could result in significant costs, liabilities, or the need to cease using proprietary third-party technology[184][185] Workforce and Manufacturing - Manufacturing employees make up 64% of the global workforce, with most located in low-cost regions like Mexico, China, India, and the Czech Republic[54] - The company employs approximately 20,000 people worldwide as of December 31, 2023[54] Strategic Initiatives and Transformation - CommScope NEXT initiative aims to improve operational efficiency, drive adjusted EBITDA expansion, and increase cash flow for debt reduction[43] - The CommScope NEXT transformation plan aims to drive stakeholder value but carries risks such as lost customers, higher costs, and supply chain disruptions[145] Customer Concentration and Sales - Approximately 17% of consolidated net sales in 2023 came from the top two direct customers, highlighting customer concentration risks[65] - The company's international sales represented 35% of consolidated net sales for the year ended December 31, 2023, with lower gross profit percentages compared to domestic sales[179] Dividends and Shareholder Transactions - Dividends paid in 2023 amounted to $61.8 million in additional shares under the Convertible Preferred Stock[320] - Cash dividends paid in 2022 totaled $14.9 million, with $44.1 million paid in additional shares of the Convertible Preferred Stock[320] - Employee share surrenders in 2023 reduced cash flows by $9.1 million, compared to $14.8 million in the prior year[320] Supply Chain and Raw Materials - The company entered into a long-term supply contract in July 2023, committing to advance payments totaling $120.0 million through 2026 and raw material purchases growing to approximately $137 million per year by 2026[283] - The company relies on third-party cloud services (AWS, GCE, Azure) for Wi-Fi-related cloud services, and any disruption could adversely impact operations[172][173] Interest Rates and Borrowing Costs - The weighted average effective interest rate on outstanding borrowings increased to 7.22% in 2023 from 6.91% in 2022, driven by Federal Reserve rate hikes[290] Impairment and Tax Considerations - ANS segment operating loss in 2023 was negatively impacted by a goodwill impairment charge of $472.3 million and an increase of $3.3 million in transaction, transformation, and integration costs, partially offset by a decrease of $18.2 million in restructuring costs and $73.3 million in amortization expense[299] - The company anticipates a reduction of up to $8.0 million in unrecognized tax benefits over the next twelve months[304]

Financial Performance - CommScope reported Q4 2023 net sales of $1.186 billion, a decrease of 38.4% year-over-year, driven by declines across all segments[10]. - For the full year 2023, net sales decreased 23.1% to $5.789 billion, primarily due to lower sales in the CCS, OWN, and ANS segments[16]. - GAAP loss from continuing operations for the full year 2023 was $851.3 million, compared to a loss of $1,184.7 million in 2022, reflecting a 28.1% improvement[6]. - CommScope reported a net loss of $525.1 million for Q4 2023, compared to a net loss of $1,108.8 million in Q4 2022, indicating a significant improvement[48]. - Total net sales for Q4 2023 were $1,185.9 million, down 38.4% from $1,925.5 million in Q4 2022[51]. - Full year 2023 net sales were $5,789.2 million, down from $7,524.7 million in 2022, a decline of approximately 23.1%[71]. - The company reported a net loss attributable to common stockholders for Q4 2023 of $(540.9) million, compared to $(1,123.7) million in Q4 2022, indicating a significant reduction in losses[71]. EBITDA and Cash Flow - Adjusted EBITDA for Q4 2023 was $190.7 million, down 49.2% compared to the same period last year, with adjusted EBITDA as a percentage of net sales decreasing to 16.1%[11]. - The core segment adjusted EBITDA for the full year 2023 was $1.022 billion, an 18.3% decline from $1.250 billion in 2022[6]. - Non-GAAP adjusted net income for Q4 2023 was $(3.9) million, or $(0.02) per share, compared to $138.1 million, or $0.55 per share in Q4 2022[32]. - Cash flow generated by operations in 2023 was $289.9 million, with non-GAAP adjusted free cash flow of $91.5 million[19]. - Free cash flow for Q4 2023 was $51.0 million, down from $364.2 million in Q4 2022, resulting in a full year free cash flow of $236.6 million compared to $88.7 million in 2022[90]. Sales Performance by Segment - Sales in the United States for Q4 2023 were $740.2 million, a decrease of 43.8% from $1,316.6 million in Q4 2022[13]. - Segment net sales for CCS, NICS, OWN, and ANS decreased by 41.9%, 24.9%, 40.1%, and 38.4% respectively in Q4 2023 compared to Q4 2022[35]. - The CCS segment reported full year sales of $2,710.2 million, down 28.5% from $3,789.6 million in 2022[55]. - The OWN segment's sales decreased by 40.1%, totaling $880.0 million for the full year 2023, down from $1,467.9 million in 2022[55]. - The NICS segment saw an 18.9% increase in sales, reaching $1,117.7 million for the full year 2023, compared to $939.7 million in 2022[55]. Cost Management and Future Outlook - CommScope implemented cost savings initiatives in 2023, which positively impacted profitability and are expected to support recovery in demand in the second half of 2024[9]. - The company is targeting an additional $100 million in cost savings in early 2024 to better position itself for market recovery[29]. - The company is not providing updated 2024 annual guidance due to lack of visibility on market recovery timing[7]. - CommScope anticipates a market recovery in the second half of 2024, although visibility on timing remains limited[29]. Operational Metrics - Total operating expenses for Q4 2023 were $510.4 million, compared to $1,628.2 million in Q4 2022, showing a substantial reduction[71]. - Research and development expenses for Q4 2023 were $103.2 million, down from $130.7 million in Q4 2022, a decrease of approximately 21%[71]. - Total capital expenditures for the full year 2023 were $101.3 million, compared to $53.3 million in 2022[90]. - The company reported a loss from continuing operations per share of $(1.67) for Q4 2023, compared to $(5.16) for Q4 2022[71].

CLAREMONT, N.C.--(BUSINESS WIRE)--CommScope (NASDAQ: COMM), a global leader in network connectivity, today announced that its Comsearch® spectrum management business has received FCC certification for the commercial deployment of its AFC (automated frequency coordination) system supporting unlicensed 6 GHz standard power and fixed client devices. This certification allows Comsearch AFC to open up 850 MHz of 6 GHz spectrum for shared, FCC-compliant use by unlicensed devices to offer enhanced quality of se ...

In its upcoming report, CommScope (COMM) is predicted by Wall Street analysts to post quarterly earnings of $0.06 per share, reflecting a decline of 87.8% compared to the same period last year. Revenues are forecasted to be $1.53 billion, representing a year-over-year decrease of 33.8%.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 th ...

CommScope (COMM) is expected to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended December 2023. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on February 29. ...

CLAREMONT, N.C.--(BUSINESS WIRE)--For the last ten years, a collaboration between the City of San José, CommScope’s (NASDAQ: COMM) RUCKUS Networks and SmartWAVE has been helping drive the Garden City’s smart city vision for safety, sustainability and economic growth. “San José’s potential is limitless,” said Matt Mahan, Mayor, City of San José. “As the heart of Silicon Valley, we have a unique opportunity and a profound responsibility to harness technology to solve some of our biggest challenges. By coll ...

CLAREMONT, N.C.--(BUSINESS WIRE)--CommScope (NASDAQ: COMM), a global leader in network connectivity, has announced three industry-leading Open RAN (Radio Access Network) advances to its network portfolio—facilitating open, sustainable, and converged 5G indoor networks. CommScope is introducing support for third-party Open RAN Distributed Units (O-DUs) on its flagship all-digital ERA® DAS (distributed antenna system) as well as the award-winning Open RAN-compliant ONECELL® small cell. Additionally, CommSc ...

Press Release     Vantiva appoints new Directors and Chairman to Board of Directors following strategic acquisition of CommScope Home Networks Brian Shearer, TPG Angelo Gordon, appointed Chairman of Board of Directors.TPG Angelo Gordon and CommScope Holding Company, Inc. representativesjoin Board of Directors.Barclays Bank Ireland Plc. appointed Board Observer. Paris – February 8th, 2024 – Vantiva (PARIS:VANTI), a global technology leader enabling Network Service Providers (NSPs) to connect consumers around ...

CLAREMONT, N.C.--(BUSINESS WIRE)--Together, CommScope (NASDAQ: COMM), a global leader in network connectivity, and Boldyn Networks (Boldyn), a leading neutral host provider in the United States and globally, today announced the deployment of Wi-Fi 7 indoor access points in selected areas of Camping World Stadium in Orlando, Florida. A 65,000-seat venue, Camping World Stadium is home to world-class events including sporting games and concerts. Initially deployed in press and VIP areas, the RUCKUS® R770 Wi-Fi ...

CLAREMONT, N.C.--(BUSINESS WIRE)--CommScope Holding Company, Inc., a global leader in network connectivity, plans to release its fourth quarter and full year 2023 financial results on Thursday, February 29, before the market opens. The release will be followed by an 8:30 a.m. Eastern conference call in which management will discuss the results. The live, listen-only audio of the call will be available through a link on the Events and Presentations page of CommScope’s Investor Relations website. The webcas ...