Financial Data and Key Metrics Changes - CommScope reported net sales of $1.63 billion for Q3 2025, a year-over-year increase of 51% [7] - Adjusted EBITDA for the quarter was $402 million, reflecting a 97% increase year-over-year [7][21] - Adjusted EBITDA as a percentage of revenue reached 24.7%, the highest since the ARRIS acquisition, up 580 basis points year-over-year [21] - Adjusted EPS was $0.62 per share compared to a loss of $0.06 per share in Q3 2024 [21] Business Line Data and Key Metrics Changes - The RemainCo business, comprising ANS and Ruckus, generated net sales of $516 million, up 49% year-over-year, with adjusted EBITDA of $91 million, a 95% increase [7][22] - ANS segment net sales were $338 million, a 77% increase from the prior year, with adjusted EBITDA of $54 million, up 169% [23] - Ruckus revenue increased by 15% to $179 million, with adjusted EBITDA of $36 million, a 38% increase [24] Market Data and Key Metrics Changes - Order rates decreased by 8% sequentially in Q3 2025 due to seasonality and project timing [21] - CommScope's backlog at the end of Q3 was $1.32 billion, down $110 million or 8% from the end of Q2 2025 [22] Company Strategy and Development Direction - The company is focused on supporting customers, innovating for future advanced networks, and increasing equity value [20] - The CCS business is expected to close in Q1 2026, allowing for significant capital return to shareholders and improving leverage [19][28] - RemainCo is projected to deliver adjusted EBITDA between $350 million and $375 million in 2025, indicating strong recovery from previous market challenges [19][29] Management's Comments on Operating Environment and Future Outlook - Management noted a resurgence in DOCSIS upgrade activity, particularly with Comcast's FDX deployment [38] - The company anticipates a multi-year DOCSIS upgrade cycle, with modest growth expected for ANS in 2026 [38][45] - Ruckus is well-positioned for growth in 2026, driven by Wi-Fi 7 product offerings and strategic investments [24][25] Other Important Information - Cash and liquidity remained strong, with $705 million in cash and total available liquidity of $1.28 billion at the end of the quarter [27] - The company plans to distribute excess cash to shareholders as a special dividend within 60 to 90 days of the CCS transaction closing [28] Q&A Session Summary Question: Criteria for Special Dividend and ANS Trends for 2026 - Management indicated that the board will consider cash position and business performance when determining the special dividend amount [36] - ANS is expected to see modest growth driven by new products, despite a decline in legacy products [38] Question: Visibility on DOCSIS Upgrade Plans - Management believes they are in the early stages of a multi-year DOCSIS upgrade cycle, with strong customer engagement [45] Question: Performance of ANS Segment and Amplifier Shipments - The upside in ANS was primarily driven by hardware mix rather than software impacts [47] Question: Normalized Cash Flow for RemainCo - RemainCo is expected to have lower capital intensity compared to CCS, with working capital and taxes being normal considerations for cash flow [48] Question: Wi-Fi 7 Cycle and Ruckus Business - Ruckus is experiencing strong market conditions with new products driving growth, and inventory issues are now resolved [54] Question: Competition in ANS and Ruckus Segments - ANS faces competition from both niche players and larger companies, while Ruckus competes with major firms like Cisco and Juniper [58][60]

Financial Data and Key Metrics Changes - CommScope reported net sales of $1,388,000,000 for Q2 2025, a year-over-year increase of 32% [8][22] - Adjusted EBITDA for the same period was $338,000,000, reflecting a 79% increase year-over-year [8][21] - Adjusted EBITDA as a percentage of revenues grew to 24.3%, marking a significant improvement [21][32] - The company raised its full-year adjusted EBITDA guidance to between $1,150,000,000 and $1,200,000,000 [18][32] Business Line Data and Key Metrics Changes - The A and S and Ruckus segments generated revenues of $513,000,000, up 58% year-over-year [9][23] - A and S net sales increased by 65% to $322,000,000, with adjusted EBITDA rising 132% [11][24] - Ruckus revenue grew by 47% to $190,000,000, with adjusted EBITDA increasing significantly [15][26] - CCS revenue increased by 20% to $875,000,000, with adjusted EBITDA rising 23% [17][28] Market Data and Key Metrics Changes - The enterprise fiber business within CCS saw substantial growth, with year-over-year revenue up 85% [18] - The company noted strong demand in hyperscale and cloud data centers, contributing to CCS's growth [28] Company Strategy and Development Direction - The company announced a definitive agreement to sell its CCS business to Amphenol for $10,500,000,000, which is expected to close in 2026 [4][5] - The transaction aims to unlock equity value, return cash to shareholders, and strengthen the remaining business segments [6][34] - CommScope plans to focus on its A and S and Ruckus segments, which are expected to deliver strong performance and growth [7][19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery of A and S and Ruckus, highlighting strong second-quarter results [7][19] - The company is closely monitoring the impact of tariffs and has implemented strategies to mitigate their effects [10][11] - Management expects RemainCo to deliver adjusted EBITDA between $325,000,000 and $350,000,000 in 2025 [19][32] Other Important Information - The company generated cash flow from operations of $77,000,000 and free cash flow of $64,000,000 during the quarter [29] - CommScope ended the quarter with $571,000,000 in global cash and total available cash and liquidity of $991,000,000 [29] Q&A Session Summary Question: Commentary on the RemainCo assets and corporate overhead costs - Management emphasized the focus on running the businesses and investing in A and S and Ruckus, indicating that corporate overhead costs will be adjusted post-transaction [37][44] Question: CapEx and working capital obligations for CCS - Management stated that they will continue to support the CCS business until the transaction closes, but did not provide specifics on CapEx [47][48] Question: Customer concentration in RemainCo - Management acknowledged that A and S has higher customer concentration compared to Ruckus, which has less concentration [49][50] Question: Growth potential for A and S and Ruckus - Management indicated that the majority of revenue is now coming from next-gen products, with expectations for continued growth as the upgrade cycle gains momentum [53][54] Question: Free cash flow breakout between RemainCo and CCS - Management did not provide a specific breakout but noted that CCS will contribute to cash generation in the second half of the year [63] Question: Impact of tariffs on customer behavior - Management noted that customers are aware of the company's flexible manufacturing network and that there may have been some pull-in of orders due to tariff uncertainties [65][66]