COMMSCOPE 2Q FINANCIAL REVIEW
- Strength in Broadband Networks expected to accelerate throughout remainder of 2020
- Well-managedcost structure and investment reprioritization drive strong cash flow and better than expected non-GAAP adjusted EBITDA
- Cash flow visibility is improving and business trends are stabilizing and the company plans to resume debt repayment in the third quarter
SEGMENT 2Q'20 FINANCIAL RESULTS | |
Venue and Campus Networks | Outdoor Wireless Networks |
Net Sales (1) ($M) | Net Sales (1) ($M) |
2Q'19(2) | 2Q'19(2) | ||||||||||||||||||
$552 | $458 | ||||||||||||||||||
1Q'20 | 1Q'20 | ||||||||||||||||||
Q-Q% change: | $470 | Q-Q% change: | $349 | ||||||||||||||||
2% | -6% | ||||||||||||||||||
2Q'20 | $479 | 2Q'20 | $328 | ||||||||||||||||
Y-Y% Change: -13% | Y-Y% Change: -28% | ||||||||||||||||||
Broadband Networks Net Sales (1) ($M) | Home Networks Net Sales (1) ($M) |
2Q'19(2)
1Q'20
Q-Q% change:
10% 2Q'20
Y-Y% Change: Flat
2Q'19(2) | |||||||
$673 | $912 | ||||||
$613 | Q-Q% change: | 1Q'20 | $601 | ||||
4% | |||||||
$672 | 2Q'20 | $624 | |||||
Y-Y% Change: -32% | |||||||
REGIONAL 2Q'20 FINANCIAL RESULTS ($M)
United States | $1,354 | |
Europe, Middle East and Africa | $359 | Total net |
Asia Pacific | $202 | sales |
Caribbean and Latin America | $124 | $2,103 |
Canada | $64 |
CommScope Holding Company, Inc. (NASDAQ: COMM), a global leader in infrastructure solutions for communications networks, reported results for the quarter
ended June 30, 2020.
1Net sales as presented for 2Q'20, 1Q'20 and 2Q'20 include reductions of revenue related to deferred revenue acquisition accounting adjustments of $1.7 million, $2.2 million and $4.3 million, respectively.
2Second quarter 2019 results are shown on a combined company basis and include historical ARRIS results for the three days prior to the acquisition date, April 4, 2019.
COMMSCOPE 2Q FINANCIAL REVIEW
HIGHLIGHTS FROM THE QUARTER
$
Broadband Networks segment sales grew nearly 10% sequentially as service providers are increasing investments to maintain network capacity
Strong non-GAAP adjusted free cash flow generation of over $200 million, and remain on target to deliver more than $400 million in FY20
Venue and Campus Networks segment sales remain impacted by soft enterprise demand; however sales are expected to improve in the second half of the year
Continue to take decisive actions to enhance our financial flexibility including the recent refinancing of $700 million senior unsecured notes
Disciplined expense control drove our non-GAAP adjusted EBITDA upside as we build a more efficient cost structure that will enable us to emerge a stronger company
Repaid our outstanding ABL balance of $250 million and plans to resume debt repayment in the third quarter
EXECUTIVE PROFILE
Karen Renner
CIO, CommScope
Recognition for business transformation
Karen Renner, our Chief Information Officer (CIO), has been named one of the 2021 Constellation Research Business Transformation 150- a list of global leaders recognized for their business transformation efforts.
Karen was also recently interviewed by CIO magazineon her recruitment experiences during the COVID-19 pandemic.
TECHNOLOGY SPOTLIGHT
A new era of interoperability - Open RAN (Open
Radio Access Network)
The Open RAN model looks to transform RAN functionality, deployment and economics with open and interoperable hardware and software- defined technology. Providers and suppliers, including CommScope, are working together to create the open standards/interfaces required. Find out more about Open RAN.
COMMSCOPE FEATURE | A team united to create lasting connections
Since the ARRIS acquisition in 2019, CommScope employees have come together with a common purpose and shared values. Our purpose of creating lasting connections has never been more relevant - and our employees continue to demonstrate resilience during this challenging period. Survey feedback shows strong engagement from our team, and their performance in the quarter demonstrates their commitment to our strategy and delivering for our customers. Watch our We are CommScope video.
These materials include forward-looking statements that reflect our current views with respect to future events and financial performance. Although the information contained herein represents our best judgment as of the date it was published, we can give no assurance that the expectations will be attained or that any deviation will not be material. For more information about items that could impact these forward looking statements, see the "Forward Looking Statements" section of our earnings release dated August 6, 2020.
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CommScope Holding Company Inc. published this content on 10 August 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 August 2020 15:33:09 UTC