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Mar 31, 2022
CommScope Q1 2022 Earnings Report
CommScope's first quarter results reflected net sales increase and profitability challenges.
Key Takeaways
CommScope reported a 7.6% increase in net sales compared to the same quarter last year, reaching $2.23 billion. However, the company experienced a net loss of $139.9 million, and a decrease in Non-GAAP adjusted EBITDA to $253.3 million. The company is focused on pricing initiatives to recover inflation and expects margin improvement in the second half of the year.
Net sales increased 8% year-over-year for consolidated company.
Core CommScope net sales increased 10% year-over-year.
Connectivity and Cable Solutions and Outdoor Wireless Networks saw net sales increases of 24% and 20% year-over-year, respectively.
The company is re-affirming its commitment to full year 2022 Core adjusted EBITDA between $1.15 - $1.25 billion.
Forward Guidance
CommScope reaffirmed its commitment to full year 2022 Core adjusted EBITDA between $1.15 - $1.25 billion.
Positive Outlook
- CommScope is committed to unlocking additional capacity for connectivity and cabling to fuel organic growth.
- Driving growth through investments in innovative products such as NOVUX™ product line of fiber connectivity.
- Investments in next-generation XGS-PON suite, MOSAIC™.
- Investments in ONECELL®.
- Investments in DOCSIS® 4.0.
Challenges Ahead
- The global supply chain challenges and their adverse impact on its business and financial results will persist, at least through the remainder of 2022, and may extend into periods thereafter.
- The Company is experiencing limited supply of memory devices, capacitors and silicon chips, which has increased its costs and has impacted its ability to deliver on a timely basis due to extended lead times.
- Prices for certain commodities that it uses have experienced significant volatility as a result of changes in the levels of global demand, supply disruptions and other factors.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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