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Mar 31, 2024
CommScope Q1 2024 Earnings Report
CommScope's first quarter was marked by a 30% decrease in net sales and a 51% decrease in adjusted EBITDA compared to the prior year, reflecting lower demand across all segments, though early signs of recovery were observed in certain businesses.
Key Takeaways
CommScope reported a challenging first quarter with a significant decline in net sales and adjusted EBITDA due to lower demand across all segments. However, the company saw early signs of recovery in some businesses and expects the first quarter to be the lowest revenue and adjusted EBITDA quarter of the year. They are focused on cost management and evaluating capital structure alternatives to address upcoming debt maturities.
Net sales decreased by 30% year-over-year to $1.168 billion.
GAAP loss from continuing operations was $(262.1) million, or $(1.31) per share.
Non-GAAP adjusted EBITDA decreased by 51.2% to $153.0 million.
Non-GAAP adjusted net loss was $(20.3) million, or $(0.08) per share.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
CommScope expects the first quarter to be the lowest revenue and adjusted EBITDA quarter of the year and continues to evaluate capital structure alternatives.
Positive Outlook
- Early signs of recovery in Connectivity and Cable Solutions.
- Early signs of recovery in Outdoor Wireless Networks businesses.
- Order rates increased sequentially in Connectivity and Cable Solutions.
- Order rates increased sequentially in Outdoor Wireless Networks businesses.
- Significant liquidity of over $900 million.
Challenges Ahead
- Lower demand for Networking, Intelligent Cellular and Security Solutions.
- Lower demand for Access Network Systems.
- Customers managed inventory.
- Customers timing of upgrade cycles.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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