HICKORY, N.C. – CommScope Holding Company, Inc. (NASDAQ: COMM), a global leader in infrastructure solutions for communications networks, reported results for the quarter ended March 31, 2020.
First Quarter Results and Comparison
For comparisons described below as a combined company, the first quarter of 2019 includes historical ARRIS results (with certain classification changes to align to CommScope's presentation). Reconciliations of the combined company amounts and reported GAAP results to non-GAAP adjusted segment results are included below.
Net sales in the first quarter of 2020 increased 84.9% year over year to $2.03 billion primarily due to the contribution of $1.03 billion from the ARRIS acquisition. On a combined company basis, net sales decreased 18.0% year over year to $2.03 billion. The company estimates that first-quarter 2020 net sales were negatively impacted by approximately $70 million related to supply chain disruptions as a result of COVID-19, as well as certain other COVID-19 related disruptions.
CommScope generated a net loss of $(159.9) million, or $(0.89) per basic share, in the first quarter, a decrease from the prior year period's net loss of $(2.3) million, or $(0.01) per basic share. Non-GAAP adjusted net income for the first quarter was $27.2 million, or $0.12 per diluted share, versus $93.0 million, or $0.48 per diluted share, in the first quarter of 2019.
Non-GAAP adjusted EBITDA increased 10.9% to $231.2 million as compared to last year. On a combined company basis, non-GAAP adjusted EBITDA for the first quarter of 2020 decreased by 21.4% and was 11.4% of net sales compared to 11.9% of net sales in the first quarter of 2019. The company estimates that first-quarter 2020 non-GAAP adjusted EBITDA was negatively impacted by approximately $30 million related to supply chain disruptions as a result of COVID-19, as well as certain other COVID-19 related disruptions.
Broadband Networks (includes Network Cable & Connectivity and Network & Cloud)
Net sales of $613.4 million, down 20.0% with declines in Network Cable and Connectivity and Network & Cloud.
Home Networks (includes In-Home Video & Broadband Connectivity Devices)
Net sales of $601.4 million, down 27.0% driven by declines in In-Home Video, partially offset by growth in Broadband Connectivity Devices.
Outdoor Wireless Networks (includes Macro Tower Solutions and Metro Cell Solutions)
Net sales of $348.9 million, down 10.7% primarily driven by declines in Macro Tower Solutions.
Venue and Campus Networks (includes Enterprise which includes Indoor Copper and Fiber Connectivity, DCCS which includes DAS and OneCell, and Ruckus Networks)
Net sales of $469.5 million, down 5.9% primarily driven by declines in indoor copper.
Due to the evolving and significant uncertainties related to the impact of the COVID-19 pandemic, CommScope is withdrawing its full-year 2020 outlook.
Read the full announcement here.