CommScope says its optimistic that the second half of 2024 will show some “meaningful recovery” after a torrid set of financials that saw annual sales decrease by 23% to $5.79 billion.
CommScope’s full-year adjusted EBITDA decreased by 18% from the prior year, while the fourth quarter saw a 38% decrease in consolidated net sales and a 49% decrease in adjusted EBITDA.
Its Network Intelligence and Automation segment was the only bright spot in a set of figures where every other segment lost ground.
The broadband technology company completed the sale of its Home Networks Business to Vantiva in January. It now holds a 25% stake in the former Technicolor business.
The sale of other elements of the business has not been so successful with CFO Kyle Lorentzen warning in a financial call that there was no guarantee agreements could be reached at values that made sense. “Our businesses have strong market positions, and we do not intend to sell assets on the cheap,” he said.
As is the case with a number of vendors the financial outlook is uncertain as the a poor economy coincides with major industry changes,
“All of our markets have not cooperated and the visibility to the timing of the recovery is limited,” said CEO Chuck Treadway.
“We are well positioned for the expected recovery as we are a leader in most of our businesses and have invested in future growth with capacity and new products. However, the longer the demand remains low, the more challenges we face. We have optimism that the second half of 2024 will show some meaningful recovery.”
In the meantime, several large customers have approached the company about lowering order rates amid higher inventory levels and delayed timing on upgrades.
Commscope says it remains in the forefront of upgrades to DOCSIS 4.0. It is the only supplier capable of delivering all the products required from amplifiers, nodes, modules and CMTS, including virtual CMTS.
