CommScope Holding Company, Inc. (NASDAQ: COMM), a global leader in network connectivity solutions, reported results for the quarter ended June 30, 2022.
Second Quarter Highlights
- Net sales of $2.300 billion
- Core net sales of $1.876 billion*
- GAAP net loss of $61.0 million
- Non-GAAP adjusted EBITDA of $299.6 million
- Core adjusted EBITDA of $286.8 million*
- Cash flow used in operations of $(94.6) million and non-GAAP adjusted free cash flow of $(90.6) million
“I am pleased to share that we delivered Core net sales of $1.88 billion and Core adjusted EBITDA of $287 million for the second quarter of 2022. As discussed over the last several quarters, we have taken actions to continue to grow our business and offset inflationary impacts. Our second quarter results are a step in that direction, as we have sequentially improved our top-line and profitability, a trend that we expect to continue. Despite supply chain and other macroeconomic challenges, with our robust backlog and solid demand in our key end markets, we believe we are positioned to deliver a stronger second half,” said Chuck Treadway, President and Chief Executive Officer.
Treadway added, “We continue to make great progress on our CommScope NEXT initiatives. We are ramping capacity to fuel top-line growth, while our general manager model and re-segmenting are helping drive greater focus, accountability and operational efficiencies in our business. In addition, as part of our transformation, we are investing heavily in R&D and new product introductions for the future growth of the Company – with exciting new technology advancements and strategic partnerships such as our DOCSIS® 4.0 RMD Node Platform selection with Liberty Global and Microsoft for our wireless networking products, and developments in our ONECELL®, NOVUX®, PROPEL™, XGS-PON and MOSAIC™ product lines. As our CommScope NEXT initiatives begin to drive results and pricing improvements work through our backlog, we expect to see improved adjusted EBITDA and cash flow.”
“With the continued progress we are making through CommScope NEXT, we are re-affirming our commitment to full year 2022 Core adjusted EBITDA between $1.15 – $1.25 billion, as well as our year-end net leverage target of 6.8x – 7.2x,” said Kyle Lorentzen, Chief Financial Officer. “As we drive our refocused investments in technology innovation, capacity expansion and operational efficiency throughout our portfolio, we believe CommScope is well positioned to deliver on our targets and create significant incremental shareholder value.”