CommScope Posts Net Loss for Q3

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CommScope Holding Company, Inc. (NASDAQ: COMM), reported results for the quarter ended September 30, 2020. Net sales in the third quarter of 2020 decreased 8.9 percent year over year to $2.17 billion. Net sales declined primarily due to year over year decreases in the Home Networks and Outdoor Wireless Networks segments.

CommScope generated a net loss of $116.3 million, or $0.66 per basic share, in the third quarter, compared to the prior year period’s net loss of $156.5 million, or $0.88 per basic share. Non-GAAP adjusted net income for the third quarter of 2020 was $123.1 million, or $0.51 per diluted share, versus $126.9 million, or $0.55 per diluted share, in the third quarter of 2019.  

Non-GAAP adjusted EBITDA decreased 7.5 percent to $341.9 million compared to the same period last year. Non-GAAP adjusted EBITDA improved to 15.8 percent of net sales compared to 15.5 percent of net sales in the third quarter of 2019. The Company estimates that third-quarter 2020 non-GAAP adjusted EBITDA was negatively impacted by approximately $10 million related to COVID-19 incremental costs.

“Since joining CommScope in October, I have been impressed by the team’s relentless focus on executing against our strategic objectives and delivering for our customers around the world,” said Chuck Treadway, president and chief executive officer. 

Alex Pease, executive vice president and chief financial officer, said, “While we continue to expect that the current macroeconomic uncertainty will persist in the near-term, we are focused on balancing actions to improve our financial performance and flexibility. We will continue to aggressively manage expenses and reduce costs where possible. At the same time, we will make strategic investments, such as adding fiber cabling and connectivity capacity, that position the company to unlock growth opportunities for the business.”

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