▾ G11 Media Network: | ChannelCity | ImpresaCity | SecurityOpenLab | Italian Channel Awards | Italian Project Awards | Italian Security Awards | ...
InnovationOpenLab

CommScope Reports Fourth Quarter and Full Year 2024 Results

#InvestorRelations--CommScope Holding Company, Inc. (NASDAQ: COMM), a global leader in network connectivity solutions, today reported results for the quarter and year ended December 31, 2024. Summar...

Business Wire

Fourth Quarter Highlights

  • Net sales of $1.17 billion
  • GAAP loss from continuing operations of $65.2 million
  • Non-GAAP adjusted EBITDA of $223.1 million (1)
  • Core non-GAAP adjusted EBITDA of $240.4 million* (1)
  • Cash flow generated by operations of $277.8 million and free cash flow of $270.5 million (1) (2)

Full Year Highlights

  • Net sales of $4.21 billion
  • GAAP loss from continuing operations of $461.0 million
  • Non-GAAP adjusted EBITDA of $700.2 million (1)
  • Core non-GAAP adjusted EBITDA of $756.4 million* (1)
  • Cash flow generated by operations of $273.1 million and free cash flow of $247.8 million (1) (2)

* Core financial measures reflect the results of the Connectivity and Cable Solutions (CCS), Networking, Intelligent Cellular and Security Solutions (NICS), and Access Network Solutions (ANS) segments, in the aggregate, and exclude general corporate costs that were previously allocated to the Outdoor Wireless Networks (OWN) segment, Distributed Antenna Systems (DAS) business unit and Home Networks (Home) segment. These indirect costs are classified as continuing operations, since they were not directly attributable to these discontinued operations. See the segment comparison tables below showing the aggregation of the Core financial measures.

(1) See “Non-GAAP Financial Measures” and “Reconciliation of GAAP Measures to Non-GAAP Adjusted Measures” below.
(2) The cash flows related to discontinued operations have not been segregated. Accordingly, this cash flow information includes the results of continuing and discontinued operations.

CLAREMONT, N.C.: #InvestorRelations--CommScope Holding Company, Inc. (NASDAQ: COMM), a global leader in network connectivity solutions, today reported results for the quarter and year ended December 31, 2024.

Summary of Consolidated Results

 

 

 

Q4

 

 

Q4

 

 

% Change

 

 

 

2024

 

 

2023 (1)

 

 

YOY

 

 

 

(in millions, except per share amounts)

 

Net sales

 

$

1,169.1

 

 

$

923.1

 

 

 

26.6

%

GAAP loss from continuing operations

 

 

(65.2

)

 

 

(414.0

)

 

 

(84.2

)

GAAP loss from continuing operations per share

 

 

(0.38

)

 

 

(2.02

)

 

 

(81.2

)

Non-GAAP adjusted EBITDA (2)

 

 

223.1

 

 

 

119.4

 

 

 

86.9

 

Core non-GAAP adjusted EBITDA (2) (3)

 

 

240.4

 

 

 

142.5

 

 

 

68.7

 

Non-GAAP adjusted net income (loss) per diluted share (2)

 

 

0.18

 

 

 

(0.34

)

 

NM

 

 

 

Full Year

 

 

Full Year

 

 

% Change

 

 

 

2024

 

 

2023 (1)

 

 

YOY

 

 

 

(in millions, except per share amounts)

 

Net sales

 

$

4,205.8

 

 

$

4,565.2

 

 

 

(7.9

)%

GAAP loss from continuing operations

 

 

(461.0

)

 

 

(1,095.8

)

 

 

(57.9

)

GAAP loss from continuing operations per share

 

 

(2.46

)

 

 

(5.49

)

 

 

(55.2

)

Non-GAAP adjusted EBITDA (2)

 

 

700.2

 

 

 

664.3

 

 

 

5.4

 

Core non-GAAP adjusted EBITDA (2) (3)

 

 

756.4

 

 

 

756.4

 

 

 

 

Non-GAAP adjusted net loss per diluted share (2)

 

 

(0.03

)

 

 

(0.37

)

 

 

(91.9

)

 

 

 

 

 

 

 

 

 

 

NM – Not meaningful

 

(1) Certain amounts have been adjusted to reflect the correction of immaterial errors as described in the Annual Report on Form 10-K.

 

(2) See “Non-GAAP Financial Measures” below.

 

(3) Core financial measures reflect the results of the CCS, NICS (excluding DAS) and ANS segments, in the aggregate, and exclude general corporate costs that were previously allocated to the OWN segment, DAS business unit and Home segment, since these costs were not directly attributable to these discontinued operations. Beginning in the first quarter of 2024, these costs related to the Home segment have been reallocated to the remaining segments. These costs related to the OWN segment and DAS business unit will be reallocated to the remaining segments beginning in the first quarter of 2025.

 

“2024 marked a transitional year for CommScope. Despite a challenging start, and volatile market conditions, we stayed committed to what we could control to improve company performance and profitability with sequential Core quarterly adjusted EBITDA improvement throughout the year. For the fourth quarter, Core CommScope reported net sales of $1.17 billion, an increase of 27% from the prior year and delivered adjusted EBITDA of $240 million, an improvement of 69% year-over-year. Fourth quarter adjusted EBITDA as a percentage of revenues was 20.6%, a year-over-year improvement of 510 basis points. Supported by our investments in production capacity, the CCS segment led the way with growth in all businesses, with the strongest growth in hyperscale and cloud data centers to support GenAI datacenter builds across the world,” said Chuck Treadway, President and Chief Executive Officer.

“For the full year 2024, Core CommScope reported net sales of $4.21 billion declining 8% from the prior year but delivered adjusted EBITDA of $756 million which remained flat year over year. With improvement throughout the year, we are well positioned as we move into 2025. Our 2025 annual guideposts of Core adjusted EBITDA are in the range of $1.00 to $1.05 billion,” said Kyle Lorentzen, Chief Financial Officer.

Free cash flow for the fourth quarter was $271 million driven by stronger EBITDA. For the full year 2024, free cash flow was $248 million. We ended the year with a strong liquidity position of $1.1 billion including $663 million of Cash and approximately $449 million of ABL availability.

As previously announced, in the fourth quarter of 2024, CommScope made significant progress on our debt position by refinancing a portion of our debt resulting in pushing out our 2025 and a portion of the 2026 debt maturities to 2029 and 2031. The debt refinancing, coupled with the sale of our OWN and DAS businesses that closed on January 31, 2025 and subsequent repayment of approximately $2 billion of debt with the proceeds, clearly puts us in a stronger position to focus on business growth, free cash flow generation and deleveraging.

On January 31, 2025, the Company completed the previously announced sale of the OWN segment and the DAS business unit of the NICS segment to Amphenol Corporation. As a result of the transaction, unless otherwise noted, these financial results relate to CommScope’s continuing operations based on the following remaining three operating segments: CCS, NICS and ANS. For all periods presented, amounts have been recast to reflect these changes.

Certain amounts have been adjusted to reflect the correction of immaterial errors as described in the Annual Report on Form 10-K and are labeled “As Adjusted” within the tables below.

Fourth Quarter Results and Comparisons

Net sales in the fourth quarter of 2024 increased 26.6% year-over-year to $1.17 billion due to higher net sales in all segments. Net sales increased across all regions, except the Caribbean and Latin America (CALA) region, in the fourth quarter of 2024.

Loss from continuing operations of $65.2 million, or $(0.38) per share, in the fourth quarter of 2024, was less of a loss compared to the prior year period's loss from continuing operations of $414.0 million, or $(2.02) per share. In the fourth quarter of 2023, the Company recorded goodwill impairment charges in the ANS and CCS segments of $46.3 million and $99.1 million, respectively, related to the ANS and BDCC reporting units, respectively. Asset impairment charges are not reflected in non-GAAP adjusted results. Non-GAAP adjusted net income (loss) for the fourth quarter of 2024 was $48.3 million, or $0.18 per share, versus $(73.1) million, or $(0.34) per share, in the fourth quarter of 2023.

Core non-GAAP adjusted EBITDA increased 68.7% to $240.4 million in the fourth quarter of 2024 compared to the same prior year period. Core non-GAAP adjusted EBITDA as a percentage of net sales increased to 20.6% in the fourth quarter of 2024 compared to 15.4% in the same prior year period. Non-GAAP adjusted EBITDA increased 86.9% to $223.1 million in the fourth quarter of 2024 compared to the same period last year. Non-GAAP adjusted EBITDA as a percentage of net sales increased to 19.1% in the fourth quarter of 2024 compared to 12.9% in the same prior year period.

Reconciliations of the reported GAAP results to non-GAAP adjusted results are included below.

Fourth Quarter Comparisons

Sales by Region

 

 

 

 

 

 

% Change

 

 

Q4 2024

 

 

Q4 2023

 

 

YOY

United States

 

$

776.0

 

 

$

595.6

 

 

 

30.3

 

%

Europe, Middle East and Africa

 

 

167.2

 

 

 

117.3

 

 

 

42.5

 

 

Asia Pacific

 

 

139.8

 

 

 

122.5

 

 

 

14.1

 

 

Caribbean and Latin America

 

 

50.2

 

 

 

61.3

 

 

 

(18.1

)

 

Canada

 

 

35.9

 

 

 

26.4

 

 

 

36.0

 

 

Total net sales

 

$

1,169.1

 

 

$

923.1

 

 

 

26.6

 

%

Segment Net Sales 

 

 

 

 

 

 

 

 

 

% Change

 

 

Q4 2024

 

 

Q4 2023

 

 

YOY

CCS

 

$

754.0

 

 

$

553.3

 

 

 

36.3

 

%

NICS

 

 

154.2

 

 

 

136.4

 

 

 

13.0

 

 

ANS

 

 

260.9

 

 

 

233.4

 

 

 

11.8

 

 

Total net sales

 

$

1,169.1

 

 

$

923.1

 

 

 

26.6

 

%

Segment Operating Income (Loss) 

 

 

 

 

 

 

 

 

 

% Change

 

 

Q4 2024

 

 

Q4 2023 (1)

 

 

YOY

CCS

 

$

138.4

 

 

$

(53.9

)

 

NM

 

 

NICS

 

 

8.0

 

 

 

(15.7

)

 

NM

 

 

ANS

 

 

0.7

 

 

 

(25.8

)

 

NM

 

 

Core operating income (2)

 

 

147.1

 

 

 

(95.4

)

 

NM

 

 

Corporate and other (3)

 

 

(29.6

)

 

 <

If you liked this article and want to stay up to date with news from InnovationOpenLab.com subscribe to ours Free newsletter.

Related news

Last News

RSA at Cybertech Europe 2024

Alaa Abdul Nabi, Vice President, Sales International at RSA presents the innovations the vendor brings to Cybertech as part of a passwordless vision for…

Italian Security Awards 2024: G11 Media honours the best of Italian cybersecurity

G11 Media's SecurityOpenLab magazine rewards excellence in cybersecurity: the best vendors based on user votes

How Austria is making its AI ecosystem grow

Always keeping an European perspective, Austria has developed a thriving AI ecosystem that now can attract talents and companies from other countries

Sparkle and Telsy test Quantum Key Distribution in practice

Successfully completing a Proof of Concept implementation in Athens, the two Italian companies prove that QKD can be easily implemented also in pre-existing…

Most read

Claritev Further Strengthens Leadership Team as Part of Business Transformation…

$CTEV #CTEV--Claritev Corporation (“Claritev” or the “Company”) (NYSE: CTEV), a technology, data and insights company focused on making healthcare more…

Hawk Recognized as a Strong Performer in Anti-Money Laundering Solutions…

Hawk, the leading provider of AI-powered anti-money laundering (AML), screening and fraud prevention solutions, has today announced that it has been recognized…

B2B E-Commerce Market, Marketplaces and Payments Trends Report 2024: AI,…

The "B2B E-Commerce Market, Marketplaces and Payments Trends 2024" report has been added to ResearchAndMarkets.com's offering. AI, blockchain, and SaaS…

ISG to Assess Workday Ecosystem Providers in the U.S., Europe and APAC

#AI--Information Services Group (ISG) (Nasdaq: III), a global AI-centered technology research and advisory firm, has launched a research study examining…