HICKORY – “Cost-cutting measures” are on the agenda for CommScope’s new CEO and his chief financial officer concurs after the communications conglomerate reported a $116 million loss Thursday for its most recent quarter.
“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, the CEO, in a statement. “Communication networks are essential to our economies, education system and for keeping us connected on a personal level. I couldn’t be happier to be a part of a company providing such critical network connectivity.
“As we look ahead, the Board and management team are focused on growing our business and creating long-term, profitable growth through a combination of investment opportunities and cost-cutting measures. While there remains much to do, we are confident in our ability to deliver enhanced profitability and unlock even greater value for CommScope and our shareholders. I am excited for CommScope to continue to play a critical role in advancing the 5G and 10G revolutions and shaping our global networks, today and in the future.”
CFO Alex Pease also issued a warning about possible cuts.
CommScope’s founder exits board chair post; firm’s CEO is retiring
“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,” Pease explained.
“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.”
On a per-share basis, the Hickory-based company said it had a loss of 66 cents. Earnings, adjusted for one-time gains and costs, came to 51 cents per share.
Despite thre overall loss, the results surpassed Wall Street expectations. The average estimate of seven analysts surveyed by Zacks Investment Research was for earnings of 39 cents per share.
The wireless and broadband network technology company posted revenue of $2.17 billion in the period, also surpassing Street forecasts. Five analysts surveyed by Zacks expected $2.13 billion.
CommScope shares have declined 32% since the beginning of the year. The stock has fallen 17% in the last 12 months.
