CommScope reported its results for the second quarter of 2022, showing an 8.5% year-on-year (YoY) increase in core net sales. Momentum continues to build in the Connectivity and Cable Solutions segment as net sales increased 26% year-over-year (YoY).
Core financial measures reflect the results of the following segments: Connectivity and Cable Solutions; Outdoor Wireless Networks; Networking, Intelligent Cellular and Security Solutions; and Access Network Solutions segments.
“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… 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.”
The company is investing heavily in R&D and new product introductions for future growth such as its DOCSIS 4.0 RMD Node Platform selection with Liberty Global as well as its wireless networking developments in the PROPEL, the XGS-PON and the MOSAIC product lines.
In 2021, CommScope announced CommScope NEXT to drive shareholder value through three pillars: profitable growth, operational efficiency and portfolio optimization.
“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,” noted Kyle Lorentzen, Chief Financial Officer.
In terms of total net sales by region, Canada and the US recorded the highest YoY increase of 41% and 14% respectively. The US reported $1.4 billion in sales for Q2 2022 followed by the EMEA region with $378 million worth of sales.
The company ended the quarter with $229.3 million in cash and cash equivalents.