CommScope reports Q1 non-GAAP EPS (8c), consensus (23c)

Reports Q1 revenue $1.17B, consensus $1.07B. “As expected, our Q1 was a challenging quarter as we continued to deal with lower demand…Overall, we continue to be bullish on medium- and long-term recovery in all of our businesses. We continue to manage the levers that we can control, such as customer interface, costs, new product development and capital. We are very focused on supporting our customers and we appreciate their support. We are confident that market conditions will improve and we are well positioned to capture the recovery in all segments,” said CEO Chuck Treadway. “For Q1, CommScope net sales declined 30% from the prior year to $1.17B and delivered adjusted EBITDA of $153M, which was higher than our previously provided guidance range but down 51% from the prior year. Based on current visibility, we expect Q1 to be the lowest revenue and adjusted EBITDA quarter of the year. We continue to evaluate capital structure alternatives, including asset sales, to address the upcoming debt maturities. We finished the quarter with significant liquidity of over $900M,” said CFO Kyle Lorentzen.