CommScope Raises Second Quarter 2014 Sales and Earnings Guidance to Reflect Strong Wireless Performance
"While there will continue to be volatility in carrier spending
patterns, our wireless business has performed very well," said
Second Quarter 2014 Guidance:
-
Sales of
$1.025 billion to$1.050 billion , up 10 percent year over year at the midpoint of the range -
Adjusted operating income of
$235 million to$245 million , up 30 percent year over year at the midpoint of the range -
Adjusted earnings per diluted share of
$0.63 to$0.66 , up 11 percent year over year at the midpoint of the range, reflecting the higher year-over-year share count
Calendar Year 2014 Guidance:
As previously announced, the company expects sales growth to moderate in the second half of the year as North American wireless operator spending patterns appear to be weighted more to the first half of the year. The company reaffirmed its calendar year 2014 guidance:
- Sales growth in the high single digits to low double digits
- Adjusted operating margin expansion
- Adjusted effective tax rate trending toward long-term target of 35% - 37%
- Significant adjusted net income and adjusted EPS growth
- Strong free cash flow
About
Non-GAAP Financial Measures
Forward Looking Statements
This Press Release and any other oral or written statements made by us
or on our behalf may include forward-looking statements which reflect
our current views with respect to future events and financial
performance. These forward-looking statements are identified by their
use of such terms and phrases as "intend," "goal," "estimate," "expect,"
"project," "projections," "plans," "anticipate," "should," "designed
to," "foreseeable future," "believe," "think," "scheduled," "outlook,"
"guidance" and similar expressions. This list of indicative terms and
phrases is not intended to be all-inclusive. These statements are
subject to various risks and uncertainties, many of which are outside
our control, including, without limitation, our dependence on customers'
capital spending on communication systems; concentration of sales among
a limited number of customers or distributors; changes in technology;
our ability to fully realize anticipated benefits from prior or future
acquisitions or equity investments; industry competition and the ability
to retain customers through product innovation, introduction and
marketing; risks associated with our sales through channel partners;
possible production disruptions due to supplier or contract manufacturer
bankruptcy, reorganization or restructuring; the risk our global
manufacturing operations suffer production or shipping delays causing
difficulty in meeting customer demands; the risk that internal
production capacity and that of contract manufacturers may be
insufficient to meet customer demand or quality standards for our
products; our ability to maintain effective information management
systems and to successfully implement major systems initiatives;
cyber-security incidents, including data security breaches or computer
viruses; product performance issues and associated warranty claims;
significant international operations and the impact of variability in
foreign exchange rates; our ability to comply with governmental
anti-corruption laws and regulations and export and import controls
worldwide; risks associated with currency fluctuations and currency
exchange; the divestiture of one or more product lines; political and
economic instability, both in the U.S. and internationally; potential
difficulties in realigning global manufacturing capacity and
capabilities among our global manufacturing facilities, including delays
or challenges related to removing, transporting or reinstalling
equipment, that may affect ability to meet customer demands for
products; possible future restructuring actions; possible future
impairment charges for fixed or intangible assets, including goodwill;
increased obligations under employee benefit plans; cost of protecting
or defending intellectual property; changes in laws or regulations
affecting us or the industries we serve; costs and challenges of
compliance with domestic and foreign environmental laws and the effects
of climate change; changes in cost and availability of key raw
materials, components and commodities and the potential effect on
customer pricing; risks associated with our dependence on a limited
number of key suppliers; our ability to attract and retain qualified key
employees; allegations of health risks from wireless equipment;
availability and adequacy of insurance; natural or man-made disasters or
other disruptions; income tax rate variability and ability to recover
amounts recorded as value-added tax receivables; labor unrest; risks
associated with future research and development projects; increased
costs as a result of operating as a public company; our ability to
comply with new regulations related to conflict minerals; risks
associated with the seasonality of our business; substantial
indebtedness and maintaining compliance with debt covenants; our ability
to incur additional indebtedness; cash requirements to service
indebtedness; ability of our lenders to fund borrowings under their
credit commitments; changes in capital availability or costs, such as
changes in interest rates, security ratings and market perceptions of
the businesses in which we operate, or the ability to obtain capital on
commercially reasonable terms or at all; continued global economic
weakness and uncertainties and disruption in the capital, credit and
commodities markets; any statements of belief and any statements of
assumptions underlying any of the foregoing; and other factors beyond
our control. These and other factors are discussed in greater detail in
our 2013 Annual Report on Form 10-K and Registration Statement on Form
S-1 filed with the
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