• Sales grew 13 percent year over year, or $125 million, to $1.1 billion
• Gross margin rose more than 300 basis points year over year to a record 39 percent
• Adjusted operating income rose 40 percent to $259 million, or 24 percent of sales
• Adjusted net income grew 51 percent to $139 million, resulting in adjusted earnings of $0.73 per diluted share

HICKORY, N.C.--(BUSINESS WIRE)-- CommScope Holding Company, Inc. (NASDAQ: COMM), a global provider of connectivity and essential infrastructure solutions for wireless, business enterprise and residential broadband networks, reported sales of $1.1 billion and net income of $28 million, or $0.15 per diluted share for the quarter ended June 30, 2014. Non-GAAP adjusted net income was $139 million or $0.73 per diluted share. A reconciliation of reported GAAP results to non-GAAP results is attached.

For the quarter ended June 30, 2013, CommScope reported sales of $941 million and net income of $1 million, or $0.01 per diluted share. Non-GAAP adjusted net income was $93 million or $0.58 per diluted share.

"We are pleased to deliver an outstanding second quarter," said President and Chief Executive Officer Eddie Edwards. "Our Wireless team had another strong quarter, trends in Enterprise remain positive and our Broadband team delivered significant sequential operating improvement.

"We continue to benefit from global wireless operator investment in LTE and 3G network modernization. High quality broadband connectivity over licensed spectrum has become a competitive differentiator for wireless operators. Our industry leading cell site and small cell DAS solutions address the need for additional network coverage and densification. We believe our leading technology, global scale and service model position CommScope to benefit from continued operator investment in network quality."

Second Quarter Overview

Second quarter 2014 sales rose $125 million, or 13 percent, year over year to $1.1 billion. Operating income in the second quarter grew 116 percent to $204 million, compared to $94 million in the year-ago quarter. Adjusted operating income, which excludes amortization of purchased intangibles, restructuring costs and other special items, rose 40 percent to $259 million, an increase of $74 million compared to the prior year period.

GAAP net income rose substantially to $28 million, compared to net income of $1 million in the year-ago period. Excluding amortization of purchased intangibles, restructuring costs and other special items, second quarter adjusted net income increased $47 million, or 51 percent, year over year to $139 million.

In May 2014, CommScope issued $650 million of 5.0% senior notes due June 2021 and $650 million of 5.5% notes due June 2024. Proceeds from the new notes were used to redeem the entire amount of the $1.1 billion 8.25% notes outstanding plus pay a redemption premium of $94 million, which was included in other expense in the second quarter of 2014. As a result of these transactions, the company will reduce annualized interest expense by approximately $23 million.

Second Quarter Segment Overview

Wireless segment sales increased 23 percent year over year to $725 million. The increase was primarily driven by significant growth in most major regions with particular strength in the U.S. Operators are investing in CommScope's industry leading cell site and small cell DAS solutions to extend the coverage, increase the capacity and improve the quality of wireless networks. In the quarter, Wireless adjusted operating income rose 64 percent year over year to $207 million, or 29 percent of sales.

Enterprise segment sales of $218 million were essentially unchanged year over year as growth in the U.S. was offset by modest declines outside the U.S. and the slightly negative impact of foreign exchange rate changes. Enterprise adjusted operating income declined 6 percent year over year to $43 million, or 20 percent of sales, primarily due to increased investment in growth initiatives. While sales were essentially unchanged year over year, the Enterprise market continues to show signs of modest improvement as large enterprises invest in data centers and local area networks.

Broadband segment sales declined 6 percent year over year to $123 million. Adjusted operating income declined 30 percent year over year to $8 million, or 6 percent of sales. The profit decline is due primarily to lower sales volume and prices. However, Broadband operating performance improved meaningfully sequentially, benefitting from cost reduction activities initiated in 2013. Continued adjusted operating income improvement is expected in 2014 as in-process cost reduction activities are realized.

Alifabs Acquisition

In July 2014, CommScope acquired two of the businesses of Alifabs Group, a leading provider of metro cell and small cell services and enclosures in the United Kingdom. Alifabs designs and supplies enclosures for the telecommunications, utility and energy markets. Alifabs also supplies a full range of monopoles, smaller streetworks towers and tower solutions to wireless operators.

Outlook

CommScope management provided the following third quarter and full year 2014 guidance, which excludes the amortization of purchased intangibles, restructuring costs and other special items:

Third Quarter 2014 Guidance:

• Revenue of $970 million - $1.02 billion
• Adjusted operating income of $190 million - $210 million
• Adjusted earnings per diluted share of $0.53 to $0.58, reflecting 192 million weighted average diluted shares

Full Year 2014 Guidance:

• Revenue of approximately $3.9 billion
• Adjusted effective tax rate of 35% - 37%
• Adjusted earnings per diluted share of $2.20 to $2.30, reflecting 192 million weighted average diluted shares
• Strong free cash flow

Conference Call, Webcast and Investor Presentation

As previously announced, the company will host a conference call at 8:30 a.m. ET today in which management will discuss second quarter results, outlook and trends. Internet users can access the company's presentation materials and live, "listen only" webcast at http://ir.commscope.com.

To participate in the conference call, dial 866-394-7514 (US and Canada only) or +1 706-758-2714. The conference identification number is 72797556. Please plan to dial in 15 minutes before the start of the call to facilitate a timely connection.

If you are unable to participate and would like to hear a replay, dial 855-859-2056 (US and Canada only) or +1 404-537-3406. The replay identification number is 72797556 and will be available through August 31, 2014. A webcast replay will also be archived on CommScope's website for a limited period of time following the conference call.

About CommScope

CommScope (NASDAQ: COMM, www.commscope.com) has played a role in virtually all the world's best communication networks. We create the infrastructure that connects people and technologies through every evolution. Our portfolio of end-to-end solutions includes critical infrastructure our customers need to build high-performing wired and wireless networks. As much as technology changes, our goal remains the same: to help our customers create, innovate, design, and build faster and better. We'll never stop connecting and evolving networks for the business of life at home, at work, and on the go.

Non-GAAP Financial Measures

CommScope management believes that presenting certain non-GAAP financial measures provides meaningful information to investors in understanding operating results and may enhance investors' ability to analyze financial and business trends. Non-GAAP measures are not a substitute for GAAP measures and should be considered together with the GAAP financial measures. As calculated, our non-GAAP measures may not be comparable to other similarly titled measures of other companies. In addition, CommScope management believes that these non-GAAP financial measures allow investors to compare period to period more easily by excluding items that could have a disproportionately negative or positive impact on results in any particular period. GAAP to non-GAAP reconciliations are included in this press release.

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; customer orders, including those for which we have ordered or purchased inputs, may be cancelled; 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. Although the information contained in this press release represents our best judgment at the date of this release based on information currently available and reasonable assumptions, we can give no assurance that the expectations will be attained or that any deviation will not be material. However, we are not undertaking any duty or obligation to update this information to reflect developments or information obtained after the date of this report.

CommScope, Inc.
Condensed Consolidated Statements of Operations
(Unaudited -- In thousands, except per share amounts)
						Three Months Ended									Six Months Ended
						June 30,									June 30,
						2014				2013					2014				2013
Net sales						$	1,066,256			$	940,859				$	2,001,292			$	1,745,548
Operating costs and expenses:
	Cost of sales						654,605				607,035					1,251,930				1,146,650
	Selling, general and administrative						121,070				123,411					234,098				232,393
	Research and development						33,082				33,846					64,952				63,796
	Amortization of purchased intangible assets						44,306				43,685					88,604				86,965
	Restructuring costs, net						2,309				9,730					4,289				11,533
	Asset impairments						7,229				28,848					7,229				34,482
			Total operating costs and expenses				862,601				846,555					1,651,102				1,575,819
Operating income							203,655				94,304					350,190				169,729
Other expense, net							(88,791	)			(1,831	)				(91,986	)			(5,272	)
Interest expense							(63,625	)			(48,052	)				(105,905	)			(93,837	)
Interest income							1,111				906					2,215				1,610
Income before income taxes							52,350				45,327					154,514				72,230
Income tax expense							(24,307	)			(44,206	)				(61,984	)			(55,209	)
Net income						$	28,043			$	1,121				$	92,530			$	17,021
Earnings per share:
	Basic					$	0.15			$	0.01				$	0.50			$	0.11
	Diluted (a)					$	0.15			$	0.01				$	0.49			$	0.11
Weighted average shares outstanding:
	Basic						186,509				154,885					186,226				154,883
	Diluted (a)						190,984				158,316					190,694				157,480
(a) Calculation of diluted earnings per share:
			Net income			$	28,043			$	1,121				$	92,530			$	17,021
			Weighted average shares (basic)				186,509				154,885					186,226				154,883
			Dilutive effect of equity-based awards				4,475				3,431					4,468				2,597
			Denominator (diluted)				190,984				158,316					190,694				157,480
See notes to unaudited condensed consolidated financial statements included in our Form 10-Q.

CommScope Holding Company, Inc.
Condensed Consolidated Balance Sheets
(Unaudited -- In thousands, except share amounts)
						June 30,					December 31,
						2014					2013
			Assets
Cash and cash equivalents						$	481,049				$	346,320
Accounts receivable, less allowance for doubtful accounts of
	$12,823 and $12,617, respectively						777,768					607,489
Inventories, net							449,367					372,187
Prepaid expenses and other current assets							82,923					71,818
Deferred income taxes							51,752					55,609
			Total current assets				1,842,859					1,453,423
Property, plant and equipment, net of accumulated depreciation
	of $203,392 and $183,965, respectively						300,816					310,143
Goodwill							1,446,109					1,450,506
Other intangibles, net							1,326,586					1,422,192
Other noncurrent assets							138,009					97,791
			Total assets			$	5,054,379				$	4,734,055
			Liabilities and Stockholders' Equity
Accounts payable						$	312,303				$	251,639
Other accrued liabilities							281,777					332,280
Current portion of long-term debt							9,063					9,462
			Total current liabilities				603,143					593,381
Long-term debt							2,701,987					2,505,090
Deferred income taxes							383,462					386,527
Pension and other postretirement benefit liabilities							33,027					40,349
Other noncurrent liabilities							109,932					120,692
			Total liabilities				3,831,551					3,646,039
Commitments and contingencies
Stockholders' equity:
	Preferred stock, $.01 par value: Authorized shares:
		200,000,000; Issued and outstanding shares: None at June 30, 2014
		and December 31, 2013					—					—
	Common stock, $0.01 par value: Authorized shares:
		1,300,000,000; Issued and outstanding shares: 187,170,919 and
		185,861,777 at June 30, 2014 and December 31, 2013, respectively					1,881					1,868
	Additional paid-in capital						2,124,044					2,101,350
	Retained earnings (accumulated deficit)						(885,761	)				(978,291	)
	Accumulated other comprehensive loss						(6,701	)				(26,276	)
	Treasury stock, at cost: 961,566 shares at June 30, 2014 and
		December 31, 2013					(10,635	)				(10,635	)
			Total stockholders' equity				1,222,828					1,088,016
			Total liabilities and stockholders' equity			$	5,054,379				$	4,734,055
See notes to unaudited condensed consolidated financial statements included in our Form 10-Q.

CommScope Holding Company, Inc.
Consolidated Statements of Cash Flows
(Unaudited -- In thousands)
					Three Months Ended June 30,									Six Months Ended June 30,
					2014				2013					2014				2013
Operating Activities:
Net income					$	28,043			$	1,121				$	92,530			$	17,021
Adjustments to reconcile net income to net cash (used in)
	generated by operating activities:
	Depreciation and amortization					79,020				61,039					138,481				121,937
	Equity-based compensation					6,495				4,615					10,171				9,087
	Deferred income taxes					(18,838	)			14,952					(11,495	)			5,776
	Asset impairments					7,229				28,848					7,229				34,482
	Excess tax benefits from equity-based compensation					(5,445	)			(8	)				(6,987	)			(9	)
	Changes in assets and liabilities:
		Accounts receivable				(67,024	)			(77,602	)				(168,817	)			(130,207	)
		Inventories				(37,820	)			(26,244	)				(76,456	)			(61,142	)
		Prepaid expenses and current assets				(23,767	)			(7,816	)				(19,426	)			(8,835	)
		Accounts payable and other liabilities				25,881				67,742					(5,182	)			25,182
	Other					(7,162	)			10,359					(8,925	)			10,859
Net cash (used in) generated by operating activities						(13,388	)			77,006					(48,877	)			24,151
Investing Activities:
	Additions to property, plant and equipment					(9,516	)			(9,495	)				(16,191	)			(16,027	)
	Proceeds from sale of property, plant and equipment					263				780					1,446				1,056
	Cash refunded from (paid for) acquisitions					4,745				—					4,745				(34,000	)
	Other					7,253				587					7,299				2,902
Net cash generated by (used in) investing activities						2,745				(8,128	)				(2,701	)			(46,069	)
Financing Activities:
	Long-term debt repaid					(1,102,231	)			(102,591	)				(1,119,789	)			(172,449	)
	Long-term debt proceeds					1,300,000				550,000					1,315,000				716,963
	Long-term debt financing costs					(22,738	)			(10,919	)				(22,738	)			(12,803	)
	Proceeds from the issuance of common shares under
	under equity-based compensation plans					5,985				—					7,942				—
	Excess tax benefits from equity-based compensation					5,445				8					6,987				9
	Dividends paid					—				(538,705	)				—				(538,705	)
	Cash paid to stock option holders					—				(7,188	)				—				(7,188	)
	Other					—				(24	)				—				(32	)
Net cash generated by (used in) financing activities						186,461				(109,419	)				187,402				(14,205	)
Effect of exchange rate changes on cash and cash equivalents						43				(2,587	)				(1,095	)			(4,642	)
Change in cash and cash equivalents						175,861				(43,128	)				134,729				(40,765	)
Cash and cash equivalents, beginning of period						305,188				266,738					346,320				264,375
Cash and cash equivalents, end of period					$	481,049			$	223,610				$	481,049			$	223,610
See notes to unaudited condensed consolidated financial statements included in our Form 10-Q.

CommScope Holding Company, Inc.
Reconciliation of GAAP Measures to Non-GAAP Adjusted Measures
(Unaudited -- In millions, except per share amounts)
			Three Months Ended									Six Months Ended
			June 30,									June 30,
			2014				2013					2014				2013
Operating income, as reported			$	203.7			$	94.3				$	350.2			$	169.7
Adjustments:
Amortization of purchased intangible assets				44.3				43.7					88.6				87.0
Restructuring costs, net				2.3				9.7					4.3				11.5
Equity-based compensation				6.5				4.6					10.2				9.1
Asset impairments				7.2				28.8					7.2				34.5
Transaction costs				1.0				2.6					1.9				4.2
Purchase accounting adjustments(1)				(6.4	)			0.4					(11.9	)			0.4
Total adjustments to operating income				54.9				89.8					100.3				146.7
Non-GAAP operating income			$	258.5			$	184.2				$	450.5			$	316.4
Income before income taxes, as reported			$	52.4			$	45.3				$	154.5			$	72.2
Income tax expense, as reported				(24.3	)			(44.2	)				(62.0	)			(55.2	)
Net income, as reported			$	28.0			$	1.1				$	92.5			$	17.0
Adjustments:
Total pretax adjustments to operating income				54.9				89.8					100.3				146.7
Pretax amortization of deferred financing costs & OID(2)				22.6				3.6					26.1				7.6
Pretax loss on debt transactions (3)				93.9				-					93.9				-
Pretax gain on sale of equity investment (3)				(6.7	)			-					(6.7	)			-
Tax effects of adjustments and other tax items(4)				(53.3	)			(1.9	)				(71.5	)			(23.9	)
Non-GAAP net income			$	139.4			$	92.6				$	234.6			$	147.4
Diluted EPS, as reported			$	0.15			$	0.01				$	0.49			$	0.11
Non-GAAP diluted EPS			$	0.73			$	0.58				$	1.23			$	0.94
(1) For the three and six months ended June 30, 2014, includes the reduction in the estimated fair value of contingent consideration payable related to the Redwood acquisition.
(2) Included in interest expense.
(3) Included in other expense, net.
(4) The tax rates applied to adjustments reflect the tax expense or benefit based on the tax jurisdiction of the entity generating the adjustment. There are certain items for which we expect little or no tax effect.
Note: Components may not sum to total due to rounding.
CommScope management believes that presenting certain non-GAAP financial measures provides meaningful information to investors in understanding operating results and may enhance investors' ability to analyze financial and business trends. Non-GAAP measures are not a substitute for GAAP measures and should be considered together with the GAAP financial measures. As calculated, our non-GAAP measures may not be comparable to other similarly titled measures of other companies. In addition, CommScope management believes that these non-GAAP financial measures allow investors to compare period to period more easily by excluding items that could have a disproportionately negative or positive impact on results in any particular period.

GAAP to Non-GAAP Adjusted Operating Income Reconciliation by Segment
(Unaudited -- In millions)
Second Quarter 2014 Non-GAAP Adjusted Operating Income Reconciliation by Segment
			Wireless				Enterprise				Broadband				Total
Operating income (loss), as reported			$	178.9			$	30.3			$	(5.5	)		$	203.7
Amortization of purchased intangible assets				22.5				17.4				4.4				44.3
Restructuring costs, net				1.6				(0.1	)			0.8				2.3
Equity-based compensation				3.6				2.1				0.8				6.5
Asset impairments				-				-				7.2				7.2
Transaction costs				0.6				0.2				0.1				1.0
Purchase accounting adjustments				-				(6.4	)			-				(6.4	)
Non-GAAP Adjusted operating income			$	207.2			$	43.5			$	7.8			$	258.5
Non-GAAP Adjusted operating margin %				28.6	%			19.9	%			6.3	%			24.2	%
First Quarter 2014 Non-GAAP Adjusted Operating Income Reconciliation by Segment
			Wireless				Enterprise				Broadband				Total
Operating income (loss), as reported			$	127.6			$	22.6			$	(3.7	)		$	146.5
Amortization of purchased intangible assets				22.5				17.4				4.4				44.3
Restructuring costs, net				1.2				0.2				0.5				2.0
Equity-based compensation				2.0				1.2				0.5				3.7
Transaction costs				0.6				0.2				0.1				0.9
Purchase accounting adjustments				-				(5.4	)			-				(5.4	)
Non-GAAP Adjusted operating income			$	153.9			$	36.1			$	1.9			$	192.0
Non-GAAP Adjusted operating margin %				24.5	%			17.9	%			1.8	%			20.5	%
Second Quarter 2013 Non-GAAP Adjusted Operating Income Reconciliation by Segment
			Wireless				Enterprise				Broadband				Total
Operating income (loss), as reported			$	93.2			$	26.6			$	(25.5	)		$	94.3
Amortization of purchased intangible assets				22.0				17.1				4.6				43.7
Restructuring costs, net				7.5				-				2.3				9.7
Equity-based compensation				2.5				1.5				0.6				4.6
Asset impairments				-				-				28.8				28.8
Transaction costs				1.5				0.7				0.4				2.6
Purchase accounting adjustments				-				0.4				-				0.4
Non-GAAP Adjusted operating income			$	126.7			$	46.3			$	11.2			$	184.2
Non-GAAP Adjusted operating margin %				21.4	%			21.2	%			8.6	%			19.6	%

GAAP to Non-GAAP Adjusted Operating Income Reconciliation by Segment
(Unaudited -- In millions)
Six Months Ended June 30, 2014 Non-GAAP Adjusted Operating Income by Segment
			Wireless				Enterprise				Broadband				Total
Operating income (loss), as reported			$	306.5			$	52.9			$	(9.2	)		$	350.2
Amortization of purchased intangible assets				45.0				34.7				8.9				88.6
Restructuring costs, net				2.9				0.1				1.3				4.3
Equity-based compensation				5.7				3.2				1.3				10.2
Asset impairments				-				-				7.2				7.2
Transaction costs				1.2				0.5				0.2				1.9
Purchase accounting adjustments				-				(11.9	)			-				(11.9	)
Non-GAAP Adjusted operating income			$	361.2			$	79.6			$	9.7			$	450.5
Non-GAAP Adjusted operating margin				26.7	%			19.0	%			4.2	%			22.5	%
Six Months Ended June 30, 2013 Non-GAAP Adjusted Operating Income by Segment
			Wireless				Enterprise				Broadband				Total
Operating income (loss), as reported			$	155.6			$	42.0			$	(27.9	)		$	169.7
Amortization of purchased intangible assets				44.1				33.7				9.2				87.0
Restructuring costs, net				8.6				0.5				2.5				11.5
Equity-based compensation				4.9				2.9				1.3				9.1
Asset impairments				5.6				-				28.8				34.5
Transaction costs				2.4				1.1				0.7				4.2
Purchase accounting adjustments				-				0.4				-				0.4
Non-GAAP Adjusted operating income			$	221.2			$	80.7			$	14.5			$	316.4
Non-GAAP Adjusted operating margin				20.3	%			19.7	%			5.9	%			18.1	%
Components may not sum to total due to rounding

Sales by Segment
(Unaudited -- In millions)
															% Change
			Q2 2014				Q1 2014				Q2 2013				Sequential			YOY
Wireless			$	724.9			$	627.2			$	591.5			15.6	%		22.6		%
Enterprise				218.4				201.5				218.7			8.4	%		(0.1	)	%
Broadband				123.4				107.5				132.8			14.8	%		(7.1	)	%
Inter-segment eliminations				(0.4	)			(1.2	)			(2.1	)		n/a			n/a
Total Net Sales			$	1,066.3			$	935.0			$	940.9			14.0	%		13.3		%
Non-GAAP Adjusted Operating Income by Segment
(Unaudited -- In millions)
															% Change
			Q2 2014				Q1 2014				Q2 2013				Sequential			YOY
Wireless			$	207.2			$	153.9			$	126.7			34.6	%		63.5		%
Enterprise				43.5				36.1				46.3			20.5	%		(6.0	)	%
Broadband				7.8				1.9				11.2			310.5	%		(30.4	)	%
Total Non-GAAP Adjusted Operating Income			$	258.5			$	192.0			$	184.2			34.6	%		40.3		%
Components may not sum to total due to rounding

GAAP to Non-GAAP Adjusted Operating Income and Adjusted EBITDA Reconciliation
(Unaudited -- In millions)
			LTM Q2 2014				Q2 2014				Q1 2014				Q4 2013				Q3 2013				Q2 2013
Operating income, as reported			$	510.2			$	203.7			$	146.5			$	60.1			$	99.8			$	94.3
Amortization of purchased intangible assets				176.5				44.3				44.3				44.0				44.0				43.7
Restructuring costs, net				14.9				2.3				2.0				5.7				4.9				9.7
Equity-based compensation				17.2				6.5				3.7				3.5				3.6				4.6
Asset impairments				18.3				7.2				-				3.7				7.3				28.8
Transaction costs				24.9				1.0				0.9				21.9				1.1				2.6
Purchase accounting adjustments				(9.8	)			(6.4	)			(5.4	)			0.5				1.6				0.4
Adjustment of prior year warranty matter				2.1				-				-				2.1				-				-
Non-GAAP Adjusted operating income			$	754.2			$	258.5			$	192.0			$	141.3			$	162.3			$	184.2
Non-GAAP Adjusted operating margin %				20.2	%			24.2	%			20.5	%			16.7	%			18.3	%			19.6	%
Depreciation				51.6				12.1				11.7				13.7				14.0				13.8
Non-GAAP Adjusted EBITDA			$	805.7			$	270.6			$	203.7			$	155.1			$	176.4			$	197.9
Components may not sum to total due to rounding

Investor Contacts:
Mark Huegerich, CommScope
+1 828-431-2540
or
Phil Armstrong, CommScope
+1 828-323-4848
or
News Media Contact:
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publicrelations@commscope.com

Source: CommScope

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