CommScope Sales Surge in Q2 - Broadcasting & Cable

CommScope Sales Surge in Q2

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CommScope Inc. recorded strong sales and earnings in its second quarter (Q2).

The cable company said Q2 sales were a record at $519 million, up 26% from $411.9 million over the same period last year. The higher sales were the result of increased customer demand across all business segments and price increases in the Enterprise and Broadband segments due to higher material costs. CommScope’s carrier segment sales were up 64.4% year-over-year, on the back of growth in wireline carrier broadband deployment.

Consolidated operating income for the quarter was $86.4 million versus $38.1 million for the same period in 2006. The Q2 1007 operating margin was 16.6%, up from 9% in the same period last year.

Net income in Q2 2007 was $61.1 million, or $0.83 per diluted share, up from $46.6 million, or $0.65 per diluted share, in Q2 2006.

CommScope provided guidance for the third quarter and calendar year 2007. In Q3, the company sees revenue in the $510-530 million range. Operating margin is expected to be 15.5-16.5%, excluding special items. Full 2007 revenues are expected in the range of $1.9-1.94 billion, raised from $1.84-1.89 billion previously. Full year operating margin is now expected in the 15.25-15.5% range from 13.5-14.5% previously, excluding special items.

The company’s guidance does not include the effect of the proposed $2.6 billion acquisition of Andrew Corp. which is expected to close before the end of the year.

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