Restructuring charges and other costs drive CommScope to wider 1Q loss, but outlook brightBy AP
Thursday, April 29, 2010
CommScope posts wider 1Q loss, but solid outlook
HICKORY, N.C. — Network infrastructure company CommScope Inc. posted a wider first-quarter loss on Thursday, hurt by restructuring charges and other costs, as well as lower revenue. But results still topped analysts’ estimates and the company forecast second-quarter revenue above expectations.
The company posted a loss of $22.1 million, or 23 cents per share, compared with a loss of $20.5 million, or 29 cents per share, in the same period a year earlier. Excluding restructuring charges, tax costs related to the health care overhaul law and other items, adjusted earnings totaled 26 cents per share in the latest quarter.
Revenue fell 3 percent to $721.6 million from $742.3 million due to lower capital spending by customers in the Asia Pacific driven by regulatory issues in India and weaker spending by wireless service providers in China. Sales of the company’s antenna and cable products were also hurt by conservative spending by European wireless operators.
Analysts, on average, were expecting a profit of 25 cents per share, excluding items, on revenue of $716.7 million, according to a poll by Thomson Reuters.
“Despite a slow start to the year, orders and sales strengthened considerably as we moved through the first quarter,” said Chairman and CEO Frank Drendel in a statement. “We recorded the strongest book-to-bill ratio we have seen in the last few years and believe we are well positioned to benefit from strengthening capital spending by North American wireless carriers.”
The company said it booked orders totaling $791.9 million in the first quarter.
Looking ahead, CommScope expects second-quarter revenue of $800 million to $850 million — above analysts’ $793.4 million average estimate.
Shares rose 36 cents to $32 in after-hours trading. The stock had closed up 91 cents, or 3 percent, at $31.64.
Tags: Earnings, Financing, Hickory, North America, North Carolina, Restructuring And Recapitalization, United States