CommScope Holding (COMM) 3 Nov 222022 Q3 Earnings call transcript

Good day, and thank you for standing by. Welcome to the CommScope's Third Quarter 2022 Earnings Conference Call. [Operator Instructions].

I would now like to hand the conference over to your first speaker for today, Mr. Mick McCloskey, Head of Investor Relations. ahead. go Please

today's thank and CommScope's and Head joining today Lorentzen, me us Investor and Treadway, Good and CEO; Xrd you quarter discuss Kyle on with And XXXX for Vice McCloskey, are results. to Chuck Relations President President morning, Executive CommScope. for call CFO. I'm of Mick

can the slides our website. Relations find that on You Investor accompany this report

and contain which view recent that note some business, future Please performance. of statements current uncertainties on our SEC principal comments differ will of may future and based forward-looking today our our could materially. identify actual results see affect that risks our Please the filings,

discuss are earnings materials. Chuck, detail I have review. housekeeping morning's a contained certain on the described be references earnings in during associated non-GAAP this non-GAAP our materials few otherwise on of will disclosures other to today's our adjusted measures, presentation adjusted posted to today's financial in over Before are during growth or results. turn more basis which All to are measures financial I and rates and noted. unless year-over-year items Reconciliations we quarterly All call described in discussion website. a our will Today,

to I'll CEO, our now call turn Chuck the over and President Treadway.

morning, Thank Slide X. you, begin I'll good Mick, and on everyone.

acquisition. since ARRIS core billion For of the the third quarter $XXX on of delivered net adjusted EBITDA and record the XXXX, of $X.XX CommScope sales core million, highest

$XXX $X.XX For and consolidated CommScope, which of we sales Home includes million. billion net Networks, adjusted EBITDA reported of

through CommScope and strong results in quarter the our driving NEXT efficiencies represent third CommScope Our transformation. team by growth execution

to our reflect results the working offset impacts inflationary to our margins. addition, continued progress In in

range to EBITDA billion CommScope deliver adjusted of X.Xx $X.XX between of and the the business billion, X.Xx. reaffirming in core are leverage net $X.XX We range to to the

remainder continued XXXX. out we've performance we by I'm our encouraged indicate, the as of to As closed

are We and NICS performance OWN in with CCS, segments. our pleased our

significant team NEXT expectations, renewed growth dividends. and call, delivered our as EBITDA consistent previous paying our indicated with for earnings in the is strong As our our quarter revenue strategy

toward the potential continue we scenarios the we As of how CommScope. may and macro impact end year, recession the monitor move to environment

we expect current some some these see see and spillover demand. we impacts to visibility, QX, project inventory adjustments to With into of slowing In started XXXX. delays

predicted, approximately we of through revenue. backlog in increased to come or times very whether beginning of some supply, X capacity our trailing As of some reduction, businesses, our months XX-month is and our are represents Despite healthy down. backlog better lead

the serve business fiber growing capitalize capacity CCS the and it. Our installed we've demand input to continue quarter, cost end last the -- and by grew sales XX% a demand the in to from as investments CCS to continues segment prior our segment market most capacity within cable grew leverage from and was to on healthy we through driven year growth growing price. notable connectivity, year. prior our offset XX% inflation environment, Similar

end CCS fiber next equates to for to our growth. We proud and capacity immediate injection $XXX and as very looking are bullish accomplishment annualized expansions. connectivity are expand round approximate service of molding our at in capital million we approved now medium term markets, long it to We capacity of Recently, the the very an we this demand. remain in

time. with Overall and brought $X.X a approximately more for our times backlog capacity coming to this But over we maintain online portion levels with billion. within normalize CCS at our remains expectation historical modestly Xx lead of than strong, in, significant expected, as

the quarter, EBITDA Turning grew profitability. year. prior the XX% In CCS adjusted from to

throughout driving the manufacturing business. as As driving plants, offset expected, we while to are our we capacity continue to inflation, drive leverage efficiencies operating price ramps. In operating

from progress making Additionally, better we savings plans efficiency throughput generate CommScope improvements. NEXT significant as and our in are material we utilization

line top their remains business record. annually of spite environment. quarter RUCKUS quarterly execution approximately highest sequentially. XX%, deliver delivered Strong by growth revenue impressive growth, an strong Market business the to processes chip our a as in and was of product in they overall. challenging delivered both growing led procurement design and enabled on NICS the NICS product demand

While lead to times a maintained down, beginning $XXX nearly the business are still year. from million, the backlog up XXX% come of prior

NICS to EBITDA a quarter we our as improvement second loss EBITDA and from segment's in on in quarters profitability, substantial Importantly, the indicated adjusted a call, earnings positive delivered the turning first a for both R&D third -- trend continue the we that ONECELL. while add to growth the I'd going quarter. to for in and expect in RUCKUS profitability in this continue invest future future forward second we

over growth year. site efficiencies of Integrated improve EBITDA business Operational year. our in preparation businesses. Solutions $XX activities X% led and delivered Performance continued prior million, in helped HELIAX adjusted actions increase and pricing the XX% was the to OWN an from prior by

sales ANS net delivered to year. that flat were prior relatively

which As tougher peak comparables for bandwidth. were the related has the pandemic to quarters, expected, business demand from prior lapped

to addition the was from the adjusted net sales, driven by versus performance edge. prior shift to In end down year, mix head the EBITDA

Slide update for perspective our Overall, team CommScope. I'm my quarter on continues to on X for a third some environment. well priorities now additional to challenging execute the turning and in an

general offset our are efficiency deliver driving starting model. and We through to are inflation hard to working manager continue price to

enhanced bottom R&D enabling are alignment introductions. improvements is workflow portfolio, and and Our while speed product heavily contribute to all in throughout continuing the line, are CommScope starting we accountability, and to to general visibility, invest new manager better the model our

the year. August, and core expansion Kyle increased actions on point grew basis expected of Execution profitability is quarter. efficiency $XX pricing improvement the shared through was NICS in this driving As margin the sequential impactful overall XXX quarter-over-quarter. segment, I margins the this And during we offset continue core half sequential and front our in back million in our volumes, in EBITDA overall improvement by EBITDA EBITDA evidenced in adjusted most which to

Home update the and Networks hand as the XXXX. an well Kyle, I into to the I'd year for on priorities provide Before as like call my remainder of over to

Home we transformation a chip Home impacts performance. be response plan foreign challenged Home with specific and negative to Networks. from improve implementing Turning to continues exchange are demand to to In help rates. constraints, to this,

And new and includes finishing driving initiatives becoming intently remains way in business. of efficient networks. technologies This and the every our wireless innovation organization CommScope, that will do more operationally in focused on with our and future organic core wireline we creating growth support customers

CommScope our are Additionally, NEXT profitability. incremental priorities driving

will operations, our are waste continuing chain incremental better aligned significant boost Our the us deliver to make business material reduce and to engineering to believe and productivity. drive shareholder great are and leaders functions directly sales, actions supply challenge in system, cost, value. We utilization with planning overall enable progress

now call will Kyle I that, over With quarter. about to the turn the to talk more

quarter third on Chuck, Slide morning, you, and an X. good Thank I'll overview of start with everyone. results our

and quarter, or in by decline FX reported the segments sales includes all billion, core of X.X% in an $X.XX the in offset Networks. third consolidated line by For year, net the driven XX% headwind a with associated increase an Home rate. approximately increase $XX CommScope of million prior partially from in year-over-year top Growth change

$X.XX year. and to from growth, million CommScope of actions. actions our Adjusted our EBITDA volume pricing $XXX increased XX% as EPS a prior efficiencies NEXT per operational through was inflation Adjusted XX% offset result increasing share, of

improvement $X.XX net XX% in I'd year. sales grew also core core prior sequential adjusted adjusted of and For from $XXX of highlight EBITDA EBITDA. XX%, million, the XX% billion, CommScope, grew

see the expect quarter. that the impact our into favorable As fourth to from during continue the year, offset year, we've the we pricing trend mentioned larger half of P&L throughout to will this a actions on inflation second a

at our are expectations, our represents modest by lead indicated in XX% we through the increase over declined mentioned, Chuck continuing manager down, the availability and efficiencies our Consistent previous our improvement quarter from actions, with model. last as implementation enhanced core increases flexibility we our addition, quarter, with CommScope call, aided capacity, the the $X.X and focus within billion. This on previous core unlocked with businesses of of year. In to from supply X% NEXT as times a CommScope third coming backlog drive general in our overall ending

X.XX. yielded core book-to-bill the For third CommScope, quarter of a

in X. with driven $X.XX segment demand and products increased our strong fiber performance on initiatives. increasing, CCS, pricing our sales to year, Growth XX% segment net Slide by the drove overall from XX% highlights year. for fiber from Turning billion, the prior prior Starting of the

investments capital capacity. in significant paid have fiber in and Our dividends new to invest we continue will

returned million, $XXX of inflation to and CCS margins EBITDA segment actions, benefited normalized levels. increase more in pricing, XX%, EBITDA adjusted as efficiency the from historical have to price grew With growth and CCS the operational offset volume, efficiencies.

forward, Looking investments. quarter driven third to sales typical inventory fourth delays net quarter be project below expecting and by the seasonality, we are

sales growth driven our a future by Growth of grew quarter RUCKUS a $XXX $XX grew growth. to XX% NICS adjusted the from the chip RUCKUS ONECELL continued million, NICS supply drive prior delivered year improvement driven million investment its record. stated, million highest net quarter and and as from EBITDA of $XX volume, This challenging in was the which, Chuck representing by business, prior sales prior on million, our $XX execution despite EBITDA price, market. aggressive year. also strong in adjusted from represents

end We year. performance continue of through expect the the to our strong

Consistent price million, adjusted the $XXX driven million, price Integrated XX% and Solutions from mix. top our sales EBITDA primarily of by HELIAX higher fourth offset OWN given X% with year $XX businesses. net the in driven of to expect prior year, speed environment the OWN commentary, strength OWN grew the from and and by deployments the and seasonality. quarter, of prior grew moderate product year, prior typical earlier this line and regional volumes weather-related we to in the inflation, improved carrier

of increased driven from hardware-centric our an mix to businesses. on found declined of ANS in by the ANS prior million, by driven technology year, the the XX% network $XX net edge. EBITDA change lower-margin $XXX adjusted from sales year, products prior the increase access X% million,

in ANS quarter improvement of expect Looking we internal ramping sequential EBITDA flow, production through project and increasing combination forward, a material fourth timing. the

with EBITDA million our of million an Networks. declines the quarter. an the Broadband Gateway performance business. from $X the Finishing $XX segment approximately up our improvement driven of Home year. adjusted Networks $XXX in sales was year million, Networks of for delivered This X% by from Home prior Home declined loss prior net

However, the that and be fourth third bad in year included debt I'd remind comparisons. that quarters significant considered annual in expense prior you a should the

a from most mentioned, segment chip our impacted supply As significantly continues to perspective. Home be

In are the while in by business separate local dollar, customer from was currencies. revenues negatively as a the to base is in impacted majority changes in exchange we CommScope. strategic of higher foreign believe core cost of in rationale percentage business addition, the their Home derived the U.S. priced rates Ultimately,

improvement are the will plans results. performance, produce that given to we However, implementing time current transformational take

an X Slide cash flow. on to update for Turning

a was third of of $XX use flow quarter, For and the was cash free use a adjusted operations from $XX million. million cash

on As of capital the use indicated working our quarter-end to a cash call, be of increasing continued significant revenues result a of quarter, timing QX during as and payables.

we year. remained to moderated as to of cash elevated, the inventory drive continue during the balances While quarter, a performance build view lever at end the and improved inventory the

a forward, the provide basis. down drawn work of end that flow full balances, improvement our profitability million elevated in week, cash at of further to a the the context, on given this flow cash free expect repaid fully to during as This opportunity substantial September. our we drive to And fourth ABL $XXX of and have year inventory was will free positive Looking quarter. improved company we a the

X Turning for an liquidity to capital structure. on Slide our and update

ended and the million a the cash cash quarter, approximately with liquidity million, for prior from remained and liquidity third modest the quarter global We Total in $XXX strong. quarter. the quarter cash. was During $XXX improvement

outstanding as moment ended on while flow As a pick we that $XXX our cash begun I to week, has our fully up. revolver, amount of ago, million quarter was the ABL as mentioned just generation this with repaid

borrowing as ago, European-based the filed the September years in and base. addition, flexibility while ABL tranche, maturity assets have we in have the to included increasing extended needed for weeks an our may X-K successfully seen In adding additional if a X XXXX, underlying you our of few our from future, additional a an

incremental term debt quarter. And required committed X.Xx this repayments at range of leverage we the X.Xx, The within amortization. loan During X.X an morning, target we meeting net with the net year-end our the from remain made the of beyond improvement to ended of the of quarter, of second quarter earlier X.Xx. the leverage $X million no the mentioned as to end company

to Chuck over and now turn comments it on I'll closing provide XXXX. some to perspective

Kyle. X. I'm you, Slide now Thank on

also XXXX As like full I to range. year allow earlier into deliver mentioned we within execution strong our the for CommScope some my in remarks, adjusted early EBITDA believe provided will give our I'd perspective to core XXXX. you

some believe we headwinds CommScope our Despite recessionary is results, moderate organic to still efficiency NEXT maintain offset in and conditions through levers there growth enough our expectations. our for level existing of

we of we and line a range you current $X.XX of billion, year December the are core reaffirming with the of $X.X to sight, shared Investor full our Specifically, Day XXXX. X.Xx billion adjusted X.Xx target EBITDA XXXX expectations with on of that the leverage net for in to

In Xx. also reaffirming of we billion sight, are range our and $X.X leverage adjusted EBITDA, addition, guidepost again, with of billion line of $X.X current in of core X to XXXX to net the

open line thank interest value transformative support drive we unlock the our change, which And ability to and now questions. and will in significant for to for that, belief your like in to I'd for you shareholders. continue we'll believe with CommScope our

[Operator Instructions].

line the from of Chatterjee comes from first Your Samik JPMorgan. question

guess Congrats you've just indications couple seen brand. in your on I had sort it their hesitating with. to recessionary sounds strong of like around more comments terms start outlook, of given a definitely, your I on business. the impact of customers Chuck,

more And those which particularly discussions Just of segments customers? you sort of what seeing wondering a insights can if have terms some are business up your of you're in you your pick from I of hearing And with customers? your follow-up. share

adjustments, are OWN. CCS and say But let's but say, both I Samik, still and and bullish so we inventory although maybe would out were this we're shortages primarily where our there, we're also seeing the delays in businesses. very improving. project business But CCS very electronic some I Yes. and in medium for NICS would say is term mean that's long confident about I going. would I that say,

And Okay. then follow-up. a just

Are see sequential the margins of Where by strong you improvement that to in account driven improvement been a price are that also of increases continuing terms You're sequential -- drive. price big you in increases? on we able you've have seeing backlog. to

impact you flowing are peak through pricing delays guide So when XXXX a the there of P&L? any EBITDA of increases the look we obviously, further improvement in XQ price to in at in or of to terms that probably sort we take. the more But XXXX? in the at is Or come relation

Yes.

in the I think them as even we as backlog. and we year earlier had talked year, late through, have about price the through the increases last work to

see with now. bit in starting related time, our little QX I all of as think But and And pricing bump peak the think our all price we this increases at in of I now point to hitting backlog P&L. of pricing. in is to the the I those exit backlog we'll think inflationary having a in 'XX we're get to

from Your Credit of Sami next question from comes Suisse. line Badri the

into kind -- I here. we put question first was comment kind The I want if economic your really to of of slowdown some had context

clarify of any If those are that ARPA and you from other from actually kind projects look any that of funds kind of those project any RDOF, not piece compare slowdowns? stimulus, I at and or that other federal program, federal parts business funds So to of you maybe the seeing just any and is of flows. wanted benefiting are maybe are to seeing contrast that direct seeing kind federal projects your

just where backlog look segment And heard then model other NICS at And revenue you this question look sounds in is, that 'XX, correctly, I that the I if of and that that -- at XQ mean the million the is backlog? I $XXX you had I I need has and think runway XX have segment like does the of at it lot came to XQ. It have recognize you of of months 'XX in profile? margins in think be in lower in actually about versus XQ the analysts that to perspective, willing to from XXXX I a like reported looks segment are comparable guys a you margin just that what

So context just would number, helpful. what some to us around margin profile, giving the expect be that

Yes. Look, I'll question. the take second

pricing. the we've do from to little EBITDA, with better the seen has we go as to of to with in positive has and do chip on bit getting a It indicated,back lot side a business to availability. us of a that top do and negative a growth. bit I clearly, NICS, little It think QX, EBITDA So a the with line working has

the the that we some we think business, about because bit may different I the RUCKUS are business mix think think not NICS our be as little profile, lot. business business ICM margin in there within and a but a

the in the seeing margin is that feel profile think margin moving I can forward, profile we QX forward. maintain you're we sort like, moving of that

the at So don't first on we on We slowdown question, the spending. your the very, on still see bullish government remain part of very -- all. any

In machine figure process. in that's which how states They're big that. on happen. all going to We're a starting that's like bullish out money, fact, to very get

going that other of looks terms going. how bit capacity is positive close more that got of from business is think compares planning. I would maybe long to they've the put we happen. in about my infrastructure, effects I this stuff on In and I telecom government, muted to terms mean, view, But of to ground little see term, to very where outside pieces of and really going make our recession. -- in being the fairly And the I positive happen. say, divide of a we're think in digital We're like It's to that installation all it

guess of between was I'm free just one on to cash reference of It being flow you question, kind up phrased but inventories up to of free going regarding There been want things sheet, reading wasn't right? we're I I flow. for know inventory Got where a your Because way, earlier time just I your had inventory strategic I and and kind flow technically the chains in the supply is the cash free today wanted tie and easing. be here. it. are cash long inventory your I And made that and of point level. a components to reaching of could balance call how a much now to a guess lines have convert the supposed

have So cash generate wanted or do just relieving releasing flow to how you much if inventory control significant company a it? to as guys do you levels on

the as clearly, think supply. is we factors, I and demand inventory planning those and have, challenges just -- of gone we've chain I through has sort bit of mean we see how generated bought that demand shortage inventory the a we ocean complete Clearly, it's mean, because a how And may we're to I a the function then the parts higher we of lead levels little product. longer, on particularly try side. somewhere times because a are and freight to have thing the is other supply other

think I caused some general that inventory So to there's have little build our a factors bit.

is over I of little supply things we've think little million able process better. moderated situation what inventory than be different uncertainty bit -- few may hey, question, the out in bit think I Because, managing a the chain particularly reality think couple it gets may that, to answer the we ordered our more as the because bit would a little planning work should as we dollars the I next of have But how hey, asked, I holding of you we of better, are a as also mean, about hundred there's the your quarters chain. of we we like just inventory, supply this feel think which that be how a I system

comes question the Fox next line from Advisors. Fox Your Steven of from

two had I questions.

on and moving price, guys been while. a for of all, target, of up obviously in terms have this First a you is at inflation catching

What bit on company, And year? all the terms of a next et do should still longer, that can that you about or talk expect in may maybe as moving kind of, in within cetera. realizing little Things into reaffirming to pieces and think costs, year we worse, how about possible, So the bit more that? better long-term about passing things for higher targets customers little you're from are for of forward? which terms go you going you will 'XX, take then EBITDA be a optimistic Chuck, now just next any

company with Sure. piece. price, I'll our to can and and commodities Steven. the Thanks take much, in what product on in would understand what's so the with on I Kyle going of guidance what's the place we've mechanisms is tools put take going lines. really each say and price on piece

muscles our a we're on. we in to to much think to past. in I now team to better I what's were going And going understand and better than a so able those think And on, position our much what's position about we're customers sales the be using in talk

continue say, I'd them And forward. we're last about say, and right So I constant to I to prices our with we as see and go be we're customers. would something going I and to watch that, stabilizing. monitor to have over is in And feel to, that continue say but year, we would that now, that not as good of stop. be dialogue This on they're just going what's going

And the then EBITDA. on

Yes.

our EBITDA on mean, guidepost I when about to I that the the markets. on I think it So think going we is we and the 'XX mean, impacts economy moves think go just -- that that how thing the what's I with the provided, side,

than that I numbers. is come of there's think down. in probably recessionary there. those provided there's shallower do And better we those it numbers there's we've recession, that assumed the recession, we've impact If our deeper in guidepost, a some if reality modest a

our the we things numbers I we confident the very XXXX it's just like that or we initiatives So about can't control are think the that's we down. as factor our we believe will our things because and feel up driving here, sit that move really that feel plans,

also those. take are be going one we well of of those advantage is what would regardless I we the in to positioned thing to happens say think scenarios,

we So capacity we that business can hey, -- against. if have continue to it's grow the

of take that. sure if upside be to that may the So definitely even positioning can we to there's advantage plans, ourselves we make those are some though

taking sooner the or what I a now at, what is you're That's longer, while anything basis, curious realizing terms project-by-project under was other controllables, was a at your been helpful. project this getting of there -- in on the own you've progress are of is any than guess just -- things about. on for that color of benefits I plan sort I where expected

job Yes. placing improving in initiatives. bets. can any think think things on right I time NEXT lot comment, that let better first. focusing I as just that I company, into is to may be And rate our I as -- I'll the control. think sure spend expect improve on process, work CommScope things doing mean better I'll you I trying a Chuck but And comment mean, get out. things telling that and a necessarily like We deeper we're as else of driven plan, making there's hit leadership that a something than I there's think we're I -- market you us don't a from of team, pan what the a not that lot that our we or the of we're is where

think believe hold place to their to everything whole is do. listening December. a can have and and XXXX We lot have us allowing Steve, I with more business we -- across where, opportunities meet control as say, let's the them the and manager in the just a trying to just a, we what's What is we initiatives these We're working identify to or unit numbers build regardless do them opportunities And of a than once we their month. we in I'd with business to team, helping have market, that add model leaders. them in mindset, that, winning happens said individually, general confidence we in the control what

think, team NEXT control have I So that destiny. improve can we the confidence. X whole our mindset I thinking think our initiatives, is what's change, is This that us our winning our CommScope helping continuing to matrix, mindset,

George Your from next Jefferies. question is from Notter

hear you Hello, can guys me?

can. we Yes,

given guys understand manufacturing sequential the could have would just on more X% guess in grown realize little be I to CCS the guys here growth are CCS new have I'd kind business, year-on-year to there thought right coming wanted model. might terms basis. into how guess the a nitpicking right. sequential about I the coming delivered I I online, seeing of given some I But you a now. bit All what given price you growth. love of ask capacity much I have

on also that talked about, in your key I CCS guys about that compare. for there, know sequential Corning, also a I you're in then note, down what Can And you at think, that sequential in seeing QX. is talk you down a compare looking competitor business QX?

for at think little going I is it's they going on more believe bit to and medium think a they that. small to there I'll be they have their the and a continue I fast bit of is hit They're wanted planned before, there just say I moderate, there's as down to, better we're And at that. going I in able about been is install to little -- really going calls as think term And capacity were better I I anyway. a I talking we that. -- sequential. that and would what bump. this think seasonality be take haven't to And very said, they lot some But we're long just than can they just a planning a higher. we have of on bullish as material a lot But little they bit as on. to talked They're

would just add. I

QX, and in of some talked think the I delays inventory we project about adjustments.

that of into I QX, and see We of think saw we we saw that little a that bit some at end the sneak expect of QX. QX. tail to in

the Got manufacturing it. capacity... And then

on The we the only our is healthy, growth right? was fiber. XX% in that would growth other our were I thing comment extremely in I mean fiber

the year-over-year business a basis. extremely to of be side on continues strong fiber the So extremely,

people when can thing other them. plant that, components well. in And to, electronics have get our I I The is loosens active to our stuff parts those stuff, unlock add it George, on that going into that's that think of connects connect up those that to as products lot electronics would and the inside a

Got and guys the that it. million million ramp? are manufacturing think I $XXX also where in facility? to And you in $XXX Mexico, the of you That's contribution helpful. million, terms now in talked then about are expansion of right from And its Where you terms $XXX in EBITDA.

mean most think we that as has I QX, that up. I in Yes. ramped get of

All that fiber. in of is

growth in a year-over-year, coming it's talked plant is that -- Mexico. all that fiber of that the So we from about lot

probably utilization So right from that X in a capacity peer of quarters utilization that now. I'm we're thinking plant standpoint,

we're mean, using a we about in definitely facility I that in as QX lot of itself. the So capacity adding talked capacity

next of Amit Your from Evercore. is the question from Daryanani line

two performance. have as September? But simplistically, flow on, least free we just in Maybe in more Can cash well. what about had on you cash 'XX? flow expand to the September into that somewhat just then below maybe importantly, quarter with modeled. how At came I you do calendar think in performance what free quarter, December start drove

as sort think in investments a growing, making on receivable. call, challenging large cash we were we that of quarter on the QX was some QX was interest additional I the for mean us. I going recognized indicated business Plus be the accounts Yes. back to It's we side.

unexpected, I call. that QX, indicated So think think we of the happened in was what I QX don't -- don't I and sort on

We like million, moving down talked drawn generating was the we to really think that September being about said feel cash. on of in the we're of we our able the as month we track pay ABL at off to end paid that call, I start $XXX on October. forward, at the

to cash track in on year-over-year deliver we're positive think flow 'XX. I So that

the we'll of it I historically and year. think first then cash to in build our well in because we're becomes payment, up going more quarter think is timing cash move see weak lot quarter normalized during some into -- of outflow QX cash interest a year the we pay as incentives I a as our QX. of where So 'XX, we and as

low it's mean revenues December, last the of quarter? little for December Got shared it. that guess, a when December? think about then think way it not few about think revenues And think and really down segment going you down about So to how different we all been about is into I is understand the would you that? that and digits metrics Or up expectations sequentially? be aggregate to bit years, think it's helpful I how mid-single I in a to should but aggregate kind performance to there be to fair to

you've in, if all you implemented And some confident more confident the macro the to you about, back talked can do of worries how delays 'XX? you've hold how a price and do versus think in just one given the I sneak to reverse increase have feel that -- have product

It's price ton the really drive. just to depends first. one to I there's demand, still a supply take And there be I'll out I what's of product. going and think going demand that's think cost really And on it and driven. for input

I slowing So the really for see quarter least don't first from so. or at anything down side, that

Yes.

big pretty down CCS, think I driver is on QX which the sequentially. we of little bit a about being revenue talked a the think business I side,

I going of think be to overall. flat revenues are QX down slightly to our sort

Raymond is line Simon Your James. from next Leopold from question of the

me hear you okay? Do

Yes.

your we get potential PHY. away all anything, Networks, see business I they does side you're that then Home fact the going I've the in business? And you've I I'm been on options. there's support update sound It follow-up. if side. some into talked an Remote to the the MACPHY and about shifts you got not think shifts architectural what seeing could thinking about if wondering just quick of what, And the some mean you're from like wanted a of these to in TV cable on what choices

the support have large Sure. and us we we're very which R&D, shared choose. investments mean, I SCTE, in allow with game largest Look, in to whatever the at as everyone customers technologies

Our people EXXXX want to can act drive as actually an Remote to that's what use. PHY, if [indiscernible]

Mediacom -- just to large lot a a chose We today. PHY CMTS have that that works which a then very also do. we remote with we have Remote the sell virtual MACPHY, customers to to And

are lots great to we gives position position very path, I installed I hardware their know both software us there and think the but base be us our puts the questions the and their in and still strong over history competition knowledge on networks, understand a the of partner. a technology as

the affects I if And just on maturities to the this a as if debt, just on could change how update your in see quarterly expenses? or us follow-up, with wanted interest you

sorry, I'm question, the repeat Simon?

debt You your of out. the maturities had moved

Just expense? quarterly changes your wondering how or interest if it

Yes.

the only we -- the ABL. So was thing that pushed we out

we same So same of the debt pushed interest remains payment 'XX. with the ABL profile. the out rest to the The

from Stanley. of Morgan Meta the Your Marshall next line is from question

they know has labor I was times, that Have just the as the extended? a digest through of these on question sense digestion given period carriers months kind duration seasonality, the fiber of of something some they'll winter asked couple the some just that of a kind of been you bottleneck but seeing. or of wondering, more I are pauses normal just it's of or

maybe Home just how when we think the it's the you question, potentially just timing And second does supply Or consider some of largely business? chain you that on And when we as see of spin initiatives, then decision? driven of of timing [indiscernible] Home just kind on still the the it? the could should impact would improvement

that the the it. -- I And Okay. and and would that of which planning work see I have Meta, just everything but about -- installing everything planning hearing thing. to have taking some customer both we're maybe more through, I actually. our from that just sense think to are continue There's fine it's what a customers, about that's that I'll them take some it's orders, it's thing. When get a just others fine. how first get -- actually worked there's challenges get and -- of the long-term not It's short-term one, probably we

specifically the your reviews before while the for the this we we to some just get monthly with them plan time with businesses. And Related on each how to Home, have of spend operating going on we're building a can business and make a move. next wait be to steps. components in has point, we a position our track figure we to But out right healthier on thing

the Next Bank. question from line Citi Suva of from is Jim

paid the had locked reminded of investors? the pay rate in? Could Just hear. wondering, ABL, you The is changing everything to interest you you environment interest payments. great that your expense to company's update interest that that changing Or environment, does like mentioned or anything rate the are interest down just So in about is which that? we kind impact you

Yes. We -- of our debt is -- about $X debt billion of variable. our

impact and that would an changes the LIBOR worth see the of rates you our debt. billion on $X So have

are or of adding coming or can with that political is little or to bucket component some customers elections lot mentioned of us you reasons of -- product their you update shortages? kind uncertain delays, like reasons, be due up slippage you a for the or what Or a some could of some then it funding delays? bit the And road maps like can

Yes.

think of maybe planning installation there seasonality. times in combination to I concerns were and mean a materials. I it's for and really long time addition lead

think to than more All make product. had I they was maybe they people needed ordered flowing just sure this in.

have Now And and got it to seasonality. they normal put you out. install it

I on are are to You that But what's electronic might that electronics have connecting mean, would on waiting say there. components. these are some products going I

remarks. to conference for at questions like the Chuck back Treadway further would I now this time. to closing no are Mr. There turn

for your and in thank we appreciate questions. Well, call very much you your today CommScope, really and support the

today's you now disconnect. you and This participating, concludes conference may call. again for Thank