CommScope Holding (COMM) 23 Feb 232022 Q4 Earnings call transcript

Good morning, ladies and gentlemen, and welcome to the CommScope's Fourth Quarter 2022 Earnings Conference Call. [Operator Instructions]. Please note that today's conference is being recorded. I will now hand the conference over to your host, Mick McCloskey, Head of Investor Relations. Please go ahead.

you year us and thank CommScope's to and full XXXX fourth morning, for today joining discuss Good quarter results. today's Lorentzen, and on CEO; me call Treadway, Chuck With President and Kyle Executive CFO. President Vice are and

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

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

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

That I'll Thank input that targets. plan we of against team execution inflation was across everyone. Mick, deliver outlined of you, substantial streamline our and our X. Despite comprehensive costs, our good business our in our and a high actions chain CommScope challenges supply NEXT to CommScope in shortages, the throughout many to shared of XXXX. proud across and begin XXXX NEXT our execution very December I'm Slide on year, plan growth. profitable morning, set strong invest a you many against the solid of year with

and the manager Core restore model to a speaks our and to trajectory Our success challenges historical growth CommScope more line levels. be to to in ability return helped adapt with of margins these to implemented general

CommScope From revenue on prior cost a of $X.XX EBITDA of financial from year. programs perspective, billion billion, $X.XX strong resulted for increasing our sales from of consolidated X% delivered aggressive adjusted the adjusted increased prior EBITDA $X.XX CommScope execution the increased year XX% billion, in XX% $X.XX net sales the XXXX, year. Core The net full prior an the XX% of and year. core billion, of from and increase

end $X.XX core of of Importantly, NEXT our to of billion we $X.XX billion high EBITDA. met the guidepost CommScope adjusted

ratio the turn X.Xx, Additionally, where of within we targeted full range. end the from of our to we nearly leverage our a net improvement began reduced year and lower

sales million consolidated $XXX the to net increased year. adjusted X% and prior of fourth Shifting EBITDA XX% billion increased quarter, the from of $X.XX

XX% $XXX billion of meaningful in as a XX%. healthy flow $XXX during quarter. fourth free margin the our Core a as increased net fourth $X.XX And the million generation cash For year. quarter quarter sales generated half XX% adjusted we CommScope, EBITDA of in from to improvement our led increased adjusted the million for second cash was EBITDA prior EBITDA and Core expected,

efforts year. adjusted core the core EBITDA in back to record initiatives our through transformation initiatives NEXT of pricing the a of is fourth including continued across our Our testament execution performance portfolio, in CommScope our half pressures recover the quarter our inflationary to

and by segments CommScope's NICS view to the we the foundation substantial our growth CCS as Specifically, contributed future.

the declined our fourth As expected, book-to-bill quarter. in

the give long-term last of way innings. in and the fiber to as in to dialogue demand a our expect short-term However, network with remain medium- pause early as adjustment build-out and we strong long-term fundamentals this believe quarters couple strong. are and constant is customers We will

ended our over the in We continues Core business $X.X to business billion. backlog, for our year the strength evidenced at be in the feel which

over X additional For core context, XXX%. years, our grown has last backlog the

of time we a were delivered that And over book-to-bill in X full year to XXXX, was than better book-to-bill years say, in Suffice a ago. our X.X. we significantly Our position X.XX. business is

in adjusted as XXXX, to again once we we look of this billion. With guidepost billion our reaffirming EBITDA $X.X are mind, splitting to $X.XX core

growth in quarter year our year. flat third indicated full low adjusted call, EBITDA top considers for to the As our range XXXX potential the line for

than pacing XXXX, second stronger first to half And expect throughout the see a regarding half. we

impact customer inventory In we first project seasonality, the typical addition, negatively our of quarter adjustments expect and timing to year.

the I'd new year. to like about the position start call Kyle, turning to Before to talk our business

and believe CCS year, connectivity. we As fiber tailwinds are build-out cable of throughout we've at of a market we has multiyear strong indicated that last beginning the and

invested Over XX take aggressively driving CommScope have in months, to past deeper. expansion internal enable to carrier we full footprint our advantage capacity fiber of the

fully In save we for the subsidies designed innovation serve divide. to engaged labor that complexity, the government of deploy expected in and force close well installation to digital all will addition, of dollars are fruition, train positioned is And our to all reduce to time demand this come enable specifically to billions products to the engine help faster.

our We mind, and themes cabling continue with portfolio and these we strategic are in believe market. innovations in the to connectivity wins driving our design

the drive in capacity demonstrate All view participants our will we years to Digital Rural for said, growth. and And demand key technology programs and innovation the our incremental recently, investments the with opportunity come, to technology in in CCS customer more market we've like continued Fund. Opportunity continued leadership innovations,

that to fourth in quarter. the of to Again, million evidenced delivered XXXX, milestone adjusted of forward. we Turning in a the an the in and to going of important the We $XX third quarter driving EBITDA business NICS. continue trend improvement significant expect on eclipsed profitability anchoring

signs loosening XXXX. supply remain, we constraints the expect market gradual continue see to and of chip While in throughout relief

in in the of XX% produced and Additionally, $XXX revenue NICS ended with representing backlog already year million the over XXXX. over

continue in as part and invest growth segment's of to also transformational We services software recurring the initiatives.

capital slowing while ANS, muted, OWN U.S. down. may the latter present headwinds EBITDA offset their OWN, spending and deliver in includes decline our fully businesses, carrier of the may this of part In as a cost-conscious by This MOSAIC power energy contemplated overall overall level mentioned performance into Europe. solution we CommScope as as we isn't core lower gains in growth CommScope new our and innovation guidepost. Core driven some technologies. remaining be antenna XXXX, expect while in we more engine as passive potentials to the from the for revenue For share the XXXX regions such in And antennas opportunities well business, our

to the revenue position Finishing base our with ANS, we've the of a continues segment face a higher concentration networks. Yet, installed to discussed leading the us as technologies profitability edge our continue headwinds product and strong as XXXX, leader. shifts throughout of market to

recently in press in building release example of announcing XXXX. cable and milestone more X than top of another was significant our a Just to highlighted operators million shipping our leadership amplifiers

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

Chuck, results and you, Slide Thank of with on X. good overview full morning, XXXX start I'll financial an our year everyone.

in For by businesses of performance increase by year, the CommScope was consolidated ANS net reported the core a of the This an full also and growth exception driven sales $X.XX year. offset from of was in all prior X% decline with Home. billion,

headwind a or $XXX top associated includes year-over-year the FX in line with million change X% approximately of in Growth rate.

X% over net impact, grew organically. this Excluding sales

Adjusted across of adjusted billion full the prior increased occurred the segments for year EBITDA ANS. with year. XX% from all exception growth $X.XX EBITDA Consolidated of

earnings by the year. from $X.XX prior share of Adjusted per increased XX%

adjusted from annual As a the quarter, the during of reported is we excluded billion our result which testing, $X.XX calculation. a share goodwill earnings fourth impairment charge impairment per

of increase was offset For NICS in while reported a billion the year. by from led partially net sales prior significant in full Core year, of ANS. an decline Net XX% a year-over-year CommScope increase and $X.XX the by followed by OWN, sales CCS, growth

EBITDA year NICS a end of from in adjusted billion, in full the growth ANS. partially was by year of our Core OWN, by sales, to decline was CCS, for adjusted $X.XX range and high an full the offset while net and year expected increases Similar prior at for driven EBITDA the XXXX. XX% core being increase the

Slide on X. results quarter fourth our to Turning

CommScope NICS quarter, OWN ANS increase partially X% was offset fourth sales Home. growth and reported in billion, declines net by the $X.XX the from of and Net consolidated sales businesses, driven CCS, For our prior year. of an by

$XX For year-over-year FX negatively net by rates sales impacted in X%. or the million change quarter, the

this Excluding quarter impact, fourth net X% organically. sales grew

XX% from increased sales strength of CCS, prior driven Adjusted the year, CCS million year, adjusted approximately increased quarter year. the from prior NICS CommScope XX% increased in per the by growth by and Core in EBITDA and ANS. share of billion earnings of net the prior $X.XX $XXX driven by NICS. Fourth from $X.XX XX%

and strong NICS. XX% of adjusted prior from increased $XXX in EBITDA year, performance Core CCS driven by the million

our times. through second As half and enhancements expected begun we manageable our conditions chain XXXX, backlog as more stabilize, continue work the supply levels throughout have significantly have of to and reduced lead to capacity to indicated

chain as related to the meaningful supply to In adjusting and again time, a quarter, of earlier, we quarter during reduction primarily order customers levels. fourth the end at input addition third the in inventory saw Chuck lead and mentioned

persist We early parts of into expect the this to XXXX.

visibility certain Our limited in remains short-term products.

up by our the half optimism with base. and where In our second backlog in XXX% fastest-growing years. was XXX% $X.X the NICS, with our X constant Our Core year ended above for customer it and beyond strength businesses, for over ending dialogue XXXX. billion, $X.X CommScope began billion is quarter the the backlog, of driven in XXXX CCS last combined

However, book-to-bill as for the the expected, a quarter Core fourth yielded slowdown of quarter during X.XX orders fourth CommScope. in

EBITDA range mentioned, to of deliver our previously Chuck these been billion. adjusted incorporated rates $X.XX core to expectation the have lower order within billion into full XXXX $X.X year As

the be Despite we year-over-year the on to adjusted to sequential decline, decline strong sequentially and more expect half the XXXX. performance. core to would basis, improvement adjusted sales net half than in a a to sequential in EBITDA would the Core first expect seasonal And of see quarter, a from we the down however, business. Looking typical XXXX, expect significant first second to the we similar improvement EBITDA

quarter XX% Slide $XXX XX%. quarter fiber grew once XX% year fiber segment growth drove net sales the segment with across Fourth Turning products of in from prior the And the entire performance, the XXXX, increased X. on fiber Starting highlights again full year. CCS, increasing for to our portfolio. fourth million

basis, within million segment business on basis operational mainly and sequential CCS delays. third year-over-year call, As XX% project we adjusted weakness as cable our $XXX increased and attributable indicated inventory the our and EBITDA in of and distributor to quarter benefited from builds a structured price grew channels volume, copper on saw efficiencies.

channel. the Looking XXXX, we basis a to addition CCS in by a adjustments improve be the expect full expect in we the growth pricing. year-over-year impact inflation-related and of year to down forward continued driven seasonality given inventory quarter, Sequentially, in on the continued business into to market first typical

again earlier, on and as growth bullish customer million growth. NICS' net from once Chuck well chip Ruckus, NICS with significantly of of year-on-year prior the sequentially, Despite as $XXX However, price. CCS as conversations mentioned, the of by and mentioned NICS. backlog by delivering in constraints, led as XX% remain sales another year, exiting we million are long-term And $XXX medium- growing record revenue. year was quarter volume grew driven

continue impact chip improving Although constraints the to in semiconductor business will XXXX.

million offerings. challenging increased the NICS' execution chip product is year. This of the successful in $XX supply by and continuing adjusted EBITDA all future to environment, of representative strong the performance $XX while the million team's prior invest from

onetime Additionally, forward. we that expect the included going fourth to to occur quarter do profitability not benefits performance

investment maintain to of In EBITDA, expect to also availability addition a healthy R&D. level chip impacting in we

related OWN $XX specific in net million million to OWN driven EBITDA XX% a OWN declined year, $XX million bad the adjusted customer. sales from primarily in from year. to of by decline prior XX% volume, addition charge of prior $XXX one debt the declined

our discussed primarily by Offset, decline That antenna indicated, capital quarters, reduction American position North headwinds expected previously driven the This the anticipated such year. in view with OWN's for the to new solution. single-digit as OWN is in MOSAIC product presents some long-term as low that extent, line opportunity expenditures. throughout operator to top innovations said, growth. XXXX As we the few having will last

outcome potential guideposts. in this year adjusted that been EBITDA our previously highlight contemplated XXXX core to has important also It's full

$XX net negative discussed impact business, at ANS approximately our of $XXX operator driven spend in prior previous edge, EBITDA from XX% the declined by million, shifting in the year, million Technologies. primarily driven year In the by from length to the of sales of increased calls. mix X% growth prior Access Adjusted

the the from projects as represents of fourth the performance third license the and sequentially However, purchases expected, given timing software mix quarter quarter. the at better end quarter, certain of

lower-margin EBITDA year margins, line tabs. products For edge would expect concentration amplifiers ANS, to and adjusted full margins reflecting XXXX higher we be of XXXX a nodes, such EBITDA in with as

the and we addition, segment expect impact In product the on sequential the project during to a quarter. of benefit not mix first higher-margin timing same basis, would

million, up and the year, broadband $XX Finishing video highlights given our Adjusted prior Home declined sales volume. across of by Networks. XX% from the Home net million and both declined weak $XXX million $X with EBITDA of driven segment businesses lower primarily demand. year prior negative from

While full weak year. XXXX, weighted to demand year be we the performance will given profitable of Home first expect second during Networks adjustments. the significantly for customer inventory will with profitability challenged and the of expectation the remain to Home likely the be half improvements quarter

from the separate maintain to in belief the Core CommScope. Home We strategic rationale

performance, which multiple transformation focus will to take continue we However, on implementing to quarters. their improve initiatives current

to X an Slide update Turning cash flow. for on

that operations, flow in growth. adjusted our cash flow fourth prior a $XXX was We supply by driven allowed chain Cash quarter million call, strong generation. substantial EBITDA million quarter. of quarter the in cash cash conditions cash generated flow fourth free million the improvement $XXX free during our fourth on inventory and As to indicated approximately improving moderate us delivered during of flow the from $XXX

cash As this million, flow full our earnings free $XXX prior and drove a significant generation $XXX flow $XX respectively. result, year cash million, from positive cash cash also million free on with to and calls, adjusted indicated operations,

cash while forward, second is full use annual start timing quarter incentive we meaningful to improved year because interest-paying payouts. the historically highest our you is I'd year. it XXXX, remind the generate that flow for the quarter specifically Looking the and our a of first significant expect of cash to

As of a conversion to cash. free to during EBITDA our million the contemplates expect XXXX of we normalized flow quarter, for year. deliver $XXX more we cash would fourth indicated the guidepost the This midpoint $XXX for EBITDA million of to

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

Total liquidity quarter. cash for notably strong was liquidity global $X.XX improved million quarter, quarter XX% the fourth our from generation cash We $XXX prior the improvement in the During cash. with overall ended the position. quarter a billion, and

during was Other amortization. the which our disclosed outside release, required the our made of ABL a quarter, million the previously repayment, full position ABL we made the debt full million quarter term of the end As loan no $XXX October. in repayment revolver drawn $X of of reflects third prior on than this cash incremental at repayments late

end for a provided leverage lower with of full The X.Xx from the to net prior also company within full ended the quarter and of turn of year-end range end improvement X.Xx, quarter prior XXXX. year X.Xx nearly the the of previous our X.Xx

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

in core on Kyle. Throughout shareholder strong ratio now on to and you, enhanced to an demonstrated environment delivered Thank net extremely on our CommScope reduce X. previous our value right our grow XXXX, path I'm Slide execution profitability, has us creation. put commitments dynamic and leverage the

highly economic current operate that in The is today environment we uncertain.

are EBITDA company the economic to XXXX year and NEXT Despite mentioned the flat customers this midpoint with that conversations deliver and foundation morning, year-on-year to a $X.X in our and to Kyle significant value. line adjusted our strong our billion initiatives reaffirming growth. uncertain continue of about XXXX backlog start as for I full expectations to the backlog year remarks prepared The $X.XX of CommScope during grow assumes the billion. we based environment, range near-term provide core relatively believe on to our have top However, range position, and create our this we

and our future. to visibility, to line innovation restored throughout our including growth, driving in accountability margins levels, growth general in captured organic a to in efficiencies continue with and manager and the invest historical fuel capacity enhance core implemented our invested organization We've model expansions,

progress combined adjusted CCS in their $XXX are combined of testament net XX% and million. improvement a to sales year-over-year NICS the we've made XXXX, and given EBITDA growth

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

of with And of from [Operator Liani coming question America. line Bank our the Tal Instructions]. first

have I two questions.

gave is your can a be half? first is better slowing What is, debt about over plan? is of for about second target The your are kind your you the service on and plan? your of ago know First to this plans providers, guidance you year speak where majority market are seeing we also orders. And CapEx second going reduction about for the half which and just you we is that gives you than comments confidence go

question Chuck second Okay. I'll the and can get first the one. take

debt, cash start think of prepared and be to our the we about incentive we I mean is QX the as de-levering as I our we as our as quarter. generating think interest on made and we said continue of with -- a cash dealing focused remarks, Just use we payment in plans higher

finalize as And year, think to move be just intent but committed We technical plan a now, plan is moving quarter. as using have we second to I de-lever. as to the we continue generate we the detailed start into continue the the we the necessarily to through the we'll cash. de-lever to cash don't

I the low and stronger into saying and take our second half a I'll the billion will saying, built to billion growth model. second our confidence to we in $X.X $X.X billion, $X.XX that is $X.XX strength, Liani, Tal confidence would achieve point, question the to start than the the your billion our by first. be in

CommScope backlog have is thing and with we of second billion $X.X The significant NEXT. progress

are long seems that coming 'XX. do inventory with have see already and that everybody I'd delays through initiatives have new well longer just the -- place by this through we're conversations have that of full rate remains project term. those in, medium, to be adjustments, 'XX flowing but everyone close bullish, our in They constant get initiatives customers run to term. bullish initiatives we And saying in we'll in are as We as in and

The -- billion, be Yes. assuming the our we into that growth -- for within that as comment well on $X.XX us that get only is than $X.X on little of be our as thing that the we're sort billion achieve feel our And think the we very built less EBITDA, I model. that about still guidepost Chuck of sort comfortable book-to-bill flattish is book-to-bill midpoint to model, when we would we mentioned, have could to guidepost. X that to the of going in we the actually could year, to would that X.X, and in range,

Instructions]. our with next And Suisse. line [Operator from question Cross of Credit coming the Shannon

wondering, out your government Good like feel of to to little And a coming? ago, funding is the follow-up. you I'm be? still quarter relative some maybe to As thoughts I thought is pushed would it X are timing all or regarding do Or your talk you speak of with a bit? you. you progressing how the partners, it have a then maybe where that's

the it in as starting we're level thought level or in that still the where innings. the to state the say federal allocated funds be. be constant But would would are early timing would a we flowing. I is already say still we're and both I dialogue, at

good actually we pretty shape. think So that, that's in

the of regard capital, as as How inventory timing through? are generator a ongoing constraints Okay. to significant of just and that you year forward, look given thinking Great. still And about working is capital? maybe it about you supply think then you generation cash coming this working and with

inventory about past, don't for a in I side levels supply will mentioned from is challenged, bit the still expect coming on feel the particularly although the a we in We we to as think of constraints, chip inventory. it reduction think us higher XXXX, we have like as resulted think we've the be to little really in see environment a lot flow and improved. be cash going chip clearly,

although, supply there yet a I we're little in seeing still said, what from we're better, a think not as chips, I based on challenges bit challenged. continued

conservative Okay. like in done a It you've to given outlook 'XX. pretty 'XX have seems what you

I model our is I wouldn't model. comment on our that. mean

Advisors. question next Steven our the from Fox And coming line of Instructions]. with [Operator Fox

questions. two had I

just First all, full underway that I you benefit destiny initiatives. you this how guidance have new Chuck, the disappoint your given much that wondering you mentioned there's you with projects further help I of have years know should I may year? then And lot of I'm know in get in the then that would beyond of outlook slightly could a think sort that control you you be of a flattish sales follow-up. XXXX the also and projects.

where everybody period. pretty mentioned, we feel kind confident Kyle feel which through we in, And X.X mentioned, cover book-to-bill, And if the to have just -- Steve. mid- Yes. we then enough remains this I get we'll I that good as are, X.X, as adjustment to backlog bullish long-term. of feels

the mean, initiatives, had cut CommScope place. save this this again, waste, of taking they're really I'm running of confident and year. we've to an where we opportunities We've with more to -- disruptions. for I is seeing I just billion $X.X not is starting of lot Frankly, year. thought a to initiative something is $X.XX remain the It's terms I further money use growth. dealt opportunities than billion. to program this. now we we're really initiatives the in been lot team but we'd And a this here In put find for just find of proud in to -- what a be ahead to And team taking

you lead And terms changed look of That's can competitor in has you're us fiber of just that Great. own vis-a-vis where anything largest expansion and of we impacting then sort times stuff helpful. cable at just on like plans, in your and that? terms update your at, how

installed and faster we grow us than installed question else I capacity believe Yes. we appreciate to really the than everyone I the market. that allowed because earlier that

market believe ship in were others that because our lot than backlog book-to-bill out to also more we able than of many on the think in higher a segments. I impact and those our has I -- an growth

we are. and good feel I again, -- about where our so guidepost And

Leopold James. And the next Raymond from coming Simon line our Instructions]. of [Operator with question

a and you quick the network the on follow-up. insight get you this guys? imagine then want speak announced that's you I've trying bit to good trends, great, implications. lucky a And how opportunities generically a the large I'm in back had to December. impact be sensitive, Charter view to Charter love strategy might upgrade cable And really but of I but a gain if about And got sense for

As you would think that we're in the market-leading focused bids. to whichever you on way whichever opportunities new involved well maintaining whether MACPHY, the expect, leader support go. in and customers as with here constant go we're products. customers moves not or about But they most, a to with mention support about all, mean, them we're going we're dialogue amplifiers I And specific those as and we're going or the our products. announced new Obviously, we to nodes, and not that's hardware more edge, we're virtual customers, that PHY, And space, comment position as with this as our aware, I path the in the to if they network EXXXX, CMTS you're go, our products. Remote with Remote would

leave I'd how that's So it.

wanted Okay. And up. then just follow I to

versus the guess to which I'm segments, segments, you of there December, are On some margin quantifying I quarter really jumps. what like some better have outperformance big of want taken you may some to But must the trying gross that really sustainable. not discuss the those. something for the for I September. drove gross does in pretty had look sequential It of a number segments sense get when make elements improvement a in or sure fourth mentioned, performance be your I'm margin

Yes.

our many of inflation. through we EBITDA in year. as as been XXXX, businesses, sequentially, the improvement clearly, through went So -- have as saw in offset changes we price sequentially to quarter implemented We we an the

margin quarter, to our As gross the is about has NICS gross we -- business in helpful as us think basis, that's performance a higher been of on segments. that the margin one the fourth a

the improvement helps the trend had result I a us sort which all through clearly of generating So NICS I then a it's standpoint. mean price of from in think business, And increases. again our margin a businesses we strong

next line with And of our coming Niknam Matthew the question from Bank. Deutsche

Core want if my backlog. it By can you I'm just looks total OWN, math, just orders share trends back any the then go quarter. revenue wondering backlog, of trend there's continues, to would terms this in I $X especially on continuing? was segment for billion these long roughly curious anticipate trend for here, the backlog for you'd depressed to And and down just 'XX? the additional how And this business. if here in Core how color margins like

Yes. Yes.

And clearly, indicated as book-to-bill to So previous backlog we've that brought calls, our backlog we our side, as on the where capacity was. come on. right, made think expected I we've we comments in down,

were expect I that be because normalized get chains as go in whereas our and backlog Customers lead times. about come don't down as need comes -- multi-month times to continue line I think we'd I improve. don't to seen us. get and our And honest capacity just levels So out with talking weeks, we are lead XXXX, you, to that -- our supply that better times reduction to the think we've they now more is to earlier lead not something online and is surprising in to

So think I on that's the that's question, our there. backlog answer

the we're on spend we'll impact reduction that seeing North I see We'll has they continue and 'XX. monitor 'XX in carrier move an in side, into that think as to us. a on American the OWN clearly, that

are our remarks, the share think with we're that I antenna. more going working that, as new after our comments products prepared aggressively to some of solutions in MOSAIC we as made I offsetting We're that increase antenna market on we to offset think energy think efficient. opportunities about

even the with spend the carrier think we also in are in launching. new that I reduction products North we're some combating America, though we of see So that some

just backlog. supply to the follow numbers at the before normalized you obviously We pick . issues sort real chain follow of that of could that end total can sort in quick really XXXX I is billion-ish these the number a sort up be of like a a of of were If up? it. But Got to $X on Core you assumed began lot provided

of XXXX, billion. the end $X.X At our was about backlog

an Just you to of give magnitude. order

And correct? that's the Core business,

for Core. was That

the next Morgan with line Stanley. our from coming And question of

This is Karan Juvekar on for Meta.

I to segment. So on just wanted NICS the touch

commentary chain Just idea pipeline resolving little how resolution? then do how And how get is appreciate of it of your of a a to there? to generally, you there come -- sort quick and -- And I sort pipeline wanted has But bit closer have just year? the there? I generally, of And maybe to And demand supply looking is I a the expect how follow-up. the trend slowdown. an across

Yes.

terms So chain, waiting of the and really to supply I million, I'm cases seeing engineering say not product on X substitutions, NICS, very for slowdown. for really, when which in looking in in ahead of quick we that of ship loosening in would for some be just get teams, They're the proud we're things our and testing that about. just be up. curve still extra for, you are which but encouraging parts specifically the available. of this the management in I procurement and and -- piece and redesigns would would And mean we're to is backlog most happy thing well. parts, I We're could we go get demand design $XXX say are me that really and

try very more they have in if early now. right the to strong have ongoing fact, many of them and parts mean, we them places In help interest there's projects with getting I are, in the we still do

about good feel that we So business.

are come are of then of the Or increases. there And some a Or increases? price just price as any getting so in pushback? increases have come still it. commodity are updated any the Got in? I in on prices price holding those generally know Okay. just sort prices there -- of around some you have follow-up thoughts -- any

Well, have some price, terms are we I of I where are. -- say in would costs for I we terms say have down. constant just about talk let's would actually a of gone our costs costs in mean minute. pretty that

flat. We more gone But I'd overall, have up. have we're some costs that say,

are we and Kyle? with terms increases about if we to hearing our pricing. In still the anything about don't add feel good I we're of know you'd on where that in there's marketplace, going price

level -- that there No. inflation to are curve, some there's that significant I things that the our other we though Chuck input we down, seen, things are we the also think as high, I think a haven't mean costs as I are feel roll are we on net up basis, that. a like point, still And think even and up. in of change about

So costs where pricing the -- with think our to line like be. feel input is I we continue in our

That's Okay. Got helpful. it.

Tim And from coming our line Capital. Northland question with next the of Savageaux

little a question front Simon's without on up large on the follow opportunities. to and on specifically bit wanted ANS very commenting upgrade Just

next think expectation potential. margins into continue you I mentioned growth would ANS? year. mean overall I for an for double I expectations ANS you if that Can you discussed us EBITDA the QX. grew kind in growth what year? don't know Or you digits flat in in give of

Yes.

as moving to to in it as I parts maybe we mean to a lower relative back the growth think I still business business that, and we the from goes a lot that business, business of NICS. talked end going CCS I Day that is think edge. think Investor there's head our in

that I mean So in 'XX line least our -- be overall a of at growth, don't guide, it business. flat line expect growth. low is we think feel to top probably in which like I mean, in with I we lot

coming next question the Daryanani of Amit line from Evercore our from ISI. And

I well. have X as

little stack hoping flow 'XX. was could by about number up bit talk million. spend about I in you how going of EBITDA million versus free $XXX cash First, in you time the more you up know do talking do maybe a I $XXX

what any can into So think Is about number? flow think talk flow can those do a free you that of percentage cash you or that range there give do lot we you as maybe on QX 'XX also being outlined. negative free cash helpful. Last I flow you hold was be think And reasons really on negative. we all recall, for then I the that would I year, QX

HX negative, we any numbers cash of then really HX any you being the more and of positive quantify rate 'XX could should be would think So helpful. free flow

Yes.

we is of QX, for flow in semiconductor million be the in we inventory than a remarks, last the will talked free prepared QX, as -- to the cash by year, QX impacted normal lower particularly some a trend which our million projection range. and the And number builds is our talked in from about, chips. is the So we about was issues normal QX had, $XXX chain 'XX that driven supply $XXX

a helpful. of that versus much just I'm to to missed segments is I versus EBITDA it. benefits I going about Is growth way EBITDA kind segment we're driven the on think I that about a revenue-driven there how which from get of perspective levers uplift of Got margin, from you. of maybe color self-help if any disclosure be for talking or and how right, is think from just And EBITDA CommScope 'XX NICS think clearly. higher dollars one there mix year-over-year, is to would sense for that then much $XXX of is the versus the this grow 'XX like about, is million by self-help in tailwinds a of trying NEXT? numbers

a like better we've other be OWN think have to CommScope the actions to built think guidepost, of anything, some and and that our 'XX, 'XX ones of it's minute, I blend undertaken, the going think we I the guideposts some full to 'XX, impacted we like about, that carrier flattish revenue in we've we've that, think some it's "Hey, it's into of the to on by from things a feel low Yes. did 'XX of provided growth you just is And then rate segment call run do I not in those the band. NEXT in talked year businesses our opportunities. growth spend." we've And we're the about within that fact about context going when that the that the

in that, 'XX. actions helping now net-net, NEXT, specific of So starting businesses from we and are taking number, by impact you it's of that up. yes, number we're 'XX should overall driven get to think a to which not And think to the what's being we're flat, some the EBITDA that the I when full about but there's that are but improved CommScope going be some about, there's is some down think -- have year taken in 'XX,

now remarks. closing for back call over to any the turn Mr. Treadway will I Chuck

your Well, everyone and support I has would Thank rest CommScope, in I the like to interest a everyone week. you. hope and great of for thank

Ladies and gentlemen, that does conclude your our conference for for today. Thank participation. you

disconnect. now may You