CommScope Holding (COMM) 29 Feb 242023 Q4 Earnings call transcript

Good day, and thank you for standing by. Welcome to CommScope's 2023 Full Year and Fourth Quarter Results Conference Call. [Operator Instructions] Please be advised today's conference is being recorded. I would like to hand the conference over to your speaker today, Massimo DiSabato, Vice President 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. Vice on Chuck DiSabato, and Vice President and Massimo President Relations Executive Investor I'm CFO. for Kyle with Lorentzen, me President today's Treadway, are and call and CEO; of CommScope,

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

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

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

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

Massimo. morning, on Thank beginning you, Good everyone. X. Slide be I'll

significant and under details since be our quarter, getting the The as I business continues our of low. of to our changes Before current last into want demand to state address business remains call. pressure

visibility occur. to have will minimal We when to recovery a continue

unexpected NICS we in businesses. quarter, our experienced also pressure downward the During significant and

challenges. are our dealing position a in where are We of all segments with demand market now

half in segment, difficult expect we a our and quarter. we OWN first seen first in Although demand specifically some uptick very have slight and CCS

net to of than We EBITDA expect delivered range of and Starting year. on core prior adjusted results, in our The from decreasing the with resulted the substantially revenue annual meeting revenue quarter $X.XX billion EBITDA adjusted year, fourth core our lower adjusted CommScope of XX% XX% billion the decrease EBITDA from sales billion, $X.XX prior in of decline be $X.XX $X.XX quarter core the a call. provided last XXXX. provided billion, to previously first

quarter. the and of EBITDA the CommScope fourth sales $X.XX $XXX fourth of core billion million to of core delivered net quarter adjusted XXXX. Shifting for

lower Our to customer fourth buildup. by quarter continued and impacted customer market larger-than-expected by driven lower orders demand be inventory

As in control. we past I've mentioned to can calls, control we continue what

for new capacity businesses meet We are as well in place our the market as our of leader most product capacity demand demand. future positions with offerings us in This to does expected well recover. the when

as structure, In including are third of our to annual take cost. we $XXX cost quarter our addition, managing out call, million plan a referenced in

Now I'd like you to on our an each of update businesses. give

strong spending CCS XXXX and continued driven previous networks in indicated tailwinds, expected centers. XXXX start late in including commitments has by data calls, build-out fiber significant we As to market long-term and into of

this as of as XXXX stronger normalized these upticks have us growth. indicators some I potentially don't second are of declare to ready but we're inventory recovery, evidence inconsistent We small think levels. in the a of small customers in but rates some lines half product and reaching to some order beginning a return seen give

solutions developed with architectures needs the enterprise are the in building America broadband Buy products as by supporting to America customers. of focus and also business investments, our CCS center Outside States we helping our connectivity, and United developments Build encouraged BABA. we meet known broadband the data broadband of As focused reliable a otherwise of turn portion or our our requirements of rural of series on customers the have objectives connecting our we meeting

data of aware, on and cloud the is centers. momentum are side you AI occurring significant As

and cloud hyperscale We in in have also AI a with business seen result customers. supporting Gen key investments as our projects boost a

of in products advantage in to positioned we take are new and market. As we this technologies, well growth invest

products of There found tailwinds CCS we can cable is we this a to still our with we solutions. also new structured our have degree. will It's In efficiency. We remain looking side. and in-building on some timing in recover. are to We new value momentum long-term with for continue additional our SYSTIMAX be the our CCS aggressive of that CCS, opportunities the drive cost market. a offering on position result drive as solutions, just cost innovation bullish structure, at of strong matter and X.X market

standout to RUCKUS introduce a market market. One business fourth point. enterprise-grade to solutions RUCKUS doubled of worked one had products to and slower-than-predicted and quarter. the NICS. attach solutions. was rate The The the to team team Turning first RUCKUS X new access Wi-Fi our year even new of after nearly the hard and The the extremely AI the

$XXX up year prior adjusted full year. in Our of million $XXX NICS XXXX million over is EBITDA

improvement has the this initiatives in NEXT CommScope supported Our program business.

of continue done We are for the not SaaS. to investing incremental we next every aspect and solutions in this of product generation including evaluate opportunities, business as

access Our contributing phases. the also the suite technology to products Wi-Fi RUCKUS and new One refresh that in early X point enterprise class is are

led by Our XG business DAS in-building the business also ICM was supported the NICS strong by providing connectivity. performance

in we NICS substantial much significantly inventory too declined by segment severe our the is The more short-term the quarter, what than indicators said, and RUCKUS this expected and under our and of driven specifically pressure adjustment level is demand. much slower demand as last had identified. in demand leading that With system

to future remains our being funnel Although strong, are purchasing decisions pushed periods.

XXXX as of we U.S. our to decline decline overall from saw fourth key the demand a inventories OWN, results of lower reset. drivers RUCKUS The throughout and a quarter as demand this for the first the reduced product will contributor calls, in carrier quarter in demand capital be of of continue sequential expect the XXXX. adjusted In mentioned previous to XXXX We first year spend. will the half

remains As with CCS, visibility limited.

some early in quarter the quarter, have During recovery order in rates. seen we fourth and first slight the

are recovery, a calling it start. but this is a We not

on look but we XXXX what similar will will and we are previously continue expect we can Based with as in stated, on what be control half when customers ready support a continue that XXXX, with they conversations our XXXX second of stronger challenging be focus to a to year. Again, we'll would our customers, to year. the We ready. to saw

commercialize In addition, and develop we continue to products. new

increased are We past solution have discussed seeing the the around world. in the MOSAIC antenna and traction

are new and when well antenna seed have positioned market We benefit in a the will CCS, we delivering greater introduced at power we like our efficiency we fixed recovers. station solution aimed like XX% base level. in are Again, market feel the at also

amplifiers, and ANS, discussed, Finishing for transition RMD OLTs leading segment this and pump. remote successful with products, in modules RPD to as a edge-related we've XXXX, a has of node including nodes, supplier made

products We of have while support done multiple this continuing CMTS across large installed architectures. to base our

our first headway made CMTS paid with transitional the amplifier, and introduced We the DOCSIS FDX to virtual path solution architecture. X.X

X with Enhanced to DOCSIS the second of We services solution, gigabits our enhanced between operators enabling X and also through per EXXXX CPE, launched X.X in-home offer along software. DOCSIS use new

CMTS, XXXX. in likely upgrades, and DOCSIS DOCSIS the and we underway bullish virtual both have part MSOs. see momentum increased will major On on trials with are X.X latter X.XE of we We

larger-than-expected our customers shipments as in adjusted the and with were their quarter, to faced However, expected, inventory. inventory rightsize

projects. announced ramps have customers on our upgrade of DOCSIS X.X some slower-than-expected their addition, In

will ideal is We from not that structure. negatively This of quarter the of as key in to few quarter market first result we the and capital challenging impact two to these a XXXX. overall issues, XXXX order will rates be fourth our understand impacted conditions contributor and the revenues our decline of message be through As quarters. the a navigate first and sequential

The of continues to We that a be are well recovery and timing intensity and uncertain. market recovery positioned recovery will for a occur.

have competitors. structure, we our incorrect. for Although demand manage capital In has evaluate and with in market projections and projections, continue data we as customers and what and The is are we we regular will most to us continue cases, optimal difficult dialogue drivers can. been control uncertainty to cash and been not understanding our

talk about like over fourth with that, results. things Kyle our quarter to more turn I'd And to to

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

segments being with decrease Adjusted of now by from with to the the declined decline exception noted as $X.XX reported a EBITDA all reported that driven exception performance a businesses transaction, NICS. XX% prior $XXX full Adjusted decreased year. should year. of million NICS. This due year, decreased sales is discontinued XX% the of prior of was operations. Consolidated share from XX% prior For across billion, net by Home the all consolidated from year in the year. for full be CommScope of $X.XX per Home earnings the of It adjusted EBITDA the

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

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

we ANS by full year full EBITDA decline Similar XXXX billion, $X.XX net for partially driven core with increase provided a and adjusted EBITDA the of was quarter an from CCS, XX% the was decreases range that prior call. offset being by our NICS. to in and Core for the OWN year in sales, expected our decrease in third adjusted year while

X. Slide to turning Now

to quarter, CommScope net reported and Adjusted decrease some their overall billion, including experienced We pushing by in of continuing demand. the by share. spend per upgrades. network revenue to segments. of million $XXX all fourth consolidated our $X.XX negative decreased Adjusted continue inventory a driven EPS declines prior sales the out lower manage XX% of capital driven year, For customers by $X.XXX from was market XX%. EBITDA lower manage Customers

prior of CommScope, adjusted million $XXX XX% net sales XX%. the from $X.XXX EBITDA core decreased and year declined billion of For

of back we levels. backlog experienced decrease all CommScope quarter have orders, lower a of the we core to billion, backlog decrease and versus normalized XX% at end businesses, the quarter. In As ended of $X.XXX to are the our third continued

backlogs, rates revenue as be we driver of XXXX. As move normalized a result direct the going to order are of into the

of quarter to rates during decrease primarily of to net historical on the of million rates prior levels. from segment adjusted a $XXX these quarter, saw the highlights revenue. was XX% still the from low However, EBITDA in X. CCS, now by Starting order We year. our increases relative order million remain the $XX decreased some year, prior sales Slide slight Turning drop driven fourth in CCS with XX%

remain that of quarter visibility, we of the expect profile on realized XXXX. conversations Based CCS in growth, we customer on current long-term uncertain. the CCS first quarter medium- to remains fourth Although XXXX the EBITDA very and bullish short-term lower in see demand

RUCKUS XXXX supply and we chain adjusted through improvement revenue. led is digest prior of order expect quarter decreased million. way and have of This primarily NICS rates prior we of decreased by net to From as rates EBITDA constraints year. backlog, second the adjusted $XX business year, return decreasing out million $XX perspective, as XX% sales and the In NICS RUCKUS, fourth decline inventory. an the in The is X%. million worked $XXX of in year the of XX% XXXX. RUCKUS channel a versus full unit EBITDA order $XXX $XXX decreased the million segment change declined XXXX. product partners situation, have from of half NICS a versus ICN million driven XX% release by temporary

Based customers are to however, our strong RUCKUS our latest pushing indicators market decline on leading continued information, in will point of XXXX. other demand All out. the products, demand market for

the about continue continued to positioned Wi-Fi our specifically long X One to that take We and our RUCKUS term. product in are medium we and market development excited feel are share well We products.

Overall, the NICS, on first EBITDA XXXX significant in fourth expect quarter XXXX. we of in versus the of adjusted pressure quarter

did market from in Similar in expecting indicated XXXX units. net CCS, of second built that business the quarters and third across $XXX the customers decreased million the second half XX% majority the sales However, we of stronger and of the materialize. are the prior half a not of a XXXX. second inventory OWN to as recovery digests year

segment this new to inflated visibility. limit soft Demand and are builds continue down remained inventories. with in Customers limited working

we in one related Although had XXXX, of OWN adjusted pickup aggressively OWN million order quarter EBITDA bad XXXX, have to fourth early we declined we debt OWN Recall, XX% some $XX $XX of million managed in prior a year. specific customer. seen from the charge In have costs, rates. the

was ANS and revenue $XX in customer ANS of year adjusted with quarter adjusted the line delays. expect XX% revenue. quarter down XX% of from $XX We EBITDA from by to lower year adjustment million be XXXX. $XXX sales first inventory net the project EBITDA decreased due driven million fourth and or prior to prior million

as revenues. ANS several lowering our continues of an with a previous This order significant Also, we take upgrades. adjustments on to the to challenges, customers itself the levels about higher impact timing these approached and us first had impact the dealt short-term quarter to of advantage mentioned upgrade rates inventory of XXXX. DOCSIS on expect X.X our large half have on delayed calls, As on Despite cycle. fourth position they

that We are the products modules from nodes, can only and all CMTS, supplier supply virtual CMTS. amplifiers, including the

challenging our the Finally, during feel best home progress We business XXXX. a that on is market. shareholders. in Vantiva this outcome and the best for positions We made our for this combination finalized January the quarter, customers the of we to feel in early divestiture success business

us scale of will the will two advantage to as well the ownership take of substantial combination in Our synergies deliver. businesses allow as combined Vantiva the position the

were sales by decreased net the as onetime and to demand. million from result sale. prior negative across prior $X $XXX Home from versus negative units, year, a XX% lower inventory million of the customer a business of related Home charge all adjustments declining $XX million year adjusted essentially EBITDA driven

to X an for flow. on Slide update cash Turning

from During the operations $XX generated cash quarter, we million. of

continue inventory. to We reduce

discussed, in revenue inventory chain XXXX monetize supply excess ability the still driven $XXX delays $XXX range the million, provided challenges, EBITDA -- holding As flow previously the by the and constraints inventory. as delivered quarter excess Despite our this $XXX the and declines, above XXXX XXXX call. we cash was revenue million to it third million adjusted on earnings we free of are which

incentive cash historically, quarter. Based in quarter a by cash cash going high is significant are quarter to EBITDA that and on a payment our significant interest the not in flow would we with lack the coupled of of is visibility, This, first cash providing of with quarter first highlight guideposts. use result a I payouts. lower driven use

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

$XXX quarter, During cash fourth We cash million liquidity in the ended our of and strong. billion. $X.X with quarter over remained liquidity cash global total available the and and

ABL and During increased should liquidity early our $XX approximately $XXX the not we draw our our We million on the cash revolver by did no the home lost quarter balance. the ended It be million. we quarter of ABL on quarter, therefore, during XXXX. that outstanding balance in with fourth noted with divestiture

million. quarter, fourth cash $XX repurchased XXXX. program the buyback the X.XXX% of $XXX XXXX, continued beginning $XX due we repurchased add our to and of and we million debt. million more notes repurchased debt the the of execute notes have debt our Since million $XXX senior In long-term X.XX% for To million considerations we in senior of of of detail, XXXX $XX

with of also paid company During required X.X%. term of the $X we ratio The loan million the quarter, ended quarter the amortization. leverage net

to opportunistically our of back structure. use the intend buy Going forward, we cash breadth securities capital across to

I lack conclude commentary visibility updated with for expectations some are of where the XXXX. our recovery, around posts. a Based Slide to guide my we will market providing not turning X, on now annual remarks to I'm prepared

adjusting as inventory current our rates to low first to Our and as quarter lower quarter perspective. the upgrades. EBITDA cash indicates large are from are with order a a remain very challenged customers revenue, of continues demand. ANS market we and adjusted many difficult be historically delaying dealing Visibility

significant in partners a of the as from saw we reset channel XXXX. NICS middle demand backlog of our release

the some magnitude was we length this RUCKUS and Although unexpected. backlog release, expect impact the of adjustment of

products. to strong indicators continue for leading point RUCKUS demand Our to

than the However, this seen pushing past. aggressively out customers are in have more we demand

dealing with are businesses depressed our of demand. All

$XXX revenue expect in on customers, range. be in year. of result these of adjusted the Based half second million quarter with a a conversations first see the our challenges, we million to to $XXX EBITDA As will the pickup

and CCS We have seen rates. some in order increase OWN

too however, state XXXX in Although the returning. to be EBITDA be provide we than staying significantly To should indication cash increases, and it EBITDA lower be flow second it obvious, don't to early flow. a determine recovery of these the is that see cash may XXXX for power adjusted we adjusted meaningful half, does demand and prepared some if the

a In and recession. are we telecom, in passive cable hardware summary,

lack will mentioned customer current into Even The the customer the position what previously, remains question is build As uncertain. despite the the short-term of recover, visibility and at plans remain with inventories, challenge some visibility. market when level.

We and are long-term still on medium- growth. bullish

However, short-term challenges are significant.

drive cost this on prior continue action our control including call. of be of reductions million control, discussed annual we to $XXX the well have the already We what taken, With demand, to positioned we the cost and cost recovery strong we actions on should can profitability. implementing

like to upcoming our specifically maturities. would I capital Finally, and structure our address

well be. to successful continue evaluate profit was We address have we thus revenue how divestitures given impacts to certain it on negative In plans market including potential and of of divestiture the implications on elements we sense us. capital sales structure. to previous recession the our far those achieving to as deep surprisingly, strategic not our We going before in address the candidates asset calls, to Not as our potential formulated negative maturity. apparent have near-term financial been alternatives industry the that valuations as XXXX discussed buyers, plans make became potential

divestiture there sense. While we no transact continuing that is guarantee make there at some can discussions, values are that

businesses market on assets intend we have Our cheap. strong and do the positions, sell not to

documents flexible. agreement are credit Our very

flexibility with the use our maturity. We capital will dealing to including optimize XXXX this structure,

our making For today's further capital not comments to call, be respect with will we structure.

as However, we provide updates will appropriate.

to to that, I'd And Chuck the floor remarks. for closing some give back like with

Thank you, Kyle.

of and the cooperated mentioned, our with recovery visibility have as to significant faced are challenges we of limited. timing the is not the markets As all

industry challenges. facing similar alone is not are We the entire as

aggressively the offset control fully is experiencing. manage to not it to manage are what enough market we Although we costs, continue challenges we and can

Although are on and it a much. when bullish how a is of we recovery, matter

as We businesses most a growth of with positioned and our are we in have recovery leader expected capacity well for are in and new future products. the invested

demand challenges However, the the more we low, face. longer the remains

meaningful show the a With optimism that a order CCS just have will of will recovery that with is can't we recovery. OWN some recovery. any early trend We said, toward positive XXXX predict rates when XXXX in second half in confidence the that uptick The occur. and

and In addition liquidity. are capital structure aware managing the acutely to businesses, our we of

these that, open on We will questions. line now And to and we'll managing with the for continued continue patience. work support your We aggressively. appreciate

[Operator Chatterjee comes first question Instructions] Our from JPMorgan. Sam with

[indiscernible] some you Can Samik is that This issues a delayed you're on decisions particularly Chatterjee. for seeing a I relative across second And in delay year? recovery next the a to of or are like key purchasing dig half to believe in you please broad-based into And have trend the being customers? the deep the follow-up. leads customers it's business, all what in

Yes. And bit say talk little overall, would it's color. a business you I the broad-based. just when of about NICS

we had plus $XXX has years, to $XX NICS the in time, gain the believe Although don't million over finished, positioned challenges EBITDA and way even X negative year believe well we and that million, from last to we this with continue to share like we're we've future. gained the the share the grown over the we

all buildup what's ship to a of impact right able across channel this, would say, happened the really inventory it our were we think was again, reversed, what with, And major really channel ship we backlog. of macro underestimated that now. the think to coupled be affecting I board. specific constraints And our the to we chain would us I uncertainty when supply of is in -- think And is I out I the question, your is inventories. part the out

with seeing indicators, we pushed remain customers When as because see we as think balance strong, And they well out, I say and that that funnel, funnel we being second X our channel the of are like -- orders our to in but our leading do from indications if what would expect half inventory. we X we do quarters. are at look our

My follow-up is bad funding. regarding

percentage much are guys how you of programs of material much know be you in can us the like the like is spend categories expect? how these, product any let that equipment awards towards for -- can government of -- recovery you it please how that So serve? terms spending or of like And the

going Well, with I'll on as with are award starting what's Yes. states beds money. the to start

late We XXXX, pickup in are expecting but to a in XXXX. significant see spending started

to compliant X- it available BABA calling important note X-year the will be all for on. about like period. it's we with think We're total turns say to $X us. rules over that's back I think I'd we and of when billion, And a like that that a about market

Notter Our George next question from with Jefferies. comes

I wanted to ask about the business. ANS

come upgrades. that's in orders of some network think that few forward something significant customers I the in that part I that already QX QX? last is think, of you either you're who and pushed new the months? demonstrated mentioned the of in terms Is you softness from in guys Or early their or monologue, or pacing stay something that seeing

would the I out we say we orders got indications in that, pushed last year. of got quarter real the fourth and of

can more year. of us expecting we expect they're what in happening. us the upgrades. shipments So said to in started customers dependent start to but start push getting Kyle FDX it's this And the pieces is what had on see is upgrades, business in remarks we customers are that it think, leaning as that really his And for we to product from for mentioned, is half got that line that -- second is significant the of that's us, out. talking seeing that second of year when with I by half that positive just Obviously, forward about in the wanted one they the business they're contacted product the to We us.

it. Got

anything Okay. progress the there to vCore with say report? trials, anything products you can about then And customers,

with on earnings we'll virtual on some next our Hopefully, our CMTS positive more going news trials several have product. have call on We that.

Got it.

on just Okay. input question the And last costs. was then

costs? any great. of would incremental be balances look benefits Any If business on kind input benefits you are there, at you there seeing the

Yes.

and general, buy imagine, things I -- and things you we and material think inputs. can down, are up of in go lots just as

board. I think across generally the

significant haven't reduction big sort any of We through either increase went the saw or seen as the spike XXXX. we a since we

I But think a great of most down I generally, since is little calls, cost think mentioned materials on the the basis, input that's other on net probably a pretty that, are come neutral. previous we've one down bit. than

Our next question Leopold Raymond comes with from Simon James.

This is Chiu for Leopold. up the to I Victor NICS this on wanted quarter. Simon follow results

maybe Just growth levels? to when us we structural should kind of understand And think help kind here, given gives past can of demand back normalized indicators the here? of look visibility you kind remains the growth we about in intact XXXX how this your you that the inventory come and deterioration what adjusted, confidence XXXX,

Yes. our there. our of I have and because we we stays demand would funnel. start intact, lot a And and believe that why projects with of structural that's

have that closed on We keep a of. we track list

continue We to win projects.

So about we feel that. good

forward, if you a If this. XXXX. about going at talking look after But you like if next calling X% so over think they're report I for CAGR going forward, look the X think or years back report, out at the lower they're you that Dell'Oro a

bumpy our out inventory back. bounce the for people have that what combination have think And kind of you've do back. to same as adjustments, shipping we half from I we we're said we funnel So will the many thing. us will a come that's think competitors that of plus I with heard the of couple second help the going have a our the think of But quarters balance

you on kind And the the to help segment, that if Open segment. That's you Great. that into built shift considered OWN about affects any Have the just Can helpful. assumptions? us OWN in guys the of Europe? your RAN of U.S. and Okay. you think how

supportive related -- say would I base work are want wherever customer of with our to technology. they we RAN, that Open to with

we our in I that frequencies. are antennas, plans. them. say seeing We have how We're lower at not networks But our working much the with MOSAIC product, that looking in they terms refresh more on and of we're going the their would support together passive

positive us are areas. massive positive what's the also us larger with versus which the happen there's We to be rural do that going We about everywhere. for for would in think chance to ATR, MIMO a

for positive us. So also a thing that's

Our from next with Advisors. comes question Steven Fox Fox

of couple if I from questions could. A me,

First other can how the be side struggling Chuck, the competition, have recessionary of smaller this make that competitors you may about it given environment maybe you're impacting to talk describing, it's downturn? pricing off, and to may

up the Yes. would situation say the we think asked questions at and -- those I on we're incoming cost this as one heard, flat. looking we are point, going to I with got all as material just of you what's

situation. I our volume think customers our understand

pricing not pressure. So getting we're that much on

there would I think I what I together. we we say out hope together work say need appropriately. that downtime small and would firms is behave all work through right I'd now. this to

to right us. think be this. I we they're to get think together hold now than situation challenging -- going have is in all what a do much But I much deeper through and and more

standpoint, a for standpoint terms sort balance preserve you think standpoint? add know that EBITDA, do up an just else helpful. production from Any the providing of come to can else flows capital what can active cetera, you of consider from we That's a you're sort generate anything mothballing color in working from to just et not anything cash things also but sheet? of doing you more lay and what guidance, going all that cash time offs, then could with would facilities else being, the like on depending just of I flows And you forward, a

Yes.

like with the the talked we than of holding cash to to, little we the would a result as go a about we inventory We're a supply. that side, I little some bit think on bit we've challenges fact 'XX of although more with a demand is But a areas harder bit definitely some little I monetize that think to it's inventory opportunity, of I we like there's sort area. opportunity, out, think think continuing that's as place of feel think about I we to push the that. an

organization I as think plan $XXX this going about $XXX think we're the million implementing that we that sort I of cost to across to our business, think side the million of as from. about talking we're get where goes

And of think just expect, that's it mean, I all as profile, situation including our and just current functional the I of across optimize. for areas, would not opportunities ongoing. always And just because looking we're to demand operations. our you just that's

with comes Our Marshall from next Stanley. question Morgan Meta

Great. a you pretty been just overhaul some on guys be the MOSAIC different variety asked of the have guys has I ways. done you that ANS or it question kind portfolio. know of have in of a portfolio, work the whether But the undergone of RUCKUS decent and

share greatest like where terms CCS of feel laid as you've just the are question demand out ANS opportunities just kind in do comes just OWN second a looking seeing understanding what or then maybe back? gain how -- about you signs of uptick largely And So the and of But demand of any where in of just improvement. you those were kind signs -- kind or within the within context areas? like terms is network, demand Or the that improvement of some of early seeing that and edge? just business

markets be market very already when for think with to going that I that's the have our be first came NICS space. think just in to would say, won to opportunity share I with where that's is. We've positive the with launched And X, Wi-Fi we already would I I back, us. think be well business. we're Meta. gain, I I back product. we orders the we most our Thanks, for that very And going mean, received, come -- think

with revamped, of mentioned, our have where networks. family you edge we is would the And to the the edge product are do the them. forward products our one believe leaning ANS, at revamped or upgrades, I as the customers we the mentioned, second you one have for we have and As the leader I leaders on be of say

think I as going opportunity to CMTS for be products especially nice before. a and so like And our FDX talked that's us, virtual about we

XXXX I believe we ahead the place in put CCS, of With share happened in capacity there space. gained have were XXXX. We curve. is what and we I believe And that in the

We which place, course, we're positively think going going that. also, base the on quarter. launching seeing given the we're to I we've I our in are put marketplace. there. And feedback our be received hyperscalers AI, we there Gen BDCC think But in back our every very on really lost come cable product positioned being for back, when all what's X.X product share some believe we're have SYSTIMAX. have with business, going our to now that. from business. positively be in well structured don't very revamped but very And our and And of capacity We've is do the also I SYSTIMAX markets any customer that a families positive we

about think strong have OWN, in North America we you positions think So already. share pretty I market when

looking what I pretty people our think our is and on can we do North MOSAIC we opportunity are traction good also at seeing some line. there outside of America then product

to your So that that be things would I question. would the be see kind -- of those address

And I'm call not I'd showing time. Chuck questions any over at remarks. further back for Treadway this any to like the to closing turn

rest like I'd your for very Yes. your I'd of great you CommScope. today to you support of thank for week. time your Thank like much. you have to a and

and this presentation. does Ladies conclude gentlemen, today's

may wonderful have disconnect, a You and day. now