CommScope Holding (COMM) 9 May 242024 Q1 Earnings call transcript

Good day, and thank you for standing by. Welcome to the CommScope First Quarter 2024 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Massimo DiSabato, Vice President of Investor Relations. Please go ahead.

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

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

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

turn over the Before I I items call have housekeeping a few Chuck, review. to to

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

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

manage experienced a inventories Visibility continue across In inventory macroeconomic delayed down we further conditions upgrade and ANS and We the providers ANS early and revenues demand driven order sign signs OWN with waiting customer to deterioration the quarter. by through uncertainty and to the customers in all one segments positive lower business. lower CCS NICS quarterly our for. our realized of in demand. continue and as and limited OWN, have worked first sequential recovery and plans. segments been our remains NICS, we upgrades, in and appears saw rebound. In see to in quarter, CCS recovery that service is Unfortunately, This a rates have we be as

visibility, to we current the revenue adjusted quarter EBITDA on expect and than higher quarter. Based be second the first

results. adjusted million delivered sales quarter quarter to and of CommScope net of $X.XXX $XXX first billion of Turning the for the XXXX. first EBITDA

continued buildup. quarter market customer lower by inventory and larger-than-expected first to negatively channel demand Our be impacted and

in we challenges I've impact what our we navigate As calls, to and continue past can control that mentioned macroeconomic businesses.

the are meet with to expected of in market comprehensive and leader We capacity most demand. a place our future strategy in businesses

In take plan are referenced and as our call, are our with on million our addition, in out quarter cost to fourth we track annual cost. $XXX managing of structure

you stronger our give quarter, on businesses. than CCS of in we late the to update like an each XXXX. I'd In saw Now ordering patterns saw

and we our building is our mentioned, believe Starting that and to they sales service digest on from hand the enterprise enterprise providers data their to center as due of side well As inventories stronger as this continuing with business. had campus.

continue [ We structured SYSTIMAX greater offerings cable our bandwidth of to capabilities. and ] such and launch increased XLV distances GigaREACH X.X innovative enable find introduction The cabling as our of success with solution.

applications of building multi-gig These solutions points. security like for Wi-Fi wave tables the support both access campus next X new and and

and of build-outs addition and Gen the cloud AI project centers. campus In our building business momentum saw to portion market, additional and hyperscale data of the

in strong the positioned our with capacity expanding business, large working arena players products midyear. for demand we're several well services are and this our to the be with are builds. the implemented in of these process We of in this supplement by as capacity To connector

business. broadband our to attention our Turning

refresh levels past inventory of in inventory. see to not remained levels ordering at United patterns order quarters. the passings throughout stabilize in encouraged only thus over Much that research historic States through service fiber-to-the-home but rates few the the suggests work providers need to growth are the our as high We quarter

to the look tailwinds we BABA Buy you breadth launched qualified visit expected beat capture our of would we hundreds late market commscope.com, XXXX initiatives, forward supporting encourage the As to infrastructure products. projects to broadband government compliant solutions I America, are to America see have Build to and start of are that products. These and positioned long-term in the into funding products XXXX.

All of return CCS half the these factors of for recent XXXX order stronger the evidence trends potentially of segment. and growth and second a to

to mix. Turning

primarily we driven impacted the higher-than-average in call, channel. the the RUCKUS seeing business predicted than business QX on earnings discussed by by inventory As have levels is weaker our sales

continue performance. acceptable As we affect an work with segment this our inventory will to to down level, partners our NICS their to bring

are In addition build, significant demand. in the reduction inventory rather we to also a seeing

number have expect next business that initiatives offset these to lower do but few underway see a the not help demand fully will the we we We over initiatives expect of the to quarters.

in important that other A It citing seeing the we are is RUCKUS, business impacting this just towards RUCKUS RUCKUS competitors are is our is not continued also AI spot One similar issues. to note RUCKUS momentum this space and that bright in solutions.

optimize our turning they for are As looking software ways to networks, more our for solutions their customers to are help.

CommScope As this initiatives, to we we to expect business continue as long-term has potential. we it improve reinforce NEXT growth significant believe our

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

was positions funnel ICN enterprises public by and in providing to positively system networks. NICS the slower the first the RUCKUS demand. market business, drop In by well last as segment significantly in led to our said, sales overall and demand and pushed a supported With with quarter, performance under nicely periods. DAS we saw business us in with the too Our operators and private RUCKUS short-term the substantial as quarter, connectivity. driven in as decisions being NICS specifically XG pressure grow inventory that in-building by remains much purchasing declined future This

inventory is few and digested demand as that demand drivers throughout quarters We the the lower expect continue reset. least at will the next

decline XXXX from In OWN, pressure spend previous as saw a carrier capital U.S. as inventory. well carriers digesting as mentioned in U.S. in calls,

During station base antenna have in supported recovery sales. by quarter, seen we increased the some order first largely continued rates,

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

our design we are commercialize well report In power continues. wireless antenna we has addition, are greater in we and CCS, base efficient the wins. to XX% In like are solution we quarter, SEED we it develop reliable market station the aimed new continue to and at our that customers Last help level. a recovery products build new introduced fixed infrastructures. have quarter, delivering in at efficiency like happy solutions this to support Again, as and positioned right the feel multiple market gained operator we to

to with first be Finishing being historically weak navigating due inventory half HSC our faced customers next-generation XXXX will the and larger-than-expected for choices with ANS, architecture.

As node a successful mentioned leading R&D products, made edge-related RPD the to pond of ANS previously, OLTs and amplifiers, including transition segment ]. modules has nodes, supplier for [ remote a and

of continuing generation build in helping our significant of installed CMTS have base support products. networks out next their customers to a will role multi-gigabit large while our We

a services X to We turn also software X largely X.X enabling on gigabits DOCSIS and solution, operators recently upgrade. between launched infrastructure second, through per enhanced and existing

year, DOCSIS to delivering second we the closer see part half we supporting the likely products move of will and towards upgrades, are on track start increased the of As XXXX. X.X momentum latter to we

cells major fully We MS X.X will that will determine to which take. virtual be in continue compliant DOCSIS our invest as to CMTS path solution

we DOCSIS, our with the the full our we fourth it product inventory. quarter in have Whether were their right extended inventory them that be would be in comments, spectrum variant customers duplex support With will said, their as rightsize DOCSIS shipments to and to journey. adjusted case faced larger-than-expected the or suggested

anticipate timing we of we recovery But impacted be a are continuing these the and revenues few to conditions. positioned a the in businesses rates market well recovery. to recovery we while our and will that the of As intensity through in negatively result varying remain We're we as confident that continues order uncertain. for X past, will that quarters. market be stated next navigate occur, issues, And

dialogue has evaluate projections segments. our data We business demand market for of our and regular been with and difficult drivers for have competitors. our as customers in us Understanding each been well as

what can will control we customers process. support and to continue the will our in We

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

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

share. We The the by first $X.XXX overall EPS and the upgrades, levels For of in demand. in in inventory customer reported the million, all at adjusted lower versus end up CommScope by of driven the revenue $XXX delays was sequential quarterly revenue net decreased billion, year, trend quarter. and continued $X.XXX segments. million market the ended EBITDA continued EBITDA Adjusted of of a of quarter, first Adjusted sales backlog slightly decline per lower fourth declines driven the CommScope quarter XXXX. from $X.XX consolidated negative XX%. XX% prior of by experienced decrease quarter

As mentioned back previously, levels. are we in all to of normalized backlog our businesses,

the next be over revenues few of driver to the direct going are rates quarters. Order

order XXXX, As XXXX of an CCS and earlier, particularly the the of Chuck mentioned rates first in increase from in quarter we saw quarter to fourth OWN.

levels. continue we a historical Although to this behind positive sign, is well revenue lag

Starting first with decreased to XX% EBITDA driven net now $XX quarter driven business. Turning by highlights decreased CCS, million the sales XX% revenue. the in drop is X. of of year. by prior on year, from primarily being the million Slide broadband the prior decline The our CCS adjusted $XXX segment from

see order a remain up basis, XXXX XXXX. the rates rates, We was levels in pickup relative order sequential historical Despite to the still these continue order and increases in during to On quarter. low revenue X%. rates in

improved uncertain. Although demand remain long-term conversations short-term CCS profile the on and remains rates and growth, order medium- bullish, customer

quarter. However, we and the second based versus quarter adjusted CCS on in current XXXX of first revenue EBITDA expect the higher visibility,

business Next, net XX%. million RUCKUS From versus and XX% first sales perspective, decreased the of XXXX. of ICM by a unit decreased $XXX XX% quarter decreased

million out digest Next, also noted RUCKUS at revenue. that be declined should chain as through RUCKUS partners impacting inventory. prior million rates In revenue. decline product also RUCKUS, is year adjusted RUCKUS' channel the with backlog, historical seasonality in driven levels, decreased EBITDA It have primarily release $X supply of of and worked $XX order as backlog the have negative by we from constraints

first is the for quarter revenue the quarter RUCKUS. Historically, lowest

inventory addition in lower demand is the and In market. overall to channel seasonality,

as we to saw the decline funnel push also our upgrades and During projects quarter, periods. near-term customers later

in Based third-party on XXXX. will decline forecast, RUCKUS latest market the

OWN take to RUCKUS short-term and One RUCKUS we started from the term. in are Wi-Fi expect a $XXX in the million challenging to our challenging have year that to to market and market about products. a specifically XXXX. business the X prior Despite visibility are medium Despite order to across these excited conditions, feel share to decreased rates our and this development, we continued of well long segment XX% positioned sales net recovery, year limited first units. the We quarter. continue relative product We majority in increase of the

in revenue We aggressively to offset continue costs this decline. the segment to manage

OWN adjusted of from EBITDA declined the XX% only prior million $XX year.

continued continued for in investment us Our in segment. positions this new development product leadership

year XX% the We customer $XX expect was upgrade XX% from first due down adjusted million or compared EBITDA of by delays. ANS prior to to the $XX million quarter and second net adjustments inventory and revenue revenue. sales prior ANS the million of from quarter. lower OWN adjusted $XXX to EBITDA driven increase decreased year

first on order and an mentioned upgrades. dealt previous rates This large with had us impact as revenues. higher call, several lowering timing approached about quarter As levels they of delayed our on customers inventory on our our

the that adjustments these DOCSIS virtual CMTS, position XXXX. products ANS short-term cycle. expect to can all nodes, including We're Despite to upgrade itself significant to advantage supplier throughout we X.X of the supply Also, impact continues CMTS. from the amplifiers, take a and have challenges, modules the only

to X flow. Turning Slide for cash update on

timing and use XXXX cash first first quarter, lower the expected a result of was cash cash million. use EBITDA. said, year of $XXX as operations because our indicated from paying and higher quarter on and of call, was flow our first we flow declined to the use the of cash be for free quarter adjusted cash As the of operations interest $XXX from the cash That annual central payout. a EBITDA, flow quarter lower prior million from a a of prior

inventory reduce in to We continue the quarter.

previously by still in holding supply we're excess the As and chain XXXX constraints discussed, inventory XXXX. driven

delays revenue inventory. our As declines, monetize ability this it to excess

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

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

outstanding $XXX during first during million. quarter on cash balance ABL our ended revolver no and by the the decreased our did We therefore, As draw quarter balance. quarter, not expected the with

our by XXXX. availability previously divestiture early As the ABL mentioned, was impacted home negatively in

we paid million open the of loan on quarter, debt the the During $X no term amortization. required market. purchased We

Going quarter opportunistically around had ANS we The to across CCS is forward, significant some ratio first and X.Xx. adjusted cash I'm the with order use revenue magnitude the low OWN where in we and lower leverage the intend a buyback our X, Slide lower to demand structure. off order order of remain of for now continue our concerning. rates dealing XXXX. some quarter, market the in conclude prepared my of drop pickup to breadth ended The on rates and with net current turning in company demand. as capital Despite a rates EBITDA. I'll our The commentary expectations remarks MIX our securities impact are with

have we on throughout As all our segments. bullish growth we said medium- and the in downturn, of long-term remain

the However, rates The positive in to the definitely expect OWN unclear. the quarter Based on current sign. of recovery quarter and adjusted remains is the in order visibility timing revenue a the EBITDA recovery visibility, magnitude be of to and lowest year. CCS we first

we We previous million annual what continue reductions on control, of to referenced implementing control have the we $XXX cost calls. our can including

the revenues with to We've well to cost development enhanced segments manage been We to during downturn return. encouraged positioned when invest customer able by reductions are to of product continuing our these all while profitability our are in drive achieve support. and ability cost and new

structure. much capital Finally, since I'd last our changed quarter. like address Not has to

to beyond. evaluate XXXX and continue We to asset including the alternatives, maturity sales address

essentially have all maturities. certain credit our nearer-term deal proposals to with from We groups of

believe to not that with proposals align do goals strategic date received or have our we structure. However, optimize we our capital

very our to our flexible. optimize credit with our call, flexibility are use documents in As dealing maturity. last including to structure, mentioned this XXXX We intend capital the

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

floor And will that, appropriate. closing provide we like However, give as to remarks. for to some I'd back Chuck with updates the

Kyle. you, Thank

first in quarter and the very that predicted, As We're hardware a of middle was recession quarter. the revenues our reflect a recession. challenging

the visibility interface, ANS in falloff with to pending CCS as customers there manage and the and predicted order Although we upgrades. uncertain. NICS and in we're like were out recovery the product and capital. doing some development push businesses sharper with and OWN projects bright remains spots quarter levers a inventory we confident The rates, than were demand new I'm customer the right things costs, control in

all on When are focused well we their and to customers, positioned our segments. appreciate very the support. improve, We're conditions we recovery in supporting capture market

we're extremely addition capital In businesses, the liquidity. managing aware to and our of structure

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

LLC. question the George from line Our Jefferies first Notter [Operator of of Instructions] comes

asset ask sales. I potential about wanted to

comment quarter, a I you near assets won't guys of last you the or to think selling medium effect the in be term. made

and press your the from it like table just the more. comments, any in think wondering on of sounds if bit release maybe there? there's outlook that's the change been I I'm a some

at dialogue. us. for the assets we're at just an to I we refer said to go mean And and time continues I'll going those value. -- it those to what not We're George, alternative be Yes, any look to prepared last remarks. sell I'll I think continuing is have

mean I an and it I think continue, dialogues is So the alternative.

of the the then the where rates CCS, business intensive, example. comments specific then interested EBITDA I And thinking I terms asset here of if And better, here looking of cabling those intensive, capital order CCS, that you're in lever guess seeing of I gets chain for that But really I reasonable business improving. I fiber utilize about order about that better improve? rates very about getting I'm back of And mean, assets. profitability. are there there's in in kind are for improvement events Okay. I it's fiber a pieces fiber really it. you there's thinking Are Got connectivity. as less to a parts on as business guess I'm of think of that assume And manufacturing, wondering about areas business more I'm cabling as was terms you

thanks Well, question, for the George.

order business well I the that I our we as business. the now. rates, part but or we're say in building said of think seeing of as that what is in are say see data we're more and data the seeing NCC to pickup. remarks stronger And still seeing we're and NCC levels, in We're below our our right 'XX actually side a but would pickup center we starting both I'd than well probably center the of broadband building portion side the pickup the

mean, made talked connectivity, prior and our adding your to last we're have we 'XX support need investments we're midyear. capacity even in the But the we to to going to levels in had But we we the up, about ramp point, forward. which us more going by remarks, which capacity above I

Morgan line question Stanley. from Marshall of next Our Meta the comes of

I questions. Maybe wanted to Great. X ask

about of just data is some your just should maybe sort commentary on to might First, that margins gross margin of that enterprise that but have? all on year? throughout we highlight. Or EBITDA commentary here of kind led the how utilization margins. to at gross Is any look Clearly, gross gain center CCS was a cloud of kind customers kind you there on second, business, then traction, the of some customers note anything And you spoke or with expectations?

linked seeing the data first on. that I a lift gross side, data But just help as the our some Kyle we're Thanks, -- in And really SYSTIMAX biggest on margins. there. hit would building and of support say that's center would structural stuff center going I hyperscalers cable as say our then Meta. the Gen lot interest, the I'll of press There's and business, it's nice our and take part can the with where X.X with What's we Propel and well cloud. have part, products to AI plus the that.

good are business. So where we feel about in that we

margin. to I'll Yes. the gross get

side. impact of has I side, clearly, the our level fixed So the on on margin think gross the an absorption and the of margin revenue cost

our I and think of be also tend little basis. when the we gross margins, gross level business higher to margin NICS a think businesses ANS just the and about bit on

mix a QX, there's So the as as fixed component impacting just margins in that's the cost well leverage.

next Our comes question of Leopold James. of line Simon from the Raymond

it follow bit was want and gross bridge versus the the trying of March quarter help the little help see terms X that things quarter? please. maybe What the to up really and to to prior commentary on relative I'm then on quarter in build lower anything I answer one Yes. you the materially NICS margin understand December first, that a let you were I've could to that follow-up. volumes, quarters and if got to of like sort I'll bridge you the Or us a changes. ANS a down of can

businesses RUCKUS, CCS and mix of profile on OWN particular, those to NICS the ANS impact I profile a And as just previous to in Yes. answered higher question, ANS saw a margin QX, sequential in an does down of business growth. basis OWN, relative little the CCS business. have business we where we bit and than as a and just the and from what On saw were the have little bit in the QX the margin

were to that the mix quarter within I'm Is versus that just margin business the the ANS within prior themselves. materially is but clarify not of down segments, What the correct? RUCKUS' and Yes. trying here it's gross

costs because fixed the and are coverage getting not you're Yes, the in X revenues those down businesses. on the

Perfect. I I That's why understood. want make to sure

timing What's availability drivers. wanted of X what some trajectory your expectation chips the for the of of I what on the products. components So availability or was ANS and key of And guess and thinking about the of extended something and a I sort you about products a I'm key to duplex the Is DOCSIS dual of wondering timing could expect the be are function, you'd is the recovery would that you would either those the how full when be be essentially amplifier the possibility or if so, of that amplifiers offering? ramp about single what's that? that spectrum. ask

that do start related Yes. being that. and of FDX we're little amplifier terms PST [ products we're and saying then than the a bit sooner And chips, the to able for going with on by the looking too future out with installed in launch mean now, business quarter to where I'd our have DAA. fourth at up, want side, ] product, to the right general, I a and figure our base. have inventory to just say, ramp trying to I they pretty much they we in And go would want they're go HFC to customers large where or

we So network we have that and that some do want just ready speed gets with customers upgrades right DOCSIS software you more have at example. look to hardware. if their gigabits as X to the with about, to existing X.XE you down with just X that go We're talked for

And but chip. ESD There side about that's with getting then, CMTS we parts the challenges for that's of I'm RPDs main the labs talking and right now in those, the are worked R&Ds. of Virtual some our have with out. course,

much those come side, ready to the On in. FDX are pretty

So I for answer helps hope question the you. that

LLC. comes of question from Steven line next the Fox Our of Advisors Fox

what came your have there's XX if looking thinking closer can there I improvements then competitors about on questions just dial about? a a you go you're takes for you year limited know on days Chuck. for secondly, that ago puts about you lot statement, that going was and want talked or I the confirm talk were degrees. within to any throughout little understand your bit that for CCS thought I varying Kyle, the had businesses the that? I X were different should full business the to basically on cash But we as year? quarter just Some in the the for on for -- makes cash of in wondering you just looking the you flow what where And flow visibility.

Yes.

Let prepared line one we first I in the remarks sort think of what mean, and Chuck the Yes, that answer with me answer in major was. bump There other weren't expectation any cash of the puts EBITDA. takes But in general, of than the or little it our in said on cash question. line. flow was then can a just because second a came first, bit better the maybe I our flow

Yes.

So say Steven, do we're that the momentum I shared, first. order pickup and the the we yes, seeing, as would in that sequential in seeing I going are a second a stronger believe half have we than are improvement we QX to

would there. CCS, So think quarter in to and would we be that lowest you QX continue it that lead that would believe our from build would to

general, markets in it areas. terms competition. in line with end you're sounds you're There's product So like versus in where or no leading of areas lagging

correct. That's

JPMorgan. the of from Samik of Chatterjee comes question next line Our

at of for those Maybe what ANS I'm volume loss go down loss here. the look is Kyle, first But X and of likely leverage about in think into how of of businesses? businesses, the you X the through those out sort cost year some continues in buffer there lower that order from to just we I leverage rate sort should take your one, of in volume and as come sensing the on XQ you hear the revenues tone your as NICS

side, reduction. would of in So the in into of end the numbers. $XXX I part fully process that of that mentioned would We're the that reduction. say of segments, $XXX the across that that identifying our projects. in on million are sort million cost of get we're guess be business and I we've on that's our year, what of middle definitely although fixed would will I projects to of implementing the is I baked cost say the what as And ANS all we sort next say

a to business there those we're I that is investments both those relates businesses in our in be said, think expect also to and businesses, supporting products. that going to in that recovery new as going we in customers of businesses, with generating continue to -- it those and make

I the And year. look cost definitely definitely to mean, always I we reduction. I think cost think So but we'll at out the side, as on additional continue cost get there's balance work we the some through

today? there's feel and data do market footprint your side, think cycle like look across do sort follow-up, go back you stand center Got you're does as of of companies of data share can a about companies, strength this it. bit for the they data side cloud just think overall And have just investment seeing you what you you Got the fair about and to commentary on business. about your customer what opportunity you in your Or more it. already? sort talk you my CCS relative I Can if center terms the more center on for share to of where

at believe holding fast growing this is we're rates, I Look, share and really now. market I think

think obviously share. gain an I we to have opportunity

as some some well great have as great partners We products.

strong out our market right an of it, us getting believe now. opportunity definitely gaining do and we fair we're I very on So I wouldn't in count share, is to the of and believe And more. I have share this terms

from of Our next Daryanani question comes line Evercore. Amit of

have free flow I And -- lower expectation flow on cash about you as in versus X 'XX free guess, folks I cash think well. you side, the think first flow I working called free talked I about you think QX for be do help out in Can and driver requirements that. you big cash think a will calendar just 'XX? positive capital for me is 'XX.

level there's cash building cash profile mean burn saw lot the probably won't see cash in that I early in definitely in think then that I'll guidance. in a in but fourth and mean is year of QX. of the not cash so I Historically, the some quarter. as happens sort it we're build And of level characterize that burn -- of we're back Yes. we I providing we it burn QX the QX.

we will I think what be profile that see similar in XXXX.

CCS over And the think on about 'XX think I'm size reasonable that you what wondering company when to side, might contribution think potential for calendar that you what And could you of the then could it. be more do be have benefits contribution the could start it's if see projects there? versus just time? do that a you to just revenue talk Got 'XX. you be? could And that,

be now. to it's I would we XXXX very earliest, the Yes. it's most say 'XX, likely, probably end of believe going at the but at more

said X in opportunity the there, our earnings opportunity $X of terms to billion over think X I years. I In around it's last call,

I holds. think that still

sorry, CommScope $X X that. to TAM? understand is million Just Is could is I so that that the million or I'm get? $X what that Or years?

Yes, that's the TAM.

question comes of from the Matt next Bank. Niknam Deutsche Our line of

My when comes doesn't of is too at And any in sit be if it where commentary demand visibility subsequent in levels. customer any NICS, And can there's back? commentary market context that should bottom yet sound of an in end implies the in you of to related terms ask great uptick I quarters, with XQ demand. the the levels where I first more on that terms inventories sit question and give guess on inventory they today? mainly

in on secondarily, similarly, uptick in So question. CCS. then CCS maybe that's you orders the first about talked And

customers? with work downs Just done that's wondering whether inventory if across or carrier customers of different varied types are largely

our think destocking, clearly, I where as mentioned, it's inventory just think Yes, we by as business. with you about are customers

I down. The RUCKUS visibility coming inventories just NICS I the think about think have questions business, think I as your been we have of around inventories. to mean, sort we the and

take destocking seeing probably are before still little I that growth. where more of to that normal we get to we in bit is a to of think ways there's to place start go sort the business needs

the and side the of by that And customers, mentioned talked rates we've to think point down inflection in I normal that on probably business, think close we're think been that these starting some back sort of worked Chuck to get now his I growth order we're the we're the comments, seeing has to of as of about. inventory levels. I CCS in seeing think I

Savageaux next Tim of comes of Northland the Capital line question Our from Markets.

CCS. on Question

do magnitude if over look increase here or for say, and to have much. You QX into maybe as the question follow-up, as you us QX? carriers, you changes my the as relative expecting seen mentioned building seen at in that, You and you CCS to QX, rates mix? what the uptick mentioned change of increasing just seen that continue have center, expect forward? the you order any give in sequential And but QX data color on more I an you stronger to here regard saw a you're Have quarter. you in throughout with some you that guess go is, we not can

by moves data a hopeful. saying thing broadband. Right kind to are as start now, business expect of this those of believe than haven't of believe what to stronger but that the the is this -- building line of We're and I yet, -- we the center will But get start kind we where forward being we're we seen is we more, up and growth would now cautiously going I'd right that is recovery. but that potentially optimistic the forward. same that's campus level broadband we

your QX we're stick being we're think QX for a we're the I from standpoint what end of of up we're CCS think sure the though we think quarter, as clearly, of with QX continues into higher I the I relative. mean, exactly increases little be at seeing even and wind dynamic. question that's where revenues. And we sort I than But about dynamic, mean it's and to to not pretty quarter. I'll said, of -- still it's the I seeing sort going is the dynamic of think I bit sort answer it

I to to we'll like, but don't quarter. have the that's play to what going we're be look about through specific think So going

I I'm no time. now at questions further turn Officer, Chief Executive Treadway, it showing remarks. to this would closing like to Chuck for back

and for to in you thank interest you of time your have Yes, rest CommScope. your all I of you. to week. great Thank like appreciate a today, I'd the

the conclude program. for Thank This in you participation conference. does your today's

disconnect. may You now