Belden (BDC) 2 Nov 232023 Q3 Earnings call transcript

Ladies and gentlemen, thank you for standing by. Welcome to this morning's Belden reports Third Quarter 2023 Results Call.

Just a reminder, this call is being recorded. [Operator Instructions]I would now like to turn the call over to Aaron Reddington, Vice President of Investor Relations.

Thank you. thank Earnings joining Conference and Third for everyone, XXXX Quarter Call. morning, you us for Belden's Good With me Parks. today Chand; and are Belden's President Vice and and President CFO, Jeremy Senior CEO, Ashish

our The presentation Ashish a have this call. provide detailed on issued release, followed of will review morning our that prepared and reference transcript results then financial this investor.belden.com. operating Q&A. strategic of and a and provide our we by presentation Jeremy will business, press these currently overview earnings will slide remarks prepared and a available We earlier release at online of are

Turning X Slide to the in presentation.

certain this management During forward-looking will make call, statements.

release more our Form annual most please recent on today's For information, press and report review XX-K.

reference accordance non-GAAP to information. non-GAAP the to President reconciliation will our now will adjusted most section turn the Investor appendix a associated Additionally, or with information we Chand. and presentation G, our GAAP during call In Ashish the to and the communicate. over of of CEO, the I financial closely our information Relations call, financial Regulation contain today's website management financial

Thank joining us appreciate you, morning, you and Aaron, We today. good everybody.

expectations Belden ago, resulting outlook. within adding As our outperformance, our initial solutions-driven X in lower communication a in below EPS unexpectedly Despite pressure margin softening from quarter adjusted ongoing the mix gross in our demand, to expanding demand weeks end our were results our industrial highlighted and markets, drove as weakened third achieving broadband of channel destocking.

to remain taken cost-saving positioned margin where to margin opportunities protect which weakness. from we with We the are drive lengthy resilience in approach efforts the measures market long significant amid in continue cycles. a current investment Our and incremental expansion stands market to trends the of well Furthermore, even portfolio, benefit evaluating secular term. the will towards we In solutions provider this over weakness. have meantime, becoming proactive growth and our confident response premier believe appropriate the already

a Now let's the review the third quarter quarter. Please for XXXX. turn of Slide summary of X to

As adjusted to referring a today. reminder, I will be results

considering in Broadband Unfortunately, industry unexpectedly, change sequentially growing third our operating Our demand orders Industrial team marked and were difficult in weakness during orders about in orders experienced XX% we the a quarter. the down the and performed admirably quarter, came sequentially markets X% second in quarter. After total backdrop. the

the were XX% As continues, such, Solution demand $XXX margins revenues quarterly we achieved up to Gross Industrial up to basis period. margins points growth XXX in down was to XX.X%. to our end up during to XX were down basis Automation of our X% which X% XXX sales Despite margins with shift million, margins EBITDA points. basis segment, XX%, Solutions, down XX.X%. basis led down margins XXX was points year-over-year. growth Organic In favorable EBITDA Enterprise with softness, and EBITDA organic points

capital with to top returning to temporary follow a by adjust to shareholders. previously we continue to growth outlined expect we As as and M&A followed capital priorities allocation priority, weakness, this organic our finally,

Belden at balance with strong prior from low leverage X.Xx, Our and sheet is quarter. at liquidity ample down in the X.Xx remains

robust, broadband X.Xx, flow for CloudRail, software while flexibility an in the ratio year-to-date, market cash that million plans to quarter during continue Free the $XXX team, the and environments. upon shareholders. pleased leverage summary, in devices we We strategic helps challenging. have connect shifts Welcome industrial In execute manage even to over balance industrial our to returned more have we edge unexpected third That Further, CloudRail. being targeted have with demand significant in capital staying cash we around that and becomes business. acquisition these a impacted are M&A of net to the have our we strong outlook of position. of executed most with the said, year-to-date, million profitability and nearly $XXX orders. healthy to such the well, I'm grow levels provider to financial our was our recent sustained deploy report and if to sheet team invested in proud flow quarter and

Slide but the Smart Buildings orders Now short orders the please Industrial and turn in considerably term. more things sequential market and industrial markets. by back, during Starting a a our performance our market. our we changed to expected, with Automation over third third X summary for the Taking was the offset than performed in see markets. change in where step broadband quarter as of the in other quarter, trending

The the in with the of data second our flat orders our first sequentially performed order point-of-sale and well trends. roughly year, quarter half confirming business

XX%. has X As market a we the our the quarter in factors, industrial has but the basis, became customers increasingly quarter drivers. and in orders a data. at level, a On sequential cautious, saw industrial The industrial change many point-of-sale softness down in progressed, major third and high orders orders third for material were contributing the weakness our

pause end in due experienced a demand manufacturing. we customer in discrete First, weakness to broad

solutions and took inventory coming into to half in is back a of overall macro action OEMs further change distributors smart amid levels demand for automation reduce The industrial quarter. products the temporary uncertainties. both during Second, the XXXX and reaction

adjust demand reduced few expect as challenges for to quarters marketplace. see end users Looking the to forward, in we a

share point-of-sales in with secular labor to intact, with reshoring, However, Buildings we slowdown. In more guidance. our expect positioned continued confident trends well Within once less weakness as and our improve continuing flow. adjust as them revenue orders with such in expect led growth The investments needs. face demand estate term, to and points in and quarter, that destock and we they we quarter line grow which interest verticals Longer from lower in market, stability building declined uncertainty experienced Longer smart smart continues to industrial fourth to demand by increasing we third the digitization higher to further see challenges buildings, targeted are market, government. in data commercial Similar Automation. creating expanding into investments cash more I'm remain we market our to get hospitality shortages automation. Industrial connectivity emerge and real temporary market with the weakness to in or saw to rates and term, Smart past the and this distributors XXXX. our work to we

single hybrid our positioned Our combine complex challenges is customers network product including data technical disparate well that have challenges, a to Belden expertise. onto address protocols with increasingly these and and breadth backbone. networks

we order quarter. Broadband the a had in the second in the half first Solutions good with of meaningful market, Finally, growth year

quarter, to the third a change lead adjusting reversal experienced shorter quarter inventory sharp rely on orders with result meet XX% upgrades Planned procurement processes remain sequentially. intact. in we the third This times to their and reduce MSOs However, is network of down in the demand.

anticipate year as inventory adjust into customers soft a we quarter further fourth end. However,

expect we funding We orders insight year. throughout in provide I a will with now up into next to performance. move pick momentum Jeremy first as request the through quarter government third as XXXX half financial increases further of our additional

balance by outlook. segment the comments results, start with a of sheet flow I our the Ashish. and followed finally, quarter, third for will and review our cash performance, a you, my of results discussion Thank

I results be referencing reminder, As a adjusted today. will

of Now third our please a X our quarter to Slide results. turn in for review presentation

in X% $XXX preliminary year-over-year Third organically to quarter Automation Longer X% and of Industrial view the respond and exceeding labor reshoring of see term, We demand in decreasing Solutions experienced down industrial shortages, $XXX was revenue Broadband capacity our Enterprise compelling with as requirements million, increased X% our XX% market. customers secular we weakness continue solutions million. revenues to to drivers revenue Solutions organically. decreased for decreased with softness automation production. organically

X% with in quarter year. prior XXX EBITDA orders down benefited product $XX approximately than EBITDA income down with basis from X.XX. points the XX.X%. both for an segments. XXX XX% to a compensation. was points EPS for in the our was while was were quarter to a our book-to-bill to year-over-year million driven $X.XX. year from prior million, Gross sequentially above robust mentioned X% better profit Ashish benefited a Margins incentive mix weakness which period. the the expanded to typical year-to-date of lower compared $XX We $X.XX third $XXX million, $X.XX slightly As expanding in basis ago The earlier, XX%, margins XX to Net period, business. year-over-year quarter margins compared increased of basis year were X% to updated $X.XX to the to due quarter points Solutions guidance the by down the in ended quarter adjustment by range

discrete $XXX in include transmit audio, segment, Slide of a facilities, markets the Turning presentation segment mass with which secure X segment XX% our business The sales the I our customers begin Automation now results. our Industrial harsh video and of data review and and million. for Industrial Solutions environments. Key Automation will in helps industrial Solutions with quarter process energy in totaling revenue manufacturing, represented transit. to

year-over-year quarter, the decreased XX%. basis, For X% decreased and revenue a organically. On X% revenue declined sequential

year Industrial for the declines were expanding by discrete XX.X% offset to margins XXX EBITDA manufacturing, segment we in prior by During quarter, process experienced in in partially points. broad with Automation the stability compared automation. XX.X% the margins basis quarter

customers and Turning video now and across segment, networks. to to our complex enables transmit enterprise which Enterprise audio, data secure

the revenue of smart our totaling million. represented and with include buildings XX% broadband solutions. $XXX Enterprise markets key The Our Solutions in segment sales quarter

declined XX% revenue to and organically. On XX.X% was Enterprise the For acquisitions. of market, year. sequential Broadband quarter margins Buildings the were for Solutions In In XX% to XX% recent compared the revenue the Smart revenues year-over-year revenue year-over-year Fibre down the down up a X%. XX% organically. organically. market, the Solutions EBITDA benefit decreased XX.X% slightly were were prior quarter, revenues due decreased basis, segment in

to highlights. turn for please will flow our you X cash sheet If and Slide balance

in third quarter and XXXX million quarter $XXX cash of cash balance XXXX. of fourth the equivalents million and end third the million quarter in $XXX the was the compared at Our to $XXX of

quarter. EBITDA was quarter, the last financial to at down leverage third Our net of from X.Xx debt end X.Xx the

intend leverage to As X.Xx maintain forward. of approximately net going we communicated before, we

maturities past than XXXX. a of We have with level reasonable until much in debt, lower the no

our all an rate addition, debt fixed X.X%. interest with average of In approximately is

we meaningful lower flow the flow free fourth than in levels. ahead, achieve free Looking cash to XXXX slightly expect cash generate and full year quarter

$XXX million liquidity to repurchases. share dynamic even ample towards we high-return in we complementary $XXX new invested businesses Year-to-date, as expect nearly have through towards deploy million manage and a We and environment. opportunities to

which shares outstanding. in Slide X repurchased X.X far, of have updated outlook. XXXX, our X% to for turn million So we shares, Please is

our the forward the Looking fourth of expect in in the is continue with the line quarter, experienced of in in half This to contrast year. levels second third weakness quarter. first we performance the to to weakness half

and full Industrial million not up XXXX current expect assuming this EPS turn $X.XX. range fourth million and $XXX full the digits. outlook to single will mid-single digits quarter, with to Automation we the would That flat and environment in digits year in $XXX the outlook For X%. the to back be between will full market imply $X.XX X% the I of sales Ashish. prepared EPS decrease will low to year be This Enterprise year does adjusted Further, organic of deteriorate range down implies would to concludes X% down single further, like high that overall, down growth and remarks. call my revenue

you, Jeremy. Thank

estimate uncertainties the While the customers, be quarter challenges fourth the as it, see to it hard challenging. the our to likely continued facing of is is most impact we and

coming our business to of that as secular prevail will year. believe return start demand we the However, the drivers over longer-term

our to philosophy balance act I investment X quarters, the Regarding few we priorities. over accordingly key will you assure next

decremental First, the and between structure line, will XX% margins bottom as cycle. and EBITDA on for cost strive we necessary impact overall help offset we the the further adjust achieve will the to XX% to

capabilities solution emphasize the an step key of growing margins. Second, A come gains I from and competitors. like share take uncertainty cycle increased to progress highlight return was was to want whilst build enter made My years, growth downturn as this business Belden. that that margins technical sales, invested the further trends. so positive, of provide to a will and solutions would that secular significant pivot periods back goal and of past on provides differentiate We and in with company. leverage as the our to our market get differentiated last higher stronger transforming would we've few a and and uncertainty I higher to objective driven environment a we to opportunity to inevitable temporary over have current is based the increased the ourselves business proactively solutions go-to-market capabilities, we with out

strive help to our Through a backbone in combination customers data needed digitization, unique and targeted forward much revenue by prior market vertical of towards a path and and tackle rates. multiple network developed investments infrastructure of run cases customers increase as share we offering the have and justify EPS improve growth, future solutions and capital organic We beyond approach that customer customized and smart growth reasonable experience. have M&A clear productivity repurchases, and use

our Our portfolio sheet and strong. balance is well positioned, is

please work. We capital To support through I That the contributions members. to to that quarter execute past challenges, team a will for our appreciate your to operationally we prepared would open return including questions. will these to capital environment. newest remarks. you I you close, make this finally, look to concludes deploy sense, Operator, we recognize continue a transform take and challenging to continue through Thank CloudRail to like hard acquisitions towards associates, thank for and Belden your shareholders. tuck-in efforts would to like our the your moment of call our as continue and

from [Operator Stein first question William of Instructions] Truist line Our with Securities. comes the

I'm the you can hoping that in would revenue clear did contextualize better QX, one the than margins in shortfall. guidance. expect It's margins in

it a business QX, in me the contextualize not bit I'm and hoping on that comments that. and said, solutions you can you clear performed continues That's to some As provide that, stronger. again,

Will. Sure,

the and whole, that of. that's be in which products that we as pushout yes, they There's it margin XX% at time. XXXX, relatively worked continued year, way, than some in QX we've QX, full for and had better perspective. a process are Indeed, in the how solutions, than But in this because previously points XXXX By XX%. that talked has X% slightly for change gross about in what range mix the in solutions based new components. we've we and customers, to lower margins margins be less over XX% what expect from are we no on on expect is the So better we've different given spoken to benefited broadband from better and the range more

clarification the it Do even is protected the a seeing a Or will just QX, at is pace selling you solution somewhat rest follow-up on or revenue similar than the worse that of growth? more Perhaps this. business? in expect the continue overall than trends

growth range. was somewhere good trends. software low look for at portfolio, kind we're in solutions, think will similar very our I seeing for the It low double-digit double be and a proxy same the that QX. digit We of active and that's

kind So that backlog now we given don't see in of a right change in that projects pipeline our closing. and also are given the our

of Next, the we with Jamieson UBS. to go line Rob

significant Wanted to of through goes you plus. up couple to weakness it's start have the When in a of like customers off large the I first show with mean and start the did amount that distribution guys quarter? -- a business prelim. XX%

good So I have the quarter. pulse through feel like pretty you'd what's a on happening

maybe showed have in Just this when intend destock getting understand intra-quarter? and to terms because that a we've in something been better demand this change to what through more trying you just learned how up in you've on headwinds of something pulse industrial seen quarter? broadly. the So Also internally

be So just helpful. super would any color there

Rob. Sure

I in going think I estate, markets, look cetera. changes in rates, they there been et many things back about So on in Because of have geopolitics, right? commercial people manufacture, think the changes so how if real where interest

read, up QX saw to people sequentially been difficult in most right? So our was orders for were it's What we X%.

partners the QX, the The not at strong. were any clear part Our point, POS that see from point-of-sale we Frankly, did in was our early quarter, as indicator. entering we we of strong. were getting data channel is

through saw change. the working were things X quarter, we as we However,

and tightness started there who on OEMs inventories with was, users end that side, channel first lot of industrial the adjusting how our was accelerated and just partners reacting. The a were

know can I some other different that released across think I you have see in their can showcased indicators see earnings, you that companies of and clearly the industry. there.

of times improved buildings broadband which of we weakness -- as in the was already manifested. broadband, side some on other that The sudden happened building But large because our their procurement what's managing foreshadowed is, and the going because how smart I in temporary or the change think on rather saw industrial the less lead approach. in than MSOs on, was a their side. lining had that is and also were we But more processes, silver how had partly more the partly thing channel, expected, smart

think that us. I adjustment did surprise

then that what -- think a by markets accelerated between and Eurozone, then with So end channels few out. industrial and into with called in happened OEMs, also and that way, the part people now I have the was of the users,

Eurozone the really said, reasonable It MSO mean work about do Then changing the through they've the this phenomenon expected. at was lot we you growth if I a subscriber side. materially I we base. broadband we saw quarter, -- to all more as the there the So look than like has in on results, talked

the So in an and intact. investments buy. adjustment how are the they trends long-term long-term It's

and kind say, at the that. was signs there of You back But can look there now were some of quarter. concrete, Rob, beginning the nothing around

-- the I automation? That's specific into mentioned you this first the you follow-on first we of in weakness specific XQ guidance, guess, through guess, long this just helpful. to that that this quarters should now. a persist for should half or persist? Was 'XX? half is many to Then, but how Not right to the cycle expect be into industrial expect how I to looking that weakest

learnings the we gone the address different customers' inventory to points. of some earliest. previous we that process things on that, confidence large businesses, that probably a how the will procurement question through MSO and your fast. thing deeper changed. They space We've the hold based we're lot our are what was out are all conversations It's point, we've I a and back at what One phenomenon. of more and are this QX in temporary didn't see At they're having, the Yes. come broadband into planning have coming actually

On the half as we the building persist weakness I industrial go XXXX. first point, say this at and will would into the side, into smart

cycles plan accelerating talking improvement to see phenomena. macro projects. reshoring some also a the response Just of in customers given for need their lot But about customers and the around broader productivity how our the of we

let's say and I broadband, buildings. quicker a difficult it's go for part think I into we bag. of read. year, So early of mixed next mid a and a as smart in within then slightly later It's for would industrial turn the bit But 'XX say,

[Operator Instructions] Delaney We Goldman go to of with Mark the line Sachs.

hoping better to seeing related how compared demand. understand in to contextualize the the that to I'm inventory much better fourth weaker is revenue of overall and destocking quarter end weakness you're that just

in any way of there is is distribution? inventory relative terms if would in help and be products sell-out So being what us sell-in reduced your to wasn't of you where revenue can

Mark. Sure,

So industrial up XXXX. our X% for of POS, example, was half first in automation the

the year to in for turns expect more down, some it there it went flat, we confidence this flattish, expect the and on full as We became be particular and I in So was sense, market. down went it was basically, that essentially, think adjustment of there that based right? kind channel

the has 'XX, stayed whole market that's I as -- So model industrial. emerge just as essentially level we I think at how think that right? we've from flat, end would I user a

driven down buildings smart estate. commercial further by real think is I

with lead of expected, remain how markets reducing. slightly terms up, in change times as because this end people buy broadband but think I of

Understood, term? implement for demand changes think Are that you're you're think you at color seeing may other addicitonal order mean how thank given the to there? weakness incremental on trying least tracking do and there model to to you I in $X, there your in need target that. near get to XXXX the you Then the you as get about

Sure.

would I So X of for how the expectation in yes, -- X, target had and the changes articulated growth of think when some the over XXXX the be cycle cycle, some already so years, we anticipated we business grew. certain a there that over

fine. I fundamentals remain think So long-term our

mechanics. more we still very to Jeremy that I'm that well, are, request We But target. add in about some terms color feel to of to the good going

Yes, Mark. hey

So say, gave what terms the running expected in been I far just of all, ahead. and versus first would had EPS of trend when we we target, the we

right this think now, upon we're guidance, revised less more based I track. on or

on we're exiting the So XXXX. path

next the will We of growth years. require couple over

good Our years. things recover expectation that will structure temporary manage that the slowness to cost couple still over feel of appropriately. seeing is same target. XXXX of the that I like time, pretty relative the shape that we're some next At we're is we'll and in

I shape. still respect obviously, the flexibility think lot cost is think between I we sheet the and and think here see XXXX, with manage growth in structure, a we to have we'll of how great I balance

to I we a of have So target that lot XXXX. think options still for get $X to

So we feel good.

line from Reuben comes Our Garner question next Company. the with or comment of Benchmark

maybe you seemed early similarities specifically, about worse guys like that ask the could is the then environment worst this of environment. progressively saw what demand kind you piece in any Ashish, and I in industrial get that it XXXX. you XXXX, versus if differences this back of the in sounds to or talk think back in it because

any thoughts might this be different what on around? go So

Sure. Yes.

So we've that Reuben. a lot, discussed

this driven by right? spike been first I had was practice, of environment contraction in this We've the inflation. more think, going there's supply driven demand, demand-side factors. We're side by under all, prior

I in shortage OECD remains think what the labor, different especially is markets. of the

underpinning the that is look. on to a worker as about you This elevate talk was about how were going particular less bit. see with unclear keep future AI, the a people is that phenomenon U.S. right? keep There's performs, people we manufacturing can whole saw because just they have new a each where We co-pilots versus have investing different this environment how lot in example, that so there what investment previously, think productivity, slowdown, that can for in of to and quite they deal working technology. in as You using to

investment Here, trends. I the think it's focused on more lot robust short-term a uncertainty longer-term of with

our talked markets. think this I across we've about

and there's On automation. there's in skills the side, the labor investment gap, reshoring, industrial there's

building digitization, smart networks. there's side, more hybrid the On

of broadband, course, of side, that's DOCSIS sorts broadband the from there's in in the jurisdictions. transition, the true including investments federal government, all and multiple On

how buildings feels and very The side, turn that on that long a like said we it will previously, last? this persist given weakness investments, markets is, will 'XX sense. broadband will think that the temporary this a So more yes, industrial those it the sense. question how Like the market, plan work. different I in how it's situation smart expect little 'XX, the cycles in faster, in from and But I different

we as out a I better company much have gone come think over through. each cycle we've that

going of I cycle technology think this made. is to the we've different investments be because

guess What targeted -- recognize or or restructuring doesn't sound I I I quarter we you initiatives How to margins. another you it any something or need decremental just it as make what like now. material into have before of sound come things have cost have guess, like that to to other saw? to progress moves? the doesn't for incremental play take, would some necessarily would like right It

we QX thought processes turning. couple like I current think anticipated before and the said, more a on -- our going weakest of that quarters to based it will take then point probably is Well, our -- things start be

I transformation. the XX% to We we feel well with good plans to articulated. the set have. our We decremental that, we think solutions do for margins about protect we've want XX% are

leverage of we protect. we've to don't investment have repeat over are of pieces technology. there, made a all that So We but in need there to there's a lot obviously in lot of that. and go-to-market There's already

we don't any in said, dramatic have point, at as this you mind. So restructuring

and period. started We executing have upon articulated for a the that plan current

that 'XX. for see going be we have the weakness continued would to think I half into to of expanded, second

in, Ashish's I add jump Reuben, just bit to response. little a Yes, and if could

second year, XX%. the first you are R&D decrementals a based are are math better. to little If basis, second do the around this substantially on coming half half Decrementals guidance. from actually year-over-year both and upon bit SG&A the a of down the half On

we'll feeling we Ashish are and I if don't we because some low, anything actions. to said, this structure to options. managing We're But leave we're Obviously, be So continues volume not I cost are. as tightly. evaluate think substantial very the other want doing call taking cost you like proactively

to next Steven We Advisors. go the Fox with line Fox of

I from questions me, of couple if A could.

First that on the you've industrial made. comments

more the starting? starting Given downturn, point, in but couple interest that what the of points quarters, even in is the especially elongated in an what it's You a seeing the to see distribution, starting change is high X was this this the or in unusual quarters sudden you mentioned markets of historically if point rates. QX that are maybe give X sort not last just confidence cycle you're that that's cycles if with a to these

making there is So are any in of arguing some secular the still turn? not you you you some that that so trends give obviously, I'm data points the confidence would besides, place comments say, in can made far about

Yes.

felt have supply previously actually cetera. have a solutions a confident higher how would cycle because labor, going we capital, brittle market, right? into deal et chains, what's cost with versus going new more of helped the similar we Belden, in as feel of I Shortage think we on the more

in we've changed we ourselves trends see that to and of part is is as it pipeline. the then how that, to respond our of it part So secular

the customers So when we consultants customers. a look working are solutions of we and at and investment look that and aren't or pipeline emerging. with actually how the contraction AI are than that talking different other seems more we've leverage how infrastructure build and them sales to in at now we to funnel all on about seen. deal plan there, technologies use There's with our that lot help will prior projects This trends, those right our

how what's reshoring. going with on of in changed think we've a and OECD it's especially So markets I combination the

you side, -- the helped what you you impact broadband supply consequences on unintended with broader in money opinion the few That spend think that my changes of the on some this your having on disagree the just the on smaller Then in specifically curious and Tier maybe into and government is a -- view whether seems broadband? prior in the system the helpful. lot Just from next landscape terms Belden just has to providers on on artificially chain. in is the fibre the cycle over be you X versus also you of I'm connectivity. maybe this maybe quarters? think curious at That's then incentivizing difference, cycle least have in recent service quarters, that coming U.S., was to compete

Sure.

X portfolio. think perspectives One yes, product So I that. is terms of in on the

exclusively we in grown right, that content mark to quite whilst our So fibre closer getting have a plus bit, XX% fibre. are broadband we not our it's business,

that going a sure there the are how product and connectivity and broadband. broader cable on portfolio. of we which we've solutions a But in lot made fibre people in goes just also value-added retained beyond we've terms copper cabinets portfolio. help obviously around So specialized There's deploy,

So that the if think one going on would is competitors. then true highs some and on narrowly was we've us. that's in have created with focused industry I artificial what's and buying fibre, only it our for different that seen lows, and process the But of

of it's second, the think the I customers. mix

on business bulk on not of the our is actually remember, the and MSOs So focused the Telcos.

kind other of some in that footprint, actually are market. players think I we the the of with from slightly differentiated

it's but fibre, on focused are not we everything yes, have. we So

by the us more their confidence of mix them around that in the upgrades, technology keeps true that plans very in of course, this it's will and we us of jurisdictions. and at in a gives think but look we this bullish at look We faster. terms other MSO few investment, I balanced. and is for Our Telcos see -- and way, turn true U.S., When

any further no We'll or are there back closing time, to questions. Reddington Aaron additional this turn At for remarks.

today's and call. thank you, operator, you, Thank joining for everyone,

any here at If Belden. IR you have the please contact questions, team

you. Thank Our investor.relations@belden.com. e-mail is address

gentlemen. concludes This our today. Thank call you, and ladies for

disconnect for We call. may participating. the You thank now from you