CommScope
Holding Company, Inc. (NASDAQ: COMM), a global network technology leader, will transition
to a new operating model and segment reporting structure, effective January 1,
2020, that is expected to help better capture the strategic value resulting
from its acquisition of ARRIS and Ruckus Networks. To that end, CommScope will
operate and report its financial performance in four segments—Venue and Campus
Networks; Broadband Networks; Outdoor Wireless Networks and Home Networks—
aligned to the primary growth opportunities related to its goal of shaping the
most advanced networks of the future.
In addition
to improving CommScope’s execution of its strategy and helping to unlock the full
potential of its end-to-end portfolio of networking equipment, the company expects
this realignment to:?
- Help
CommScope take advantage of greater revenue and cost synergy potential within its
current business, further improving market leadership positions.
- Further
accelerate an integrated technology roadmap and position the company to respond
more quickly to new market opportunities.
- Allow
the company to create a unified supply chain organization to optimize its global
manufacturing and distribution footprint and better position it to respond
quickly to rapidly changing market conditions.
- Position
the company to take advantage of its leadership position in fast growing,
strategic markets, such as:
- Hyperscale,
multi-tenant and cloud data centers,
- Macro
and metro layer cellular networks,
- In-home
networks and entertainment,
- Venue
and campus licensed and unlicensed public and private networks, and
- Professional
services.
- Create
new opportunities for employees. ?
CLICK TO TWEET:? Starting in 2020, CommScope will operate and report its financial performance in four segments—Venue and Campus Networks; Broadband Networks; Outdoor Wireless Networks and Home Networks.?
“Since
completing the ARRIS acquisition in April, we have created a powerful company
with what we believe is the most compelling and diversified global portfolio of
industry leading technologies for enterprise and service provider customers,”
said President and Chief Executive Officer?Eddie Edwards. “We expect our
new operating model will enable us to realize significant benefits of cost and
revenue synergies, strengthen our technology leadership, and support our
long-term growth strategy.? By bringing
similar technology and product platforms together, we will accelerate
end-to-end networking systems development, be able to shape the most advanced
networks of the future and help our customers unlock the full potential of the
coming 5G revolution.?
“This new
structure reinforces our goal to solve our customers’ problems faster, with a
higher level of efficiency and innovation. With this portfolio realignment and
more efficient operations, CommScope will accelerate its mission to push the
boundaries of technology and deliver on our commitments to deliver growth,
substantial cash flow, higher profit margins, and a scalable operating model.
Our new structure seeks to provide all stakeholders with a greater level of
transparency into the drivers of performance in the business, to drive better
resource allocation decisions and strategic alignment.”
Additional
detail on the four business segments:
Venue and Campus Networks - Targeting both public and private
networks for campuses, venues, data centers, and buildings, this segment will
combine the current Ruckus Networks, Enterprise and Distributed Coverage and
Capacity (DCCS) businesses.? It includes Wi-Fi
and switching, distributed antenna systems (DAS), licensed and unlicensed small
cells, and enterprise fiber and copper infrastructure. With year-to-date pro
forma net sales of approximately $1.6 billion through September 30, 2019, this
segment has several product lines that are expected to grow rapidly, and can
provide a completely differentiated, integrated offering. The Venue and Campus
Networks segment will be led by Ben Cardwell. Mr. Cardwell has been with
CommScope for more than 15 years and has served in a variety of senior sales
and segment leadership roles, most recently as senior vice president and segment
leader for the CommScope Mobility Solutions and Connectivity Solutions
segments.
Broadband Networks - This segment, with year-to-date
pro forma net sales of approximately $2.1 billion through September 30, 2019,
will position CommScope as the leading North American equipment manufacturer
with an end-to-end product portfolio serving the telco and cable provider
broadband market. The new segment combines the existing Network Cable and
Connectivity business with the Network & Cloud business. This segment will
drive growth in CCAP, PON, Video Systems, Access Technologies, Fiber and
Coaxial Cable, Fiber and Copper Connectivity and hardened closures. The
Broadband Networks segment will be led by Kevin Keefe, an industry veteran with
more than 25 years of experience. Mr. Keefe joined CommScope through its
acquisition of ARRIS, where he served in a variety of business leadership
roles, most recently as senior vice president and segment leader for the CommScope
Network & Cloud segment. ?
Outdoor Wireless Networks - Consisting of the company’s RF
Products and Integrated Solutions groups, this segment, representing year-to-date
pro forma net sales of approximately $1.2 billion through September 30, 2019,
will focus on the Macro and Metro Cell businesses. It will consist of Base
Station Antennas (BSA), RF Filters, Tower Connectivity, Microwave Antennas,
Metro Cell and cabinets/steel, accessories, SAS and Comsearch. As the company’s
wireless operator customers shift a portion of their 5G capital expenditures
from the macro tower to the metro cell, CommScope’s differentiated offerings
and portfolio can support a smooth and cost-effective transition for customers.
The Outdoor Wireless Networks segment will be led by Farid Firouzbakht. Mr. Firouzbakht
has been with CommScope for more than 15 years and has served in a variety of
business leadership roles in the wireless space, most recently as senior vice president
and leader of the RF Products business unit within the CommScope Mobility
Solutions segment.
Home Networks - Comprising the current Consumer
Premises Equipment (CPE) business, this segment, which represents year-to-date pro
forma net sales of approximately $2.6 billion through September 30, 2019, will
focus on the future of the connected home and devices inside the home. Anchored
by CommScope’s broadband gateways (coaxial, fiber, and wireless), video
set-tops, and in-home devices, this business will continue to provide the
industry-leading technologies for providing broadband services to and inside
the home. The Home Networks segment will be led by Joe Chow. Mr. Chow joined
CommScope in August 2019 and has served in variety of business leadership roles
in the CPE industry for nearly 20 years, most recently as senior vice president
and segment leader for the CommScope CPE segment.?
New Segment Structure to Enhance
Operational Efficiency:
The
realignment will be reflected in CommScope’s first quarter 2020 financial
results. Going forward, CommScope will provide customary segment data on the
new segment basis.?
Summarized
below is information on the realignment of CommScope’s business units within
its new segment structure:
Venue and Campus Networks
- Wi-Fi
and Switching
- Distributed
Antenna Systems (DAS) & Small Cell
- Inside
Plant Fiber (with focus on data center solutions for hyperscale and cloud
customers)
- Inside
Plant Copper ?
Broadband Networks
- Network
Cable and Connectivity
- CMTS
and PON
- Access
Technologies
- Network
Intelligence and Automation
- Technical
Services
Outdoor Wireless Networks
- Integrated
Solutions
- Base
Station Antennas (BSA) and Filters
- Cell-Site
Cabling and Connectivity
- Microwave
Antennas?
Home Networks
- Video
Systems
- Cable
Broadband
- Telco
Broadband
- Retail
?END?
About
CommScope
CommScope
(NASDAQ: COMM) and the recently acquired ARRIS and Ruckus Networks are
redefining tomorrow by shaping the future of wired and wireless communications.
Our combined global team of employees, innovators and technologists have empowered
customers in all regions of the world to anticipate what’s next and push the
boundaries of what’s possible. Discover more at www.zhuitian.icu.?
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Forward
Looking Statements
This press release includes
forward-looking statements that are based on information currently available to
management, management’s beliefs, as well as on a number of assumptions
concerning future events. All statements other than statements of historical
fact in this press release are forward-looking statements. Forward-looking
statements are not a guarantee of performance and are subject to a number of
uncertainties and other factors, which could cause the actual results to differ
materially from those currently expected. In providing forward-looking
statements, the company does not intend, and is not undertaking any obligation
or duty, to update these statements as a result of new information, future
events or otherwise.
Source: CommScope
