Skip to Main Content

About Commscope Technologies LLC

CommScope is a leading maker of products for infrastructure solutions for communication and entertainment networks. Its CommScope Connectivity Solutions segment makes copper cable, fiber optic cable, and connectivity solutions for use in data centers, business enterprises, telecommunications, cable television and residential broadband networks. Its connectivity portfolio includes innovative solutions for both indoor and outdoor network applications. The company's other segment, CommScope Mobility Solutions, provides the integral building blocks for cellular base station sites and related connectivity; indoor, small cell and distributed antenna wireless systems; and wireless network backhaul planning and optimization products and services, and macro cell site systems used in wireless tower sites and on rooftops. The company's major brands are Andrew, SYSTIMAX, NETCONNECT, and Uniprise.US is the largest market accounting for some 60% of the company's total sales.

Operations

Subsequent to the acquisition of ARRIS, CommScope operates through five segments: Connectivity, Mobility, Customer Premises Equipment (CPE), Network & Cloud (N&C) and Ruckus Networks (Ruckus).

Connectivity Solutions Segment generates above 30% of total sales and provides innovative fiber optic and copper cable and connectivity solutions for use in data centers, business enterprises, telecommunications, cable television and residential broadband networks. Their Connectivity portfolio includes innovative solutions for both indoor and outdoor network applications.

The Mobility segment provides the integral building blocks for cellular base station sites and related connectivity; indoor, small cell and distributed antenna wireless systems; and wireless network backhaul planning and optimization products and services. It also have macro cell site solutions (can be found at wireless tower sites and on rooftops), metro cell solutions (can be found on street poles and on other urban structures) and distributed antenna system and small cell solutions (allow wireless operators to increase spectral efficiency and enhance cellular coverage and capacity and transportation systems). It also accounts for over 20% of revenue.

The CPE segment (some 30% of revenue) includes subscriber-based solutions that support broadband and video applications connecting cable, telecommunications and satellite service providers to a customer's home and adds wireless connectivity or other wired connections integrating in-home devices together to enable the consumption of internet-based services and the delivery of broadcast, streamed and stored video to televisions and other connected devices.

The N&C segment's (about 15% of revenue) product solutions include cable modem termination systems, video infrastructure, distribution and transmission equipment and cloud solutions that enable facility-based service providers to construct a state-of-the-art residential and metro distribution network.

Ruckus segment (approximately 5% of revenue) provides converged wired (local area network (LAN)) and wireless (WLAN) networks for enterprises and service providers. It also offer indoor and outdoor Wi-Fi and LTE access points, access and aggregation switches.

Approximately 95% of the company's total sales were generated from product contracts. Project and other contracts accounted the remaining.

Geographic Reach

CommScope serves customers in more than 150 countries through 20 manufacturing and distribution facilities in North Carolina, New Mexico, Netherlands, Texas, Australia, Belgium, China, Czech Republic, Germany, India, Ireland and Mexico.

CommScope relies on the US for nearly 60% of sales. The Europe, Middle East and Africa (EMEA) region accounts for about 20%, while the Asia/Pacific region generates more than 10%. Remaining sales go to the Caribbean and Latin America region and Canada.

CommScope corporate headquarters' located in Hickory, North Carolina.

Sales and Marketing

CommScope's customers cover a broad range of the telecommunications industry and include global telecom operators, data center managers, cable television providers, telecommunication and satellite multi-channel video service providers and MSOs. Major customers and distributors include companies such as America Movil, S.A.B. de C.V.; Anixter International Inc. (Anixter); AT&T Inc.; Charter Communications, Inc.; Comcast Corporation (Comcast); Cox Communications, Inc.; KGP Co.; Liberty Communications; Shaw Communications, Inc.; and Verizon Communications Inc. Comcast Corporation is its largest distributor, accounting for about 15% of sales.

Products from the Connectivity segment are primarily sold through independent distributors or system integrators for large telecommunications operators. Mobility segment products are primarily sold directly to wireless operators, OEMs that sell equipment to wireless operators and other service providers. CPE segment products are primarily sold directly to wireline network service providers, such as telephone companies and cable television network providers, to be deployed by them into their subscribers' homes and businesses. N&C segment products are primarily sold directly to wireline network service providers, such as telephone companies and cable television network providers, to be deployed by them into their service delivery networks. Ruckus segment products are primarily sold to customers in a broad range of enterprise vertical markets, including hospitality, education, smart cities, government, venues and service providers indirectly through a large network of value-added resellers and distributors, which we collectively refer to as channel partners.

Advertising expense was $39.5 million, $17.3 million and $21.2 million for the fiscal years 2019, 2018 and 2017, respectively

Financial Performance

CommScope's revenue has been fluctuating for the last five years. It has an overall growth of 119% between 2015 and 2019.

In 2019, sales were 83% higher from $4.6 billion in 2018 to $8.3 billion in 2019. This was primarily due to the $2.5 billion contribution of its CPE segment.

CommScope's net loss was $929.5 million, which included goodwill impairment charges of $376.1 million, acquisition accounting adjustments of $264.2 million and transaction and integration costs of $195.3 million.

The company's cash and equivalents were $598.2 million in 2019 compared to $4458.2 in 2018. Operations produced $596.4 million in 2019, while investing activities used $5.2 billion. Investing activities generated another $4.7 billion.

Strategy

With the global rise in demand for consumer, business and device connectivity, CommScope expects the need and reliance on communications networks to increase dramatically over the next ten years. The company's strategy and 2020 priorities include:

Realigning its Business Structure. To support the company's goal of shaping the most advanced networks of the future, CommScope announced a realignment of its operating structure that became effective in January 2020. Based on this new operating structure, the company's new segments are Venue and Campus Networks, Broadband Networks, Outdoor Wireless Networks and Home Networks. CommScope will begin reporting based on these segments in the first quarter of 2020.

Focusing on Innovation to Solve Critical Problems. The company plans to build on its legacy of innovation and on its worldwide portfolio of patents and patent applications by continuing to invest in research and development (R&D). It intends to drive profitable growth by enabling its service provider, enterprise, hyperscale and emerging cloud customers with the necessary broadband capacity to meet increased consumer demand. CommScope also intends to utilize its deep industry expertise to offer unique perspectives to solve customers' challenges. The company intends to focus its investment on high-growth markets.

Enhancing Sales Growth. The company intends to generate growth opportunities by: Offering existing products and solutions into new geographic markets; Collaborating with the world's leading service and content providers and maintaining deep industry relationships; Cross-selling its offerings into new markets; and building new integrated product offerings for existing and new use cases.

Mergers and Acquisitions

In mid-2019, CommScope acquired UK-listed ARRIS International plc for $7.7 billion, including debt assumed. ARRIS, a global leader in entertainment, communications and networking technology. The combined company is expected to shape the future of wired and wireless communications and benefit from key industry trends, including network convergence, fiber and mobility everywhere, 5G, Internet of Things and rapidly changing network and technology architectures.

Commscope Technologies LLC

1100 Commscope Pl SE
Hickory, NC 28602-3619
Phone: 1 (708) 236-6600

Firm Stats

Employer Type: Privately Owned
Vice President International Services: Jonas Aleksa
Pres: Marvin S Eddie Edwards
Executive Vice President, Coaxial Cable And Antenna Operations: Christopher Story
Employees (This Location): 1,200
Employees (All Locations): 1,500

Major Office Locations

Hickory, NC