CommScope Holding Company, Inc. (NASDAQ:COMM) Q4 2023 Earnings Conference Call February 29, 2024 8:30 AM ET

Company Participants

Massimo Disabato – Vice President-Investor Relations

Chuck Treadway – President and Chief Executive Officer

Kyle Lorentzen – Executive Vice President and Chief Financial Officer

Conference Call Participants

George Notter – Jefferies

Victor Chiu – Raymond James

Steven Fox – Fox Advisors

Meta Marshall – Morgan Stanley

Operator

Good day, and thank you for standing by. Welcome to CommScope’s 2023 Full Year and Fourth Quarter Results Conference Call. At this time all participants are in listen-only mode. [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.

Massimo Disabato

Good morning, and thank you for joining us today to discuss CommScope’s 2023 full year and fourth quarter results. I’m Massimo Disabato, Vice President of Investor Relations for CommScope, and with me on today’s call are Chuck Treadway, President and CEO; and Kyle Lorentzen, Executive Vice President and CFO. You can find the slides that accompany this report on our Investor Relations website.

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

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

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

Chuck Treadway

Thank you, Massimo. Good morning, everyone. I’ll be beginning on Slide 2. Before getting into details of our quarter, I want to address the current state of our business and changes since our last call. The business continues to be under significant pressure as demand remains low. We continue to have minimal visibility to when a recovery will occur.

During the quarter, we also experienced unexpected significant downward pressure in our NICS and ANS businesses. We are now in a position where all of our segments are dealing with market demand challenges. Although we have seen some slight uptick in demand in our OWN and CCS segments. We expect a very difficult first half and specifically first quarter. We expect the first quarter revenue and adjusted EBITDA to be substantially lower than the fourth quarter of 2023.