CommScope Holding Company, Inc. (NASDAQ:COMM) Q1 2024 Earnings Call Transcript May 9, 2024 8:30 AM ET

Company Participants

Massimo Disabato - VP of IR
Chuck Treadway - President and CEO
Kyle Lorentzen - EVP and CFO

Conference Call Participants

George Notter - Jefferies LLC
Meta Marshall - Morgan Stanley
Simon Leopold - Raymond James
Steven Fox - Fox Advisors LLC
Samik Chatterjee - JPMorgan
Amit Daryanani - Evercore
Matt Niknam - Deutsche Bank
Tim Savageaux - Northland Capital Markets

Operator

Good day, and thank you for standing by. Welcome to the CommScope First Quarter 2024 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. [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.

Massimo Disabato

Good morning, and thank you for joining us today to discuss CommScope's 2024 first 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 our 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 or non-GAAP financial measures, which are described in more detail in this morning's earnings returns. 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 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 begin on Slide 2. We continue to see uncertainty in our business. In the first quarter, we saw a recovery in our CCS and OWN order rates as service providers have worked down inventories and demand appears to be rebounding. This is a positive sign and one that we have been waiting for. Unfortunately, with the early signs of recovery in CCS and OWN, our ANS and NICS segments realized further deterioration in the quarter. In ANS and NICS, we experienced lower sequential quarterly revenues driven by delayed upgrades, customer inventory and lower demand. Visibility remains limited across all segments as customers continue to manage through macroeconomic conditions and upgrade plans. Based on current visibility, we expect the second quarter revenue and adjusted EBITDA to be higher than the first quarter.