HICKORY – Broadband infrastructure provider CommScope (COMM) delivered quartertly revenue and earnings expected by Wall Street analysts in its latest financials announced Thursday morning. But the company will not be spinning off a subsidiary as planned, its CEO disclosed.
Earnings of 31 cents topped estimates of Wall Street analysis firm Zacks by 11 cents per share,
And revenue came in higher at $2.22 billion – more than 9% higher than expected.
“We were pleased to deliver a better-than-expected fourth quarter performance despite continued headwinds in a difficult inflationary environment,” said CommScope CEO Chuck Treadway in a statement.
“Our results are reflective of the continued strong demand for CommScope’s products and services, as well as the efforts of the entire global team in driving forward the implementation of our CommScope NEXT initiatives,” he added.
However, Treadway said the company would not be spinning off its Home Networks business as planned.
“In light of the ongoing impact of supply chain pressures on the Home Networks business that began in the summer of 2021, including semiconductor supply decommits and extended component lead times, we have determined that market conditions are not currently conducive to proceeding with the planned spin-off of Home Networks into an independent company in the second quarter of 2022,” he explained. “We remain committed to the merits of strategically separating Home Networks from CommScope, and still plan to execute on that strategy when clear evidence of a more normalized and predictable supply environment emerges.”
Read the full earnings report online: