Exhibit 99.1
FOR IMMEDIATE RELEASE
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COMMSCOPE COMMENTS ON THIRD QUARTER OUTLOOK;
Company also Announces Extended Supply Arrangement for Bimetal Center
Conductors
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HICKORY, NC -- AUGUST 14, 2000 CommScope, Inc. (NYSE: CTV) today announced
that it expects to report third quarter 2000 results below consensus
analyst estimates. The Company also announced today that it has secured a
supply arrangement for bimetal center conductors, which are one of the
primary materials in the production of coaxial cables, enhancing
CommScope's ability to meet strong demand for Cable Television and Other
Video products.
CommScope expects to report diluted earnings of between $0.38 and $0.43 per
share for the third quarter ending September 30, 2000. Analyst consensus
for the third quarter is $0.45 per diluted share. The expected shortfall in
earnings is due primarily to difficult pricing patterns and
lower-than-expected sales in Local Area Network (LAN) and Wireless/Other
Telecom products. LAN and Wireless/Other Telecom account for approximately
11% and 14% of the Company's businesses respectively. The Company noted
that it continues to experience strong demand for Cable Television and
Other Video Products, which account for approximately 75% of CommScope
sales.
CommScope continues to believe it can achieve year-over-year revenue growth
of 20%-25% in the second half of 2000.
"While we are disappointed with the current sales trend in LAN and
Wireless/Other Telecom, we remain optimistic about the long-term
opportunities for these products," said Frank M. Drendel, CommScope
Chairman and Chief Executive Officer. "We are committed to growth in all of
the markets we serve and intend to sharpen execution across the Company to
achieve this goal. We intend to respond aggressively to the competitive
pricing environment in wireless and continue to focus on driving down
product cost while broadening our portfolio of wireless products. We have
already taken steps to meet market pricing in LAN and will work to increase
our participation in the Category 5 and 5e segments of that market."
As a result of recent negotiations with our current supplier, CommScope has
secured a supply arrangement for a fixed amount of bimetal center
conductors for calendar year 2001 and the parties are working toward a
longer-term arrangement.
Commenting on this favorable development, Drendel said; "Production
capacity and supplies of key materials continue to be tight due to the
surging demand for Hybrid Fiber Coaxial (HFC) products. This bimetal supply
arrangement, combined with our improving internal bimetal production,
addresses concerns regarding a key material and enhances our ability to
support the growing demand for broadband cable. By mid-year 2001, we intend
to have a combined total of more than $1 billion of cable manufacturing
capacity for HFC and wireless products."
CommScope is the world's largest manufacturer of broadband coaxial cable
for Hybrid Fiber Coaxial (HFC) applications and is a leading supplier of
high-performance fiber optic and twisted pair cables for LAN, wireless and
other communications applications.
Statements in this press release which are other than historical facts are
intended to be "forward-looking statements" within the meaning of the
Securities Exchange Act of 1934, the Private Securities Litigation Reform
Act of 1995 and other related laws, and include, but are not limited to
those statements relating to sales and earnings expectations, cost and
availability of key raw materials, internal production capacity and
expansion, competitive pricing, relative market position and outlook. While
CommScope believes such statements are reasonable, the actual results and
effects could differ materially from those currently anticipated. Factors
and risks that could cause such differences include, but are not limited to
changes in cost and availability of key raw materials (including without
limitation bimetallic center conductors, optical fibers, thin aluminum wire
and fluorinated-ethylene-propylene which are available only from limited
sources), successful implementation of internal bimetal production
(Commscope purchased bimetal center conductor fabrication equipment and
technology in 1999) and other vertical integration activities, pricing and
acceptance of CommScope's products, successful expansion and related
operation of our facilities, effective implementation of our integrated
information system, developments in technology, industry competition,
regulatory changes affecting our industries, worldwide economic conditions,
and other factors. Actual results may also differ due to the to changes in
telecommunications industry capital spending, which is affected by a
variety of factors, including, without limitation: general economic
conditions; acquisitions of telecommunications companies by others;
consolidation within the telecommunications industry; the financial
condition of telecommunications companies and their access to financing;
competition among telecommunications companies; technological developments;
and new legislation and regulation of telecommunications companies. These
and other factors are discussed in greater detail in Exhibit 99 to
CommScope's Form 10-Q for the period ended March 31, 2000, which is
incorporated herein by reference and can be accessed at the SEC's website
at www.sec.gov.
Visit CommScope at our Web Site--www.commscope.com
CONTACTS:
PHIL ARMSTRONG
INVESTOR RELATIONS
(828) 323-4848
BETSY LAMBERT, APR
MEDIA RELATIONS
(828) 323-4873
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