SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
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DATE OF REPORT: APRIL 20, 2000
DATE OF EARLIEST EVENT REPORTED: APRIL 19, 2000
COMMSCOPE, INC.
(Exact name of registrant as specified in its charter)
DELAWARE 1-12929 36-4135495
(State or other (Commission File Number) (I.R.S. Employer
jurisdiction of Identification Number)
incorporation or
organization)
1375 LENOIR RHYNE BOULEVARD,
HICKORY, NORTH CAROLINA 28602
(Address of principal executive offices)
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: (828) 324-2200
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Item 5. Other Events.
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On April 19, 2000, the registrant issued the press release filed as
Exhibit 99.1 hereto.
Item 7. Financial Statements and Exhibits.
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Exhibit Description Page No.
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99.1 Press Release issued April 19, 2000 5
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on behalf of the
undersigned hereunto duly authorized.
Dated: April 20, 2000
COMMSCOPE, INC.
By: /s/ Jearld L. Leonhardt
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Jearld L. Leonhardt
Executive Vice President and
Chief Financial Officer
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EXHIBIT INDEX
Exhibit Description
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99.1 Press Release issued April 19, 2000
Exhibit 99.1
NOT FOR IMMEDIATE RELEASE
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COMMSCOPE REPORTS RECORD FIRST QUARTER RESULTS
ORDERS OF $272 MILLION; REVENUE OF $204 MILLION; EARNINGS PER SHARE OF $0.32
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HICKORY, NC -- (APRIL 19, 2000) CommScope, Inc. (NYSE: CTV) a world leader
in the manufacture of broadband and high-performance communication cables,
today announced record first quarter orders, sales and earnings per share
for the period ended March 31, 2000. Earnings per share rose 52% to $0.32
per diluted share in this year's first quarter from $0.21 per diluted share
in the first quarter of 1999.
"Demand for CommScope's portfolio of Hybrid Fiber Coaxial (HFC) products
for last-mile telecommunications continues to accelerate," said Frank M.
Drendel, CommScope Chairman and Chief Executive Officer. "CommScope is
benefiting from increasing competition and new revenue opportunities, which
are driving our customers to rapidly upgrade their broadband networks.
We're also seeing growing interest in advanced residential cabling
solutions for in-home video, voice and high-speed data."
Sales for the first quarter increased 38% to $203.9 million, compared to
$148.1 million in the first quarter of 1999. This record performance
continues to be driven primarily by strong broadband cable sales to
domestic telecommunications companies. Domestic sales rose 46% to $153.7
million, up from $105.5 million in the first quarter of 1999. International
sales rose to $50.2 million, up 18% year over year and up 10% sequentially.
Orders booked in the first quarter rose 71% to a new all-time record $271.8
million, up from $159.1 million in the same period last year. Orders
reflect particular strength in worldwide demand for HFC products.
Net income for the first quarter rose 55% to a first quarter record of
$16.7 million, up from $10.8 million in the first quarter of 1999.
"We are excited about CommScope's outlook," said Drendel. "We think that
we're just beginning to see the potential of broadband HFC networks in the
last mile of telecommunications. We believe that these powerful networks
will spur development of new bandwidth-intensive applications, which will
continue to drive worldwide demand for our products.
"CommScope intends to expand its leadership position in providing enabling
cable technology - for both wired and wireless networks - to
telecommunications customers around the world," Drendel added. "Our
previously announced capacity expansions are on schedule. We expect
significant additional capacity for fiber optic and wireless products
around midyear 2000."
OTHER FIRST QUARTER HIGHLIGHTS
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o CATV/Video sales worldwide increased to $149.8 million, up 26% year
over year. Domestic CATV/Video sales also rose 30% year over year, due
primarily to strong sales to Multiple System Operators (MSOs). Sales
of fiber optic products more than doubled compared to the first
quarter of 1999.
o Local Area Network (LAN) sales rose to $24.8 million, up 66% year over
year. Demand for high-performance, gigabit capable products continues
to be strong and deployment of Isolite [TRADEMARK] patent-pending
foaming technology across all LAN product categories is on schedule.
o Wireless and Other Telecom sales more than doubled to $29.3 million
compared to last year. Sales of Cell Reach [REGISTERED TRADEMARK]
wireless products more than tripled compared to the first quarter of
1999.
o Gross margins for the first quarter rose to approximately 25.7%, up
approximately 80 basis points from the first quarter of 1999. Gross
margins were down sequentially due primarily to higher raw material
costs, increased labor costs and one-time costs that affected
production and shipping.
"We anticipate margin improvement in the second quarter," noted Drendel.
"We expect the previously announced price increase for HFC products and
vertical integration activities, which should begin yielding benefits late
in the second quarter, to more than offset the rising cost and tightening
supply of some raw materials," said Drendel.
"Despite some challenges, we executed well and achieved good first quarter
results," added Drendel. "We overcame the first quarter impact of severe
winter weather and shipping delays associated with the installation of a
new integrated information system. We've made tremendous progress
incorporating our new information system into our business model and expect
to reap its full benefits over the longer term. I'm particularly grateful
for the hard work by our employees to get the job done in the face of these
short-term obstacles."
CommScope is the world's largest manufacturer of coaxial cable 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 capacity expansion, price increases, margin
improvement, cost and availability of materials, relative market position,
sales and growth goals, outlook and earnings. 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 materials, successful implementation of the bi-metals
operation and other vertical integration activities, successful expansion
and related operation of our facilities, effective implementation of our
integrated information system, developments in technology, pricing and
acceptance of CommScope's products, industry competition, regulatory
changes affecting our industries, international economic conditions,
telecommunications industry capital spending, and other factors. The
cautionary statements contained in Exhibit 99 to CommScope's 1999 Form 10-K
are incorporated herein by reference.
Visit CommScope at our Web Site - www.commscope.com
CONTACTS:
PHIL ARMSTRONG BETSY LAMBERT, APR
INVESTOR RELATIONS MEDIA RELATIONS
(828) 323-4848 828-323-4873
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COMMSCOPE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED -- IN THOUSANDS, EXCEPT PER SHARE DATA)
THREE MONTHS ENDED
MARCH 31,
2000 1999
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Net sales $ 203,939 $ 148,071
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Operating costs and expenses:
Cost of sales 151,586 111,236
Selling, general and administrative 18,397 14,569
Research and development 3,638 1,489
Amortization of goodwill 1,343 1,247
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Total operating costs and expenses 174,964 128,541
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Operating income 28,975 19,530
Other income (expense) (15) 10
Interest expense (2,388) (2,798)
Interest income 392 139
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Income before income taxes 26,964 16,881
Provision for income taxes (10,237) (6,121)
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Net income $ 16,727 $ 10,760
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Net income per share:
Basic $ 0.33 $ 0.21
Assuming dilution $ 0.32 $ 0.21
Weighted average shares outstanding:
Basic 50,935 50,401
Assuming dilution 52,500 51,218
