Tuesday, CommScope Inc. (CTV), an infrastructure solutions provider for communications networks, reported a decline in profit for the third quarter, as sales declined 29.4%. CommScope said sales for the quarter was in large part hit by the difficult business environment that impacted capital spending by telecommunication providers and a slowdown in commercial and residential construction.
The Hickory, North Carolina-headquartered company's net income for the third quarter declined to $45.82 million or $0.45 per share, compared with $84.68 million or $1.05 per share in the prior year quarter. Adjusted net income for the quarter was $63.3 million or $0.61 per share, compared with $135.6 million or $ 1.49 per share a year-ago.
On average, twelve analysts polled by Thomson Reuters estimated earnings of $0.56 per share. Analysts' estimates typically exclude special items.
Sales for the quarter declined 29.4% from last year due primarily to declines in volume across all segments and geographic regions as a result of the global recession. Net sales for the quarter declined to $750.43 million from $1.06 billion year-ago. Twelve Wall Street analysts estimated revenues of $784.39 million for the quarter.
Business segment-wise, the company's Antenna Cable and Cabinet Group segment net sales declined 36.1% to $316.4 million from $495.0 million last year. Enterprise net sales declined 24.9% to $177.6 million from $236.5 million a year ago, while Broadband net sales saw a year-over-year decline of 14.0% to $136.7 million from $159.0 million a year ago. Net sales in the WNS segment decreased 31.1% to $120.3 million from $174.7 million reported last year.
CommScope's total operating costs and expenses declined to $659.26 million from $934.79 million in the year-ago period.
Operating income in the third quarter was $91.2 million, compared to $127.5 million in the year ago quarter, mainly to lower sales volumes. Adjusted operating income, excluding amortization of purchased intangibles and restructuring costs, declined 20.8% to $118.9 million from last year.
Frank Drendel, chairman and chief executive officer of CommScope said, "Because of our proprietary technology, global leadership and consistent quality, we think CommScope is uniquely positioned to help service providers, large enterprises and OEMs deliver next generation communication networks."
He added that the company believes that with the economic recovery, trends such as the global adoption of smart phones, new 4G services and the streaming of high definition video create meaningful opportunities for CommScope.
For the fourth quarter of 2009, the company expects revenues in the range of $740 million - $790 million and adjusted operating income excluding amortization of purchased intangibles and other special items to range between $95 million - $115 million. The Street estimates revenue of $760.45 million for the fourth quarter.
CTV is currently trading on the New York Stock Exchange at $28.74, up 0.95 points or 3.42%.
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