CommScope Holding Company, Inc. (NASDAQ: COMM), a global leader in network connectivity solutions, reported results for the quarter and year ended December 31, 2020.
Revenue in Q4 declined 7% to $2.13 billion, which missed the consensus estimate of $2.18 billion in sales. That resulted in adjusted earnings per share of $0.59, topping the analyst forecast of $0.44 per share in adjusted profits.
The telecommunications equipment company reported adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $362.2 million.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
"While 2020 was a year of change, our dedicated team, resilient supply chain and agile operations allowed us to quickly adapt and innovate across all aspects of our business, and achieve solid financial results while serving our customers around the world," CEO Chuck Treadway said in a statement. "Connectivity has never been more vital to businesses and our society."
Net sales in 2020 increased 1.1% year over year to $8.44 billion primarily due to a year over year increase in the Broadband Networks segment. On a combined company basis, net sales decreased 13.5% year over year primarily due to decreases in the Home Networks, Outdoor Wireless Networks and Venue and Campus Networks segments.
CommScope generated a net loss of $(573.4) million, or $(3.20) per share, in 2020, compared to the prior year net loss of $(929.5) million, or $(5.02) per share. Non-GAAP adjusted net income for 2020 was $371.0 million, or $1.56 per share, versus $479.4 million, or $2.15 per share, in 2019.
Non-GAAP adjusted EBITDA decreased 6.3% to $1,215.2 million compared to the prior year. On a combined company basis, non-GAAP adjusted EBITDA decreased 11.2% and represented 14.4% of net sales compared to 14.0% of net sales in 2019. The Company estimates that 2020 non-GAAP adjusted EBITDA was negatively impacted by approximately $70 million related to COVID-19 supply chain disruptions and certain other incremental costs.
CommScope says it has improved liquidity and de-risked its capital structure, while the company will continue paying down debt going forward. Looking ahead to 2021, the company expects the shift to remote work and learning to keep driving demand for broadband networks. There will also be a C-band auction in the second half of the year that is expected to boost spending on cell towers. Many venues and commercial facilities are also upgrading networks and migrating to the cloud.