CommScope realignment in the works

CommScope (NASDAQ:COMM) plans to transition to a new operating model and segment reporting structure, effective Jan. 1, that is intended to help better capture the strategic ...

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CommScope (NASDAQ:COMM) plans to transition to a new operating model and segment reporting structure, effective Jan. 1, that is intended to help better capture the strategic value resulting from its acquisition of ARRIS and Ruckus Networks. To that end, CommScope will operate and report its financial performance in four segments: Venue and Campus Networks; Broadband Networks; Outdoor Wireless Networks and Home Networks.

"Since completing the ARRIS acquisition in April, we have created a powerful company with what we believe is the most compelling and diversified global portfolio of industry leading technologies for enterprise and service provider customers," said President and Chief Executive Officer Eddie Edwards. "We expect our new operating model will enable us to realize significant benefits of cost and revenue synergies, strengthen our technology leadership, and support our long-term growth strategy. By bringing similar technology and product platforms together, we will accelerate end-to-end networking systems development, be able to shape the most advanced networks of the future and help our customers unlock the full potential of the coming 5G revolution.

"This new structure reinforces our goal to solve our customers' problems faster, with a higher level of efficiency and innovation. With this portfolio realignment and more efficient operations, CommScope will accelerate its mission to push the boundaries of technology and deliver on our commitments to deliver growth, substantial cash flow, higher profit margins, and a scalable operating model. Our new structure seeks to provide all stakeholders with a greater level of transparency into the drivers of performance in the business, to drive better resource allocation decisions and strategic alignment."

Additional detail on the four business segments:

  • Venue and Campus Networks - Targeting both public and private networks for campuses, venues, data centers, and buildings, this segment will combine the current Ruckus Networks, Enterprise and Distributed Coverage and Capacity (DCCS) businesses. It includes WiFi and switching, distributed antenna systems (DAS), licensed and unlicensed small cells, and enterprise fiber and copper infrastructure. The Venue and Campus Networks segment will be led by Ben Cardwell, who has been with CommScope for more than 15 years. Most recently, he was senior vice president and segment leader for the CommScope Mobility Solutions and Connectivity Solutions segments.
  • Broadband Networks - This segment will serve the telco and cable provider broadband market. The new segment combines the existing Network Cable and Connectivity business with the Network & Cloud business. This segment will focus on CCAP, PON, Video Systems, Access Technologies, Fiber and Coaxial Cable, Fiber and Copper Connectivity and hardened closures. The Broadband Networks segment will be led by Kevin Keefe, an industry veteran with more than 25 years of experience. Keefe joined CommScope through its acquisition of ARRIS. He most recently was senior vice president and segment leader for the CommScope Network & Cloud segment.
  • Outdoor Wireless Networks - Consisting of the company's RF Products and Integrated Solutions groups, this segment will focus on the Macro and Metro Cell businesses. It will consist of Base Station Antennas (BSA), RF Filters, Tower Connectivity, Microwave Antennas, Metro Cell and cabinets/steel, accessories, SAS and Comsearch. The Outdoor Wireless Networks segment will be led by Farid Firouzbakht, who has been with CommScope for more than 15 years. Most recently, he was senior vice president and leader of the RF Products business unit within the CommScope Mobility Solutions segment.
  • Home Networks - Comprising the current Consumer Premises Equipment (CPE) business, this segment will focus on the future of the connected home and devices inside the home. Anchored by CommScope's broadband gateways (coaxial, fiber, and wireless), video set-tops, and in-home devices, this business will continue to provide technologies for providing broadband services to and inside the home. The Home Networks segment will be led by Joe Chow, who joined CommScope in August and has served in the CPE industry for nearly 20 years. Most recently he was senior vice president and segment leader for the CommScope CPE segment.        
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