CommScope, Inc. (NYSE: CTV), a global leader in infrastructure solutions for communications networks, today announced record first quarter results for the period ended March 31, 2007. The company reported first quarter sales of $435.5 million and net income of $45.9 million, or $0.63 per diluted share.

For the first quarter of 2006, CommScope reported sales of $352.3 million and net income of $12.7 million, or $0.19 per diluted share. The reported first quarter 2006 net income included total after-tax charges of $2.4 million related to restructuring costs. Excluding this special item, adjusted earnings were $15.2 million, or $0.22 per diluted share.

"We are excited to start 2007 with record first quarter results that exceeded expectations," said Frank M. Drendel, CommScope Chairman and Chief Executive Officer. "We delivered solid top-line growth in every business segment while improving operating performance. The global manufacturing initiatives, which were implemented throughout 2006, made a significant contribution to our bottom line. These major restructurings at key facilities around the globe, higher sales volume and lower than expected commodity costs drove our record first quarter performance. We have also raised calendar year 2007 financial guidance to reflect our positive outlook.

"Leading global companies are placing great demands on their communications networks. We strive to provide our customers with solutions that are part of the essential fabric for higher-bandwidth networks of the future," stated Drendel. "We believe that our momentum remains strong as we execute this strategy and build upon CommScope's unique position in the 'last mile' of telecommunications."

Sales Overview

Sales for the first quarter of 2007 increased 23.6% year over year, primarily driven by increased customer demand in all segments and price increases implemented during 2006 in response to higher raw material costs. The company experienced particularly strong sales growth in the Carrier segment. Below is a sales summary:

    Sales by Segment            First    Fourth     First
    ($ in millions)            Quarter   Quarter   Quarter     % Change
                                 2007      2006     2006     YOY    Sequential

    Enterprise                 $ 200.9   $ 187.5   $ 172.1    16.7%       7.1%
    Broadband                    148.1     144.0     125.9    17.6%       2.8%
    Carrier                       87.1      62.4      54.7    59.2%      39.6%
    Inter-segment eliminations    (0.6)     (0.2)     (0.4)
    Total CommScope Net Sales  $ 435.5   $ 393.7   $ 352.3    23.6%      10.6%

Enterprise segment sales rose 16.7% year over year to $200.9 million, primarily due to higher sales volume, price increases implemented in 2006 in response to increases in raw material costs and the continued success of new products like the innovative iPatch(R) Real Time Infrastructure Management System. Enterprise sales growth was strongest year over year in the European, Middle Eastern and African (EMEA) and North American (NAR) regions.

Broadband segment sales rose to $148.1 million, up 17.6% year over year primarily due to price increases implemented in the first half of 2006, higher sales volume and the positive impact of a product line acquisition completed in March 2006. Broadband sales grew as cable operators invested in their networks to support the "triple play" of video, data and voice services. Broadband sales growth was strongest year over year in the Central and Latin American (CALA) and NAR regions.

Carrier segment sales increased 59.2% year over year to $87.1 million. The outstanding year-over-year and sequential growth is primarily due to a significant increase in activity as large domestic wireline carriers deploy broadband services to their customers. As previously mentioned, the Carrier segment has been CommScope's fastest growing yet most volatile segment.

Total international sales for the first quarter of 2007 rose 19.4% year over year to $128.0 million, or approximately 29.4% of total company sales.

External orders booked in the first quarter of 2007 were $459.6 million, up 14.8% from the year-ago quarter.

    Other First Quarter Highlights

    -- In the first quarter of 2007, CommScope announced a definitive
       agreement to acquire substantially all the assets and assume certain
       liabilities of Signal Vision, Inc., a leading supplier of broadband
       radio frequency subscriber products.  Signal Vision's product lines
       include passives, indoor amplifiers and addressable taps.  The
       transaction, which is subject to due diligence and customary closing
       conditions, is expected to close in the second quarter of 2007.

    -- CommScope announced that it had more than doubled its year-over-year
       shipments of Extremeflex(R) 50-ohm aluminum cable products for wireless
       transmission systems.  Some key advantages of the Extremeflex aluminum
       solution include improved flexibility, lighter tower load and lower
       life cycle costs.  Extremeflex aluminum products have been accepted by
       major domestic carriers as well as international carriers in every
       major region of the world.

    -- CommScope also introduced a new line of universal connectors and tools
       for wireless transmission systems.  CommScope's EZfit-Series(TM)
       connectors and tools are engineered to fit both smooth-wall and
       traditional corrugated line cables.  The company expects its new
       connectors and tools to provide lower connector insertion loss and
       improved return loss for higher-performance cable systems.

    -- Gross margin for the first quarter of 2007 was 30.3%, up 620 basis
       points year over year.  The gross margin improvements were primarily
       due to higher sales volume, favorable mix and the positive impact of
       operating efficiencies resulting from the company's global
       manufacturing initiatives.

    -- SG&A for the first quarter of 2007 was $59.7 million or 13.7% of sales,
       compared to $54.2 million or 15.4% of sales in the year-ago quarter.
       SG&A declined as a percentage of sales primarily due to higher sales levels.

    -- First quarter 2007 results include $2.6 million of pretax, equity-based
       compensation expense, compared to $1.0 million in the year-ago quarter.

    -- Operating income for the first quarter of 2007 was $63.7 million, or
      14.6% of sales.  In the year-ago quarter, operating income was $19.3
       million, or 5.5% of sales.  Excluding restructuring cost, operating
       income would have been $23.1 million, or 6.6% of sales, for the year-
       ago quarter.

    -- Total depreciation and amortization expense was $12.4 million for the
       first quarter of 2007.

    -- Net cash provided by operating activities in the first quarter of 2007
       was $10.7 million.  Capital spending in the quarter was $4.1 million.

    Outlook

CommScope management provided the following guidance for the second quarter and calendar year 2007:

    Second Quarter 2007

    -- For the second quarter of 2007, revenue is expected to be $490 - $510
       million and operating margin is expected to be 14.5% - 15.5%, excluding
       special items.
    -- The effective tax rate is expected to be 30% - 34%.

    Calendar Year 2007

    -- For calendar year 2007, the company has increased its revenue and
       operating margin guidance.  CommScope now expects revenue in the range
       of $1.84 - $1.89 billion and operating margin of 13.5% - 14.5%,
       excluding special items.

    -- The effective tax rate is expected to be 30% - 34%.

The company's previous calendar year 2007 guidance was sales of $1.72- $1.76
billion and operating margin around the 12% level, excluding special items.

"We are pleased with the strong start in our 2007 financial performance and our improved calendar year outlook," said Jearld L. Leonhardt, Executive Vice President and Chief Financial Officer. "We expect operating margin in the second half of 2007 to be lower than the first half of the year primarily due to increasing raw material costs and a cautious view of the historically volatile Carrier segment."

Conference Call Information

CommScope plans to host a call today at 5:00 p.m. EDT to discuss first quarter results. You are invited to listen to the conference call or live webcast with Frank Drendel, Chairman and CEO; Brian Garrett, President and COO; and Jearld Leonhardt, Executive Vice President and CFO.

To participate on the conference call, domestic and international callers should dial +1-415-537-1802. Please plan to dial in 10-15 minutes before the start of the call to facilitate a timely connection. The live, listen-only audio of the conference call will be available through a link on the "Events/Presentations" tab of the Investor Relations section of CommScope's website at www.commscope.com.

If you are unable to participate on the call and would like to hear a replay, you may dial 800-633-8284. International callers should dial +1-402-977-9140 for the replay. The replay ID is 21336728 and it will be available through Thursday, May 3. A webcast replay will also be archived on CommScope's website for a limited period of time following the conference call.

About CommScope

CommScope (NYSE: CTV) (www.commscope.com) is a world leader in infrastructure solutions for communication networks. Through its SYSTIMAX(R) Solutions(TM) and Uniprise(R) Solutions brands, CommScope is the global leader in structured cabling systems for business enterprise applications. It is also the world's largest manufacturer of coaxial cable for Hybrid Fiber Coaxial applications. Backed by strong research and development, CommScope combines technical expertise and proprietary technology with global manufacturing capability to provide customers with high-performance wired or wireless cabling solutions.

Forward-Looking Statements

This press release contains forward-looking statements regarding, among other things, the business position, plans, outlook, revenues, margins, earnings, global manufacturing initiatives, acquisitions, synergies and other financial items relating to CommScope that are based on information currently available to management, management's beliefs and a number of assumptions concerning future events. These forward-looking statements are identified by the use of certain terms and phrases, including but not limited to "intend," "goal," "estimate," "expect," "project," "plans," "anticipate," "should," "designed to," "foreseeable future," "believe," "think," "scheduled," "outlook," "guidance" and similar expressions. Forward-looking statements are not a guarantee of performance and are subject to a number of risks, uncertainties and other factors that could cause the actual results to differ materially from those currently expected. Factors that could cause actual results of CommScope to differ materially include, but are not limited to, customer demand for our products and the ability to maintain existing business alliances with key customers or distributors; volatility in raw material costs and the effect of related price changes; changes in the technology deployed by cable television or other telecommunication companies; the risk that customers might cancel orders placed or that orders currently placed may reduce orders in the future; the risk that our internal production capacity and that of our contract manufacturers may be insufficient to meet customer demand for our products; continuing consolidation among our customers; competitive pricing and acceptance of our products; industry competition and the ability to retain customers through product innovation; possible production disruption due to supplier or contract manufacturer bankruptcy, reorganization or restructuring; successful ongoing operation of our vertical integration activities; the possibility of further restructuring actions; the timing, completion, integration and realization of expected synergies related to the pending acquisition of the assets of Signal Vision, Inc. and our ability to realize anticipated benefits from prior or future acquisitions; possible future impairment charges for fixed or intangible assets; increased obligations under employee benefit plans; ability to achieve expected sales and operating income goals; costs of protecting or defending our intellectual property; ability to obtain capital on commercially reasonable terms; adequacy and availability of insurance; costs and challenges of compliance with domestic and foreign environmental laws; variability in expected tax rate and ability to recover amounts recorded as value added tax receivables; product performance issues and associated warranty claims; ability to successfully implement major systems initiatives; regulatory changes affecting us or the industries we serve; authoritative changes in generally accepted accounting principles by standard-setting bodies; environmental remediation issues; terrorist activity or armed conflict; political instability; major health concerns; and any statements of belief and any statements of assumptions underlying any of the foregoing. For a more complete description of factors that could cause such a difference, please see CommScope's filings with the Securities and Exchange Commission, which are available on CommScope's website or at www.sec.gov. In providing forward-looking statements, the company does not intend, and is not undertaking any duty or obligation, to update these statements as a result of new information, future events or otherwise.

Contact Us

CommScope, Inc.
Phil Armstrong, Investor Relations,
+1-828-323-4848