CommScope, Inc. (NYSE: CTV) today announced that it expects to incur charges from its minority ownership interest in OFS BrightWave, LLC, an optical fiber and fiber cable venture with The Furukawa Electric Co., Ltd. of Japan. Earlier today Furukawa announced a major review of its global optical fiber and fiber optic cable operations, which may include some OFS BrightWave facilities where CommScope has a minority ownership interest. Furukawa indicated that additional restructuring, charges and job cuts may be necessary at certain fiber facilities in order to reduce its cost structure.

"We believe that Furukawa is continuing to respond to the unprecedented downturn in global business conditions for optical fiber and fiber optic cable," said Frank M. Drendel, CommScope Chairman and Chief Executive Officer. "As we stated in our recent earnings release, CommScope expects ongoing pricing pressures and weak global demand for optical fiber products at least through 2003. Furukawa stated today that it intends to take additional actions in response to current market conditions.

"CommScope expects to provide estimates of non-cash charges related to OFS BrightWave once plans are finalized in the coming months," noted Drendel.

CommScope acquired an 18.4% ownership interest in OFS BrightWave, an optical fiber and fiber cable venture between CommScope and Furukawa, during the fourth quarter of 2001 and CommScope is reporting results using the equity method of accounting for this investment.

CommScope is the world's largest manufacturer of broadband coaxial cable for Hybrid Fiber Coaxial (HFC) applications and a leading supplier of high- performance fiber optic and twisted pair cables for LAN, wireless and other communications applications. Through its relationship with OFS, CommScope has an ownership interest in one of the world's largest producers of optical fiber and cable and has access to a broad array of connectivity components as well as technologically advanced optical fibers, including the zero water peak optical fibers used in the production of the LightScope ZWP(TM) family of products.

This press release contains forward-looking statements regarding sales, outlook and expectations for CommScope and OFS BrightWave that are based on information currently available to management, management's beliefs and a number of assumptions concerning future events. Forward-looking statements are not a guarantee of performance and are subject to a number of uncertainties and other factors, which could cause the actual results to differ materially from those currently expected. The potential risks and uncertainties that could cause actual results to differ materially include, but are not limited to financial performance of OFS BrightWave, financial performance of Furukawa, expected demand from Comcast Corporation and other major domestic MSOs, telecommunications industry capital spending; industry consolidation; ability of our customers to secure adequate financing to fund their infrastructure projects or to pay us; industry excess capacity; changes or fluctuations in global business conditions; competitive pricing and acceptance of our products; changes in cost and availability of key raw materials; ability to recover higher material and transportation costs from our customers; possible future impairment charges; industry competition and the ability to retain customers; possible disruption due to customer or supplier bankruptcy, reorganization or restructuring; our ability to obtain financing and capital on commercially reasonable terms; covenant restrictions and ability to comply with covenants imposed on us by our revolving credit facility; successful operation of bimetals manufacturing and other vertical integration activities; successful expansion and related operation of our facilities; developments in technology; intellectual property protection; regulatory changes affecting us or the industries we serve; acquisition activities and the ability to integrate acquisitions; terrorist activity or armed conflict and other factors. For a more detailed description of factors that could cause such a difference, please see CommScope's filings with the Securities and Exchange Commission. 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