CommScope, Inc. (NYSE: CTV) today announced first quarter results for the period ended March 31, 2006. The Company reported first quarter sales of $352.3 million and net income of $12.7 million, or $0.19 per diluted share. The reported net income includes after-tax charges of $2.4 million related to restructuring costs. Excluding restructuring costs, adjusted earnings were $15.2 million, or $0.22 per diluted share.

For the first quarter of 2005, CommScope reported sales of $309.1 million and net income of $5.5 million, or $0.09 per diluted share. The first quarter 2005 net income included after-tax restructuring charges of $1.3 million, or $0.02 per diluted share.

"Despite rising raw material costs, we delivered a strong start to the year," said Frank M. Drendel, CommScope Chairman and Chief Executive Officer. "We are encouraged by the positive order trends across each of our segments.

While we continue to face a challenging commodity cost environment, we intend to continue adjusting pricing to recover our costs."

Sales Overview

Sales for the first quarter of 2006 increased 14.0% year over year, primarily driven by price increases in response to higher raw material costs and improved Broadband and Carrier segment sales volumes.

                                    First   Fourth  First
    ($ in millions)                Quarter Quarter Quarter      % Change
                                     2006    2005    2005     YOY  Sequential

    Enterprise                      $172.1  $163.1  $157.7    9.1%     5.5%
    Broadband                       $125.9  $119.3  $108.1   16.5%     5.5%
    Carrier                          $54.7   $64.0   $44.1   24.0%   -14.5%
    Inter-segment eliminations       ($0.4)  ($0.6)  ($0.8)    n/a      n/a

    Total CommScope Net Sales       $352.3  $345.8  $309.1   14.0%     1.9%

Enterprise segment sales rose 9.1% year over year to $172.1 million, primarily due to higher sales prices for most cable products and higher global sales volumes. Enterprise sales increased year over year in all regions except the Europe/Middle East/Africa region, which experienced weaker market conditions than the first quarter of 2005.

Broadband segment sales rose to $125.9 million, up 16.5% year over year, as a result of both higher prices for coaxial cable products and increased global sales volumes.

Carrier segment sales rose 24.0% year over year to $54.7 million due to increased demand for Integrated Cabinet Solutions (ICS) products.

Total international sales rose 3.8% year over year to $107.2 million, or approximately 30% of total company sales.

Overall external orders booked in the first quarter of 2006 were $443.9 million. Book-to-bill ratios were positive in all segments with particular strength in the Carrier and Enterprise segments.

Additional Price Increases Announced

In response to substantial cost increases for certain key commodities, CommScope has announced additional price increases on selected cable products. CommScope is also implementing a new price adjustment mechanism in the Enterprise market due to the continuing volatility in the cost of copper. The Company intends to take additional pricing actions as necessary to recover the rising cost of raw materials.

Global Manufacturing Initiatives

CommScope's first quarter 2006 results reflect pretax restructuring charges of $3.7 million ($2.4 million after tax) for employee-related and equipment relocation costs associated with the Company's global manufacturing initiatives.

The global manufacturing initiatives, which were announced in September 2005, continue to progress on schedule. The initiatives are designed to improve service and reduce costs by redistributing production among global facilities and improving the efficiency of certain manufacturing processes. CommScope anticipates annualized pretax savings of $35-$40 million once the initiatives are completed in early 2007. The Company expects to realize about half of these annualized pretax savings during 2006, primarily in the second half of the year.

    Other First Quarter 2006 Highlights

     - Gross margin for the first quarter rose to 24.1%, up 70 basis points
       from the year-ago level.  Gross margin improved year over year
       primarily due to higher sales volumes.  The positive impact of higher
       sales prices was essentially offset by higher raw material costs.
     - SG&A for the first quarter of 2006 was $54.2 million or 15.4% of sales,
       compared to $53.9 million or 17.4% of sales in the year-ago quarter.
       SG&A declined as a percentage of sales primarily due to higher sales
       levels, ongoing cost management and lower bad debt expense.
     - First quarter 2006 results include $1.0 million (pretax) of equity-
       based compensation expense related to the implementation of SFAS
     - Operating income for the first quarter of 2006 was $19.3 million or
       5.5% of sales.   Excluding restructuring costs, operating income would
       have been $23.1 million or 6.6% of sales.  In the year-ago quarter,
       operating income was $8.5 million or 2.7% of sales.  Adjusted operating
       income was $10.5 million or 3.4% of sales for the first quarter of
       2005, excluding restructuring charges.
     - Total depreciation and amortization expense was $14.2 million for the
       first quarter, which included $3.9 million of intangibles amortization.
     - The effective tax rate for the first quarter of 2006 was 36.5%,
       compared to 24.7% in the year-ago quarter.  The increase in the
       effective tax rate was due primarily to changes in the mix of
       international and domestic income.
     - Net cash used in operating activities in the first quarter was
       $18.4 million.  The use of cash primarily reflects increased accounts
       receivable, payments related to year-end incentive programs and
       severance payments related to the implementation of the global
       manufacturing initiatives.
     - During the first quarter of 2006, capital spending was $6.8 million.
       CommScope also acquired the MC2(R) trunk and distribution cable
       television products business and certain other assets from Trilogy
       Communications, Inc. for $13.8 million.  CommScope received proceeds
       from the exercise of stock options of $27.7 million during the quarter.


"In the face of rapidly rising material costs, we are pleased to start 2006 with solid first quarter financial results," said Jearld L. Leonhardt, Executive Vice President and Chief Financial Officer. "The strong order input for the first quarter confirms our belief that our end markets are improving. While we remain concerned about the volatile raw material environment, we intend to continue taking appropriate actions to recover costs. Looking ahead to the second quarter, we anticipate sales of $390-$410 million and operating margin of 7.0%-8.0%, excluding special items," Leonhardt stated. "We are updating our guidance for calendar year 2006 to reflect our expectation of improving Enterprise sales volume and higher sales prices," noted Leonhardt. "We now expect 2006 sales in the $1.475-$1.525 billion range.

While we face the challenge of rising raw material costs, we believe that we can achieve a 2006 operating margin around the 8.5% level, excluding special charges. The expected benefits of higher prices, the global manufacturing initiatives, the new agreement with represented employees at the Omaha facility, the MC2 asset acquisition and normal seasonal trends should all help drive operating margin in the second half of 2006 higher than the first half of the year," Leonhardt added.

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 in the conference call, domestic and international callers should dial +1-212-676-5389. 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 also be available via the Presentations page on CommScope's website at

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 21290157. The replay will be available through Thursday, May 4. A webcast replay will also be archived for a limited period of time following the conference call via the Internet on CommScope's web site.

About CommScope

CommScope (NYSE: CTV)( is a world leader in the design and manufacture of "last mile" cable and connectivity 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 with a Bell Labs heritage, 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, transition, outlook, revenues, margins, accretion, earnings, global manufacturing initiatives, recent product-line acquisition, 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 "intends," "intend," "intended," "goal," "estimate," "estimates," "expects," "expect," "expected," "expectations," "project," "projects," "projected," "projections," "plans," "anticipates," "anticipated," "should," "designed to," "foreseeable future," "believe," "believes," "think," "thinks" and "scheduled" and similar expressions. Forward-looking statements are not a guarantee of performance and are subject to a number of uncertainties and other factors that could cause the actual results to differ materially from those currently expected. The potential risks and uncertainties that could cause actual results of CommScope to differ materially include, but are not limited to, changes in cost and availability of key raw materials and our ability to recover these costs from our customers through price increases; the challenges of executing our previously announced global manufacturing initiatives; the integration and expected synergies related to the acquisition of the MC2(R) product line from Trilogy Communications, Inc.; customer demand for our products and the ability to maintain existing business alliances with key Enterprise, Broadband and Carrier customers or distributors; competitive pricing and acceptance of our products; industry competition and the ability to retain customers through product innovation; possible production disruption due to supplier bankruptcy, reorganization or restructuring; successful ongoing operation of our vertical integration activities; the possibility of further restructuring actions; possible future impairment charges for fixed or intangible assets; increased obligations under employee benefit plans; ability to achieve expected sales, growth and earnings goals; ability to achieve expected benefits from future acquisitions; 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; product performance issues and associated warranty claims; regulatory changes affecting us or the industries we serve; any changes required by the Securities and Exchange Commission in connection with its review of our public filings; 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 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.

                                CommScope, Inc.
                 Condensed Consolidated Statements of Operations
              (Unaudited -- In thousands, except per share amounts)

                                                      Three Months Ended
                                                          March 31,
                                                    2006              2005

    Net sales                                     $352,254          $309,054

    Operating costs and expenses:
      Cost of sales                                267,515           236,892
      Selling, general and administrative           54,177            53,882
      Research and development                       7,465             7,770
      Restructuring costs                            3,749             2,029
          Total operating costs and
           expenses                                332,906           300,573

    Operating income                                19,348             8,481
    Other income (expense), net                        638               (57)
    Interest expense                                (1,985)           (2,078)
    Interest income                                  2,053               999

    Income before income taxes                      20,054             7,345
    Income tax expense                              (7,327)           (1,811)

    Net income                                     $12,727            $5,534

    Net income per share:
      Basic                                          $0.22             $0.10
      Assuming dilution (a)                          $0.19             $0.09

    Weighted average shares outstanding:
      Basic                                         56,724            54,512
      Assuming dilution (a)                         70,667            66,784

    (a) Calculation of net income per
     share, assuming dilution:

          Net income (basic)                       $12,727            $5,534
          Convertible debt add-back (b)                629               629
               Numerator (assuming
                dilution)                          $13,356            $6,163

          Weighted average shares (basic)           56,724            54,512
          Dilutive effect of:
            Stock options (c)                        2,373               778
            Phantom stock and performance
             units                                      76               -
            Convertible debt (b)                    11,494            11,494
               Denominator (assuming
                dilution)                           70,667            66,784

    (b) In March 2004, the Company issued $250 million of 1% convertible
        senior subordinated debentures, which are convertible into shares of
        common stock at a conversion rate of 45.9770 shares per $1,000
        principal amount representing a conversion price of $21.75 per share.
        These debentures are convertible into shares of CommScope common stock
        under specific circumstances as described in the Company's Form 10-K
        for the year ended December 31, 2005.

    (c) Options to purchase approximately 0.6 million and 5.6 million common
        shares were excluded from the computation of net income (loss) per
        share, assuming dilution, for the three months ended March 31, 2006
        and March 31, 2005, respectively, because they would have been

                               CommScope, Inc.
                    Condensed Consolidated Balance Sheets
              (Unaudited -- In thousands, except share amounts)

                                            March 31,             December 31,
                                              2006                    2005

    Cash and cash equivalents               $133,226                 $146,549
    Short-term investments                   108,746                  102,101
       Total cash, cash equivalents and
        short-term investments               241,972                  248,650

    Accounts receivable, less allowance
     for doubtful accounts of
     $12,944 and $13,644, respectively       191,561                  165,608
    Inventories                              137,303                  123,603
    Prepaid expenses and other current
     assets                                   17,694                   26,156
    Deferred income taxes                     25,761                   25,245
       Total current assets                  614,291                  589,262

    Property, plant and equipment, net       261,986                  252,877
    Goodwill                                 151,360                  151,356
    Other intangibles, net                    73,250                   69,297
    Deferred income taxes                     22,595                   24,623
    Other assets                              14,636                   14,766

       Total Assets                       $1,138,118               $1,102,181

           Liabilities and Stockholders' Equity

    Accounts payable                         $77,644                  $63,444
    Other accrued liabilities                 75,525                  100,498
    Current portion of long-term debt         13,000                   13,000
       Total current liabilities             166,169                  176,942

    Long-term debt                           281,050                  284,300
    Pension and postretirement benefit
     liabilities                              99,502                  101,989
    Other noncurrent liabilities              17,395                   16,925
       Total Liabilities                     564,116                  580,156

    Commitments and contingencies

    Stockholders' Equity:
     Preferred stock, $.01 par value;
      Authorized shares:  20,000,000;
      Issued and outstanding shares:
      None at March 31, 2006 and
      December 31, 2005                            -                        -
     Common stock, $.01 par value;
      Authorized shares:  300,000,000;
      Issued shares, including treasury
      stock: 68,042,350 at March 31, 2006
      and 66,073,347 at December 31, 2005;
      Issued and outstanding shares:
      57,842,350 at March 31, 2006 and
      55,873,347 at December 31, 2005            681                      661

     Additional paid-in capital              490,175                  462,842
     Deferred equity compensation                  -                   (8,980)
     Retained earnings                       229,415                  216,688
     Accumulated other comprehensive
      loss                                      (734)                  (3,651)
     Treasury stock, at cost: 10,200,000
      shares at March 31, 2006
      and December 31, 2005                 (145,535)                (145,535)
       Total Stockholders' Equity            574,002                  522,025

       Total Liabilities and
        Stockholders' Equity              $1,138,118               $1,102,181

                                 CommScope, Inc.
                 Condensed Consolidated Statements of Cash Flows
                           (Unaudited -- In thousands)

                                                       Three Months Ended
                                                            March 31,
                                                     2006               2005

    Operating Activities:
    Net income                                      $12,727            $5,534
    Adjustments to reconcile net income
     to net cash used in operating activities:
       Depreciation and amortization                 14,216            15,743
       Equity based compensation                      1,020                 -
       Deferred income taxes                          1,614             1,370
       Restructuring costs related to
        fixed asset impairment and curtailment            -             1,678
       Tax benefit from stock option
        exercises                                         -                87
       Changes in assets and liabilities            (47,970)          (33,088)
    Net cash used in operating activities           (18,393)           (8,676)

    Investing Activities:
       Additions to property, plant and
        equipment                                    (6,762)           (8,226)
       Acquisition of MC2 product line              (13,810)                -
       Acquisition of Connectivity
        Solutions                                         -               653
       Net (purchases of) proceeds from
        short-term investments                       (6,645)            9,158
       Proceeds from disposal of fixed
        assets                                          297               426
    Net cash provided by (used in)
     investing activities                           (26,920)            2,011

    Financing Activities:
       Principal payments on long-term
        debt                                         (3,250)           (3,250)
       Proceeds from exercise of stock
        options                                      27,670               320
       Tax benefit from stock option
        exercises                                     7,143                 -
    Net cash provided by (used in)
     financing activities                            31,563            (2,930)

    Effect of exchange rate changes on
     cash                                               427              (517)

    Change in cash and cash equivalents             (13,323)          (10,112)
    Cash and cash equivalents, beginning
     of period                                      146,549            99,631
    Cash and cash equivalents, end of
     period                                        $133,226           $89,519

                                 CommScope, Inc.
                Sales and Operating Income by Reportable Segment
                           (Unaudited -- In millions)

                                                       Three Months Ended
                                                            March 31,
                                                     2006             2005
         Net Sales:
           Enterprise                                $172.1          $157.7
           Broadband                                  125.9           108.1
           Carrier                                     54.7            44.1
           Inter-segment eliminations                  (0.4)           (0.8)
         Consolidated Net Sales                      $352.3          $309.1

         Operating Income (Loss):
           Enterprise                                 $11.3            $8.9
           Broadband                                    8.0             6.5
           Carrier                                        -            (6.9)
         Consolidated Operating Income                $19.3            $8.5

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding CommScope's business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's Annual Report or Form 10-K for the most recently ended fiscal year.

Contact Us

Phil Armstrong
Investor Relations
Betsy Lambert, APR
Media Relations
Both of CommScope, Inc.