CommScope, Inc. (NYSE: CTV) said today that unit sales and pricing
patterns for July and August indicate that earnings for the third
quarter will be significantly weaker than those of the second quarter of
1997. The company now expects revenues to be down 5 to 10 percent from
second-quarter revenues of $159 million.
Significant factors affecting third-quarter performance are lower
margins, and weakening international sales, primarily resulting from a
slow down in sales to the Australian market.
"Certainly, we are disappointed with the third-quarter outlook," said
Frank M. Drendel, CommScope CEO and Chairman. "Due to sluggish cable TV
sales and increasing margin pressures, we are cautious regarding our
expected level of performance for the next 12 months. However, we remain
positive about our longer-term outlook due to the prospect of world-wide
coaxial cable usage in hybrid-fiber-coax networks."
"Also, the company's local area network (LAN) business continues to
experience robust demand. While orders remain strong, we expect modest
sales growth for LAN during the third quarter of 1997 due to competitive
pricing and capacity constraints. As a result of the increased demand,
CommScope will continue to expand its LAN production capability,"
CommScope is the world's largest manufacturer of coaxial cable and is a
leading supplier of high-performance cables for LAN and other
Statements in this press release are "forward-looking statements" within
the meaning of the Securities Exchange Act of 1934, and include, but are
not limited to, those statements relating to CommScope's relative market
position, sales, margins and earnings. While CommScope believes such
statements are reasonable, the actual results and effects could differ
materially from those currently anticipated. Factors and risks that
could cause such differences include, but are not limited to
developments in technology pricing and acceptance of CommScope's
products, changes in raw material costs, industry competition, cable
television industry capital spending, and other factors. The cautionary
statements contained in Exhibit 99 to CommScope's Form 10-Q for the
quarter ended June 30, 1997, are incorporated herein by reference.
Visit CommScope at our Web Site -- http://www.commscope.com
"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