CommScope Holding company, Inc. (NASDAQ: COMM), a global provider of infrastructure solutions for communications networks, has reported results for the quarter ended September 30, 2018.
The company reported sales of USD 1.15 billion for the third quarter, compared with USD 1.13 billion during the same period in the prior year. During the third quarter of 2018, CommScope generated net income of USD 64 million, or USD 0.33 per diluted share, an increase from the prior year period´s net income of USD 51 million, or USD 0.26 per diluted share.
Non-GAAP adjusted net income for the third quarter of 2018 was USD 115 million, or USD 0.59 per diluted share, versus USD 107 million, or USD 0.55 per diluted share, in the third quarter of 2017. A reconciliation of reported GAAP results to non-GAAP results is attached.
Sales increased 2 percent year over year as growth in the North America and the Europe, Middle East and Africa (EMEA) regions more than offset lower sales in the Asia-Pacific region. Double-digit Outdoor Network Solutions growth, was partially offset by a decline in Indoor Copper. Foreign exchange rate changes unfavorably impacted net sales by approximately 2 percent.
GAAP operating income in the third quarter of 2018 increased 5 percent year over year to USD 132 million. Non-GAAP adjusted operating income, which excludes amortization of purchased intangibles, restructuring costs and other special items, decreased 1 percent year over year to USD 219 million, or 19 percent of net sales. Both GAAP and non-GAAP operating income were favorably impacted by higher North American sales volumes and cost reduction initiatives. The favorable impacts were partially offset by lower selling prices and the impact of unfavorable input costs and foreign exchange rate changes. GAAP operating income also benefited from lower integration costs, which are excluded from non-GAAP adjusted operating income.
CommScope (NASDAQ: COMM) helps design, build and manage wired and wireless networks around the world. Discover more at http://www.commscope.com/