CommScope posted net sales of $511.8 million in its venue and campus networks business division in the third quarter of 2020, down 2.4% from prior year, primarily driven by declines in its indoor copper enterprise unit.
Results in this business segment were partially offset by growth in Distributed Coverage and Capacity Solutions and the Ruckus Networks business, the company said.
“In Venue and Campus Networks, we are addressing indoor customers’ needs with new product extensions. As indoor coverage becomes more critical with the introduction of new applications and continued bandwidth growth, we’re seeing solid demand for our Ruckus Wi-Fi 6 and cloud control platforms with more than 25% of all access points sales now being Wi-Fi 6. Our solutions are enabling greater speeds for newer devices and greater capacity for existing devices,” CommScope EVP and CTO Morgan Kurk said during a conference call with investors.
“We now have a complete solution for both our cloud and on-prem-based controllers, which provide better ease of monitoring and provisioning equipment. Our OneCell small cell continues to prove its values as we introduce new software releases with feature enhancements, and we are developing a new virtualized 5G version of the solution,” he said.
CommScope reported revenues of $2.16 billion in the third quarter of the year, down 8.9% year-on-year but up 3.1% sequentially. The firm posted a net loss of $116 million in the period, compared to a net loss of $156 million in the year-ago quarter.
Revenues from the U.S. business amounted to $1.31 billion in Q3, down 8% year-on-year.
“While the pandemic has presented many challenges, this past year has also shown the world how essential network connectivity is, and the vital role CommScope plays in keeping our connection strong. Whether it’s keeping businesses running, maintaining our education systems with virtual teaching or helping people stay connected to their loved ones, COVID-19 has highlighted the power of network connectivity and the power of CommScope,” said Charles Treadway, CommScope’s president and CEO.
“As the impact of COVID-19 will likely impact the world throughout 2021, operators will need to enhance the fixed-line access, given how essential connectivity has now become in the home. Broadband networks were put to the test by the COVID crisis, particularly in the uplink, and we expect this demand to continue for the foreseeable future,” Kurk added.
