CommScope Annual Report
2019
Across the globe, our people and solutions are pushing the boundaries of communications technology to create the world’s most advanced networks; solving today’s challenges and driving the innovation that will meet the needs of what’s next.
Transforming wireless connectivity
Whatever the technology or architecture (5G, CBRS, Wi-Fi, O-RAN)
Enabling smarter lives, smarter cities
With the smartest connectivity
Delivering more than TV
Outstanding video and smart media experiences
Taking broadband to the next level
Enabling gigabit services for connected lives and businesses
Protecting our future
Reducing our carbon footprint
For everyone everywhere
We're shaping today and tomorrow’s networks
At CommScope we create lasting connections.
Creating lasting connections in 2019
Letter to shareholders
“On behalf or the leadership team and employees, we appreciate your support through a transformational year and your enthusiasm for our future.” – Eddie Edwards
For everyone, everywhere
We create and innovate the network technology that connects people and things together; providing the lasting connections that ensure you, your business, your family, your community, society thrive in our increasingly connected world.
Discover more
Whatever the technology or architecture
We help service providers, businesses and consumers navigate the seemingly endless choice of wireless technologies old and new. Our insight and experience is trusted when it comes to deliver lasting connectivity.
Whether its deploying the latest technology in wireless (5G, CBRS) or making sure you’ve great Wi-Fi and mobile connectivity when you are out and about, our solutions and services are the backbone of your service provider’s network.
Powering up connectivity with CBRS
What’s next for wireless in 2020?
Powerful Wi-Fi 6. Commscope leads the way.
We ensure our customers have great broadband and wireless, fit for the diverse places we live, work and play in.
CommScope in action: our smart, greener and safer Madrid office
Smart cities depend on connected wireless and wired infrastructure
Bandwidth, edge devices and PoE – that’s smart connectivity
Broadband accessibility, reliability, speed and capacity matter. No-one or thing likes to wait.
Leading the way in the evolution of fixed broadband
Looking towards 10G, Virgin Media launches its 1G service and trials 8G
Bringing fiber home with SIRO Ireland and IpNX Nigeria
From the earliest days of pay TV through to today’s multi-stream, multi device, catch up world, we continue to evolve not just the viewing experience but also the connected home.
Is your smart TV, smart enough?
Taking steps to make our technology greener.
Leading the quest to eliminate single-use plastics
Scan the Q-code, save trees!
TV any way - Cable, IPTV, OTT and satellite
Extending Android IPTV to the U.S. market
™
(5G, CBRS, Wi-Fi, O-RAN)
To our shareholders
2019 was an interesting time. Conditions in the marketplace introduced many variables—new tariffs, Brexit planning, changing political and economic policies and agendas, and now, in 2020, the coronavirus. The pace of change in the industries we serve—the major cellular, cable operator, data center and enterprise networks—continues to accelerate as they enter adjacent markets, navigate the multi-access world and face competition from new network models and needs. We faced many headwinds that challenged us throughout much of the year impacting our sales. We have built CommScope, however, to survive and thrive. CommScope supplies the technologies that enable and deliver the network connectivity that underpins our digital society. We’re a company that doesn’t have to bet its future on one digital evolution or another. Our relevance across technology platforms servicing many different forms of communication customers weathers cross currents in the industry. In a sector like ours, we believe this is a major strength even though it will not insulate us from any one period’s challenges. In 2019, we expanded our customer base and addressable markets with the acquisition of ARRIS to further stabilize, strengthen and solidify our market position. We believe this acquisition unlocks high growth opportunities in adjacent markets, and our optimism and expectations are steadfast for future success. Read the full letter here.
Eddie Edwards
President and Chief Executive Officer
"I remain intensely supportive of and confident in our leadership team and solutions portfolio to deliver success."
Hear from Eddie
Financial Highlights
CEO's 2019 Key Milestones
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Our Strategy
Perspectives on market opportunity and our evolution to optimize CommScope’s advantage
To our shareholders.pdf
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Forward Looking Statements
Acquisition History
We have built CommScope, however, to survive and thrive. CommScope supplies the technologies that enable and deliver the network connectivity that underpins our digital society. We’re a company that doesn’t have to bet its future on one digital evolution or another. Our relevance across technology platforms servicing many different forms of communication customers weathers cross currents in the industry. In a sector like ours, we believe this is a major strength even though it will not insulate us from any one period’s challenges. In 2019, we expanded our customer base and addressable markets with the acquisition of ARRIS to further stabilize, strengthen and solidify our market position. We believe this acquisition unlocks high growth opportunities in adjacent markets, and our optimism and expectations are steadfast for future success. Read the full letter here.
Leadership profile
Letter to Shareholders
Optimize and Strengthen our Core
Increase operating cash flow
Expand profit margins and exceed synergy commitments
Build a platform that scales for growth
Create valued solutions
by bringing our expanded capabilities together to deliver business outcomes
in mature markets and shift resources toward targeted growth choices
defend leadership
to build operational speed and resilience
transform the organization
create valued solutions
Venue and Campus Networks
Broadband Networks
Outdoor Wireless Networks
Home Networks
How do we do that?
By leveraging our collective expertise, create integrated solutions focused on our customer’s needs and make it easy to do business.
Ensure long-term health and viability for the company’s future while building short-term confidence in meeting our commitments
Take care of
today
and invest in
tomorrow
Optimize operating model
Stabilize operating practices
Be operationally resilient
UNDERPINNED BY OUR VALUES
Sustainability
Operations
"CommScope has aligned the company into four primary operating segments to take advantage of our leadership position in some of the fastest-growing strategic markets, underpinned with a unified supply chain organization that optimizes our manufacturing and distribution footprint.” – Eddie Edwards
Meet the leaders who shape our vision and strategy, set our goals and objectives and develop and inspire our team.
Global Scale
Ben Cardwell
SVP Venue and Campus Networks
Our solutions deliver wired and wireless connectivity: Wi-Fi, DAS, CBRS, small cells, switching, and cabling for licensed and unlicensed indoor coverage; IP networks and cabling, connectors, and equipment for data centers in enterprise buildings, campuses and public venues
Enterprises have more choices in 2020 as to how they meet increased demands for network capacity and coverage and growing end-user expectations for fast, robust connectivity. In 2019, next generation wireless connectivity - Wi-Fi CERTIFIED 6™, 5G and the initial rollout of shared spectrum, as well as increased global interest in private networks, including CBRS – became commercial realities. In 2020, their deployment across a wide range of connected spaces will begin to transform experiences and services for any connected space: cities, campuses and stadiums, factories and warehouses, intelligent buildings, and more.
“We will transform the network to provide an exceptional user experience by creating solutions that are simple, reliable and adaptable.”
“CommScope was the first in the industry to announce Wi-Fi CERTIFIED 6 access points and we’ve been at the forefront of the shared spectrum movement and commercial deployment of CBRS. We are the only company in the industry to offer a complete portfolio of solutions for CBRS including our SAS and ESC, devices, services and a strong partner ecosystem. Our in-building support now covers unlicensed wireless with our RUCKUS portfolio.” Ben Cardwell
2019 Net Sales
2019 Adjusted EBITDA
Competitors
Data Center
Corning AFL (+AFL Hyperscale) Panduit Sumitomo Legrand Leviton
Cisco, HPE (Aruba) Juniper Networks (Mist Systems) Extreme Networks Huawei
Wi-Fi/Switching
Ericsson (Kathrein) Corning (SpiderCloud) JMA Wireless
In-Building Cellular
Corning Belden Panduit OCC
Infrastructure Competitors
Strategy
Highlights
Close
$2,086M
$236M
CommScope’s CBRS for Private LTE with MSFT Petra’s Smart Streetlight Network Solution uses RUCKUS Wi-Fi RUCKUS has first access point Wi-Fi 6 CERTIFIED CommScope partners with ODATA for MTDC in LATAM INWIT and CommScope partner for Era deployments in Italy
Kevin Keefe
SVP Broadband Networks
Our solutions encompass the network access technologies (headend optics, nodes, taps and amplifiers), cable headend and PON, distributed and virtualized network architectures and services and video infrastructure systems. Bringing gigabit broadband, TV (cable, IPTV, OTT) to homes and businesses and more. Our Global Services team define, manage and support network transformation projects, hyperscale and data center services, software and managed services, across and beyond the CommScope portfolio.
The future of broadband networks is 10G. But the most exciting developments of 2020 will be real-world improvements to speed, capacity, and efficiency coming to networks around the world. 2019 year saw the beginnings of multi-gigabit speeds, network virtualization and automation, and software-defined networks that push computing ever closer to the premises; critical for tomorrow’s smart home services, smart cities, enterprise networks, and more. In 2020, four key trends – upstream bandwidth, smart networks, virtualization and distribution – will move us closer to those goals while making meaningful improvements in the way that operators manage their networks and consumers experience broadband.
“We’re raising the bar, by offering efficient and dependable innovation that can deliver important gains today while scaling to their networks of the future.”
“Our portfolio aligns very well with the broad range of new development across distributed access architecture (DAA), virtualization, managed Wi-Fi, and data center initiatives.” Kevin Keefe
Cisco Harmonic Casa Nokia Huawei Corning Belden PPC Broadband Clearfield AFL
$2,806M
$543M
Stofa, Denmark completes one of the world’s largest Remote-PHY deployments CommScope advances 10G broadband roadmap CommScope launches new Remote-PHY device How ipNX is Connecting Homes with Fiber in Africa How SIRO is Disrupting Telecommunications in Ireland Innovation for Billions of Connections
Farid Firouzbakht
SVP Outdoor Wireless Networks
Our solutions are the backbone of outdoor cellular and Wi-Fi systems: cell tower antennas, cabinets, cabling, data and power connectivity
5G has launched in places around the world, but it is only in its infancy. Network operators still have a lot of work to do to make this technology live up to its potential. Operators will not wait for the killer app and will be busy in 2020 rolling out, densifying, and powering the network in a variety of bands while working on driving the standards and technology. We believe that 2020 will be the year that network operators put the pieces into place to deliver the 5G promise.
"We're excited by the challenge of finding new technologies that protect the investments our customers and partners have already made in mobile networks to deliver on the benefits of 5G."
"Operators around the world are making decisions on which bands they will play in and the technology needed to support a rollout of 5G. Last year CommScope introduced several new antennas to help operators increase capacity in existing LTE networks as they prepared for 5G. For operators already in the throws of building out their 5G networks, we highlighted a new antenna with Nokia as well as connectors and power solutions to address the operator’s need for power, backhaul and site acquisition." Farid Firouzbakht
Macro Cellular
Huawei Ericsson (Kathrein) Rosenberger Amphenol
Concealfab Sabre SitePro Larson
Metro Cellular
Federated Wireless Google
SAS
$1,476M
$361M
CommScope SAS approved for initial commercial deployment CommScope collaborates with Nokia on Passive-Active antenna New antennas for 5G
Joe Chow
SVP Home Networks
Our solutions power the home connected experience. Our broadband and video devices and services enable service providers to deliver the best broadband, Wi-Fi, video and smart home services to millions of subscribers around the globe.
The coming year will mark a tipping point for key network, customer premise equipment (CPE) and smart home technology. The confluence of wired and wireless technologies - underpinned by DOCSIS 3.1 and emerging 4.0, FTTH, Wi-Fi 6 and 6 GHz (6E), 5G/LTE and the next generation of Smart Media Devices and hybrid gateways - will bring gigabit connectivity to the home; driving new levels of service capability and opportunities for service providers and truly smart and engaging connected and entertainment experiences.
"I absolutely believe that we can out-innovate our competition.”
“We have the greatest capability, the best end-to-end product portfolio, and the ability to transform the CPE market and redefine our value proposition to customers. CommScope is by far the largest service provider CPE business in the world. We have more devices deployed in homes – set-top boxes, gateways, mesh devices – than any other company selling to service providers (excluding mobile devices).” Joe Chow
Service Provider Products
Technicolor Hitron Sagemcom Sercomm
D-Link Linksys NETGEAR TP-Link Zoom/Motorola eero
SURFboard Retail Products
$3,387M
$228M
TDS US selects CommScope’s Android TV™ set-top. Altice to bring CommScope’s Smart Media Device to SFR subscribers in France Foxtel Australia selects CommScope set-top for hybrid broadcast and IPTV service CommScope adds sub-6 GHz and 5G to its FWA (Fixed Wireless Access) gateway JSAT Japan powers up its satellite TV service with CommScope Sasktel Canada brings a new level of home network performance and support with CommScope CommScope extends U.S. retail Wi-Fi 6 portfolio with new gateways CommScope adds to its RDK Video Accelerator portfolio
Act with integrity
Our integrity is our moral compass, our core belief in doing the right thing. We find purpose and success through our uncompromising commitment toward our customers, partners and each other. We demonstrate candor, trust, respect, authenticity, honesty and accountability in everything we do.
Innovate for customer success
Our customers look to us as enablers of their success. We innovate with their needs in mind. Our end-to-end network expertise and commitment to our promises build the trust that drives deeper engagement and secures our ongoing success.
Continuously improve
Challenge the status quo! A meticulous pursuit of betterment sets us apart by making decisions faster, responding to our customers quicker and being more opportunistic. Embrace challenges, criticism and diversity in thought as the basis for improvement for ourselves, our customers, our communities and our planet.
Win as one team
Always together, never alone. Part of what makes us unique is our diverse set of experiences and perspectives, which provide a uniquely strong support system. Always there for our colleagues, we work together, across borders and boundaries, toward a singular goal—to win.
Leadership
Lasting connections start with leadership who believe in our people and the power of an open mindset, collaboration and keeping our commitments. We’re proud to lead a talented group of approximately 30,000 people around the world. We invite you to get to know us all a little better.
© 2020 CommScope, Inc. All rights reserved. Caution Regarding Forward Looking Statements