Exhibit 99.1
FOR IMMEDIATE RELEASE
COMMSCOPE TO PROVIDE BUSINESS REVIEW AND OUTLOOK AT INVESTOR MEETING
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HICKORY, NC - November 16, 2004 - CommScope, Inc. (NYSE: CTV) plans to
provide a business review and outlook today at an investor meeting
beginning at 9:00 a.m. in the Millennium Broadway Hotel in New York City.
CommScope Chairman and Chief Executive Officer Frank M. Drendel plans to
explain to investors why he believes CommScope has a leading global
position in the 'last mile' of telecommunications. "We are excited about
our long-term opportunities," Drendel will tell investors. "During 2004, we
began a new chapter in the history of CommScope with the highly
complementary addition of the Connectivity Solutions business from Avaya
Inc. We believe this strategic acquisition created new opportunities for
innovation and growth. During 2005, we intend to build upon this
acquisition, capture additional synergy and enhance operating performance."
Other presentations will highlight CommScope's competitive strengths,
including its global capabilities, world-class cable and connectivity
solutions, technical innovation, industry-leading research and development
and operational excellence.
Financial Outlook
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Jearld L. Leonhardt, Executive Vice President and Chief Financial Officer,
will tell investors that he believes CommScope has a solid financial
foundation. "After the major acquisition of Connectivity Solutions earlier
this year, we have worked diligently to enhance liquidity and improve
working capital performance. We intend to maintain financial flexibility as
we move ahead," Leonhardt will report.
Leonhardt also plans to provide a financial outlook for 2005. "We expect
sales of $1.2-$1.3 billion in 2005, primarily driven by modest volume
growth and anticipated price increases. Based on this revenue outlook and
assuming a stable business environment, we believe we can achieve an
operating margin of 6% or better, excluding special charges. We expect an
effective tax rate of about 30%."
Leonhardt will also tell investors that CommScope expects depreciation and
amortization charges of approximately $60 million in 2005. In general,
working capital is expected to grow along with sales volumes. Capital
spending is expected to be $30 million or less in 2005.
Registration for the webcast is required and available from the Investor
Relations Presentations page of CommScope's website at
http://phx.corporate-ir.net/phoenix.zhtml?c=101146&p=irol-presentations.
Those wishing to listen to the Internet webcast should plan to connect
online 10-15 minutes before the start of the conference. For anyone unable
to listen to the live event, an archive event broadcast will be available
on the Investor Relations Presentations page of CommScope's website for a
limited period of time.
CommScope (NYSE: CTV - http://www.commscope.com) is a world leader in the
design and manufacture of 'last mile' cable and connectivity solutions for
communication networks. Through our SYSTIMAX(R) Solutions and Uniprise(TM)
brands we are the global leader in structured cabling systems for business
enterprise applications. We are also the world's largest manufacturer of
coaxial cable for Hybrid Fiber Coaxial (HFC) applications. Backed by strong
research and development, 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
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This press release contains forward-looking statements regarding, among
other things, the business position, plans, transition, outlook, margins,
revenues, earnings, synergies and other financial items relating to
CommScope, and integration and restructuring plans related to CommScope's
acquisition of substantially all of the assets and certain liabilities of
Connectivity Solutions ("the acquisition") 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, including, without limitation, by their use of such terms and
phrases as "intends," "intend," "intended," "goal," "estimate,"
"estimates," "expects," "expect," "expected," "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, the ability to recover higher
material and transportation costs from our customers through price
increases; the ongoing transition, integration and restructuring associated
with the acquisition, including cost reduction plans at the Omaha, Nebraska
site of Connectivity Solutions Manufacturing, Inc; the impact of purchase
accounting adjustments; the challenges of achieving anticipated synergies;
variability in the effective tax rate; the ability to retain qualified
employees and existing business alliances; maintaining satisfactory
relationships with employees; customer demand for our products,
applications and services; post-closing adjustments in connection with
acquisitions; expected demand from major domestic MSOs; telecommunications
industry capital spending; ability to maintain successful relationships
with our major distributors; industry consolidation; ability of our
customers to secure adequate financing to fund their infrastructure
projects or to pay us; product demand and industry excess capacity; changes
or fluctuations in global business conditions; competitive pricing and
acceptance of our products; changes in cost and availability of key raw
materials, especially those that are available only from limited sources;
possible future impairment charges for goodwill and other long-lived
assets; industry competition and the ability to retain customers; possible
disruption due to customer or supplier bankruptcy, reorganization or
restructuring; our ability to obtain financing and capital on commercially
reasonable terms; covenant restrictions and our ability to comply with
covenants in our debt agreements; ability to timely comply with Section 404
of the Sarbanes-Oxley Act and related regulations; successful operation of
our vertical integration activities; successful expansion and related
operation of our facilities; achievement of sales, growth and earnings
goals; ability to achieve reductions in costs; ability to retain and
attract key personnel; developments in technology; intellectual property
protection; product performance issues and associated warranties;
regulatory changes affecting us or the industries we serve; any adjustments
required by the Securities and Exchange Commission in connection with its
review of our public filings; acquisition activities and the ability to
integrate acquisitions; the accounting and financial reporting impact of
our stock options and convertible debt; environmental issues; terrorist
activity or armed conflict; political instability; major health concerns
and other factors; 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. 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.
CONTACTS:
Phil Armstrong Betsy Lambert, APR
Investor Relations Media Relations
(828) 323-4848 (828) 323-4873
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