BDC - Earnings call transcript Q4 2020

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to this morning’s Belden Incorporated Conference Call.

Just as a reminder, today’s call is being recorded. At this time, you are in a listen-only mode. Later, we will conduct a question-and-answer session. like the now Kevin over I'd Maczka. Instructions] to call turn to [Operator sir. go Please ahead,

Kevin Maczka

business of My a Sergey. me Vestjens you, will Derksen. joining fourth results presentation, of by online conference prepared these Relations CEO, I’m for earnings our for everyone, Henk slide Roel of President are strategic our we reference us financial and currently Q&A. at are Belden’s Kevin will our Investor call. presentation investor.belden.com. Roel remarks review then Belden’s a Belden’s earnings and Vice detailed XXXX a will Treasurer. Thank Henk quarter morning, on morning, and morning today provide and Good issued have With transcript overview this and CFO, followed release available and release, this and of and is provide prepared that press Maczka, we this name thank call. you President operating earlier We The

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Roel Vestjens

you, Kevin, everyone. and Thank morning, good

quarter to the trends upside quarter, sequentially that to presentation $XXX Enterprise of for pleased fourth of turn earnings million million. from to Solutions segments. and $XXX.X the The results to Fourth and and our Please our contributions initial I Slide revised guidance increased I’ll fourth based, cash quarter broad of improved to am and our revenues expectations X initial million our $XXX reminder, referring expectations. range was in flow review $XXX our As to with in million, to adjusted be million highlights. Demand revenues, report relative a range exceeded both compared a to Solutions our X% $XXX Industrial guidance today.

levels million further expected, During the reduced resulting for inventory in quarter, as channel approximately of approximately million $XX our a partners their the XXXX. year by reduction fourth $XX full

revised guidance $X.XX, increased $X.XX, were of to Importantly, $XXX initial this the Industrial rates XX% the quarter, is X.XX the generation not $X.XX was in resulted $XX flow XXXX. XX% to sequentially to and million. times robust a EPS in a $X.XX order solid X.XX sequentially. increasing of approximately to in book-to-bill ratio range Incoming to our times expected recur our exceeded in Free expectations of million This including by segment. which compared our Solutions during guidance $X.XX. quarter, range cash

personally challenges conditions. maintaining these the global our responded workforce focus unprecedented and As hand our on $XXX year, truly us challenges we maintained way sharp our which a quarter as executing both XXXX of turn the and year with our supporting facing related while plans the and million, was to Please the a strategic discussion our global strategic a am of results. result, to significant brief of exited provides working X full for of fourth Slide proud with safest initiatives. XXXX to we cash each I extremely a flexibility pandemic, on customers pursue professionally. possible ample

$X.XX. and was flow delivered Free EPS For $XX revenues of generation to our cash of of the $XX year approximately billion compared full $X.XXX million, XXXX, expectation we million.

growth our we cost initiatives, position margins. growth and steps substantially includes highlighted the improving our improved This the bold to the and response company the Beyond portfolio organic compelling of was pandemic, businesses. by the significantly streamlining year for took to structure, our initial funding

the On million full of exited $XX the are XXXX. reducing successfully million delivered quarter, fourth the costs We by by in we the we on for savings commitments run year $XX deliver rate SG&A in normalize. XXXX so basis approximately will our year cost incremental side, with return an $XX savings as on to reductions margin cost annual These XXX million as full planned. the in represents basis. permanent prepared are expansion EBITDA of This not points conditions quarterly that

on we and the to markets. with approximately that products. to spending investment embedded these software XX% This this within make software increased our to key XX% growth and executed continued reduction plans, strategic we To includes end, opportunities in $XXX cost of As R&D investments accelerate dedicated various development. XXXX, in to software million capitalize standalone hardware

and making our targeted as Cybersecurity growth to our support competitive our innovation strengthen investments best-in-class are customers important Industrial advantage. offering enhance enhance and and innovations product to cloud are shareholders, in they further platform. Automation our These will and our We

in of substantial portfolio. simplified years as It July. represented in improved organic million capabilities a removed including portfolio Valley during that the the to for have prior significant our headwind. We the ensure and capacity in the moves spending also our declines considerable in consolidated $XX participate drag growth growth, CapEx to and year, approximately markets. sale Grass anticipated Divesting a business year Grass we Valley’s also made on this We maintained fully the in business of key

primarily exiting In $XXX undifferentiated to lines that and addition, can process smart in lowgrowth exposure. these product this the meet and oil low-margin, are will divest our we These with are we are exiting cable we buildings believe our exposure margin lines approximately or to copper million revenues associated stand-alone not initiated they growth end case, In goals and & in a product lines. do reducing certain gas markets we the believe certain like market Valley, future. improve our product Much markets. that Grass

transactions We expect these associated exits. multiple line product with to complete

of the as the We remain by on XXXX half date, divestitures communicated. complete track overall first progress are these encouraged to we and previously to in

allows Systems. bolt-on end $XX for we on in OTN very Systems this our in to industrial business and announced customers of transaction we XXXX, This Finally, leading for million. OTN easily our quarter, thorough to so to first OTN to excited Process. acquisition XTran, of OTN of as easy networking closed X and mission-critical industrial and value technologies The devices acquisition product to to company’s of turn our is team network networking a the solutions have technology offering. primary harsh, and our management to The known is innovative provider have as it maintain, Belden Systems and network years, Please add networks and in January the the XX. portfolio. Transit, back subsequent software and and additional of leading switching the is dating on proven the monitor highly-reliable products line, we consists add will fourth automation details for such build, environments. value-added understanding applications use and a that Its industrial its are Systems Transmission, partnership talented complementary a and Slide Mass specific tailored and product markets, Belden’s brand complex growing offering to Power commercial to customers.

solutions. meaningful an capabilities. business customer opportunities to and hardware us technology to company automation more offering bid consulting other array technology This CIC’s, and improve strategic initiatives and the connectivity contribute approximately XX further our in $XX our Belden’s this to and to acquisition priorities of we acquisition incremental and also during end-to-end and and for EPS We It synergies software one opportunities profitability. product, growing and respectively, growth and M&A customer the demand would growth with adding $X.XX, million wider accelerate Belden’s inorganic the on industrial the to pursue continue leverage automation Consistent solution in revenue global and potential. acquisitive key Innovation supports enhance strategy, commercial that product XXXX. see Centers, and with proprietary products areas, projects. for complete by mission-critical remain of will to or a months accelerates offers expect of advanced our further Customer we It ownership industrial strategic in related fiber related We to allow of selling base significant

Parks. our However, will before in our to release be Henk Henk, has of we insight to the morning. the financial are to to additional referred transition years quarter put the matter provide last next press in duties result, words. as to in expect to a I so, a I XX Belden, our Henk activity I Jeremy fourth this modest into as and contributions do Belden difficult performance. to But de-levering your other ask month departure we following with our near prioritizing announced After CFO, nine now discuss into are XXXX. term, M&A his wanted

everything. for meaningful thank of a this history are we part You and you company the of

Henk Derksen

words. for Roel, you, Thank the kind

I cash my for Before team I to future structure, company and organization, of I portfolio colleagues many a remains it turn with gratitude a review want the and improved and begin around IT start team, Belden that and well-positioned express and leadership and prepared my my the the the detailed the results much is Directors, the to comments a Board today. I a so success. by will company have company remarks, entire global cable I sheet early solutions results segment finance in who and am am consolidated of X in with flow time to at strong the a balance sheet a performance. leave my discussion regional the confident Belden the my networking and for Slide balance capital my globe role followed proud leading I of for review. transformation, quarter, company. Belden our substantial shaped from XXXXs Please the of to through

referencing from As Incoming in X.X% further After Industrial million XX.X%, Enterprise was increasing the orders prices, Revenues I currency times, translation copper and for in the bill and sequential the EBITDA and impact a the to and $X.X the period. translation After basis, from prior-year Revenues on in solid in prior-year Gross X.X% $XXX.X year-over-year in quarter basis the quarter today. from changes X.X% compared inventory basis. margins $XX.X declined adjusting acquisitions Solutions a the million be prices. a XX.X% ratio On after with on fourth sequentially. for XXXX. prior-year. third X.XX year-over-year were to million, copper during $XX higher After X.X% sequential for $XXX.X in consistent currency of a quarter a increased a including revenues from X.XX a favorable organically were and XX.X% to in adjusting quarter, million times results book decreased a levels, a XX.X% revenues basis. channel adjusted the This segment a were of to XX% favorable in organically adjusting increased XX.X%, adjusting million changes higher in the robust Solutions increased for and revenues impact in were $XX.X organically resulted channel favorable decreased sequentially. revenues organically compared on profit $X.X X.X% inventory, reminder, quarter, X.XX million will further the prior in period. segment. prior million the quarter. million margins EBITDA quarter $XX.X the and compared in impact

mentioned, of we SG&A $XX Roel $XX full program the million in cost million XXXX. savings our executed delivering successfully As year and by reduction for quarter the fourth

deliver expect We XXXX. million in full in to $XX the savings

remained investment the As XXXX. by year XX% quarter fourth growth the in we full structure, increased initiatives. committed we streamlined the R&D important to We and cost our approximately

Net we Industrial sequentially We as exchange expense to we XXXX expect the XXXX. investments foreign At expense Automation make $XX was to interest targeted in million growth approximately innovation flat quarter. in further be current rates, approximately drive interest in additional expect in Cybersecurity. and and increases

the benefitted year, was rate for XX.X% full tax initiatives. the quarter discrete fourth we planning from tax in effective as and Our incremental XX.X%

the Earnings quarter. from the third rate share was the throughout in and $XX.X For quarter was modeling prior and $X.XX to prior-year the to increased financial in $XX.X sequentially effective the quarter, income tax recommend million planning $X.XX million, $X.XX of in year-ago share fourth period. $XX.X quarter using in XXXX. in XX% Net per purposes, period. compared we compared the XX% in per Earnings million

the results. presentation of for Industrial begin will I now Slide segment. X to a our Turning segment Solutions our business in review with

industrial a allow solutions As customers harsh secure audio, environments. in reminder, Industrial transmit to and video our data and

organic in key $XXX.X revenues prices manufacturing, facilities, a markets XX% had and of decreased million year-over-year for an organic discrete translation year-over-year generated and favorable relatively the million on copper levels, channel on sequentially. Not After mass for organically sequentially an X% $X.X basis on sequentially. consistent XX% Currency revenues trends After $X.X X% increased Within adjusting surprisingly, further for impact include revenues increased were factors, the increased our year-over-year adjusting and channel quarter. Industrial segment basis, sequentially. after basis. Automation X% this adjusting year-over-year The market energy, declined million X% Cybersecurity changes process changes the verticals basis declined a Our levels. in quarter. sequentially on fourth increased in in declined of and Solutions segment, revenues the transit. XX% these inventory quarter Industrial year-over-year and across and XX% revenues inventory in and a

secure to and customers, continue engagements customers. strategic expand We large with new existing orders our with significantly

Further, compared quarter, the decline investments year-over-year the significant continue XX% Industrial the As increased cybersecurity. and Cybersecurity. quarterly offerings preparation Notable sequentially expected the quarter solutions, in in XXX EBITDA bookings XX.X% bookings from year quarter, future and non-renewal on-premise multinational to acquisitions. reflects level primarily its quarter approximately lower quarter period. remain a of we the prior bookings this in fourth a on in a volumes with compared and matched XX% very result, included XX% our margins offerings. migrating full XX.X% and cloud-based in a We to traction year. in highest in ago. the in The from Industrial gain R&D growth Automation financial corporation non-renewal the XX.X% years. the in in quarter vertical bullish insurance increased segment year-ago to for Non-renewal five and Solutions SaaS Industrial represented services for to Fortune the expanding company XX% in coverage software-as-a-service were bookings

to Enterprise segment. now Turning our

a As transmit data solutions video across our complex and audio, and enterprise allow reminder, to customers secure networks. Enterprise

include and markets key XG broadband, Our smart buildings.

year-over-year year-over-year XX% declined Solutions consistent and XX.X% for currency a declined Smart continued Enterprise speeds year adjusting on during infrastructure We in an robust higher solid our the $X.X in increasing X% the revenues declined million prices, The The were compared in Revenues revenues reflects organic segment XXXX. on currency in translation customers. sequentially more ever-increasing with supports investments and quarter Solutions revenues X% faster in driving for for bandwidth and generated changes market channel levels, Revenues Enterprise year-over-year million on and during a an our organically organic XX.X% for encouraged After capture higher Revenues and and adjusting margins million and impact XX% copper increased prior quarter, a from growth quarter. changes inventory. customer from further segment in translation for prior the network $X.X impact by Our after demand channel $XXX.X products, of by the favorable acquisitions prices. fiber quarter. lower levels. increased and million in period. favorable a After after share in increased which adjusting were is XX% copper adjusting in basis. favorable and year-over-year Buildings inventory sequentially customer basis year-over-year sequentially decline X% impact organically the from and sequentially the for basis. XG changes EBITDA primarily volumes. to after the This declined optic inventory adjusting Broadband increased XX% in X% X% $X.X

If you highlights. will our will X, to turn I begin balance Slide please sheet with

million $XXX the quarter in compared Our cash balance quarter million was year period. the prior at end prior $XXX in and and cash million fourth to of $XXX equivalents the the

liquidity position. period. to quarter capital in in We Working the are turns X.X comfortable XX.X prior with turns, very our current turns the X.X compared and were turns prior-year

compared in X.X days. quarter the were prior pleased from turns extremely XX quarter to eight the sequentially in prior in quarter. the Inventory X.X prior declined outstanding and turns the to with sales X.X year. turns the days XX performance We Days are turns, in days DSO

is range range we temporarily of targeted end debt targeted principal back X.X billion, quarter. and to the EBITDA normalize. of the sequential was Our Net as trend our total The times, end at conditions to quarter increase quarter. fourth in expect exchange was $X.XX X.X to current reflects billion compared times the leverage net the foreign at debt of third the This X.X to rates. to above $X.XX the

maturities Turning now to X. discuss debt now covenants. our and I will slide

entirely average interest to reminder, no As is X.X% a with fixed of XXXX. maturities debt our XXXX an rate attractive until at

this maintenance event we default unlikely We the covenants in not no are of at on have worsening so of economic conditions. debt, risk significantly

mentioned the I in was flow flow cash for a liquidity As million prior-year the million, compared period. in previously, $XX.X balance the quality quarter, position turn Slide in quarter to Net Cash sheet. period. capital expenditures fourth highlights. million year of compared operations prior from we to comfortable our $XX.X with Please to XX and $XXX.X are the were for few million our the $XXX.X

the in XXXX, EBITDA generated the year For we flow to primarily lower year million, global reflects $XXX.X full million from of the $XXX.X The compared decline XXXX. operations cash from resulted during pandemic. that

capital were of to to difference Valley completed For full in we the primarily compared July Grass net $XX.X is $XXX.X XXXX. timing million The the XXXX. year, the related in divestiture, which million, expenditures

a we flow like to would I our in That turn $XX.X and compared XXXX, remarks. $XXX.X the million of cash in to to call concludes CEO, free President As back result, my now prepared generated million XXXX.

Roel Vestjens

turn our key for year a outlook. recovery markets. be Slide Thank XX our to XXXX will in of Henk. you, most Please of

During we organic the turn portfolio accelerating complete the to year, to our expect focus growth. and transformative actions

encouraging, XXXX to shareholders. returns achieve rates million EPS superior $XXX first between Our of million, be am financial our confident $X.XX for quarter revenues recent to order to and and drive ability our and I $XXX our and are $X.XX. goals in anticipate We

billion, to and $X.XX revenues between EPS expect we of $X.XXX to $X.XX $X.XX. the For year be full and XXXX, billion

continues an rate interest recommend of using the the each quarter that Systems in are include effective and approximately For in $XXX cable OTN the process and It lines XXXX. in the the full of tax copper financial year. XX% million we includes of acquisition. accretion $XX expense we million of for our This $X.XX revenue product guidance which and EPS contributed for approximately XXXX expected in to from modeling contribution purposes, divesting,

We guidance high our XX XXXX turn Please to complete accordingly of that will slide guidance. from for walks divestitures. bridge as our results XXXX the we end a our to these update

million exchange approximately current expect in negligible a foreign on revenues with and earnings. copper favorable prices to a $XX XXXX, We have impact rates impact on of

Consistent to program. cost designed are realize to These investments these consolidated savings $XX SG&A X%, million, X% the our segment growth in acquisition. in under Smart important Solutions will solid pressure EPS in our $X.XX to an the our with expect with our by but to growth periods, We XXXX. and future or savings Buildings organic offset initiative in million anticipate range We we within in commitment, represent EPS EPS. in expect markets drive $XX Solutions segment. up incremental partially of incremental R&D and in $X.XX reduction from in revenue million Systems growth investments the strategic in Industrial declines $XX temporarily OTN an the Enterprise margins

Finally, year. expense effective headwind EPS along a modestly share for represent normalized the interest tax $X.XX rate approximately an higher of count XX%, with and of

and our the and EPS end XXXX, respectively. For turn the year total full of guidance growth of Please XX. XX%, XX% slide high to revenue implies

compelling performance. business opportunity, view are to taking Belden as as thesis. bold substantially we very our improved would investment a we Before drive steps investment We conclude, reiterate to I like

and improving portfolio & and around significantly XG, secular trends key broadband favorable strategic including We our markets, our cybersecurity, the in automation, buildings. aligning smart industrial are

to margin the business invest to position continue organic robust and in Company growth accelerating for expansion. We our

to Sergey, and questions. concludes on That would execute to we for successfully superior our open we expect our As deliver this our returns remarks. drive please call goals, prepared strategic the shareholders. plans our

Operator

[Operator instructions] from question Please from Garner Reuben Our Benchmark. first comes go ahead.

Reuben Garner

everybody. morning, Good you. Thank

last the you're start and of order ended is if new year the all on talk guidance Jeremy growth you already moving just in off the trends of a way with the touch the pretty think thought given QX luck First quarter good for forward quarter just of year hopefully line? fourth process and then in the Henk Can you your that are strong. recovery. first about and bit will maybe role. same we stay you in Maybe can kind what Can congrats that returning seeing confidence talk terms you top in already to thinking about would about seem how conservative be XXXX outlook I just

Roel Vestjens

Okay. Thank you question. the for

a couple factors consider. there's of So to

our So we first prepared times. strong notably in bill of a we with Solutions our as bill X.X, most of very in represented X.XX did the year end segment strong Industrial remarks very to to bill bill all, we that mentioned remarks

out means in we have guidance. the QX in towards actually of are more encouraged we Secondly, trending far days we the our in last than and way They order are end of by days Reuben, we did line this thirdly, year. QX so year, shipping that QX the the three high in have calendar shipping three January. which in And works less

confident we hit that's that QX why we'll able our So feel be to guidance.

Reuben Garner

like XXXX markets talk the business the with to outlook? at maybe XXXX Analyst Day four Are still it still thinking about sounded back growth you your the expect buildings the lag within smart what three in way, same out total just sub about seeing recovery. you're of your in And

Roel Vestjens

absolutely. Yeah

in That's grow segment Solutions Industrial our see guidance. we implied approximately X%. X% the to So

Our to two tale cities. basically Enterprise which X% down X%, be expect Solutions segment, a is we of to

further broadband Smart our and expect as be how our business, was XX%. low digits, and as to of business expect down single it we kind could constructed. So but down Buildings XG to to to grow continue be our X% That's we guidance much do

Operator

move We'll William question our to from from go ahead. you. Stein Securities. Truist next now Please Thank

William Stein

somewhat proceed? good some results concern first shortages the a to go inventories I'd there especially going push outlook think shortages and you book-to-bill, when your and way Is look or dynamic on Thanks are to as industry everyone were that realistic congrats consider ahead. for you about and going and in taking have semiconductor like related What's makes your we're customers business pervade my this you that ask to some at Henk of idea my that we to the seeing about and demand. strong maybe in availability question fact dynamic some and Jeremy, on other also real on, and maybe to there maybe with that on we expressing backlog in back

Roel Vestjens

of to as try up our the and see where at some you shortages year turns and were working anticipate only X right a and result, inventory these QX we Yeah that's it could were ago, that turns to in of other X.X capital. used in not they levels a it we made parts

improvement So total capital ago, for therefore nice to that's turns inventory working year a levels. main but showed compared the higher a the reason

and the that truly wanted have place, we obviously little hard make for to demand to ship or all the Whether We a deliver received a on blanket we So currently tell. of are QX in bit not can lot indeed orders. orders backlog. at our sure it's don’t

that the too in requested of with all far not are come dates ship virtually future. So orders

dynamics that that see hopefully how are your to we answers So and two questions. we anticipate. Those the try

William Stein

relatively and backlog, of short so it. Great think get I I duration

talk hold the or how of be these we that they're about the when in longer pardon coming activities the wondering now? you how of we think in between quarter a year. of expect think we buyback me, should about more should you balance prepared on pulled it am are today. What the did haven’t remarks, two you very question at you or Another investment compelling seen buybacks and Belden as your opportunity, may I end some about

Roel Vestjens

not has our we during Yeah laid Day. Investor how them capital changed out from location

de-levering. our was So and remain priority will

feel to in the world we I we think explained live uncertainties is issues, that in. that we the of covenant Hank thing terms the prudent no that have do that other do most but

we space cultivate fiber see list industrial obviously and of As targets space within for we the potential will most broadband connectivity continue and profoundly to XG offerings. OTN with automation M&A Systems, our long

it be there cannot act, as an opportunity we but will be to will the is these we as you -- if control companies, we know expect XXXX. highlighted, timing modest of then So in always you it

So to that the foremost first continue will de-lever. and priority be

Operator

from Noelle comes from question next Stifel. our go Please ahead. And Dilts

Noelle Dilts

Henk, on Hi done XX the congrats new over thanks all past you’ve the role. and everyone and Jeremy for years

am you expected again I but bit investments, the in could So margins when this you at discussed about Investor to little we to on out of that and Do feel this in you feel within like as those next EBITDA investments about comment years step to longer-term start years, kind think and to Day, thanks? up you that's return R&D talked pressure XXXX. expect look XX% achievable to hoping you R&D you they still with two three target? XX% How margin a on should the just EPS are

Henk Derksen

XXXX absolutely, confident increase absolutely, in XXXX. making growth that as our the and a matter we're of investments are rates fact, Yeah now, we will

three us our So that year the sequence the outlined. we get that to outlined very, the during that Investor of first years Day there still in very. The guidance implies

now that confident indeed and 'XX higher very the 'XX. in we're growth will that we're So rates investments making yield in

Noelle Dilts

the just sub and what you in a of Solutions. comment Can in seeing you're this terms you're Industrial nice segment? within oil markets terms seeing then in on discrete And gas strength bit little

Henk Derksen

-- order current about we're verticals. we rates, discrete. the were results we pretty even very then good very feel at our We If discrete. QX look Yeah feel good strong feel about amongst -- about our -- we

in it indicator Germany. XX%. It was leading as very strong. approximately up is Our Business actually QX our in business we Germany in see was

help out. where we the is will good OTM this uptick see transit So about systems nice us feel in mass and and a we discrete

Operator

Steven Advisors our question now go Thank ahead. from from take LLC. you. Fox We'll Please next Fox

Steven Fox

give on quarter. look in you that but some AX Henk, update channel supply last about growth let they inventories congratulations and a the inventories see going Can your thanks Anyway for I'm as all us was and your inventories, help over numbers, you to an go just be us doing? how could banks know a guess up? the you mentioned of manage where drag you curious the just what you [ph] little the years. I've seen customer on of I down you're chain terms

Roel Vestjens

no is there ambiguity. [ph], start me let all, of first So

Let levels. me call the them inventory customer

beginning outlined you million So system we year will. out get to the the $XX if have of the at plan of

levels So of it quarter you our partners forecasted inventory as to had further reduce the a and what that's channel it fourth in million exactly as we at matured, $XX lot be. that but was exactly saw,

as up we any recur expect healthy partners, of now to that for and at this well channel believe We turns don't our So at levels. are XXXX.

So were to very behind have very, us. them pleased

as actually on you as levels to probably improve higher I is little not carry inventory have supply period. ago year bit would than earlier, a our mentioned the our that that did far we As meaning chain assumed, compared balance QX that turns our were in concerned, saw you sheet

As a you That's the more we that high of delivery because can make our our to matter X.X we degraded carry about and satisfy sure inventory customers fact, that shortages some read maintain of standards. anticipating these on-time turns.

Steven Fox

That's little MSOs how very outlook and networking? helpful talk you between can versus a gaining and one then either market growth more the you're bit the the just that as and especially about broadband follow-up, business a secondly, so shares then

Roel Vestjens

home our the comments few towards helpful, be mix more moving Yeah the of versus might inside we that see so you trends home outside continue. the

hence our saw we had XXXX, of fiber QX versus XX% actually on home We of exit the XX% further our we XX% inside XX%. revenue an the outside outside all copper and rate full-year with had of So trend improve. home. revenue the our

we our an have fiber revenue year, XG exit rate in and QX. of the XX% is and of XX% within actually broadband now for So

for in than related fiber $XXX more connectivity segment. fiber that doing and products million So

terms -- expand of that's still of for as products adjusting as invest to their market, increasing we our part the It's Two XG but our they is XG relative in for continue that one. ready So continue offerings get making commercial suitable for the our well to as products, of small our coverage within business, we telcos offerings. some segment.

are for MSO's Our that still bread-and-butter obviously business. right

for So solutions our continue MSO our customers we remain to to continue strongly we MSO more product increase and very offering these tied through portfolio, share customers. expand while we to

Operator

next our Capital. from take now David We'll you. from go Loop question Please Thank ahead. Williams

David Williams

year. Business playing Obviously as maybe bit out a how thinking the Smart rest side is the a you question Smart you buildings? of First, I but it rebound situation, and big the improves, the that kind do ask there see little COVID envision the to wanted for a up start about on of or that Building how that you're

Roel Vestjens

I most base three growth We continue the increase we low and during upside the year of the we Investor to case digits that Day single case in that period, XXXX upside decline outlined years an a over and the digits the last expect base and over business positive to three single low case highlighted and rates. think case

So that's our outlook.

and the are we're monitor resources to the continue segment Building right verticals to allocate [indiscernible]. buildings of growing that continuing to within commercial as more actually Smart We starts the such

David Williams

to terms Okay. terms trying being just just the of in And I in food pull and any rational to anxiety are our chain? any ordering pattern follow-up, of the comment seeing on then of orders shortages you in much guess ahead down

Roel Vestjens

Not point. at this

see the anything but think quarter, feel indicated seeing the we it good the don't that ordinary. within we that out of I I about we're trends early

Operator

question next from And comes go [indiscernible]. Please ahead. our

Unidentified Analyst

because terms supply your just have upstream I how serve the the shifting might just have next curious that asked, endeavor. on have been in was I and I chain short congrats me you we and for are that changing is Henk it's markets may the with working be of let been your has guess the been you time it great technology. First, that in question comment,

on for look example, example effect supply you chain? -- those if increase, an So I your for exact how look while at broadband frequently at does upstream infrastructure having

Roel Vestjens

point ensure don't I our we've to inventory do high book more to we from in little specific that We we bit we and on-time we're about and deliver standards our for carry carry we earlier. products to expected able feel think the deliver good run ability that in our into Gary than our in performance time. this to turn We that that us this shortages as a maintain QX We're typically Henk components able require. for in have reason QX. at this that to highlighted customers delivery earlier So our touched our supplier's orders and on able

So at issues we don't see any all.

Unidentified Analyst

shift now trying like been your base what that shifting now that guess and of process about qualification you're the issues how is rather the testing supplier a shifts your demands processed if rapid now to more am pace? managing question market at my evaluating continue I I'm I with of ask the this was or is to and assuming supplier just so technology whether the I has upstream was curious that?

Roel Vestjens

I increasing offerings an understand, of I our appreciate is the software. and question, foremost first well part

we and very lead suppliers, So enterprise, different few. a are so products types have a obviously And and not secondly, diverse of of such on supplier since many because times that types component we're supplier the different dependent dependency we availability. reduces on

for of we have So we've been don't very single components as there's and in. and fact supplier a doing thirdly, one globally, this know option component ever matter little only such if I a that base because of while a a broad not sole-sourced have we

able that issue or as get So again. industrial ensure and where we of processes the not years ever happening minimize we our of to since stuck that ever components for we that had supplier switching increased and not may recall, to with optimize kind of chances we've you an being may the the processes equipment the ago exposure supply certain

So make the answer sense? how would that's Does that question. I kind

Unidentified Analyst

to trying you. that's Yes sorry, I come off, helpful. Thank was

Operator

Delaney ahead. Thank Goldman you. take go Sachs. question We'll next from Mark our from Please

Mark Delaney

[ph] number in your wire customer I increased there for me assets with over as forward. you material seen around if we order for funnel of given the going a the news especially the from Cybersecurity maybe the or and thank of on first Hank, several dialogue I'm increase your business, has increasingly business all years of you of inventory lot been wind curious has questions environment? just Two well and help the wish last delving best a could,

Roel Vestjens

forecast the for Our supports our of funnel currently XXXX. the first for order full-year

focus that priority strategic within industrial we're space We achieved with to the the we've continue and results Cybersecurity, number vertical. on within pleased our that one

indicator So nonrenewal as leading you the know bookings. second in is our half, in XXXX,

half, for Cybersecurity the XX%. second XX% were the they full-year and up were actually they For bookings in the up second half

and about within feel the we what priority activity funnel supporting good continue the see. to our we So increased Cybersecurity we that increase industrial

Mark Delaney

copper outlook pricing, may and of Can for cost to how these you question, speak all headwind margin follow-up expecting sectors? been much enterprises shipping a my some be rising. for you have and XXXX in your of Understood

Roel Vestjens

We don't.

years customers copper have very the to in proven have contractual pass on confident to in be ability to our increases agreements, We metals, as ability oftentimes since as over we're our through prices the to it we're customers. used able other well pass as to those on price oftentimes our we to and last through fluctuations increases

Operator

There time. continue. no this Please are further questions at

Roel Vestjens

Okay. and thank Thank you, today's Sergey you, for call. joining everyone

please any IR out have Belden. team at reach the you questions, to here If

email address investor.relations@Belden.com. you. Our Thank is

Operator

conference call. Thank your you participation. concludes today's This for

now may You disconnect.

Belden (BDC) 10 Feb 212020 Q4 Earnings call transcript