CommScope Holding Company Inc (COMM) 2023 Q2 法說會逐字稿

Thank you for standing by, and welcome to CommScope's Q2 '23 Earnings Conference Call. (Operator Instructions) Please be advised that today's call is being recorded.

感謝您的耐心等待，並歡迎參加康普 23 年第 2 季度收益電話會議。 （操作員說明）請注意，今天的通話正在錄音。

I would now like to turn the call over to your host, Mr. Massimo DiSabato, Vice President of Investor Relations. Please go ahead.

現在我想將電話轉給東道主投資者關係副總裁 Massimo DiSabato 先生。請繼續。

Good morning, and thank you for joining us today to discuss CommScope's 2023 second quarter results. I'm Massimo DiSabato, Vice President of Investor Relations for CommScope. And with me on today's call are Chuck Treadway, President and CEO; and Kyle Lorentzen, Executive Vice President and CFO.

早上好，感謝您今天加入我們討論康普 2023 年第二季度業績。我是康普投資者關係副總裁 Massimo DiSabato。與我一起參加今天電話會議的還有總裁兼首席執行官查克·特雷德韋 (Chuck Treadway)；執行副總裁兼首席財務官凱爾·洛倫岑 (Kyle Lorentzen)。

You can find the slides that accompany this report on our Investor Relations website. Please note that some of our comments today will contain forward-looking statements based on our current view of our business, and actual future results may differ materially. Please see our recent SEC filings, which identify the principal risks and uncertainties that could affect future performance.

您可以在我們的投資者關係網站上找到本報告附帶的幻燈片。請注意，我們今天的一些評論將包含基於我們當前對業務的看法的前瞻性陳述，未來的實際結果可能會存在重大差異。請參閱我們最近向 SEC 提交的文件，其中確定了可能影響未來業績的主要風險和不確定性。

Before I turn the call over to Chuck, I have a few housekeeping items to review. Today, we will discuss certain adjusted or non-GAAP financial measures, which are described in more detail in this morning's earnings materials. Reconciliations of non-GAAP financial measures and other associated disclosures are contained in our earnings materials and posted on our website. All references during today's discussion will be to our adjusted results. All quarterly growth rates described during today's presentation are on a year-over-year basis, unless otherwise noted.

在將電話轉給查克之前，我需要檢查一些內務事項。今天，我們將討論某些調整後或非公認會計原則的財務指標，這些指標在今天上午的收益材料中有更詳細的描述。非公認會計準則財務指標和其他相關披露的調節表包含在我們的收益材料中並發佈在我們的網站上。今天討論中的所有參考內容都將是我們調整後的結果。除非另有說明，今天的演示中描述的所有季度增長率均為同比增長率。

I'll now turn the call over to our President and CEO, Chuck Treadway.

現在我將把電話轉給我們的總裁兼首席執行官查克·特雷德韋 (Chuck Treadway)。

Thank you, Massimo, and good morning, everyone. I'll begin on Slide 2.

謝謝你，馬西莫，大家早上好。我將從幻燈片 2 開始。

CommScope delivered core net sales of $1.589 billion and core adjusted EBITDA of $263 million for the second quarter of 2023. Our second quarter in CCS and OWN was impacted by larger-than-expected customer inventory corrections, customer CapEx reductions and the macro environment. For consolidated CommScope, which includes our Home Networks business, we reported net sales of $1.918 billion, down 17%, and adjusted EBITDA of $260 million, down 13%.

康普2023 年第二季度的核心淨銷售額為15.89 億美元，核心調整後EBITDA 為2.63 億美元。我們的CCS 和OWN 第二季度受到超出預期的客戶庫存修正、客戶資本支出削減和宏觀環境的影響。對於合併後的康普（包括家庭網絡業務），我們公佈的淨銷售額為 19.18 億美元，下降 17%，調整後 EBITDA 為 2.6 億美元，下降 13%。

Despite the market challenges, we continue to manage what we can control, including our CommScope NEXT initiatives. Two of our most significant achievements thus far in 2023 are cost efficiencies and mix performance.

儘管面臨市場挑戰，我們仍繼續管理我們可以控制的事情，包括我們的康普 NEXT 計劃。 2023 年迄今為止，我們最重要的兩項成就是成本效率和混合性能。

On the cost side, we have aggressively evaluated our cost structure. This has resulted in an annualized cost savings of more than $150 million. This will position us well when demand returns to normal levels as these reductions are permanent and will not be needed as volume returns.

在成本方面，我們積極評估了我們的成本結構。這使得每年節省的成本超過 1.5 億美元。當需求恢復到正常水平時，這將使我們處於有利地位，因為這些減少是永久性的，並且隨著銷量的恢復而不再需要。

Additionally, we continue to drive performance in our NICS segment, where we achieved another record quarter of EBITDA of $75 million, up $90 million year-over-year. The team continues to drive substantial growth and value in our NICS segment.

此外，我們繼續推動 NICS 領域的業績，該季度 EBITDA 再次創紀錄，達到 7500 萬美元，同比增長 9000 萬美元。該團隊繼續推動我們的 NICS 領域的大幅增長和價值。

Before I talk about market outlook, let me talk about the progress of each of our businesses. As we indicated in previous calls, we believe CCS has strong, long-term market tailwinds, including significant spending commitments to improve United States' broadband infrastructure, in addition to other country programs around the world. Although orders are down, we continue to manage what we can control in this business, including investing in new products and capacity ahead of market recovery. During this downturn in demand, we are working on our efficiencies, including debottlenecking efforts to improve throughput when volumes return.

在講市場前景之前，我先講一下我們各項業務的進展情況。正如我們在之前的電話會議中指出的那樣，我們相信 CCS 擁有強大的長期市場推動力，除了世界各地其他國家的計劃外，還包括改善美國寬帶基礎設施的重大支出承諾。儘管訂單減少，但我們繼續管理我們可以控制的業務，包括在市場復甦之前投資新產品和產能。在需求低迷期間，我們正在努力提高效率，包括在產量恢復時消除瓶頸以提高吞吐量。

In addition to operational improvements, we continue to invest in new product development. We continue to move forward with the launch of our NOVUX product line that will offer customers a modular approach to connectivity, resulting in decreased installation costs for our customers.

除了運營改進之外，我們還繼續投資於新產品開發。我們繼續推進 NOVUX 產品線的推出，該產品線將為客戶提供模塊化的連接方法，從而降低客戶的安裝成本。

On some of the future investments, we are working on -- we are working with the state of North Carolina for funding. Recently, we announced a grant from the state to support several future growth projects. We have aggressively invested in our internal capacity to enable CommScope to take full advantage of future carrier footprint expansion, driving fiber deeper.

對於未來的一些投資，我們正在與北卡羅來納州合作籌集資金。最近，我們宣布獲得國家撥款，以支持幾個未來的增長項目。我們積極投資內部產能，使康普能夠充分利用未來運營商覆蓋範圍的擴展，推動光纖更深層次發展。

In addition to the state grant, I had the honor and privilege to attend President Biden's announcement of his internet-for-all initiative. This is an exciting announcement as it indicates the beginning of the $42 billion of BEAD funding. As demand for our products return, we are well positioned to deliver against significantly higher demand with an improved cost structure.

除了國家撥款之外，我還有幸參加了拜登總統宣布的全民互聯網倡議。這是一個令人興奮的公告，因為它標誌著 420 億美元 BEAD 融資的開始。隨著對我們產品的需求回升，我們已做好充分準備，可以通過改善成本結構來滿足顯著增加的需求。

Turning to NICS. The business continues to perform very well. Our first half EBITDA of $133 million is up $162 million over the first half of 2022. The NICS segment is on an annualized EBITDA run rate of $266 million. Backlog ended the quarter above $550 million. Based on current visibility, we expect second half EBITDA to be stronger than the first half.

轉向 NICS。該業務繼續表現良好。我們上半年的 EBITDA 為 1.33 億美元，比 2022 年上半年增加了 1.62 億美元。NICS 部門的年化 EBITDA 運行率為 2.66 億美元。本季度末積壓訂單超過 5.5 億美元。根據目前的可見性，我們預計下半年的 EBITDA 將強於上半年。

I'm extremely proud of the NICS team as they have significantly transformed the business over the last 24 months. We are well positioned for continued growth as we invest in new services and software as part of the segment's transformational growth strategy.

我為 NICS 團隊感到非常自豪，因為他們在過去 24 個月內顯著改變了業務。作為該部門轉型增長戰略的一部分，我們投資新服務和軟件，為持續增長做好了準備。

Through our NICS CommScope NEXT plan, we have been able to improve all areas of the business, including growth, new products and costs. The NICS segment has successfully leveraged the existing cost structure to dramatically improve profitability and cash generation. We expect continued growth in this segment, driven by new hardware and software products as well as cost management.

通過我們的 NICS CommScope NEXT 計劃，我們已經能夠改善業務的所有領域，包括增長、新產品和成本。 NICS 部門成功地利用了現有的成本結構，顯著提高了盈利能力和現金生成能力。我們預計，在新的硬件和軟件產品以及成本管理的推動下，該領域將持續增長。

Recently, we announced the RUCKUS One platform, that is being sold with a Network as a Service option. RUCKUS One is an AI-driven cloud-native platform, delivering network assurance, service delivery and business intelligence in a unified dashboard. It simplifies converged network management across multi-access public and private networks.

最近，我們發布了 RUCKUS One 平台，該平台與網絡即服務選項一起出售。 RUCKUS One 是一個人工智能驅動的雲原生平台，在統一的儀表板中提供網絡保證、服務交付和商業智能。它簡化了跨多路訪問公共和專用網絡的融合網絡管理。

In addition to RUCKUS One, we are a leader in the development of Wi-Fi 7. We expect to be one of the first in the market when we launch our Wi-Fi 7 product in the fourth quarter of 2023.

除了 RUCKUS One 之外，我們還是 Wi-Fi 7 開發的領導者。我們預計在 2023 年第四季度推出 Wi-Fi 7 產品時將成為市場上的首批產品之一。

I'm extremely excited about the future of NICS as the business has been a large benefactor of our CommScope NEXT program. We have created substantial value in this segment over the last 2 years and expect to create more moving forward.

我對 NICS 的未來感到非常興奮，因為該業務是我們康普 NEXT 計劃的一大捐助者。過去兩年，我們在這一領域創造了巨大的價值，並期望未來創造更多價值。

In OWN, as we mentioned in previous calls, we fully contemplated a decline in U.S. carrier capital spend. While this presents headwinds for 2023 revenue and adjusted EBITDA performance in the business, we continue to position the business for long-term growth.

在 OWN 中，正如我們在之前的電話會議中提到的，我們充分考慮了美國運營商資本支出的下降。雖然這對 2023 年的收入和調整後的 EBITDA 業績帶來不利影響，但我們繼續為該業務的長期增長做好準備。

As we have done in the CCS segment, we are using the slower demand to focus on new products and efficiencies. We continue to further develop the MOSAIC antenna to provide a unique solution to active/passive requirements. We now expect MOSAIC to make major inroads as the market demand returns.

正如我們在 CCS 領域所做的那樣，我們利用需求放緩的機會來專注於新產品和效率。我們繼續進一步開發 MOSAIC 天線，為有源/無源需求提供獨特的解決方案。我們現在預計隨著市場需求的恢復，MOSAIC 將取得重大進展。

In addition to new products and positioning for growth, we are working aggressively on our cost structure, including operations. We're implementing several projects that will improve our cost and throughput in our factories in future periods.

除了新產品和增長定位之外，我們還積極致力於成本結構，包括運營。我們正在實施幾個項目，這些項目將在未來一段時間內提高我們工廠的成本和吞吐量。

Finishing with ANS. As we have discussed, the segment has made a very successful transition to the leading supplier of edge-related products, including nodes, amplifiers and RPD/RMD modules. Although we remain a strong supplier of our legacy CMTS technology, we continue to grow our edge business as we are in the early phases of the DOCSIS 4.0 upgrade. We continue to work with all of the major cable operators on edge products.

以 ANS 結束。正如我們所討論的，該細分市場已非常成功地轉型為邊緣相關產品（包括節點、放大器和 RPD/RMD 模塊）的領先供應商。儘管我們仍然是傳統 CMTS 技術的強大供應商，但我們仍處於 DOCSIS 4.0 升級的早期階段，因此我們將繼續發展我們的邊緣業務。我們繼續與所有主要有線電視運營商合作開發邊緣產品。

As previously discussed, we announced that we are working with Comcast on a next-generation FDX amplifier. FDX is a key driver for their upgrades to 10G. In addition to our position on amplifiers, we are well positioned in RPD/RMD modules, where we are selling significant quantities to large cable operators. Finally, we continue to commercialize our virtual CMTS solutions and are actively testing in cable operator labs.

如前所述，我們宣布正在與 Comcast 合作開發下一代 FDX 放大器。 FDX 是他們升級到 10G 的關鍵驅動力。除了在放大器領域的地位外，我們在 RPD/RMD 模塊領域也處於有利地位，我們正在向大型有線電視運營商銷售大量產品。最後，我們繼續將虛擬 CMTS 解決方案商業化，並積極在有線運營商實驗室進行測試。

Overall, I'm extremely excited about our position in ANS as DOCSIS 4.0 upgrades are in early phases. We're the only supplier that can provide all of the products required for an upgrade, including virtual CMTS, nodes, amplifiers and modules.

總的來說，我對我們在 ANS 中的地位感到非常興奮，因為 DOCSIS 4.0 升級正處於早期階段。我們是唯一一家能夠提供升級所需的所有產品的供應商，包括虛擬 CMTS、節點、放大器和模塊。

We are also finding success in the conversion of our legacy E6000 CMTS technology to a virtualized system that can compete with the existing virtualized solution. We continue to invest heavily in the future, and we see 2023 as an inflection point moving forward.

我們還成功將傳統 E6000 CMTS 技術轉換為可與現有虛擬化解決方案競爭的虛擬化系統。我們繼續對未來進行大量投資，我們將 2023 年視為前進的拐點。

Finally, as we've discussed previously, ANS is a bit more of a project-based business than our other segments. Some revenue timing is driven by projects and licenses. In 2023, we would expect to see stronger second half than the first half as project timing is weighted to the second half and edge continues to ramp.

最後，正如我們之前討論的那樣，ANS 比我們的其他細分市場更多的是基於項目的業務。一些收入時機是由項目和許可證驅動的。 2023 年，我們預計下半年會比上半年更強勁，因為項目時間安排會偏重於下半年，而且優勢繼續增強。

Now let me address the market environment and what we are hearing in our discussions with our customers. Our near-term market challenges are CCS and OWN related. Starting with OWN, we were highly exposed to the 3 major carriers in the U.S. going into 2023. We expected to see a decline in capital expenditures as indicated by the carriers. This decline was included in our 2023 core adjusted EBITDA guidepost of $1.35 billion to $1.5 billion.

現在讓我談談市場環境以及我們在與客戶的討論中聽到的情況。我們近期的市場挑戰與 CCS 和 OWN 相關。從 OWN 開始，到 2023 年，我們對美國 3 家主要運營商的敞口很高。我們預計，正如運營商所表明的那樣，資本支出將會下降。這一下降已包含在我們 2023 年 13.5 億至 15 億美元核心調整後 EBITDA 指標中。

During the second quarter, carriers indicated a downward shift on 2023 demand as they continue to cut CapEx and manage 2023 cash flow. Other than the demand picking up because some customers have normalized inventories in the first half, we expect these decreased demand levels to remain through the rest of 2023. We will continue to monitor the major carrier CapEx plans for 2024 as they get developed.

第二季度，運營商表示，隨著他們繼續削減資本支出並管理 2023 年現金流，他們的 2023 年需求將出現下降。除了由於一些客戶在上半年實現庫存正常化而導致需求回升之外，我們預計需求水平的下降將持續到 2023 年剩餘時間。我們將繼續關注主要運營商 2024 年資本支出計劃的製定。

As it relates to CCS market conditions, there is a significant short-term uncertainty in the market today. At this point, it is clear that there are 3 major items driving softness in CCS orders: inventory adjustments, capital expenditures and the macroeconomic backdrop.

由於與 CCS 市場狀況相關，目前市場存在重大的短期不確定性。目前來看，顯然有3個主要因素導致CCS訂單疲軟：庫存調整、資本支出和宏觀經濟背景。

Let me start with market conditions. We're seeing short-term positives as spending on the fiber side is down. Several major customers are managing their cash after 2 years of significant investment in fiber build-out. Our conversations with customers continue to leave us with medium and long-term optimism for substantial spending. The conversations are also pointing to the additional large BEAD government funding programs going into effect in the second half of 2024.

讓我從市場狀況開始。隨著光纖方面的支出下降，我們看到了短期的積極因素。在對光纖建設進行了兩年的大量投資後，一些主要客戶正在管理他們的現金。我們與客戶的對話繼續讓我們對大量支出保持中長期樂觀態度。談話還指出，額外的大型 BEAD 政府資助計劃將於 2024 年下半年生效。

In addition to lower market demand, customers clearly purchased more materials than they needed in 2022. This had a significant impact on our demand in the first half as customers started to normalize inventory levels. The magnitude of these inventory builds was greater than we expected. We feel that we may have benefited more than our competition on the customer inventory builds.

除了市場需求下降之外，客戶購買的材料顯然超過了 2022 年的需求。隨著客戶開始使庫存水平正常化，這對我們上半年的需求產生了重大影響。庫存增加的幅度超出了我們的預期。我們認為，在客戶庫存建設方面，我們可能比競爭對手受益更多。

In speaking with our customers, we sense that their inventory positions have improved. However, there is still too much inventory in the system and it will continue to impact demand in the second half of 2023. We expect that we will see further improvement in 2024 as the spend pick up again.

在與客戶交談時，我們感覺到他們的庫存狀況有所改善。然而，系統中的庫存仍然過多，這將繼續影響 2023 年下半年的需求。我們預計，隨著支出再次回升，2024 年將看到進一步改善。

Based on the above challenges, we have revised our EBITDA guidepost down. We now expect full year 2023 core adjusted EBITDA to be in the range of $1.15 billion to $1.25 billion. It is important to note that this downward adjustment is based purely on current depressed market conditions. We believe that we are maintaining our market share and that our view of medium and long-term demand remains unchanged.

基於上述挑戰，我們下調了 EBITDA 指南。我們現在預計 2023 年全年核心調整後 EBITDA 將在 11.5 億美元至 12.5 億美元之間。值得注意的是，此次下調純粹是基於當前低迷的市場狀況。我們相信我們正在維持我們的市場份額，並且我們對中長期需求的看法保持不變。

And with that, I'd like to turn things over to Kyle to talk more about our second quarter results.

說到這裡，我想把事情交給凱爾來更多地談論我們第二季度的業績。

Thank you, Chuck, and good morning, everyone. I'll start with an overview of our second quarter 2023 results on Slide 3.

謝謝你，查克，大家早上好。我將首先在幻燈片 3 上概述 2023 年第二季度的業績。

For the second quarter, consolidated CommScope reported net sales of $1.919 billion, a decrease of 17% from the prior year, driven by declines in CCS, OWN and Home, but partially offset by strong NICS growth. Adjusted EBITDA of $260 million decreased by 13%. Adjusted EPS was $0.19 per share, decreasing 54% from prior year. This was below our expectations as we experienced significantly lower demand in our CCS and OWN segments as customers more aggressively normalized inventory levels and managed their capital spending.

第二季度，康普合併後的淨銷售額為 19.19 億美元，較上年同期下降 17%，主要受到 CCS、OWN 和 Home 業務下降的推動，但部分被 NICS 的強勁增長所抵消。調整後 EBITDA 為 2.6 億美元，下降 13%。調整後每股收益為 0.19 美元，較上年下降 54%。這低於我們的預期，因為隨著客戶更加積極地標準化庫存水平並管理其資本支出，我們的 CCS 和 OWN 領域的需求顯著下降。

For core CommScope, net sales of $1.589 billion declined 15% from the prior year, and adjusted EBITDA of $263 million decreased 8%. The adjusted EBITDA held up a bit better than our revenue as we continue to drive our CommScope NEXT initiative plan, including reducing our fixed costs. In addition, EBITDA performance was helped by continued improvement in our NICS segment.

康普核心業務的淨銷售額為 15.89 億美元，較上年下降 15%，調整後 EBITDA 為 2.63 億美元，下降 8%。隨著我們繼續推動康普 NEXT 計劃，包括降低固定成本，調整後的 EBITDA 略好於我們的收入。此外，我們的 NICS 部門的持續改善也有助於 EBITDA 業績。

Driven by lower order rates, particularly in CCS and OWN, core CommScope backlog continued to decrease and ended the quarter at $1.9 billion, a decrease of 20% versus the end of Q1. The lower order rates has had an impact on our backlog. In our CCS and OWN businesses, our backlogs are back to normalized levels pre supply chain challenges. This has allowed us to significantly reduce customer lead times.

在訂單率下降（尤其是 CCS 和 OWN 訂單率）的推動下，康普核心積壓訂單持續減少，本季度末訂單量為 19 億美元，比第一季度末減少 20%。較低的訂單率對我們的積壓訂單產生了影響。在我們的 CCS 和 OWN 業務中，我們的積壓訂單已恢復到供應鏈挑戰之前的正常水平。這使我們能夠顯著縮短客戶的交貨時間。

Turning now to our segment highlights on Slide 4. Starting with CCS, net sales of $699 million decreased 29% from the prior year. The decline was more attributable to our building and data center business than our network connectivity and cabling business. This result was below our expectations as discussed earlier.

現在轉向幻燈片 4 中的細分市場亮點。從 CCS 開始，淨銷售額為 6.99 億美元，比上一年下降了 29%。下降更多地歸因於我們的建築和數據中心業務，而不是我們的網絡連接和佈線業務。如前所述，這個結果低於我們的預期。

Order rates remain challenged, and we have seen only a modest increase in order rates in the latter part of the second quarter and early in the third quarter. As mentioned, CCS customer conversations remain bullish on medium and long-term growth.

訂單率仍然面臨挑戰，我們看到第二季度末和第三季度初訂單率僅小幅增長。如前所述，CCS 客戶對話仍然看好中長期增長。

The short-term demand profile remains very uncertain as customers continue to manage inventory and cash. CCS adjusted EBITDA of $80 million was a decrease of 53% from the prior year, driven primarily by the drop in revenue.

由於客戶繼續管理庫存和現金，短期需求狀況仍然非常不確定。 CCS 調整後 EBITDA 為 8,000 萬美元，比上年下降 53%，這主要是由於收入下降所致。

NICS net sales of $328 million increased by 59%. From a business unit perspective, RUCKUS led the way, increasing 60%. NICS adjusted EBITDA of $75 million improved from negative $15 million from the prior year, a $90 million change, primarily driven by stronger demand and operational improvements. The NICS segment LTM adjusted EBITDA is $214 million, an improvement of $245 million versus LTM a year ago.

NICS 淨銷售額達 3.28 億美元，增長 59%。從業務部門的角度來看，RUCKUS 處於領先地位，增長了 60%。 NICS 調整後 EBITDA 為 7500 萬美元，較上一年的負 1500 萬美元有所改善，變化幅度為 9000 萬美元，這主要是由需求強勁和運營改善推動的。 NICS 部門 LTM 調整後 EBITDA 為 2.14 億美元，比一年前的 LTM 增加了 2.45 億美元。

As discussed on previous calls, the team is focused on driving growth and profitability in the NICS segment. We have seen the benefits of this focus over the last several quarters. We are very excited about the growth opportunities in NICS as we continue to invest heavily in R&D. Our new product development, including RUCKUS One, clearly provides a strong platform for growth. We would expect to see a stronger second half than first half in NICS. Congratulations to the team for delivering another record quarterly performance.

正如之前電話會議中所討論的，該團隊專注於推動 NICS 領域的增長和盈利。在過去的幾個季度中，我們已經看到了這種關注的好處。隨著我們繼續大力投資研發，我們對 NICS 的增長機會感到非常興奮。我們的新產品開發，包括 RUCKUS One，顯然提供了一個強大的增長平台。我們預計 NICS 下半年將強於上半年。祝賀團隊再次創下季度業績紀錄。

OWN net sales of $229 million decreased 41% from the prior year and across most business units. Although a decline was expected as major carriers indicated lower 2023 capital spending versus 2022, the magnitude of the decline was greater than we expected. Carriers took aggressive steps to manage cash, including managing inventory down and lowering spend in general, including one carrier unexpectedly stopping all deliveries of our products for 60 days. The near-term outlook remains uncertain.

OWN 大部分業務部門的淨銷售額為 2.29 億美元，較上年下降 41%。儘管預計會出現下降，因為主要運營商表示 2023 年的資本支出將低於 2022 年，但下降的幅度超出了我們的預期。承運商採取了積極的措施來管理現金，包括管理庫存和降低總體支出，其中一家承運商意外地停止了我們所有產品的交付 60 天。近期前景仍然不確定。

OWN adjusted EBITDA of $42 million declined 45% from the prior year. In OWN, we continue to manage costs and invest in new product development. Our MOSAIC antenna continues to gain traction and is well positioned when the market recovers.

調整後 EBITDA 為 4200 萬美元，較上年下降 45%。在 OWN，我們繼續管理成本並投資於新產品開發。我們的 MOSAIC 天線繼續受到關注，並且在市場復甦時處於有利位置。

ANS net sales of $333 million increased 14% from the prior year due to project timing. ANS adjusted EBITDA of $66 million increased 15%, primarily driven by improved revenue. ANS continues to position itself to take advantage of the DOCSIS 4.0 upgrade cycle. We're the only supplier that can supply all the products from amplifiers, nodes, modules and CMTS, including virtual CMTS.

由於項目時機的原因，ANS 淨銷售額為 3.33 億美元，較上年增長 14%。 ANS 調整後 EBITDA 為 6600 萬美元，增長 15%，這主要是由於收入增長所致。 ANS 繼續利用 DOCSIS 4.0 升級週期。我們是唯一一家能夠提供放大器、節點、模塊和CMTS（包括虛擬CMTS）所有產品的供應商。

We are winning business with all major customers and are well positioned for future growth. Based on project timing, a key driver of the ANS business quarter-over-quarter performance, we expect a stronger second half than first half.

我們正在贏得所有主要客戶的業務，並為未來的增長做好了準備。根據項目時間（ANS 業務季度業績的關鍵驅動因素），我們預計下半年將比上半年表現更好。

Finally, Home continues to be faced with challenging market conditions. Home net sales were $330 million, declining 22% from the prior year, essentially across all business units, driven by customer inventory adjustments and lower demand.

最後，Home 繼續面臨充滿挑戰的市場環境。受客戶庫存調整和需求下降的推動，所有業務部門的家庭淨銷售額為 3.3 億美元，比上年下降 22%。

Home adjusted EBITDA of negative $3 million declined from $13 million versus prior year, as a result of the lower revenue. Home, not unlike core businesses, is experiencing customer inventory adjustments and low recessionary demand. The Home business has seen further deterioration of the market in the second quarter. Although we expect EBITDA to improve in the second half, it will be modest and highly dependent on the market. We continue to implement our transformational initiatives and are winning new business. However, we don't expect to see substantial top line impact of these initiatives until the second half of 2024, at the earliest, and expect their full effect to hit in 2025. We will continue to manage the business as we look for prudent separation alternatives.

由於收入下降，國內調整後 EBITDA 為負 300 萬美元，較上年同期的 1,300 萬美元有所下降。與核心業務不同，家居行業正在經歷客戶庫存調整和低衰退需求。第二季度家居業務市場進一步惡化。儘管我們預計下半年 EBITDA 將有所改善，但幅度不大且高度依賴於市場。我們繼續實施轉型舉措並贏得新業務。然而，我們預計這些舉措最早要到 2024 年下半年才會對營收產生重大影響，並預計到 2025 年才能全面發揮作用。我們將繼續管理該業務，同時尋求謹慎的分拆備擇方案。

Turning to Slide 5 for an update on cash flow. During the quarter, we generated cash from operations of $137 million. During the quarter, we reduced inventory, driven by a decline in revenue as well as improved management of inventory. As previously discussed, we are still holding excess inventory, driven by the supply constraints in 2021 and 2022. We are beginning to unlock some of this value, but there's still a long way to go. Based on the revenue and EBITDA challenges, we are revising our 2023 adjusted free cash flow forecast down to $250 million to $350 million.

請參閱幻燈片 5，了解現金流的最新情況。本季度，我們從運營中產生了 1.37 億美元的現金。本季度，由於收入下降以及庫存管理改善，我們減少了庫存。正如之前所討論的，由於 2021 年和 2022 年的供應限制，我們仍然持有過剩庫存。我們正開始釋放其中的部分價值，但還有很長的路要走。根據收入和 EBITDA 挑戰，我們將 2023 年調整後自由現金流預測下調至 2.5 億至 3.5 億美元。

Turning to Slide 6 for an update on our liquidity and capital structure. During the second quarter, our cash and liquidity remained strong. We ended the quarter with $418 million in global cash and total available cash and liquidity of over $1 billion. During the quarter, we increased our cash balance by $91 million. We did not draw on our ABL revolver during the second quarter and therefore, ended the quarter with no outstanding balance.

請參閱幻燈片 6，了解我們的流動性和資本結構的最新情況。第二季度，我們的現金和流動性仍然強勁。本季度結束時，我們的全球現金為 4.18 億美元，可用現金和流動性總額超過 10 億美元。本季度，我們的現金餘額增加了 9100 萬美元。我們在第二季度沒有動用 ABL 左輪手槍，因此，本季度結束時沒有未清餘額。

In the second quarter, we continued to execute our debt buyback program and repurchased $28 million of our long-term debt for cash consideration of $25 million. To add more detail, we repurchased $10 million of the 8.25% senior notes due 2027 and $18 million of the 6% senior notes due 2025. Since the beginning of the year, we have repurchased $85 million of debt.

第二季度，我們繼續執行債務回購計劃，以 2500 萬美元現金回購了 2800 萬美元的長期債務。更詳細地說，我們回購了1000 萬美元的2027 年到期的8.25% 優先票據，以及1800 萬美元的2025 年到期的6% 優先票據。自今年年初以來，我們已經回購了8500 萬美元的債務。

During the quarter, we also paid the required $8 million of term loan amortization. The company ended the quarter with net leverage ratio of 6.4x. Going forward, we intend to use cash to reduce debt, including buying back securities opportunistically.

本季度，我們還支付了所需的 800 萬美元定期貸款攤銷。該公司本季度末的淨槓桿率為 6.4 倍。展望未來，我們打算使用現金來減少債務，包括機會性地回購證券。

I'm now turning to Slide 7, where I will conclude my prepared remarks with some commentary around our expectations for the remainder of 2023. As discussed, the external environment remains uncertain in the near term. The recessionary backdrop clearly is impacting our customer behaviors as they manage their near-term cash flows.

我現在轉向幻燈片 7，我將在其中總結我準備好的發言，並圍繞我們對 2023 年剩餘時間的預期進行一些評論。正如所討論的，短期內外部環境仍然不確定。經濟衰退的背景顯然正在影響我們的客戶管理近期現金流的行為。

As we have moved through the second quarter, our expectations for the second half have changed significantly. Order rates in CCS and OWN have not materially increased. Despite some indications from our customers that there will be a strong rebound in the second half, we are not as optimistic.

隨著第二季度的過去，我們對下半年的預期發生了重大變化。 CCS 和 OWN 的訂單率並未大幅增加。儘管我們的客戶有一些跡象表明下半年將出現強勁反彈，但我們並不那麼樂觀。

Based on the above, we have reduced our 2023 core adjusted EBITDA guidance to $1.15 billion to $1.25 billion. We are still well positioned to take advantage of the expected strong fiber demand over the medium and long term. However, timing of a meaningful recovery is highly uncertain. We will continue to monitor and assess.

基於上述情況，我們已將 2023 年核心調整後 EBITDA 指導下調至 11.5 億美元至 12.5 億美元。我們仍處於有利位置，可以利用中長期預期的強勁纖維需求。然而，有意義的複甦的時間高度不確定。我們將繼續監測和評估。

As Chuck mentioned, we have implemented additional cost actions, including accelerating certain CommScope NEXT efficiency initiatives. As we have gone through this exercise, we are excited with the opportunities we have found and implemented. We feel that a significant portion of the cost actions we are taking now are permanent in nature. In total, these cost actions represent more than $150 million of impact. Upon recovery of the demand, we should be well positioned to drive strong, profitable performance.

正如查克提到的，我們已經實施了額外的成本行動，包括加速某些康普 NEXT 效率計劃。當我們完成這項工作時，我們對我們發現並實施的機會感到興奮。我們認為，我們現在採取的成本行動中有很大一部分是永久性的。這些成本行動總共產生了超過 1.5 億美元的影響。需求復蘇後，我們應該處於有利地位，能夠推動強勁、盈利的業績。

Finally, I would like to address our debt position and specifically, our nearest-term maturity in 2025. We are evaluating our options to address this maturity proactively. We have several options available to us, and we plan to share more on this topic no later than our next earnings call.

最後，我想談談我們的債務狀況，特別是我們最近的 2025 年到期期限。我們正在評估我們的選擇，以主動解決這一到期問題。我們有多種選擇，我們計劃在下一次財報電話會議之前分享有關此主題的更多信息。

And with that, I'd like to give the floor back to Chuck for some closing remarks.

說到這裡，我想請查克發表一些結束語。

Thank you, Kyle. As I mentioned earlier, we are focused on what we can control. I feel we are making nice progress as we continue to drive improvement in the positioning of our business for success. I point to our recent focus on costs that will pay off in the short and long term.

謝謝你，凱爾。正如我之前提到的，我們專注於我們可以控制的事情。我認為，隨著我們繼續推動業務定位的改進，以取得成功，我們正在取得良好進展。我指出，我們最近關注的成本將在短期和長期內得到回報。

Unfortunately, we are dealing with market demand issues that are both more severe than we anticipated and challenging to overcome in the short term, specifically in CCS and OWN. There's a significant near-term uncertainty in our markets, including macroeconomic challenges.

不幸的是，我們正在處理的市場需求問題比我們預期的更加嚴重，並且在短期內難以克服，特別是在 CCS 和 OWN 領域。我們的市場近期存在重大不確定性，包括宏觀經濟挑戰。

Visibility over the next several quarters is limited. We continue to be bullish on medium and long-term demand as investments in broadband and wireless infrastructure will be significant, and we will be in a great position when markets rebound.

未來幾個季度的能見度有限。我們繼續看好中長期需求，因為寬帶和無線基礎設施的投資將很大，而且當市場反彈時我們將處於有利地位。

I'd like to thank you for your interest and support in CommScope and belief in our ability to continue to drive transformative change, which we believe will unlock significant value for our shareholders over the long term.

我要感謝您對康普的興趣和支持，並相信我們有能力繼續推動變革，我們相信這將為我們的股東帶來長期的巨大價值。

And with that, we'll now open the line for questions.

現在，我們將開放提問熱線。

(Operator Instructions) Our first question comes from the line of George Notter of Jefferies.

（操作員說明）我們的第一個問題來自 Jefferies 的 George Notter。

I guess I'd like to start just by asking about the NICS business. I assume that some of the improved performance there is coming from better availability of components. I think, certainly, the componentry on the Wi-Fi side is unlocked across the marketplace.

我想我想首先詢問 NICS 業務。我認為部分性能的改進來自組件更好的可用性。我認為，當然，Wi-Fi 方面的組件在整個市場上都是解鎖的。

Can you talk about what happened in backlog in NICS? Are you getting some benefit from that release of componentry? And what type of EBITDA run rate would you guys be generating there if you're only shipping against a more natural rate of end market consumption?

您能談談 NICS 積壓的情況嗎？您是否從該組件的發布中獲得了一些好處？如果你們只是按照更自然的終端市場消費率進行運輸，你們會產生什麼類型的 EBITDA 運行率？

Yes, I'll start off and let Kyle finish. Thanks for the question, George. When I look at CommScope NEXT initiatives, I mean, focused on growth and profitability, I would say the NICS team performed very, very well. I mean, we got cost leverage. We get a lot of cost leverage as we grow the business. Look, we have detailed plans and initiatives to continue to grow the business, especially with the launch of RUCKUS One and more Software as a Service.

是的，我會開始並讓凱爾完成。謝謝你的提問，喬治。當我審視康普 NEXT 計劃時，我的意思是，重點關注增長和盈利能力，我會說 NICS 團隊表現非常非常好。我的意思是，我們有成本槓桿。隨著業務的發展，我們獲得了很多成本槓桿。看，我們有詳細的計劃和舉措來繼續發展業務，特別是推出 RUCKUS One 和 more 軟件即服務。

In terms of inventory and stuff, our distributors are digesting a fair amount of inventory as the supply chain constraints improved. And I would say we're catching up on backlog.

在庫存和物料方面，隨著供應鏈限制的改善，我們的經銷商正在消化相當數量的庫存。我想說我們正在趕上積壓的工作。

What I'd say is the close and win rates continue to be strong in our business. There is still some constraints in our distributors for significant order rates because they would have the majority of the products for the customer solution, but not all. And these constraints are starting to alleviate in the second half.

我想說的是，我們業務的成交率和勝率仍然很高。我們的分銷商對於高訂單率仍然存在一些限制，因為他們擁有用於客戶解決方案的大部分產品，但不是全部。這些限制在下半年開始緩解。

And as those chips come in and we start to get flow to them, we expect order rates to improve as well, and then the inventory will be taken down with the distributors to allow them to have more flexibility there. One of the advantages we have is we're a smaller player in the market, and we feel we're well positioned to grow with, I'd say, modest market share gains.

隨著這些芯片的進來，我們開始流入它們，我們預計訂單率也會提高，然後分銷商的庫存將減少，讓他們有更大的靈活性。我們擁有的優勢之一是我們是市場上規模較小的參與者，而且我們認為我們已經做好了發展的準備，我想說的是，市場份額會略有增長。

I don't know, Kyle, if you want to talk about the...

我不知道，凱爾，你是否想談談……

Yes. I think on the chip side, substantially better than where we were a year ago and in the second half of last year. To Chuck's point, there's a few areas where we still have constraints, but we would expect those to work their way out in the second half. And by the time we get to the end of the year, we feel like, well, we've got to a normalized position on chip supply.

是的。我認為在芯片方面，比一年前和去年下半年的情況要好得多。就查克的觀點而言，我們在一些領域仍然存在局限性，但我們希望這些領域能夠在下半年得到解決。到今年年底，我們感覺我們已經在芯片供應方面達到了正常化的狀態。

Got it. And then you said what the backlog was in NICS, but can you give us backlog in NICS for the March quarter? Remind us on that number.

知道了。然後您提到 NICS 的積壓情況是多少，但您能給我們提供 3 月份季度的 NICS 積壓情況嗎？提醒我們該號碼。

It was about $700 million.

金額約為 7 億美元。

Our next question comes from the line of Meta Marshall of Morgan Stanley.

我們的下一個問題來自摩根士丹利的梅塔·馬歇爾。

Great. I just wanted to get kind of more detail of where kind of the additional $150 million of cost savings that you announced is kind of coming out of. And then on the ANS business, you guys have had some struggles in that business just as the market kind of converted to more lightweight edge devices. You kind of sound more optimistic there. Do you feel like you've kind of anniversaried some of that pain of that transition?

偉大的。我只是想更詳細地了解您宣布的額外 1.5 億美元成本節約是從哪裡來的。然後在 ANS 業務上，隨著市場轉向更輕量級的邊緣設備，你們在該業務中遇到了一些困難。你聽起來比較樂觀。你是否覺得你已經度過了這段轉變的痛苦週年紀念日？

Yes, I'll take the first one. On the cost -- on the $150 million of cost, clearly, part of that cost reduction is we're reacting to the lower demand here in the short term. So we've gone back and taken a more aggressive view on cost.

是的，我會選擇第一個。在成本方面——對於 1.5 億美元的成本，顯然，成本削減的一部分是我們對短期需求下降的反應。因此，我們回過頭來對成本採取了更積極的看法。

In addition, in that $150 million, as part of our CommScope NEXT plan, we had cost initiatives that, in some cases, we haven't implemented them all, and we've just accelerated those plans. So it's sort of a combination of sort of new things that we came up, and then there's a portion of it that's just us going more aggressively after some of the things that were still available to us as part of CommScope NEXT.

此外，在這 1.5 億美元中，作為康普 NEXT 計劃的一部分，我們制定了成本計劃，但在某些情況下，我們尚未全部實施，我們只是加快了這些計劃的速度。因此，它是我們提出的一些新事物的組合，其中一部分只是我們更加積極地追求康普 NEXT 中我們仍然可以使用的一些東西。

And then related to your ANS question, I would say the team is performing very well. I mean we made a shift in leadership there. We made a shift in strategic direction. We doubled down some investments in R&D, specifically on amplifiers. I would say the team is performing very well, and we're getting share in most of the upgrades that are going on right now.

關於你的 ANS 問題，我想說團隊表現得非常好。我的意思是我們在那裡的領導層發生了轉變。我們改變了戰略方向。我們加大了研發投資，特別是放大器方面的投資。我想說，團隊表現非常好，我們正在分享目前正在進行的大部分升級。

And as I've shared with you all before, we're the only supplier that provides all the products, the virtual CMTS, the CMTS nodes, modules and amplifiers. And I would say that our team is using the knowledge and -- the strong knowledge of our customer networks through our legacy products to win product -- win across the breadth of our product line.

正如我之前與大家分享的那樣，我們是唯一一家提供所有產品、虛擬 CMTS、CMTS 節點、模塊和放大器的供應商。我想說的是，我們的團隊正在利用我們的知識，以及通過我們的遺留產品獲得客戶網絡的豐富知識來贏得產品，從而贏得我們整個產品線的勝利。

And we're really excited about our FDX amplifier work with Comcast. And I would also say that we're very pleased with our virtual CMTS progress, which is now in a customer lab for testing. So we feel pretty good about where we were and the changes we've made and the investments we've made in that business.

我們對與 Comcast 的 FDX 放大器合作感到非常興奮。我還想說，我們對虛擬 CMTS 的進展感到非常滿意，該進展現已在客戶實驗室進行測試。因此，我們對我們所處的位置、我們所做的改變以及我們在該業務中所做的投資感到非常滿意。

Our next question comes from the line of Tal Liani of Bank of America.

我們的下一個問題來自美國銀行的塔爾·利亞尼。

Can you hear me?

你能聽到我嗎？

Yes, we can.

我們可以。

Perfect. When things come back, one of the concerns we have is that what we're seeing now is -- has a few components. One of the components is inventory correction, as you mentioned, and backlog correction. But on the other hand, the environment is not supposed to go back to where we've seen in the past 2 years, because the cycle is down substantially. It's kind of over in certain cases.

完美的。當事情恢復時，我們擔心的問題之一是我們現在看到的是——有幾個組成部分。正如您提到的，其中一個組成部分是庫存修正和積壓修正。但另一方面，環境不會回到過去兩年的水平，因為周期大幅下降。在某些情況下，這已經結束了。

So the question is, when you look at your growth this year and you're looking at your projections for the next few years, do you think that these kind of environments that are -- these segments are related to CapEx? Do you think that they can grow -- if you neutralize the correction that we're seeing now, do you think they can grow in the next 2 years, given the spending plans of carriers?

所以問題是，當你審視今年的增長以及對未來幾年的預測時，你認為這些環境——這些細分市場與資本支出有關嗎？您認為它們會增長嗎？如果您抵消我們現在看到的調整，考慮到運營商的支出計劃，您認為它們會在未來兩年內增長嗎？

Yes. I would start by saying that obviously, visibility is limited. But that being said, in the CCS business, we are seeing inventories start to normalize and, we believe, will be normalized in the second half.

是的。我首先要說的是，顯然，可見性是有限的。但話雖如此，在 CCS 業務中，我們看到庫存開始正常化，並且我們相信，將在下半年恢復正常。

And we think that as customers are talking to us about the mid and long term, they're positive about what they're seeing and suggested growth there. But in addition to that, we're going to be helped by the BEAD funding, and we see that BEAD funding coming through in the second half of '24 and '25. So I think in the CCS, cable and connectivity, our fiber business, I see positives there.

我們認為，當客戶與我們談論中長期時，他們對所看到的情況和建議的增長持積極態度。但除此之外，我們還將得到 BEAD 資金的幫助，我們看到 BEAD 資金將在 24 年和 25 年下半年到位。因此，我認為在 CCS、電纜和連接以及我們的光纖業務中，我看到了積極的一面。

In terms of the OWN business and telcos, we see a lot of aggressive managing of cash. It could take several quarters to recover. And there, I'm not seeing like some big pickup. But I do -- I am more optimistic on the fiber and fiber connectivity side.

就自己的業務和電信公司而言，我們看到了很多積極的現金管理。可能需要幾個季度才能恢復。在那裡，我沒有看到什麼大的皮卡。但我確實——我對光纖和光纖連接方面更加樂觀。

Got it. Shifting to something else, if I can ask another question. One of the things that is impacting your stock is, of course, the debt position. And I know you said you'll provide more clarity in the next -- until the next call.

知道了。如果我可以問另一個問題的話，轉移到其他事情上。當然，影響股票的因素之一是債務狀況。我知道你說過你會在下一次電話會議之前提供更清晰的信息。

But can you share with us kind of the way you consider -- on the slide, you had the next 5 years of maturities. But your long-term plan with maturities, what are you trying? How much do you think you can pay down? And then what is the general -- what are the possibilities in front of you to refinance and improve the balance sheet situation?

但您能否與我們分享一下您的考慮方式——在幻燈片上，您有未來 5 年的到期日。但是你的長期計劃到期了，你在嘗試什麼？你認為你能付多少錢？那麼一般來說，您面臨的再融資和改善資產負債表狀況的可能性是什麼？

Yes. I mean I think, clearly, we're aware of the debt stack. And we understand that it's putting pressure on the equity price. I think as we think about how to deal with that, I think we're very focused on the '25 maturities. I think when we think about the '25 maturities, I mean, we definitely have alternatives. And I think we'll get some more clarity on that as we move through the third quarter.

是的。我的意思是，我認為，顯然，我們已經意識到了債務負擔。我們知道這給股價帶來了壓力。我認為，當我們考慮如何處理這個問題時，我認為我們非常關注 25 年的到期日。我認為，當我們考慮 25 年期限時，我的意思是，我們肯定有其他選擇。我認為隨著第三季度的到來，我們會對此更加清楚。

Some of the alternatives that we have, I won't go over all of them, but one of them is we do have some secured capacity that's available to deal with the '25 maturities. As we think about the longer debt stack, I mean, I think we still, as Chuck mentioned on like the CCS business, I think we feel like the short term is not reflective of what we see in the medium and long term. And we feel like we're well positioned as the markets come back to drive the EBITDA and the cash flow that we've talked about previously on calls.

我們擁有一些替代方案，我不會一一列舉，但其中之一是我們確實擁有一些安全能力，可用於處理 25 年到期的問題。當我們考慮更長的債務堆棧時，我的意思是，我認為我們仍然，正如查克在 CCS 業務中提到的那樣，我認為我們認為短期並不能反映我們在中長期看到的情況。我們認為，隨著市場回升，推動 EBITDA 和現金流（我們之前在電話會議上談到過），我們處於有利位置。

Our next question comes from the line of Matt Niknam of Deutsche Bank.

我們的下一個問題來自德意志銀行的馬特·尼克南（Matt Niknam）。

Just 2, if I could. First, on orders. If you can speak to maybe the cadence and what you saw in terms of the progression over the course of the quarter? How that trended? Did it deteriorate? And then how would July compare thus far? I think you mentioned maybe a little bit of moderation or modest improvement, but I'm just curious to get a little bit more unpacking in terms of what you've seen the last 4 months.

如果可以的話，就2個。首先，關於訂單。您能否談談節奏以及您在本季度的進展中看到的情況？趨勢如何？惡化了嗎？那麼七月迄今為止相比如何呢？我認為您提到了可能有一點節製或適度的改進，但我只是好奇地想對您過去 4 個月所看到的情況進行更多的了解。

And then just on OWN, just to double-click there. You mentioned there was one carrier unexpectedly stopping delivery of product for 60 days. Just wondering if that's resumed or if there's any additional context you can provide there.

然後在 OWN 上雙擊那裡即可。您提到有一家承運商意外停止交付產品 60 天。只是想知道是否已恢復或者您是否可以在那裡提供任何其他上下文。

Yes. So on the OWN side, that was just a temporary adjustment by a customer. But I think clearly, as we've talked about in OWN, we expected coming into the year a decline as a reduction of capital spending. And we've definitely seen the carriers take a more aggressive stance there as they're managing their own balance sheets and cash flows.

是的。所以對於自己來說，這只是客戶的臨時調整。但我清楚地認為，正如我們在 OWN 中所討論的那樣，我們預計今年會隨著資本支出的減少而下降。我們確實看到運營商在管理自己的資產負債表和現金流時採取了更積極的立場。

As it relates to order rates -- and I'll make -- I'm not going to go into each specific segment and business, but I think, in general, we saw an improvement from Q1 into Q2. I think what we saw in Q2 was a little bit of a stronger rebound in order rates in the first half of the quarter than in the second half of the quarter.

由於它與訂單率有關——我會說——我不會詳細討論每個特定的細分市場和業務，但我認為，總的來說，我們看到了從第一季度到第二季度的改善。我認為我們在第二季度看到的是，上半季度的訂單率反彈比下半季度更強。

I think as we've moved into Q3, and we've looked at July, we've seen another uptick in order rates, but I wouldn't classify those upticks that we've seen as material in nature. These are sort of small improvements. It's not anything that, as I said from an uncertainty and visibility standpoint, these aren't major moves that would get us back to where we -- what we were seeing in 2022. But we actually have seen improvement, just not to the magnitude that we needed to achieve our guidepost that we had talked about in Q1.

我認為，隨著我們進入第三季度，我們看到了 7 月份的情況，我們看到訂單率再次上升，但我不會將我們所看到的這些上升歸為實質性上升。這些都是一些小的改進。正如我從不確定性和可見性的角度所說，這些並不是什麼重大舉措，不會讓我們回到我們在 2022 年所看到的情況。但我們實際上已經看到了進步，只是沒有達到幅度我們需要實現我們在第一季度討論過的路標。

In our Q1 call, as you remember, we talked about in order to hit those guideposts, we needed to see a strong recovery in order rates. And we just, at this point in time, although we've seen a recovery, not to the magnitude that we need.

正如您所記得的，在我們的第一季度電話會議中，我們談到為了達到這些目標，我們需要看到訂單率的強勁復甦。目前，儘管我們已經看到了復甦，但還沒有達到我們需要的程度。

And Kyle, if I could just follow up. On cash flow, I think with the guide for $250 million to $350 million, I think you've done a little over $100 million already. Is there a seasonal? I think there's a little bit of extra interest expense typically hits in 3Q, with a bigger step-up in cash flow in 4Q. Is that appropriate in terms of framing the trajectory the next 2 quarters? Or are there...

還有凱爾，如果我能跟進一下就好了。在現金流方面，我認為按照 2.5 億至 3.5 億美元的指導，我認為您已經完成了 1 億多美元。有季節性的嗎？我認為第三季度通常會出現一些額外的利息支出，第四季度現金流會出現更大的增長。這對於製定未來兩個季度的發展軌跡是否合適？或者有沒有...

Yes, that is correct. Our Q3, we had a little bit of a higher interest bump. So I think -- as we think about cash, we'll get a little bit of benefit from working capital as the business is going to be down. Unfortunately, that's going to be offset with some higher restructuring costs.

對，那是正確的。第三季度，我們的興趣有所提高。所以我認為，當我們考慮現金時，隨著業務的下滑，我們將從營運資本中獲得一些好處。不幸的是，這將被一些更高的重組成本所抵消。

We talked about the $150 million. There's a price to pay to get that out, which will impact '23. And then obviously, the EBITDA is going to be down. So yes, that trajectory, we'll see a little bit more weakness just in the interest payment in Q3, and then probably a little bit more build in Q4.

我們談到了 1.5 億美元。要解決這個問題需要付出代價，這將影響'23。顯然，EBITDA 將會下降。所以，是的，按照這個軌跡，我們會看到第三季度的利息支付更加疲軟，然後第四季度可能會更加疲軟。

Our next question comes from the line of Shannon Cross of Credit Suisse.

我們的下一個問題來自瑞士信貸銀行的 Shannon Cross。

Are you able to hear me?

你能聽到我說話嗎？

Yes.

是的。

Okay. Just a couple of questions. One, have you heard anything from the carriers regarding the lead cabling issue and the potential that, that overhang might play into some of their CapEx thoughts? I know it's early. I'm just curious if they've mentioned anything.

好的。只是幾個問題。第一，您是否從運營商那裡聽說過有關引線佈線問題以及這種懸而未決可能會影響他們的一些資本支出想法的可能性？我知道現在還早我只是好奇他們是否提到過什麼。

No, no, we haven't heard anything, primarily because we don't make lead sheathing cable, and what they're talking about is completely different. Our product is completely different. But we haven't heard from them in terms of any build back or buy -- something they want to buy from us. We haven't heard anything like that yet.

不不，我們什麼也沒聽到，主要是因為我們不生產鉛護套電纜，而且他們所說的完全不同。我們的產品完全不同。但我們還沒有收到他們關於任何重建或購買的消息——他們想從我們這裡購買一些東西。我們還沒有聽說過類似的事情。

Yes. No, I understand it's with copper. I just was wondering because it's theoretically a large overhang. And then I guess my other question is just with regard to BEAD, can you talk us through how that funding rolls through from the Fed to the state to the carriers? Just give us some idea of timing and how it works, so we can feel more confident that it will really start flowing through in the second half of '24?

是的。不，我知道它是用銅製成的。我只是想知道，因為理論上它是一個很大的懸垂。然後我想我的另一個問題只是關於 BEAD，您能否向我們介紹一下資金如何從美聯儲流向州政府再流向運營商？只要給我們一些時間安排和運作方式的想法，這樣我們就可以更有信心它會在 24 年下半年真正開始流動？

Yes, sure. As you may be aware, I've been very involved in the BEAD funding process. I've had several meetings with the Secretary of Commerce, Secretary Raimondo, and we feel confident in the funding.

是的，當然。您可能知道，我一直積極參與 BEAD 的資助過程。我與商務部長雷蒙多部長進行了幾次會面，我們對資金充滿信心。

The way it's going to work is the money is expected to start flowing through the states at the beginning of 2024. Once it gets to the states, we anticipate there'll be another 6 to 12 months before they decide on vendors and where it's going to go. So the BEAD impact for us is probably 12 to 18 months away. But I'd say, again, we're well positioned with capacity that we've already put in place and capacity plans that we are putting in place as these things start to come in.

其運作方式是，預計資金將於 2024 年初開始流經各州。一旦資金到達各州，我們預計他們還需要 6 到 12 個月的時間才能決定供應商和資金流向去。因此，BEAD 對我們的影響可能還需要 12 到 18 個月的時間。但我想說，我們已經做好了充分的準備，我們已經具備了產能，並且隨著這些事情的開始，我們正在製定產能計劃。

Our next question comes from the line of Samik Chatterjee of JPMorgan.

我們的下一個問題來自摩根大通的 Samik Chatterjee。

Yes. I had a couple. Maybe if I can start with a clarification on the cost saves comment that you made in actuating some of the cost saves. And you referred to the $150 million number a few times.

是的。我有一對。也許我可以先澄清一下您在實施某些成本節約時所做的成本節約評論。您多次提到 1.5 億美元這個數字。

Just wondering, is that a full year sort of contribution to 2023? Or is that more a 2024 contribution? Given the focus from investors on your 2024 targets, I'm just looking to sort of clarify how much of a step-up in the contribution from those cost saves. Are you expecting going from 2023 to 2024.

只是想知道，這是對 2023 年全年的貢獻嗎？或者這更多的是 2024 年的貢獻？鑑於投資者對 2024 年目標的關注，我只是想澄清一下這些成本節省的貢獻有多大。您預計從 2023 年到 2024 年嗎？

Yes. The $150 million is an annualized number, and we would expect to see about 60% of that number actually hit our financials in 2023.

是的。 1.5 億美元是年化數字，我們預計 2023 年該數字的 60% 左右將真正影響我們的財務狀況。

Okay. Okay. Good. That's helpful. And for my follow-up, just wondering where could the decremental margins we're seeing or the sort of margin flow-through that we're seeing in CCS. Sequentially, it seems like you sort of gave up about 100 -- slightly more than $100 million of revenue with the $70 million flow-through on EBITDA.

好的。好的。好的。這很有幫助。對於我的後續行動，我只是想知道我們在 CCS 中看到的遞減利潤或我們在 CCS 中看到的那種利潤流動。接下來，你似乎放棄了大約 100 美元——略高於 1 億美元的收入，而 EBITDA 為 7000 萬美元。

I'm just wondering what's contributing to that strong flow-through? Does it sort of moderate as we go forward, even if revenues do sort of continue to move down sequentially?

我只是想知道是什麼促成瞭如此強勁的流量？即使收入確實繼續下降，隨著我們的前進，它是否會有所放緩？

Yes. I think the -- in CCS, with the volumes being down, I mean, we're -- although we're adjusting our factory cost, there's a little bit of an absorption hit we have. I think the other thing that we see in CCS is there's a fair amount of mix in CCS.

是的。我認為，在 CCS 中，隨著產量的下降，我的意思是，我們——儘管我們正在調整工廠成本，但我們的吸收受到了一些影響。我認為我們在 CCS 中看到的另一件事是 CCS 中有相當多的混合。

But what I would generally say is, particularly in our broadband business, our cable business is down less than our connectivity business. Our connectivity business has a little bit higher margins than cable. So some of the margin changes, yes, you've got an impact because your volumes are down and you're taking a little bit of a fixed cost absorption hit. But you also are seeing, within the CCS business, some of the mix changes.

但我通常想說的是，特別是在我們的寬帶業務中，我們的有線電視業務的下降幅度小於我們的連接業務。我們的連接業務的利潤率比有線電視業務高一些。所以，一些利潤的變化，是的，你會受到影響，因為你的銷量下降了，而且你受到了一點固定成本吸收的打擊。但您也看到，在 CCS 業務中，一些組合發生了變化。

I mean I don't think there's anything -- as this thing normalizes back on a volume basis, I don't think there's anything that would say that the profile of margins that we saw in '22 that I think those will be the margins that we can get back to. And then as we continue to drive efficiency programs, we'd expect to get improvement against those margins as we continue to move forward.

我的意思是，我不認為有什麼——隨著這件事在數量上恢復正常，我不認為有什麼可以表明我們在 22 年看到的利潤概況，我認為這些將是利潤我們可以回去。然後，隨著我們繼續推動效率計劃，我們預計隨著我們繼續前進，這些利潤將得到改善。

Our next question comes from the line of Simon Leopold of Raymond James.

我們的下一個問題來自雷蒙德·詹姆斯的西蒙·利奧波德。

First one is, I do appreciate that your typical seasonality is quite different than some other OEMs that sell into the operators. And seasonality has sort of been wacky for this sort of post-pandemic environment.

首先，我確實很欣賞你們的典型季節性與向運營商銷售的其他一些原始設備製造商有很大不同。對於這種大流行後的環境來說，季節性有點奇怪。

But if I think about sort of the others who are exposed to similar customers, whether it's in mobility or fiber to the home, they've talked about flattish sequential trends in September and then sort of strong seasonal upticks in December. I'm trying to do a little bit of a compare and contrast to those guys. I'm just wondering how you sort of think about the cadence for the balance of the year.

但如果我考慮一下其他接觸類似客戶的人，無論是移動還是光纖到戶，他們都談到了 9 月份的連續趨勢持平，然後是 12 月份的強勁季節性增長。我試圖與那些人進行一些比較和對比。我只是想知道你如何看待今年剩餘時間的節奏。

Okay. I think as we think -- I mean, clearly, we've got a fairly substantial mix in our business, right, because businesses like ANS, I think, as we mentioned in our prepared remarks and you're aware of, Simon, that there's some seasonality with that. As we get projects coming through, as we get some license revenue, that can have an impact. And I think we feel like that is going to have an impact positively for like the ANS business.

好的。我認為正如我們所想的那樣——我的意思是，很明顯，我們的業務有相當大的組合，對吧，因為像ANS 這樣的業務，我認為，正如我們在準備好的發言中提到的，西蒙，你也知道，這有一定的季節性。當我們完成項目時，當我們獲得一些許可收入時，這可能會產生影響。我認為我們認為這將對 ANS 業務產生積極影響。

I think when we think about the other businesses, I think the way that maybe we can characterize our forecast is if we see order rates continue to pick up, we will be on the high end of our guidance. If we see order rates stabilize at Q2 levels, we're going to be at the lower end.

我認為，當我們考慮其他業務時，我認為也許我們可以描述我們的預測的方式是，如果我們看到訂單率繼續上升，我們將處於指導的高端。如果我們看到訂單率穩定在第二季度的水平，我們將處於較低水平。

So I don't know if that answers your question, but I think as you think about the rest of the year and our guidepost that we provided, I think that's how we're thinking about it. Hey, if we see some recovery here, we can get to that high end of the range. If we don't, and we see this thing stabilize out, we'll be at the lower end.

所以我不知道這是否回答了你的問題，但我認為當你思考今年剩下的時間和我們提供的指南時，我認為這就是我們的思考方式。嘿，如果我們在這裡看到一些復甦，我們就可以達到該範圍的高端。如果我們不這樣做，並且我們看到事情穩定下來，我們將處於低端。

And just to give a little more color, Simon, we typically do see December pick up because normally, they're trying to spend CapEx, right, at the end of the year. So that's not unusual.

西蒙，為了給大家帶來更多的色彩，我們通常會看到 12 月份有所回升，因為通常情況下，他們會在年底嘗試支出資本支出，對吧。所以這並不罕見。

Great. And then just as my follow-up, on the campus-related products, the RUCKUS brand, it's a bit puzzling in that, I think, almost every single participant in the industry, with one teeny exception, sounds very upbeat.

偉大的。然後，正如我的後續行動，關於校園相關產品，即 RUCKUS 品牌，有點令人費解的是，我認為，幾乎每個行業參與者，除了極少數例外，聽起來都非常樂觀。

And so we know not everybody can gain share, and the market has been good for some time, and we're getting through corrections. And so I'm hearing more and more concerns about slowing in 2024 for wireless LAN and campus sort of post this catch up on backlog. How are you thinking about that business maintaining this kind of momentum into the next year?

因此，我們知道並不是每個人都能獲得份額，而且市場已經好一段時間了，我們正在經歷調整。因此，我聽到越來越多的人擔心 2024 年無線 LAN 和園區的增速會放緩，這有點像是積壓的情況。您如何看待該業務在明年保持這種勢頭？

Sure. Thank you. It's really about the, I would say, the R&D and the vertical market strategies that we have. Specifically with R&D, our RUCKUS One solution with AI is getting launched. We're going to have Wi-Fi 7 launching at the end of this year, and we're also going to have more Software as a Service. So we've really invested heavily in that business, and we're going to start to see the benefits of those things.

當然。謝謝。我想說，這實際上與我們的研發和垂直市場戰略有關。具體來說，在研發方面，我們的 RUCKUS One 人工智能解決方案即將推出。我們將在今年年底推出 Wi-Fi 7，並且我們還將推出更多軟件即服務。因此，我們確實在該業務上投入了大量資金，並且我們將開始看到這些事情的好處。

Additionally, we have a very targeted approach where we're very well-known in several different segments, and we continue to double down on those. And we don't just shotgun-approach markets. We look at where we can have a real competitive advantage and lock in closer with the customer.

此外，我們有一個非常有針對性的方法，我們在幾個不同的領域都非常知名，並且我們將繼續加倍努力。我們不只是獵槍式的市場。我們著眼於在哪裡可以擁有真正的競爭優勢並與客戶保持更緊密的聯繫。

So as we add as we add -- it's not like we add 5 verticals, we might have 1 vertical here, but we dig in pretty hard there. So that's where we see the initiatives and the growth plans coming from.

因此，當我們添加時，我們不會添加 5 個垂直方向，我們可能在這裡有 1 個垂直方向，但我們在那裡非常努力地挖掘。這就是我們看到的舉措和增長計劃的來源。

And it looks like we're out of time for questions. I'd like to turn the call over to Chuck Treadway for any closing remarks.

看來我們沒有時間提問了。我想將電話轉給查克·特雷德韋 (Chuck Treadway)，請其發表結束語。

Yes. I'd like to thank everyone for your support of CommScope, and I hope everyone has a great rest of the week. Thank you.

是的。我要感謝大家對康普的支持，希望大家本週休息愉快。謝謝。

Thank you. Ladies and gentlemen, this does conclude today's conference. Thank you all for participating. You may now disconnect. Have a great day.

謝謝。女士們、先生們，今天的會議到此結束。感謝大家的參與。您現在可以斷開連接。祝你有美好的一天。