CommScope Holding Company Inc (COMM) 2023 Q3 法說會逐字稿

Good day, and thank you for standing by. Welcome to the CommScope Third Quarter 2020 Earnings Conference Call.

美好的一天，感謝您的支持。歡迎參加康普 2020 年第三季財報電話會議。

(Operator Instructions) Please advised that this conference is being recorded. I would now like to hand the conference over to your speaker today, Massimo DiSabato, Vice President of Investor Relations. Please go ahead.

（操作員指示）請注意，本次會議正在錄製中。現在我想將會議交給今天的發言人、投資者關係副總裁馬西莫·迪薩巴托 (Massimo DiSabato)。請繼續。

Good morning, and thank you for joining us today to discuss CommScope's 2023 Third 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.

早安，感謝您今天加入我們討論康普 2023 年第三季業績。我是康普投資者關係副總裁馬西莫·迪薩巴托 (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·特雷德威 (Chuck Treadway)；執行副總裁兼財務長凱爾‧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目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 are described during today's presentation are on a year-over-year basis, unless otherwise noted. I'll now turn the call over to our President and CEO, Chuck Treadway.

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，這些指標在今天早上的收益資料中有更詳細的描述。非公認會計原則財務指標和其他相關揭露的調節表包含在我們的收益資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成長率都是按年計算的。現在我將把電話轉給我們的總裁兼執行長 Chuck Treadway。

Thank you, Massimo, and good morning, everyone. I'll begin on Slide 2. CommScope delivered core net sales of $1.35 billion and core adjusted EBITDA of $245 million for the third quarter of 2023. Our third quarter continues to be impacted by lower customer orders, driven by larger-than-expected customer inventory corrections, customer CapEx reductions and the macroeconomic uncertainty. The consolidated CommScope, which includes our Home Networks business, we reported net sales of $1.6 billion, down 33% year-over-year and adjusted EBITDA of $249 million down 28% year-over-year.

謝謝你，馬西莫，大家早安。我將從幻燈片2 開始。康普2023 年第三季的核心淨銷售額為13.5 億美元，核心調整後EBITDA 為2.45 億美元。我們的第三季繼續受到客戶訂單減少的影響，原因是客戶數量超出預期庫存調整、客戶資本支出減少和宏觀經濟不確定性。合併後的康普（包括家庭網路業務）的淨銷售額為 16 億美元，年減 33%，調整後 EBITDA 為 2.49 億美元，年減 28%。

As discussed previously, our CCS and OWN businesses have been experiencing lower order rates since the beginning of the year, and we have seen no meaningful recovery in the third quarter. In addition to the challenges we have been experiencing in CCS and OWN, in the third quarter, we were approached by our ANS customers that they are seeing project timing slipping into next year and have more inventory than required.

如前所述，自今年年初以來，我們的 CCS 和 OWN 業務訂單率一直較低，並且第三季沒有看到明顯的復甦。除了我們在 CCS 和 OWN 方面遇到的挑戰之外，第三季度，我們的 ANS 客戶還與我們聯繫，表示他們看到專案時間推遲到明年，庫存超過所需。

The result is going to be a softer-than-expected rest of the year and first half of 2024 in our ANS segment. Based on our current order rates and visibility into the fourth quarter, we are revising our 2023 core adjusted EBITDA guide close to $1 billion to $1.05 billion. Clearly, this is a disappointing development as we look over the next few quarters. However, we continue to be bullish on our long-term growth, including general market recovery, government funding for connectivity and cable upgrades.

結果是我們的 ANS 細分市場今年剩餘時間和 2024 年上半年的表現將低於預​​期。根據我們目前的訂單率和第四季的可見性，我們正在將 2023 年核心調整後 EBITDA 指南修訂為接近 10 億美元至 10.5 億美元。顯然，當我們展望未來幾個季度時，這是一個令人失望的發展。然而，我們繼續看好我們的長期成長，包括整體市場復甦、政府為連接和電纜升級提供資金。

We are well positioned to take advantage of the recovery as we are a leader in each of these businesses and have invested in capacity and product development. While we are in constant dialogue with customers about business projections and inventory levels, we continue to work with our customers to better understand true demand and the impact on our business.

我們處於有利地位，可以利用復甦的機會，因為我們是這些業務的領導者，並且在產能和產品開發方面進行了投資。在我們不斷與客戶就業務預測和庫存水準進行對話的同時，我們將繼續與客戶合作，以更好地了解真實需求及其對我們業務的影響。

As we discussed on our second quarter earnings call, we continue to manage what we can control. We have aggressively been managing our costs and have implemented approximately $150 million of cost reduction activities in 2023. Although we have been aggressive on cost, we still feel there is an opportunity for further cost reduction. These actions include direct material savings, automation and further efficiency projects.

正如我們在第二季財報電話會議上所討論的那樣，我們將繼續管理我們可以控制的事情。我們一直在積極管理成本，並在 2023 年實施了約 1.5 億美元的成本削減活動。儘管我們在成本方面一直很積極，但我們仍然認為有進一步降低成本的機會。這些行動包括直接節省材料、自動化和進一步提高效率的項目。

We are working on defining these actions and are targeting an incremental $100 million of cost reduction to be implemented by the end of the first quarter 2024. I'm proud of our team's focus on what we can control. Despite the decline in core revenue of 32% year-over-year, our core adjusted EBITDA as a percentage of revenue has improved by approximately 50 basis points.

我們正在努力確定這些行動，並計劃在 2024 年第一季末之前實現 1 億美元增量的成本削減。我為我們的團隊專注於我們可以控制的事情而感到自豪。儘管核心營收年減 32%，但我們的核心調整後 EBITDA 佔營收的百分比卻提高了約 50 個基點。

Now I'd like to give you an update on each of our businesses. As we indicated in previous calls, 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. We are well positioned to take advantage of the recovery as we have invested in capacity and have the full suite of products in place.

現在我想向您介紹我們每項業務的最新情況。正如我們在先前的電話會議中指出的那樣，CCS 擁有強大的長期市場推動力，包括除了世界其他國家計劃之外，還承諾改善美國寬頻基礎設施的重大支出。我們已經做好了充分利用復甦的準備，因為我們已經投資了產能並擁有全套產品。

We have also positioned the business to meet the Build America requirements for the United States government funding. Outside of the broadband investments, we are also encouraged by developments in our building and data center portion of the CCS business as significant momentum is occurring on the cloud and AI side of the data centers.

我們也對該業務進行了定位，以滿足美國政府資助的「建設美國」要求。除了寬頻投資之外，我們也對 CCS 業務的建築和資料中心部分的發展感到鼓舞，因為資料中心的雲端和人工智慧方面正在出現巨大的勢頭。

Also, in CCS, we have been aggressive with our cost structure. We are looking at additional cost opportunities to drive efficiency. We believe that there is still a substantial value that we can drive on the cost side. However, these projects are a bit more time intensive. An example of an area that we are focusing on is automation. Investment in new equipment, processes and systems can drive further efficiency and lower costs in this segment.

此外，在 CCS 領域，我們一直在積極調整成本結構。我們正在尋找額外的成本機會來提高效率。我們相信，我們在成本方面仍然可以帶來巨大的價值。然而，這些項目需要更多的時間。我們關注的一個領域的例子是自動化。對新設備、流程和系統的投資可以進一步提高該領域的效率並降低成本。

We remain bullish on CCS as a result of the longer-term market tailwinds and our strong position in this market. CCS will recover. It is just a matter of timing of this recovery. The recovery, coupled with our more efficient cost structure will drive substantial financial performance.

由於長期市場順風和我們在該市場的強勢地位，我們仍然看好 CCS。 CCS 將恢復。這只是復甦的時間問題。復甦加上我們更有效率的成本結構將推動可觀的財務表現。

Turning to NICS. The business continues to perform very well. Our year-to-date EBITDA of $196 million is up $200 million over prior year. The NICS segment LTM adjusted EBITDA is $252 million. We are very proud of the NICS transformation. Our ability to grow the business and leverage our cost base has created strong value in this segment. It is a game changer for our company. We are well positioned for continued growth as we announced 2 major new product offerings in the third quarter with our RUCKUS One suite and Wi-Fi 7 enterprise class access point product.

轉向 NICS。該業務繼續表現良好。我們年初至今的 EBITDA 為 1.96 億美元，比前一年增加了 2 億美元。 NICS 部門 LTM 調整後 EBITDA 為 2.52 億美元。我們對 NICS 的轉型感到非常自豪。我們發展業務和利用成本基礎的能力在這一領域創造了強大的價值。它改變了我們公司的遊戲規則。我們在第三季宣布了 RUCKUS One 套件和 Wi-Fi 7 企業級接入點產品等 2 款主要新產品，為持續成長做好了充分準備。

As we discussed previously, 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.

正如我們之前討論的，RUCKUS One 是一個由人工智慧驅動的雲端原生平台，在統一的儀表板中提供網路保障服務和商業智慧。它簡化了跨多路存取公共和專用網路的融合網路管理。

Also, we have officially launched our Wi-Fi 7 products. As one of the first to launch a Wi-Fi 7 products, we are well positioned as the first mover in the market to gain share by taking advantage of the functionality and enhancements of Wi-Fi 7. Finally, in NICS, we continue to invest in our go-to-market strategy. We believe that as a result of our channel network and knowledge of certain market segments, we can continue to increase market share by investing in products, systems and resources dedicated to those market segments. We have developed a plan and are now in the implementation phase.

此外，我們也正式推出了Wi-Fi 7產品。作為率先推出 Wi-Fi 7 產品的公司之一，我們處於市場先驅的地位，透過利用 Wi-Fi 7 的功能和增強功能來獲得份額。最後，在 NICS 方面，我們繼續投資於我們的進入市場策略。我們相信，憑藉我們的通路網絡和對某些細分市場的了解，我們可以透過投資專用於這些細分市場的產品、系統和資源來繼續增加市場份額。我們已經制定了計劃，現在正處於實施階段。

In OWN, as we mentioned in previous calls, we fully contemplated a decline in U.S. carrier capital spend. However, these declines are much more severe than what we had expected, and I don't think we are alone in these sentiments. Although carriers indicated some recovery in the second half, this has not materialized. There will be a recovery. However, at this time, there is limited visibility into the timing of the recovery. Based on the lack of visibility in this segment, at this moment, we would expect that 2024 will look similar to what we see in 2023.

在 OWN 中，正如我們在先前的電話會議中所提到的，我們充分考慮了美國營運商資本支出的下降。然而，這些下降比我們預期的要嚴重得多，我認為我們並不是唯一有這種情緒的人。儘管營運商表示下半年有所復甦，但這並未實現。將會有復健。然而，目前對復甦時間的了解有限。由於該細分市場缺乏可見性，目前我們預期 2024 年的情況將與 2023 年類似。

Again, in the OWN segment, we continue to focus on what we can control. We have been aggressive in cost in this segment. The results of our cost management have resulted in year-over-year flat EBITDA margins despite a 45% decline in revenue. In addition to cost management, we continue to develop and commercialize new products. We have discussed the MOSAIC antenna in previous calls. However, we are also developing new products in the power and steel space.

同樣，在自己的領域，我們繼續專注於我們可以控制的事情。我們在這一領域一直在降低成本。儘管收入下降了 45%，但我們的成本管理結果使 EBITDA 利潤率比去年同期持平。除了成本管理之外，我們還繼續開發新產品並將其商業化。我們在之前的通話中討論過 MOSAIC 天線。然而，我們也在電力和鋼鐵領域開發新產品。

We will continue to develop new products to supplement our existing base business. Again, similar to where we are in CCS, we are well positioned in the market and feel like we will benefit from a market recovery.

我們將繼續開發新產品來補充我們現有的基礎業務。同樣，與我們在 CCS 領域的情況類似，我們在市場中處於有利地位，並且感覺我們將從市場復甦中受益。

Finishing with ANS, as we have discussed, the segment has made a very successful transition to a 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 are well positioned to be a major player in the DOCSIS 4.0 upgrade cycle as we are the only supplier with all of the products and believe our products are the best performing.

正如我們所討論的，以 ANS 為結尾，該細分市場已非常成功地轉型為邊緣相關產品（包括節點、擴大機和 RPD/RMD 模組）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。我們有能力成為 DOCSIS 4.0 升級週期的主要參與者，因為我們是唯一擁有所有產品的供應商，並且相信我們的產品性能最佳。

During the recent SCTE Cable Tech Expo, we were able to demonstrate our wide product range. This show just reconfirmed the momentum behind the DOCSIS 4.0 upgrade commitment and our strong position in this market. Many of the demonstrations by cable companies showing best-in-class fees were achieved with our product backlog.

在最近的 SCTE 電纜技術博覽會上，我們展示了我們廣泛的產品系列。此次展會再次證實了 DOCSIS 4.0 升級承諾背後的動力以及我們在該市場的強勢地位。有線電視公司的許多演示顯示出一流的費用，都是透過我們的產品積壓實現的。

In the last 90 days, we announced our FDX product range, including collaboration with Comcast on an FDX amplifier and the launch of our virtual CMTS product that is now in customer labs. Although we are very bullish on the 4.0 upgrade, in the third quarter, we saw 2 major short-term developments that will impact near-term performance.

在過去 90 天裡，我們宣布了 FDX 產品系列，包括與 Comcast 合作開發 FDX 擴大機，以及推出現在客戶實驗室中使用的虛擬 CMTS 產品。儘管我們非常看好 4.0 升級，但在第三季度，我們看到了 2 個將影響近期業績的重大短期發展。

The first is inventory adjustments by our customers. Several customers informed us that they are holding too much inventory and need to make short-term adjustments to orders to rightsize their inventory. In addition, some of our customers are experiencing slower-than-expected ramps on their 4.0 upgrade projects. As a result of these 2 issues, order rates and revenues will be negatively impacted in the next few quarters.

首先是客戶的庫存調整。一些客戶告訴我們，他們持有過多的庫存，需要對訂單進行短期調整以調整庫存規模。此外，我們的部分客戶的 4.0 升級專案進度速度低於預期。由於這兩個問題，訂單率和收入將在未來幾季受到負面影響。

In summary, the markets will return. We are well positioned when the markets do return, and we are focusing on what we can control. This work will put us in a stronger financial position when the markets come back.

總而言之，市場將會回歸。當市場回歸時，我們處於有利位置，並且我們專注於我們可以控制的事情。這項工作將使我們在市場復甦時處於更強大的財務狀況。

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

說到這裡，我想把事情交給凱爾來更多地談論我們第三季的業績。

Thank you, Chuck, and good morning, everyone. I'll start with an overview of our third quarter 2023 results on Slide 3. For the third quarter, consolidated CommScope reported net sales of $1.6 billion, a decrease of 33% from the prior year, driven by declines in CCS, OWN, ANS and Home, but partially offset by strong NICS growth. Adjusted EBITDA of $249 million decreased by 28%. Adjusted EPS was $0.13 per share, decreasing 74% from prior year. We experienced lower demand in our CCS, OWN and ANS segments as customers more aggressively normalized inventory levels and managed their capital spending.

謝謝你，查克，大家早安。首先，我將在投影片3 上概述我們2023 年第三季的業績。康普報告第三季的合併淨銷售額為16 億美元，較前一年下降33%，主要受CCS、OWN、ANS業務下降的推動和家庭，但部分被 NICS 的強勁成長所抵消。調整後 EBITDA 為 2.49 億美元，下降 28%。調整後每股收益為 0.13 美元，較前一年下降 74%。由於客戶更加積極地標準化庫存水準並管理其資本支出，我們的 CCS、OWN 和 ANS 領域的需求下降。

For core CommScope, net sales of $1.35 billion declined 32% from the prior year and adjusted EBITDA of $245 million decreased 30%. The adjusted EBITDA held up a bit better than our revenue as we continue to drive our cost reduction plan, and we have driven favorable mix. As we have experienced lower orders particularly in CCS, OWN and ANS, core CommScope backlog continued to decrease and ended the quarter at $1.556 billion, a decrease of 19% versus the end of Q2.

康普核心業務的淨銷售額為 13.5 億美元，較上年下降 32%，調整後 EBITDA 為 2.45 億美元，下降 30%。隨著我們繼續推動成本削減計劃，並且我們推動了有利的組合，調整後的 EBITDA 略好於我們的收入。由於我們的訂單減少，特別是 CCS、OWN 和 ANS 領域的訂單減少，康普核心積壓訂單持續減少，本季末訂單量為 15.56 億美元，比第二季末減少 19%。

In essentially all of our businesses, we are back to normalized backlog levels. As a result of the normalized backlogs, order rates are going to be the direct driver of revenue.

基本上我們所有的業務都回到了正常的積壓水平。由於積壓正常化，訂單率將成為收入的直接驅動力。

Turning now to our segment highlights on Slide 4. Starting with CCS, net sales of $633 million decreased 37% from the prior year. CCS adjusted EBITDA of $79 million was a decrease of 58% from the prior year, driven primarily by the drop in revenue. The decline is more attributable to our network connectivity and cabling business than our building and data center business. We have seen no meaningful pickup in our order rates despite indications from customers that they expected to see a stronger second half.

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 6.33 億美元，比前一年下降了 37%。 CCS 調整後 EBITDA 為 7,900 萬美元，比上年下降 58%，主要是由於收入下降所致。下降更多地歸因於我們的網路連接和佈線業務，而不是我們的建築和資料中心業務。儘管客戶表示預計下半年會出現強勁成長，但我們的訂單率並未明顯回升。

In addition to the weak third quarter order rates, we have seen limited pickup in order rates in October. Although CCS customer conversations remain bullish on medium- and long-term growth, the short-term demand profile remains very uncertain as customers continue to manage inventory and cash. We are also seeing some project delays as customers wait for government funding to ramp spend.

除了第三季訂單率疲軟之外，我們還發現 10 月訂單率回升有限。儘管 CCS 客戶仍然看好中長期成長，但隨著客戶繼續管理庫存和現金，短期需求狀況仍然非常不確定。由於客戶等待政府資金增加支出，我們也看到一些工程延誤。

Based on current visibility, we expect to see lower revenues and EBITDA in the fourth quarter. NICS net sales of $289 million increased by 12%. From a business unit perspective, [ICN] increased 26%. NICS adjusted EBITDA of $63 million increased 155% from the prior year, a $38 million change, primarily driven by stronger demand and operational improvements. The NICS segment LTM adjusted EBITDA was $252 million, an improvement of $250 million versus LTM a year ago.

根據目前的情況，我們預計第四季的營收和 EBITDA 將會下降。 NICS 淨銷售額達 2.89 億美元，成長 12%。從業務部門的角度來看，[ICN] 成長了 26%。 NICS 調整後 EBITDA 為 6,300 萬美元，較上年增長 155%，變動幅度為 3,800 萬美元，這主要是由需求強勁和營運改善所推動的。 NICS 部門 LTM 調整後 EBITDA 為 2.52 億美元，比一年前的 LTM 增加了 2.5 億美元。

In Ruckus, as we have worked these supply chain constraints and released product out of backlog, order rates have declined. This is a temporary situation as customers digest their inventory. All of our other leading indicators point to continued strong demand for our products. We are excited about our continued product development, particularly our RUCKUS One and Wi-Fi 7 products. We feel that we are well positioned to continue to take share in the medium and long term.

在 Ruckus，由於我們解決了這些供應鏈限制並釋放了積壓產品，訂單率有所下降。這是客戶消化庫存時的暫時情況。我們所有其他領先指標都表明對我們產品的持續強勁需求。我們對持續的產品開發感到興奮，特別是我們的 RUCKUS One 和 Wi-Fi 7 產品。我們認為，從中長期來看，我們有能力繼續佔據市場份額。

OWN net sales of $210 million decreased 45% from the prior year and across most business units. Similar to CCS, customers indicated a strong second half that has not materialized. Demand in this segment remains soft with very limited visibility. Customers continue to limit new builds and are working down inflated inventories. Although we have aggressively managed costs, OWN adjusted EBITDA of $45 million declined 45% from the prior year.

OWN 大部分業務部門的淨銷售額為 2.1 億美元，較上年下降 45%。與 CCS 類似，客戶表示下半年表現強勁，但尚未實現。該領域的需求依然疲軟，可見度非常有限。客戶繼續限制新的建造，並正在減少膨脹的庫存。儘管我們積極管理成本，但 OWN 調整後 EBITDA 為 4500 萬美元，比前一年下降了 45%。

The cost actions have allowed us to maintain adjusted EBITDA as a percent of sales year-over-year at approximately 21.6%. The near-term outlook remains uncertain. However, we would expect that fourth quarter revenue and adjusted EBITDA would be lower than third quarter. Based on current visibility, which is very limited as mentioned, we would expect 2024 to look similar to 2023 in this segment.

成本行動使我們能夠將調整後的 EBITDA 佔銷售額的比例同比維持在約 21.6%。近期前景仍不確定。然而，我們預計第四季度的營收和調整後的 EBITDA 將低於第三季。根據目前的可見性（如上所述，這種可見性非常有限），我們預計 2024 年該領域的情況將與 2023 年類似。

ANS net sales of $218 million decreased 36% from the prior year due to inventory adjustment and project delays. ANS adjusted EBITDA of $58 million was essentially flat from the prior year, driven by lower revenue offset by cost reductions and product mix.

由於庫存調整和項目延誤，ANS 淨銷售額為 2.18 億美元，較上年下降 36%。 ANS 調整後 EBITDA 為 5800 萬美元，與上年基本持平，這是由於成本削減和產品組合抵消了收入下降。

During the quarter, several of our large customers approached us about pulling back order rates as they dealt with higher inventory levels and project delays. This had an impact on our third quarter revenues. Also, we expect the adjustments to impact the fourth quarter and early 2024. Despite the short-term challenges, ANS continues to position itself to take advantage of the DOCSIS 4.0 upgrade cycle. We are the only supplier that can supply all the products from amplifiers, nodes, modules and CMTS, including virtual CMTS.

在本季度，我們的一些大客戶向我們尋求降低訂單率的機會，因為他們面臨庫存水準上升和專案延遲的問題。這對我們第三季的收入產生了影響。此外，我們預計這些調整將影響第四季和 2024 年初。儘管有短期挑戰，ANS 仍繼續利用 DOCSIS 4.0 升級週期。我們是唯一能夠提供擴大機、節點、模組和CMTS（包括虛擬CMTS）所有產品的供應商。

As mentioned, our new VCMTS product is in the lab trials with several customers. During the recent SCTE show, our products were part of major service provider demonstrations on industry-leading speeds. We continue to win new DOCSIS 4.0 business at major customers and are well positioned for future growth.

如前所述，我們的新 VCMTS 產品正在與多家客戶進行實驗室測試。在最近的 SCTE 展會上，我們的產品成為主要服務提供者展示產業領先速度的一部分。我們繼續在主要客戶中贏得新的 DOCSIS 4.0 業務，並為未來的成長做好準備。

Finally, during the quarter, we announced the divestiture of our home business to Vantiva. We feel this combination positions the business for success in a challenging market. We feel this is the best outcome for our customers and shareholders. Our ownership position in Vantiva will allow us to take advantage of the combined scale of the 2 businesses as well as the substantial synergies the combination will deliver. We look forward to working with Vantiva management to close the transaction in late 2023 or early 2024.

最後，在本季度，我們宣布將我們的本土業務剝離給 Vantiva。我們認為，這種結合將使企業在充滿挑戰的市場中取得成功。我們認為這對我們的客戶和股東來說是最好的結果。我們在 Vantiva 的所有權將使我們能夠利用兩家企業的合併規模以及合併帶來的巨大協同效應。我們期待與 Vantiva 管理層合作，在 2023 年底或 2024 年初完成交易。

Home net sales were $249 million, declining 36% from the prior year essentially across all business units, driven by customer inventory adjustments and lower demand. Home adjusted EBITDA of $3 million improved from negative $5 million versus prior year as a result of cost saving efforts.

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 2.49 億美元，較上年下降 36%。由於節省成本的努力，國內調整後的 EBITDA 為 300 萬美元，較上年的負 500 萬美元有所改善。

Turning to Slide 5 for an update on cash flow. During the quarter, we generated cash from operations of $139 million. We continue to reduce 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 chain constraints in 2021 and 2022.

請參閱投影片 5，以了解現金流的最新情況。本季度，我們從營運中產生了 1.39 億美元的現金。由於收入下降以及庫存管理的改善，我們繼續減少庫存。如前所述，由於 2021 年和 2022 年供應鏈限制，我們仍持有過剩庫存。

We are just beginning to unlock some of this value. As revenue declines, it will delay our ability to monetize. Despite the revenue and EBITDA challenges, we are revising our range for 2023, adjusted free cash flow to $300 million to $350 million.

我們剛開始釋放其中的一些價值。隨著收入下降，我們的貨幣化能力將會延遲。儘管面臨營收和 EBITDA 挑戰，我們仍在調整 2023 年的範圍，將自由現金流調整至 3 億至 3.5 億美元。

Turning to Slide 6 for an update on our liquidity and capital structure. During the third quarter, our cash and liquidity remained strong. We ended the quarter with $519 million in global cash and total available cash and liquidity of over $1.29 billion. During the quarter, we increased our cash balance by $101 million. We did not draw on our ABL revolver during the third quarter and therefore, ended the quarter with no outstanding balance. In the third quarter, we continued to execute our debt buyback program and repurchased $26 million of our long-term debt for cash consideration of $17 million.

請參閱投影片 6，以了解我們的流動性和資本結構的最新情況。第三季度，我們的現金和流動性仍然強勁。本季結束時，我們的全球現金為 5.19 億美元，可用現金和流動性總額超過 12.9 億美元。本季度，我們的現金餘額增加了 1.01 億美元。我們在第三季沒有動用 ABL 左輪手槍，因此，本季結束時沒有未清餘額。第三季度，我們繼續執行債務回購計劃，以 1,700 萬美元現金回購了 2,600 萬美元的長期債務。

To add more detail, we repurchased $25 million of the 8.25% senior notes due 2027 and $1 million of the 7.125% senior notes due 2028. Since the beginning of the year, we have repurchased $111 million of debt. During the quarter, we also paid the required $8 million of term loan amortization.

更詳細地說，我們回購了2,500 萬美元的2027 年到期的8.25% 優先票據，以及100 萬美元的2028 年到期的7.125% 優先票據。自今年年初以來，我們已經回購了1.11 億美元的債務。本季度，我們還支付了所需的 800 萬美元定期貸款攤銷。

The company ended the quarter with net leverage ratio of 6.7x. Going forward, we intend to use cash opportunistically to buy back securities across the breadth of our capital structure.

該公司本季末的淨槓桿率為 6.7 倍。展望未來，我們打算機會主義地使用現金回購整個資本結構中的證券。

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 very uncertain as evidenced by our downward guide post revision. Let me remind you of our positioning of our guideposts over the last few quarters.

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，外部環境仍然非常不確定，我們的向下指導修訂就證明了這一點。讓我提醒您我們過去幾季對路標的定位。

As you can recall, in our Q1 earnings, we indicated customers signaled to a strong recovery in the second half. On our second quarter call, our guidepost assumed a modest recovery in the second half orders. Fast forward to now, our customers are indicating no rebound in orders for Q4. Although customers were indicating a recovery in the second half, this has not materialized.

您還記得，在我們第一季的收益中，我們表示客戶發出了下半年強勁復甦的訊號。在我們第二季的電話會議上，我們的指導方針假設下半年訂單將溫和復甦。快轉到現在，我們的客戶表示第四季的訂單沒有反彈。儘管客戶表示下半年將出現復甦，但這並沒有實現。

In addition, we have experienced a large unforeseen short-term adjustment with ANS customers. As evidenced across most of our markets and competitors, we are in a passive telecom, cable and hardware recession. The challenge with the current position is the lack of visibility. Even despite some visibility into customer inventories, customer short-term build plans remain uncertain.

此外，我們與 ANS 客戶經歷了不可預見的大規模短期調整。正如我們大多數市場和競爭對手所證明的那樣，我們正處於被動的電信、有線電視和硬體衰退之中。當前位置的挑戰是缺乏可見性。儘管對客戶庫存有一定的了解，但客戶的短期建設計劃仍然不確定。

We are still very bullish on medium- and long-term growth However, short-term challenges are significant. We have reduced our 2023 core adjusted EBITDA guidance to $1 billion to $1.05 billion. Although we are not giving specifics, our current view on 2024 is that it looks similar to 2023. However, this would indicate some recovery from current demand levels.

我們仍然非常看好中長期成長，但短期挑戰也很大。我們已將 2023 年核心調整後 EBITDA 指引下調至 10 億至 10.5 億美元。儘管我們沒有給出具體細節，但我們目前對 2024 年的看法是，它看起來與 2023 年相似。然而，這表明需求水準將有所復甦。

As Chuck mentioned, we continue to evaluate our cost structure including accelerating certain CommScope NEXT efficiency initiatives. Although we have implemented approximately $150 million on operating expense reduction since the beginning of the year, we are still evaluating additional actions.

正如 Chuck 所提到的，我們將繼續評估我們的成本結構，包括加速某些康普 NEXT 效率計劃。儘管自年初以來我們已經實施了約 1.5 億美元的營運費用削減措施，但我們仍在評估其他行動。

As we have gone through this exercise, we are excited with the opportunities we have found and implemented. Upon recovery of the demand, we should be well positioned to drive strong profitable performance.

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。一旦需求恢復，我們應該能夠推動強勁的獲利業績。

Finally, I'd like to address our capital structure and specifically our upcoming maturities. We currently have several alternatives that could potentially be used to address the upcoming maturities including, but not limited to, cash on hand, ABL availability, our senior secured debt incurrence basket and proceeds from asset sales.

最後，我想談談我們的資本結構，特別是我們即將到來的到期日。我們目前有幾種可能用於解決即將到期問題的替代方案，包括但不限於手頭現金、ABL 可用性、我們的優先擔保債務發生籃子和資產出售收益。

For today's call, we will not be making further comments with respect to our capital structure. However, we will provide updates as appropriate as we continue to evaluate these alternatives.

在今天的電話會議中，我們不會就我們的資本結構發表進一步評論。但是，當我們繼續評估這些替代方案時，我們將酌情提供更新。

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. We are faced with some significant challenges as many of our markets have not cooperated and the visibility to the timing of the recovery is limited. The recovery in the second half has not materialized. We are not alone as this industry is facing similar challenges. Although we continue to manage what we can control and aggressively manage costs, it is not enough to offset a 32% decline in core revenue.

謝謝你，凱爾。我們面臨一些重大挑戰，因為我們的許多市場尚未合作，而且復甦時間的可見度有限。下半年的復甦尚未實現。我們並不孤單，這個產業也面臨類似的挑戰。儘管我們繼續管理我們可以控制的事情並積極管理成本，但這不足以抵消核心收入下降 32% 的影響。

We do remain bullish on the recovery. It is just a matter of timing. We are well positioned for the expected recovery as we are a leader in most of our segments and have invested in future growth with capacity and new products. Based on the actions we are taking in the current environment to drive efficiency, when the markets do recover, we are well positioned to drive significantly improved financial performance. In addition, we will continue to work on near-term capital structure, including asset sales and opportunistic transactions. And with that, we'll now open the line for questions.

我們仍然看好復甦。這只是時間問題。我們為預期的復甦做好了準備，因為我們是大多數細分市場的領導者，並透過產能和新產品投資於未來的成長。根據我們在當前環境下為提高效率而採取的行動，當市場復甦時，我們有能力推動財務表現的顯著改善。此外，我們將繼續致力於近期資本結構，包括資產出售和機會性交易。現在，我們將開放提問熱線。

(Operator Instructions)

（操作員說明）

Our first question comes from Simon Leopold with Raymond James.

我們的第一個問題來自西蒙·利奧波德和雷蒙德·詹姆斯。

Great. I wanted to unpack the ANS segment a little bit here. And that with the upgrades that operators have announced, it seems as if demand for amplifiers will be particularly strong. So I think at a high level, it sounds like you expect improvement by the second half of '24. What I'm trying to get a better understanding is a little bit of insight into the composition of the ANS segment now and in the future, basically how material or amplifiers to that business? And then I've got a quick follow-up.

偉大的。我想在這裡稍微解開 ANS 部分。隨著營運商宣布的升級，對擴大機的需求似乎會特別強勁。所以我認為從高水準來看，聽起來您預計到 24 年下半年會有改善。我試圖更好地了解的是現在和未來 ANS 細分市場的組成，基本上該業務的材料或放大器如何？然後我會進行快速跟進。

Okay. So I will start out by saying that we feel really good about where we are with the ANS business to unpack it a little bit. You think -- I mean, we have our traditional legacy product lines, which are still out there. We also, at the show, we introduced a DOCSIS 3.1 extended. We're seeing a lot of interest of that. Obviously, we haven't made any sales there, but this gives a lot of opportunity to go a lot faster with higher speeds without a massive upgrade.

好的。因此，我首先要說的是，我們對 ANS 業務的現狀感到非常滿意，可以稍微展開一下。你認為——我的意思是，我們有傳統的遺留產品線，它們仍然存在。我們也在展會上推出了 DOCSIS 3.1 擴充。我們看到很多人對此感興趣。顯然，我們還沒有在那裡進行任何銷售，但這提供了許多機會，可以在不進行大規模升級的情況下以更高的速度運行得更快。

Additionally, we really turned and pivoted to where the market was going, and we are supporting our customers whichever way they go. So with the -- we were able -- as you know, we launched the FDX amplifier with Comcast. We also have the ESD option as well. And I would say that the amplifier portion of our business is significant. But in addition to that, we also have the RPDs and RMDs, again, whatever choice the customer decides to go, we're there to support them along with nodes and our virtual CMTS, which is now in labs with other customers.

此外，我們確實轉向並轉向了市場的發展方向，無論客戶走哪條路，我們都會為他們提供支援。因此，如您所知，我們能夠與 Comcast 合作推出 FDX 擴大機。我們還有 ESD 選項。我想說的是，我們業務中的擴大機部分非常重要。但除此之外，我們還有 RPD 和 RMD，無論客戶決定做什麼，我們都會與節點和虛擬 CMTS 一起支援它們，該虛擬 CMTS 現在與其他客戶一起在實驗室中。

So I would say that our amplifier business is significant. I'm not going to give you the exact details of the size of that. But I would say it's a significant part of our business. And we feel like we're the leading supplier on the edge going forward.

所以我想說我們的擴大機業務非常重要。我不會向您提供其大小的具體細節。但我想說這是我們業務的重要組成部分。我們覺得我們是未來領先的供應商。

And then just as a follow-up. Within the NICS market, the campus wireless LAN and switching market, at least a number of the third-party market researchers are calling for that market to decline in 2024 after sort of the supply chain strength exhibited in 2023. And I get the fact you're not beholden to the market as a relatively small player. But could you help us understand your confidence in that particular segment for 2024?

然後作為後續行動。在 NICS 市場、園區無線 LAN 和交換市場中，至少有一些第三方市場研究人員呼籲該市場在 2023 年展現出某種程度的供應鏈實力後，在 2024 年出現下滑。作為一個相對較小的參與者，他們不會受制於市場。但您能否幫助我們了解您對 2024 年該特定細分市場的信心？

Yes. I think we're not alone. I think a lot of people are calling out mid-single-digit growth going forward. And we believe that as well. We are seeing lower order rates right now, but it's really about higher distribution inventories. We released a lot of backlog and the distributors are now digesting this inventory. We monitor a lot of leading indicators in the business, specifically funnel. And when we win a project, it's (inaudible), and we're monitoring that, and we see that coming in, which gives us a really good insight on the future and where we are. That's why we feel the confidence in the mid-single digits plus growth going forward.

是的。我想我們並不孤單。我認為很多人都在呼籲未來實現中個位數成長。我們也相信這一點。我們現在看到訂單率較低，但這實際上與分銷庫存增加有關。我們釋放了許多積壓的訂單，經銷商現在正在消化這些庫存。我們監控業務中的許多領先指標，特別是漏斗指標。當我們贏得一個項目時，它（聽不清楚），我們正在監控它，我們看到它的出現，這讓我們對未來和我們所處的位置有一個非常好的洞察力。這就是為什麼我們對未來的中個位數成長充滿信心。

Our next question comes from Meta Marshall with Morgan Stanley.

我們的下一個問題來自摩根士丹利的梅塔·馬歇爾。

Maybe first question, when you talk about 2024 looking similar to 2023, is that on kind of Q3 run rates or just in the quantum as a whole? And then a second question for me, just maybe upfront. I know Simon just kind of asked about the NICS business, but just kind of how are you seeing the overall health of the environment kind of beyond backlog release and kind of strength that you're finding with the new portfolio?

也許第一個問題，當你談到 2024 年看起來與 2023 年相似時，這是在第三季度的運行率上還是只是在整個量子上？然後是我的第二個問題，也許是預先提出的。我知道西蒙只是詢問了 NICS 業務，但您如何看待除了積壓訂單釋放之外的環境的整體健康狀況以及您在新產品組合中發現的優勢？

Yes. Let me deal with the '24 question. I think when we'd say '24 looking a lot like '23. I think we're referencing sort of the full year look. And I think in our prepared remarks, we talked about in order to get there, we are going to have to see some recovery in order rates from where we're sitting today in Q3 and Q4. So that would sort of indicate at least some level of recovery in the second half.

是的。讓我來回答一下 24 小時的問題。我認為當我們說“24”時看起來很像“23”。我認為我們正在參考全年的造型。我認為，在我們準備好的發言中，我們談到，為了實現這一目標，我們必須看到訂單率從今天第三季和第四季的情況有所回升。因此，這在某種程度上表明下半年至少會出現一定程度的復甦。

And then to answer your other part of your question on the NICS business, I mean there's a few parts to that business. But think about the DAS and [other] part of our business, we're actually one of the first 5G players there with an open RAN architecture. So we feel really good about that and where that's going, also with private networks on that side of our business. On the Wi-Fi side of our business, I mean, we just launched Wi-Fi 7, RUCKUS One Network as a Service.

然後，為了回答有關 NICS 業務的問題的其他部分，我的意思是該業務有幾個部分。但想想 DAS 和我們業務的[其他]部分，我們實際上是最早擁有開放 RAN 架構的 5G 參與者之一。因此，我們對此以及其發展方向以及我們業務方面的專用網路感到非常滿意。在我們業務的 Wi-Fi 方面，我的意思是，我們剛剛推出了 Wi-Fi 7，即 RUCKUS One 網路即服務。

But what's really helping us win and why I believe we're growing in the market is our dedication to vertical markets. We specifically target the market. We really understand and go real deep into that market. We develop specific products or attributes for that marketplace. We train our salespeople in those areas and our value-added resellers and we really push.

但真正幫助我們獲勝以及我相信我們在市場上不斷發展的原因是我們對垂直市場的奉獻。我們專門針對市場。我們真正了解並深入該市場。我們為該市場開發特定的產品或屬性。我們對這些領域的銷售人員和增值經銷商進行培訓，並且我們確實在推動。

And I believe what we're seeing is, as we've invested in salespeople in these specific verticals, we're getting the returns from our investments. So we feel confident about where we are. And the other thing that's helping us is we're a really small player in the grand scheme of things in terms of market share. So we don't really look at where the market is going, but where our technology and where our vertical markets and investments specifically the go gain share are.

我相信我們所看到的是，當我們在這些特定垂直領域投資於銷售人員時，我們正在從投資中獲得回報。因此，我們對自己所處的位置充滿信心。另一件對我們有幫助的事情是，就市場份額而言，我們在這個宏偉計劃中只是一個很小的參與者。因此，我們並不真正關注市場的走向，而是關注我們的技術、我們的垂直市場和投資，特別是獲得份額的方向。

Our next question comes from Tal Liani with Bank of America.

我們的下一個問題來自美國銀行的塔爾·利亞尼。

I have 2 questions. First one on ANS. When we talk to Harmonic, they're talking about different architectures in the market where they are ahead of you, and they're taking share. And I do see announcements of cable companies their way. Can you talk about your competitive position in the ANS space, the migration to distributed CMTS and where you are in the -- on the technology front?

我有 2 個問題。第一個關於 ANS 的。當我們與 Harmonic 交談時，他們正在談論市場中的不同架構，他們在這些架構中領先於您，並且正在搶佔份額。我確實以他們的方式看到了有線電視公司的公告。您能談談您在 ANS 領域的競爭地位、向分散式 CMTS 的遷移以及您在技術方面的位置嗎？

The next question is more about the balance sheet. Last quarter, you told us you're going to give us an update this quarter on how you intend to structure. And it seems like you're not giving us an update now. You don't want to discuss it. What changed? Why don't we get an update on what can you do in order to pay down the 2025 debt?

下一個問題更多關於資產負債表。上個季度，您告訴我們您將在本季度向我們提供有關您打算如何構建的最新資訊。而且您現在似乎沒有向我們提供最新消息。你不想討論它。發生了什麼變化？為什麼我們不了解您可以採取哪些措施來償還 2025 年債務的最新資訊？

Yes. Let me -- I'll deal with the last part of your question. So I think in our prepared remarks, we referenced several alternatives that we have to deal with the capital structure and the near-term maturity. We're continuing to work through that. And when we have an update, we'll let people know. At this point in time, we're continuing to work through that.

是的。讓我——我來回答你問題的最後一部分。因此，我認為在我們準備好的發言中，我們提到了必須處理資本結構和近期成熟度的幾個替代方案。我們正在繼續努力解決這個問題。當我們有更新時，我們會讓人們知道。目前，我們正在繼續解決這個問題。

And to address your other question on ANS, I would say we have a very strong position in the marketplace today because of our legacy position. And as I was sharing with Simon, based on Simon's question, talking about our DOCSIS 3.1 where customers want to get symmetrical 1-gig-plus speeds if they have an upgraded product with us, a Gen 2 product with software, they can get those speeds without a major investment, and we are seeing interest in that.

為了回答您關於 ANS 的其他問題，我想說，由於我們的傳統地位，我們在當今的市場上擁有非常強大的地位。正如我與 Simon 分享的那樣，根據 Simon 的問題，談論我們的 DOCSIS 3.1，客戶希望獲得對稱的 1-gig 以上速度，如果他們有我們的升級產品，帶有軟體的 Gen 2 產品，他們可以獲得這些無需重大投資即可加速，我們看到了人們對此的興趣。

And that legacy position not only helps us to upgrade our existing footprint, but it also allows us to really understand the customer's network. So when you think about virtual CMTS, and as I shared with you in my prepared remarks, we're in several customer labs because of our understanding of their software and how their -- because of their understanding of how their network works and our software that we have in our E6000, that puts us in a really good position to be able to transition to a virtual or at edge CMTS.

這一傳統地位不僅有助於我們升級現有的足跡，而且還使我們能夠真正了解客戶的網路。因此，當您考慮虛擬 CMTS 時，正如我在準備好的演講中與您分享的那樣，我們位於多個客戶實驗室，因為我們了解他們的軟體以及他們的網絡工作原理和我們的軟體我們在E6000中擁有這樣的功能，這使我們處於非常有利的位置，能夠過渡到虛擬或邊緣CMTS。

So we feel good about that. Additionally, on the DAA side, we pivoted to where the customer was going, which was more of a remote PHY solution, but we also are supporting our customers that want to go remote MAC-PHY. And as we were at SCTE, our customers, there was a lot of appreciation for our ability to support them whichever way they want to go. And we're going to continue to support our customers in whatever path they choose to take.

所以我們對此感覺良好。此外，在 DAA 方面，我們以客戶的需求為中心，這更多的是遠端 PHY 解決方案，但我們也支援想要使用遠端 MAC-PHY 的客戶。正如我們在 SCTE 的客戶一樣，我們非常感謝我們有能力為他們提供支持，無論他們想走哪條路。我們將繼續為客戶選擇的任何道路提供支援。

Our next question comes from George Notter with Jefferies.

我們的下一個問題來自傑弗里斯的喬治·諾特。

I was interested in asking about supply chain input costs. Obviously, it's a big part of the cost of goods here in the company, the economy is slowing, you're starting to see some supply chain input cost relief, I think. I know it's a pretty big number in the context of your overall COGS. I'm wondering if it's a tailwind in the business right now. And then -- so if you could talk about that, that would be great. And then also, I'd be curious about what you've assumed in terms of supply chain input costs in terms of your guidance for a similar 2024.

我有興趣詢問供應鏈投入成本。顯然，這是公司商品成本的很大一部分，經濟正在放緩，我認為你開始看到供應鏈投入成本下降。我知道就你們的整體銷貨成本而言，這是一個相當大的數字。我想知道現在這是否是業界的順風車。然後——所以如果你能談論這個，那就太好了。另外，我很好奇您在 2024 年類似的指導中對供應鏈投入成本的假設。

Yes. So on the input cost side, I think it's probably a little bit of a mixed bag relative to what we're seeing. I mean there's definitely some inputs that are coming down, and there's other inputs that are -- we're actually seeing some increases in. I think just in general, how you should think about it is if we go back to where we were 2 years ago, our input costs are -- still remain higher than where we were back then.

是的。因此，在投入成本方面，我認為相對於我們所看到的情況來說，這可能有點魚龍混雜。我的意思是，肯定有一些投入正在下降，還有其他投入——我們實際上看到了一些增長。我認為總的來說，如果我們回到 2 的狀態，你應該如何考慮這一點幾年前，我們的投入成本仍然高於當時的水準。

I think as we think about the -- as we move into 2024, I don't think we expect to see major changes there or at least in any modeling we would be doing. And I think as we've talked about before, for us, it's really trying to manage the margins and how the pricing versus the input cost impact margin. So I think it's a mixed bag. I think we're definitely still higher than where we were. It's definitely still inflated. We are seeing some relief, but not to the levels that we saw sort of pre supply chain challenges.

我認為，當我們考慮進入 2024 年時，我認為我們不會期望看到重大變化，或至少在我們將要做的任何建模中看到重大變化。我認為正如我們之前討論過的，對我們來說，它確實是在嘗試管理利潤以及定價與投入成本如何影響利潤。所以我認為這是一個混合體。我認為我們肯定仍然高於原來的水平。肯定還是充氣的。我們看到了一些緩解，但還沒有達到供應鏈挑戰之前的水平。

Got it. And then you mentioned price, I mean, any opportunity to kind of try to go after some more price in the marketplace to try to improve the sort of margin and EBITDA situation here?

知道了。然後你提到了價格，我的意思是，是否有機會嘗試在市場上追求更高的價格，以改善這裡的利潤率和 EBITDA 狀況？

I think we're competitively priced at this point. So I wouldn't be -- we're not seeing much price pressure. So what I'd say right now, we're just seeing prices hold right now.

我認為我們目前的價格具有競爭力。所以我不會——我們沒有看到太大的價格壓力。所以我現在要說的是，我們現在看到價格保持不變。

Our next question comes from Samik Chatterjee with JPMorgan.

我們的下一個問題來自摩根大通的 Samik Chatterjee。

This is Joe Cardoso on for Samik. So just one question from me. Some of your peers in the space have highlighted recent headwinds in the form of enhanced A-CAM program, given participation would exclude customers from participating in BEAD. Curious if you're seeing any of that in your customer base? And if so, any way you can characterize how much of your customer base would be eligible to participate in enhanced -- the enhanced A-CAM program? Just trying to get a sense of the potential impact and exposure there.

我是喬·卡多佐 (Joe Cardoso) 替補薩米克 (Samik)。我只想問一個問題。該領域的一些同行強調了最近以增強的 A-CAM 計劃形式出現的不利因素，因為參與將導致客戶無法參與 BEAD。好奇您是否在您的客戶群中看到了這樣的情況？如果是這樣，您可以透過什麼方式來描述您的客戶群中有多少人有資格參與增強型 A-CAM 計畫？只是想了解那裡的潛在影響和曝光度。

Can you restate the question? I didn't catch -- I didn't understand the term used in the beginning.

你能重述一下這個問題嗎？我沒聽懂——我不明白一開始使用的術語。

Yes. The enhanced A-CAM program is essentially an extension of the original A-CAM program with investments to service provider customers, where essentially they can essentially participate in that instead of the BEAD funding and essentially, what that entails is that the spending would be tranched out as opposed to seeing the funding all upfront for BEAD. So therefore, customers are taking a pause in deciding if they want to participate in that or indeed, I don't know if you guys have any experience of that.

是的。增強型 A-CAM 計劃本質上是原始 A-CAM 計劃的延伸，向服務提供者客戶進行投資，本質上他們可以參與該計劃，而不是 BEAD 資金，本質上，這意味著支出將被分期而不是讓BEAD 預先獲得所有資金。因此，客戶在決定是否要參與其中時會猶豫不決，或者確實，我不知道你們是否有這方面的經驗。

I think the way that we would answer that is, we're understanding the requirements of BEAD. We're working with our customers. There's lots of permutations that we see relative to the funding and the programs. And the other way that I would think about it is we're in constant dialogue with the customers about what they can do and what we can do. And I think that's -- for us, that's still unfolding. And we don't have any specifics around that right now.

我認為我們回答這個問題的方式是，我們正在了解 BEAD 的要求。我們正在與客戶合作。我們看到了與資金和項目相關的許多排列。我認為的另一種方式是，我們不斷與客戶對話，了解他們可以做什麼以及我們可以做什麼。我認為對我們來說，這仍然是一個正在展開的過程。目前我們還沒有任何具體細節。

And the other comment I would add to that is betas the largest program at $42.5 billion and the states are going to start getting awarded that business in the first half of '24. And we will see a small revenue impact from that in '24, but the large ramp of that is expected more in 2025.

我要補充的另一條評論是測試最大的計劃，金額為 425 億美元，各州將在 24 年上半年開始獲得該業務。我們將看到 24 年的收入影響較小，但預計 2025 年收入將大幅增加。

Our next question comes from Matt Nickman with Deutsche Bank.

我們的下一個問題來自德意志銀行的馬特·尼克曼。

Just 2, if I could. First, on visibility. I'm just wondering maybe, Chuck or Kyle, is the commentary varying at all across CCS, OWN, ANS? Or is it fairly uniform in terms of everybody pausing at a minimum through the middle of next year? And then secondarily, on asset sales, you referenced that as a potential option, something you may be evaluating. I know there have been some press reports out there. Just wondering if there's any additional color you can offer up in terms of what pieces of the business could potentially be monetized.

如果可以的話，就2個。首先，關於可見性。我只是想知道，查克或凱爾，CCS、OWN、ANS 的評論是否有所不同？或者說每個人至少要暫停到明年年中，這是否相當一致？其次，在資產出售方面，您提到這是一個潛在的選擇，您可能正在評估這一點。我知道有一些新聞報導。只是想知道您是否可以提供任何其他內容來說明哪些業務可能會貨幣化。

Okay. So I'll take the first part of the question. I think as we think about visibility across the business segments, I think where we have the lowest level of visibility is in the CCS and OWN business. And I think although we're in constant dialogue with our customers, trying to get the true understanding of their build plan. I think it's challenging at this point in time. And I think we're not alone in that position.

好的。所以我將回答問題的第一部分。我認為，當我們考慮各個業務部門的可見性時，我認為我們可見度最低的是 CCS 和 OWN 業務。我認為，儘管我們不斷與客戶對話，試圖真正了解他們的建置計劃。我認為目前這是具有挑戰性的。我認為我們並不是唯一處於這種情況的人。

I think on the ANS side of the business, we're talking to the major customers and some of the challenges that we see now, we believe are short term in nature as they adjust their inventory levels. And then I think we've talked about NICS where, yes, I mean, we've pushed a lot of products into the channel partners as we release some backlog. They're digesting that, that we're seeing a little bit lower order rates.

我認為在 ANS 業務方面，我們正在與主要客戶以及我們現在看到的一些挑戰進行討論，我們認為這些挑戰本質上是短期的，因為他們會調整庫存水準。然後我想我們已經討論了 NICS，是的，我的意思是，當我們釋放一些積壓的訂單時，我們已經向通路合作夥伴推出了很多產品。他們正在消化這一點，我們看到訂單率略有下降。

But again, in that business, a lot of our business is going through channel partners, and we have a lot of leading metrics to look at what the funnels are and what we're winning ahead of actually shipping the product. And I think we feel that, again, as we move into '24, we have some visibility in the NICS. So I think CCS and OWN, I think, are probably the places that we have the most challenges with the visibility.

但同樣，在該業務中，我們的許多業務都是透過通路合作夥伴進行的，我們有很多領先的指標來了解通路是什麼以及我們在實際交付產品之前贏得了什麼。我認為我們再次感覺到，隨著我們進入 24 年，我們在 NICS 中有了一些知名度。所以我認為 CCS 和 OWN 可能是我們在可見度方面面臨最大挑戰的地方。

The second part of your question, I mean, we're really not going to comment on that. I think we've have identified that asset sales are a possibility for us to deal with the capital structure. And I think that's -- at this point in time, that's all we're going to say.

我的意思是，你問題的第二部分我們真的不會對此發表評論。我認為我們已經確定資產出售是我們處理資本結構的一種可能性。我認為這就是——在這個時候，這就是我們要說的。

Our next question comes from Steven Fox with Fox Advisors.

我們的下一個問題來自福克斯顧問公司的史蒂文·福克斯。

After what you just said, Chuck, this might be an unfair question, but I was just curious, if there's any way on the CCS and OWN business to disaggregate the inventory correction from the actual cycle just -- and maybe compare sort of cyclical challenges to prior cycles, especially given what seems like over enthusiasm for like government funding that is impacting things.

查克，在你剛才所說之後，這可能是一個不公平的問題，但我只是好奇，CCS 和 OWN 業務是否有任何方法可以將庫存修正與實際週期分開，也許可以比較某種週期性挑戰與先前的周期相比，特別是考慮到人們對政府資金等正在影響事物的過度熱情。

Yes. I would say what we're really learning is there was obviously an overbuy, similar to what we saw in the rest of the economy with related to COVID. We're trying to get that understood about in terms of percentage. If you really ask us the ballpark of it, it could be a 20%-ish type number. And what we've been working with our customers, and I've had personal visits in their offices and all the major customers where we're talking with them about, we want to be a better supplier to you when this thing turns back on because it will turn back on.

是的。我想說的是，我們真正了解到的是，明顯存在過度購買，類似於我們在其他經濟領域看到的與新冠病毒相關的情況。我們試著用百分比來理解這一點。如果你真的問我們大概的情況，它可能是 20% 左右的數字。我們一直在與客戶合作，我親自拜訪了他們的辦公室以及我們正在與他們交談的所有主要客戶，當這一切重新開始時，我們希望成為您更好的供應商因為它會重新打開。

And we need help understanding the specific SKUs that you're going to be buying not because I can't produce dollars, I have to produce SKUs. So we've been working a lot with them in understanding their inventory that they have on hand, understanding what they think they're going to need in their build plans, but we need it at the next level of detail, and our teams are working together to do that. And I feel confident that we're going to be a better supplier and that relationship is going to help us going forward.

我們需要幫助了解您將要購買的特定 SKU，不是因為我無法生產美元，而是因為我必須生產 SKU。因此，我們一直在與他們進行大量合作，了解他們現有的庫存，了解他們認為在構建計劃中需要什麼，但我們需要更詳細的信息，我們的團隊正在共同努力做到這一點。我相信我們將成為更好的供應商，而這種關係將幫助我們前進。

And just to be clear, you're saying a 20% inventory over by, is that what the 20% was referring to?

需要明確的是，您所說的庫存超過了 20%，這就是 20% 所指的嗎？

That's the ballpark, Steven, if I had to say what I think, yes.

史蒂文，這就是大概情況，如果我不得不說出我的想法，是的。

And I'm not showing any further questions at this time. I'd like to turn the call back over to Chuck Treadway for any closing remarks.

目前我不會提出任何進一步的問題。我想將電話轉回給查克·特雷德韋 (Chuck Treadway)，聽取他的結束語。

Yes. I'd like to thank everyone for their support of CommScope and for your time today. I'd like everyone to have -- wish everyone a very good week. Thank you.

是的。我要感謝大家對康普的支持以及今天抽出寶貴的時間。我希望每個人都有一個美好的一周。謝謝。

Ladies and gentlemen, that concludes today's presentation. You may now disconnect, and have a wonderful day.

女士們、先生們，今天的演講到此結束。您現在可以斷開連接，並度過美好的一天。