CommScope drops spin-off plan
February 17, 2022
CommScope has suspended the spin-off of its Home Networks business after a further drop in results at the unit in the past quarter.
The company said it suffered from component shortages and price rises across all its business segments in Q4, leading to a net loss for the quarter of $87 million (€76.5m), against a profit of $24 million a year earlier. Revenues rose 4 per cent to $2.22 billion.
In April 2021 CommScope announced plans to separate the Home Networks, which it has struggled since buying the Arris set-top box business in 2019. There was an operating loss of $61.5 million at Home Networks in Q4, ten times the loss a year earlier. Revenues at the unit fell 18 per cent year-on-year to $477 million. It has no new date for the separation.
CommScope’s ‘core’ business saw revenues grow nearly 13 per cent to $1.75 billion in Q4. Operating profit from the core activities was down 21 per cent to $99 million, due to a 50 percent fall in profit at the Broadband unit.