CommScope Holding Company, Inc., a global leader in network connectivity solutions, reported results for the quarter ended March 31, 2022.
Net sales in the first quarter of 2022 increased 7.6% year-over-year to $2.23 billion. Core net sales increased 10.3% year-over-year primarily due to higher net sales in the connectivity and cable solutions and outdoor wireless networks segments.
Net loss of $(139.9) million, or $(0.75) per share, in the first quarter of 2022, increased 43.3% compared to the prior year period's net loss of $(97.6) million, or $(0.55) per share. Non-GAAP adjusted net income for the first quarter of 2022 was $64.4 million, or $0.26 per share, versus $88.3 million, or $0.36 per share, in the first quarter of 2021.
Non-GAAP adjusted EBITDA decreased 12.6% to $253.3 million in the first quarter of 2022 compared to the same period last year. Non-GAAP adjusted EBITDA as a percentage of net sales decreased to 11.4% in the first quarter of 2022 compared to 14.0% in the same prior year period. Core segment adjusted EBITDA decreased 14.9% to $230.0 million in the first quarter of 2022 compared to the same prior year period. Core segment adjusted EBITDA as a percentage of net sales decreased to 13.3% in the first quarter of 2022 compared to 17.2% in the same prior year period.
“I am pleased to share that we delivered Core net sales of $1.73 billion and Core adjusted EBITDA of $230 million for the first quarter of 2022. We are encouraged by the strong top-line performance delivered by Core CommScope, growing net sales 10% from the prior year. While margins remained under pressure during the quarter, our CommScope team remains focused on the pricing initiatives that are underway to recover inflation, and we expect to see margin improvement for the Core portfolio in the second half of the year. Our growth is a testament to the solid demand we continue to see in many of our end markets and our dedication to advancing CommScope NEXT to strengthen our business,” Chuck Treadway, President and Chief Executive Officer, stated.
Treadway added, “Through the transformational initiatives of CommScope NEXT, we are committed to unlocking additional capacity for connectivity and cabling to fuel organic growth. In addition, we are driving growth through our investments in innovative products such as our NOVUX™ product line of fiber connectivity, our next- generation XGS-PON suite, MOSAIC™, ONECELL®, and DOCSIS® 4.0. As we continue to execute our strategy, we are enabling greater efficiency through our general management structure and new segment alignment to drive value for shareholders.
“We are encouraged by the progress we have made on CommScope NEXT and are re-affirming our commitment to full year 2022 Core adjusted EBITDA between $1.15-$1.25 billion,” Kyle Lorentzen, Chief Financial Officer, stated. “We are excited to see our recent actions and pending initiatives deliver improved performance through the remainder of the year. CommScope is well positioned to deliver on our top-line momentum and deliver sustained success over the near and long term.”
