CommScope said its COO Bruce McClelland will no longer with the company as it decided to eliminate the chief operating officer position.
The telecom solutions provider will not face challenges because Bruce McClelland came to the management after the acquisition of ARRIS. Eddie Edwards is the president and chief executive officer of CommScope.
CommScope in Feb 2019 revealed that ARRIS chief executive officer Bruce McClelland would be the COO of CommScope. Morgan Kurk, CommScope’s then chief operating officer, became chief technology officer of the combined organization as part of the management change. Morgan Kurk and Bruce McClelland started reporting to CommScope CEO Eddie Edwards.
The immediate departure of Bruce McClelland is seen as the lack of satisfaction from the ARRIS team that became a part of CommScope.
On November 8, 2018, CommScope announced an agreement to acquire ARRIS International in an all-cash transaction for $31.75 per share, or a total purchase price of approximately $7.4 billion, including the repayment of debt.
CommScope reported sales of $2.57 billion (+107 percent) and net loss of $334 million for the quarter ended June 30, 2019. CommScope reported net income of $65.9 in the second quarter of 2018.
The revenue for second quarter of 2019 included ARRIS sales of $1.37 billion from the date of acquisition, April 4, 2019.
CommScope’s Connectivity Solutions business reported sale of $670.9 million (–9.4 percent) due to lower sales volumes and reductions in certain selling prices.
CommScope’s Mobility Solutions reported sales of $529.4 million (+6 percent) as a result of higher sales volumes, partially offset by reductions in certain selling prices. CommScope’s Mobility Solutions revenue rose in North America and dropped in the Asia-Pacific region.
CommScope’s Customer Premise Equipment business reported sales of $889.7 million (–9.4 percent) due to declines in the EMEA and North America regions as a result of reduced cable operator spending.
CommScope’s Network and Cloud business reported sales of $343.9 million (–36.7 percent) due to declines in the North America, CALA and EMEA regions primarily due to lower cable operator spending.
CommScope’s Ruckus business reported sales of $151.1 million (–9.7 percent) due to dip in the North America region.
CommScope management has provided third quarter revenue outlook of $2.3 billion – $2.5 billion with operating income of $5 million or loss of $5 million.