On The Insider: Robert Downey Jr Injured on the Set

CommScope, Inc. Q2 2008 Earnings Call

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2008-07-29 19:50:34.0

Tags: CommScope Inc.

Question-and-Answer Session

[Operator Instructions]. Your first question comes from the line of George Notter with Jefferies.

Frank M. Drendel - Chairman and Chief Executive Officer

Hello, George.

George Notter - Jefferies & Co. Inc.

Hi, guys, thanks very much. I want to ask a quick question on top-line. You have tightened the range here you were at $4.1 billion to $4.3 billion. I think going back to last quarter you guys had suggested that depending on how the pricing increases are flowing through to customers, they flow through well you could kind of push people towards the higher end of that range, here you are tightening that range I guess I'm trying to figure our what the new guidance implies about the success you are having or not having on passing... pricing increases through to customers?

Brian D. Garrett - President and Chief Operating Officer

George, this is Brian, good afternoon to you. Today the success of the price increases that we announced in the April timeframe, largely have gone well. The impact in the enterprise market and digital broadband, I will say largely won't be felt until the current quarter. And so I will also say in wireless its been difficult from a global perspective.

But in entirety, I think, we are pretty well pleased with the response that we've got. Maybe counter to the nature of your question is, we continue to see the potential for rising costs in the second half of the year. And the discussions for further price increases are on the table currently, inclusive of fuel charges that were transportation charges that we're bringing in the selected markets.

Yes, I though it so, because you contrast with stating your question about the top-line I think we're... we contrast that George with Jearld's comments about increasing international content in our business. And there is a higher degree of uncertainty I think in our international business. And I will also say depending upon the market segment, as we move through the second quarter North America has not continued to respond favorably as favorably certainly as it did in the first quarter. So you've got a mix of inputs that get us to the guidance that we have for H2.

George Notter - Jefferies & Co. Inc.

Got it, okay. So sound likes you have all those factors out mentally in terms of other translates into your full year guidance. And then just switching gears a little bit on the cost synergy side I think last quarter you guys gave us a number of $9 million in Q1 cost synergies. I guess it annualizes to $36 million. I guess I'm trying to get an updated number on that through Q2 and how does that compare with the $50 million to $60 million guidance further?

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