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CommScope, Inc. Q1 2008 Earnings Call Transcript

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2008-04-29 20:56:46.0

Tags: CommScope Inc.

Question-and-Answer Session

[Operator Instructions]. Your first question comes from the line of Lehman Brothers.

Amir Rozwadowski - Lehman Brothers

Good afternoon, folks thank you very much for taking my question that's Amir Rozwadowski from Lehman.

Unidentified Company Representative

Yes, good afternoon.

Amir Rozwadowski - Lehman Brothers

I was wondering if you could touch upon the strength in the North American wireless business, it seems that there are other wireless OEMs have experienced similar trends. But I was wondering if you can give us a little bit of color as to what's been driving there strength and how sustainable you think that is?

Brian D. Garrett - President and Chief Operating Officer

This is Brian Garrett, good afternoon and thank you for the question. Much of the strength that we experience in the quarter was carry over form the fourth quarter. I think we've reported that we've seen good recovery in the AT&T account in particular. On a year-over-year basis as it relates to... I'll say its specifically tower products within Andrew... legacy Andrew. Sales into that account have nearly doubled. So we are seeing strength in a number of accounts, we are seeing visibly weakness in others but in balance of much stronger North America than others have anticipated.

Amir Rozwadowski - Lehman Brothers

And then do you think that that is sustainable over the near term given 700 megahertz auction or however the pipeline looks for you folks?

Brian D. Garrett - President and Chief Operating Officer

700 is clearly a big part of the outlook going forward. The deployment of 4G will play a part in our future may be not most immediately but certainly in '09 and going forward. We've got topics with Sprint Nextel I think later in this year that may create strength in the business as well.

Amir Rozwadowski - Lehman Brothers

Great and then lastly we have talked about some of the price increases in the marketplace RF cable side and potentially in other areas. Now we've seen across several vendors in the space and I was just wondering if you can give us any color in terms of the reception by your customers in terms of how they viewed some of the pricing increases?

Brian D. Garrett - President and Chief Operating Officer

Good is not the right word I would say that I would say that they are that being largely accepted. One of the key advantages in the CommScope proposition as you know is for those who find that the copper price increases overly troublesome for them. They have the election to move to aluminum solutions in the cell reach product line and it continues to be adopted in North America. It's been broadly adopted particularly in the Asia Pac region and it is all part of the high growth period, high growth story for the cable business particularly on cable business in the first quarter.

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