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CommScope, Inc. Q4 2007 Earnings Call Transcript

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2008-03-04 02:54:46.0

Tags: CommScope Inc.

Question-and-Answer Session

Thank you. [Operator Instructions]. Your first question comes from Celeste Santangelo from Merrill Lynch. Please proceed with your question.

Frank M. Drendel - Chairman of the Board, Chief Executive Officer

Celeste are you there.

Celeste Santangelo - Merrill Lynch

Yes, can you hear me?

Frank M. Drendel - Chairman of the Board, Chief Executive Officer

Yes.

Unidentified Company Representative

Now we can.

Celeste Santangelo - Merrill Lynch

Okay, good afternoon. Based on your guidance it looks like for operating margin, they have to go from about 9% in Q1 and probably exit the year around 15% to get to your full year outlook. Is there something going on in Q1 and then can you talk about how we should think about the quarterly progression?

Frank M. Drendel - Chairman of the Board, Chief Executive Officer

Well I'll start Celeste and Jerald may have some more caller. I'd say first and foremost is the rate at which the synergies and cost reductions will happen, we will pick early fruit in the first quarter but its impact will be only for a small part of the quarter and then we'll continue to add into that pile over the course of the year and we should expect to expand margins of those activities get traction. And so it's for the end of the year we don't have the benefit of that in the back end of the year and we will. So in total we have a substantial impact on the quarterly performance.

Jearld L. Leonhardt - Chief Financial Officer and Executive Vice President

Yes, the only additional thing I would mention is Celeste is clearly we see some horizon raw material cost so far this quarter. And as mentioned we'll have to make adjustments. So we expect are going forward to recover those assuming that they sustain and it will take us... that's basically a headwind if you will in the process of improving our operating results or delivering the results that we expect for the year. But we... as we said in the call we know what's ahead of us and that we have done it before.

Frank M. Drendel - Chairman of the Board, Chief Executive Officer

And Celeste it's Frank, overall we'll continue to work on the non-performing assets also.

Celeste Santangelo - Merrill Lynch

Okay. And looking at the full year outlook, can you talk about each business and what kind of top line growth assumptions you have both for CommScope's core business. I know you talked about broadband, just to be modest growth in 08, but could you talk about maybe enterprise carrier and then when you are assuming for Andrew?

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