warned late Monday of a fourth-quarter sales slowdown and said it would roll out a cost-cutting plan in response.
The Hickory, N.C., company said third-quarter numbers would be in line with Wall Street estimates, but fourth-quarter sales will sag 5%-10% below third-quarter levels.
The company expects to post third-quarter sales of $309 million, with gross margin around 25%. That's in line with the Wall Street consensus estimate and the company's previous guidance. But Commscope said fourth-quarter sales will slide from those levels, when Wall Street had expected a flat sequential revenue performance.
Commscope said that in an effort to crack down on runaway manufacturing costs, it would restructure its Connectivity Solutions Manufacturing unit's Omaha, Neb., site. The company said it would save $20 million to $25 million annually by making unspecified "process improvements, equipment relocation, building consolidation and employee-related expenses." A representative didn't immediately return a call asking how many jobs Commscope might cut.
The company said it expects the plan to cost $10 million to $15 million, with as much as half of that being recorded in the fourth quarter as a charge. The Connectivity Solutions unit, which makes high-bandwidth cables for telecommunications applications, was acquired from
Commscope rose 47 cents in regular action Monday to close at $22.