Can CommScope avert bankruptcy?

Times are tough for many cable tech and telecom suppliers these days. But they have been especially tough on CommScope, which has seen its share price plummet amid a slowdown in operator spending as customers try to melt down inventory that was built up when the pandemic fueled supply chain constraints.

Amid those challenges, CommScope is also looking for ways to slice down a $9 billion debt load. Alongside ongoing cost-cutting efforts, industry sources confirmed recently that the company is exploring a sale of certain assets, including Ruckus Wireless and Access Network Solutions (ANS), a unit that specializes in cable network products such as cable modem termination systems, a new virtual CMTS and a new breed of Full Duplex DOCSIS (FDX) amplifiers that Comcast will use for its ambitious DOCSIS 4.0 upgrade. CommScope is already in the process of selling Home Networks, a unit that develops and sells cable modems, set-tops and other customer premises equipment (CPE), to Vantiva.

CommScope’s stock is also struggling. Shares are up nearly 9% today (to $1.83 each) in Friday afternoon trading, but are still well below a 52-week high of $9.34.

But at least one analyst wonders if the worst is over for CommScope and if the company can avoid a potential bankruptcy reorganization.

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