Things are hard all over for CommScope’s Home Networks business these days.
Already faced with a tough market for video devices offset by decent demand for broadband gateways, the unit is now contending with supply chain constraints, particularly with semiconductors. Though CommScope sees this issue as “transitory,” with hopes that it might subside sometime in 2022, the current situation is causing demand to outstrip the company’s ability to supply consumer premises equipment (CPE).
To amplify that point, CommScope’s Home Networks unit ended Q1 with more than $1 billion in backlog, about twice the average it had in 2020, and the most since CommScope acquired Arris in 2019. Those shortages are also entering the frame as CommScope makes plans to spin out its Home Networks unit by Q1 2022.