He was the right hand man to Chuck and was all bullish on the stock growth. He is leaving after knowing there is no financially means that Commscope is going to go up.
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What ever they do, they need to get rid of the fat lazy fks at CommScope too. The fools have destroyed to many good companies with their dreams of acquiring their way to the top. Unfortunately they breed lazy there and some how blow their way to the too.
If CommScope spins off an excessively debt-laden subsidiary that later goes bankrupt, both CommScope and CommScope's directors can be sued by the spinoff's debt-holders.
Any spinoff has to be viable.
Understand comment below that debt has to be spun off w/home but HN operating income in one quarter is -$68.4m, it’ll be more in Q4. That’s hundreds of millions being lost annually, that can be offset by selling patents and IP, buildings, laying off all the dead weight HN employees who are just collecting a paycheck and are a massive dead weight on benefits because their all old senile, and useless and haven’t innovated anything since 1995. Can stop spending all this money in supply chain and legal and finance. CommScope could really go lean, sure w/debt. But $250m in free cash flow plus proceeds from selling assets equal to $1-1.5b to put towards debt may actually be better then saddling HN with debt. A lot of you who post in here prob don’t have the same access to all the discussions so may not realize we can sell assets shutter HN and actually have more free cash flow. Remember. CS will still have interest in spinco so it’s not complete absolution. Firing the lazy old HN losers is better all around. But before you do that make it so miserable they all leave so you don’t have to pay their worthless butts severance. They don’t deserve it. Especially those who go on 2-3 hour lunch breaks every day or go to the gym for hours in the middle of the day and never read their email. Sadly that’s like 75% of the HN salary because that’s 100% of the VPs. Also why do VPs report to VPs. Man Horsham was so badly run. Esp cost centers. Can attribute one cost center to one of the laziest horrible people ever. Sold the world for self gain.
If the shortfall is just down to components can CS and the investors tolerate at least another 2 qtrs of similar result without taking further action
The 28% decline in HN is explained away by JC as component/chip shortages. The explanation being that there are about $1B in unfufilled customer orders. In other words, customer demand is still there, but they just can’t build the modems without the parts.
I'm extremely curious to see how JC will spin the 28% HN decline under his watch into a success story upon which the foundation of Spin Co will be built. I am still trying to figure out exactly what JC has done to arrest the HN decline since joining CS 2 years ago?
Ironically, Larry Robinson walked after a 9% second-quarter sales dip for his division, yet JC is seen as the exec who will lead Spin Co to success even after a 28% decline!!?
Because they are trying to offload a lot of the bad debt. Shutting it down won't achieve that. The main goal of spinning of HN isn't to make it viable, it is rather to shed as much of the debt as possible from the "Core Businesses" to make them viable. HN is the sacrificial lamb in a last ditch attempt to save CommScope "Core Businesses".
"Why even spin-off HN, why not just give notice to customers and shut it down and layoff the dead weight."
Agreed. Basically a ghost town already.
Why even spin-off HN, why not just give notice to customers and shut it down and layoff the dead weight.
Home Network revenues were down 27.6% from the prior year. They should probably try to accellerate the spin-off? What a cluster. This ship is sinking faster than expected.
Stock will be below 8 soon. Pack your boxes, HR will be coming for ya again.
There is not much hope left for CS. They have screwed the pooch 7 ways to Sunday. While the cash flow and revenues were healthy they spent it all on stock buybacks and paying off debt. R&D was starved beyond belief and the senior leadership could not think beyond selling boxes, multiple people pointed out the pivot to subscription model but those troglodytes refused to hear any of us.
What a dumpster fire. Stock touch below $10
"Chuck wasn’t brought in to right a sinking ship..."
Carlye is a chop shop, so yeah, everyone should have known that Day One of the acquisition. They cycle people into the acquired companies to chop them up, then move on to the next. The current CommScope CEO took two years to sell off the last piece of Accudyne Industries (another Carlyle acquisition) before they tapped him to take over CommScope.
Why do you think "HR" hasn't bothered to map jobs from ARRIS? Why bother when you're just going to ki-l off the company?
Agreed. Spinning off HN with max debt, min cash, would transform CS into a lipstick wearing pig ready to be sold without any further severance obligation to HN employees. HN going bankrupt would remove the need for them to pay severance packages. Selling CS for $32/share would minimize any loss associated with the entire Arris acquisition debacle which should serve to placate CS shareholders. A pretty cold and calculated scenario. JC's admission that he lacks big business expertise is the final nail in the HN coffin. Which of the 2 would be the most suitable name for Spin Co, HMS Titanic, or Hotel California?
HN is being spun off with as much debt as justifiable (number is currently $4.82b trying to get it to $6b without CommScope having to provide any guarantee). And as mentioned trying to get CS acquired for $32/share, wonder where that # came from. Had an offer sheet for $22 per share in May if they could spin $4b in debt with HN. They got greedy even knowing they had a Q2 earnings miss. Either way anyone at HN is losing their job and with bankruptcy there’s no severance. But at least you can hang on working 99 hour weeks for cr-p benefits, below market comp, barely any bonus and even RSU grants are essentially worthless once HN is spun off. Chuck wasn’t brought in to right a sinking ship, he was brought in to chop shop the business which is easy and his d-mb a-s couldn’t even do that right cause he hardly works and is too busy focused on maximizing his and his good ok boy networks comp.
Is anyone positive about HN?
$6b debt load, yikes! That's pretty much what was paid to acquire Arris, ignoring Carlyle's $1b. With that debt load, plus declining or flat revenue, no one will loan money to spun off HN. Bankruptcy is the most realistic outcome. Spin Co SP will be junk. Meanwhile, CS is being packaged to be sold ASAP.
Commscope is full of mgmt that could not survive outside of there. They are lazy, incompetent and dependent on taking the work of others as their own.
HN doesn’t stand a chance and JCs saying that cause he wants the severance package before the spin off or as part of it cause he saw the debt load $6b! CommScope is dumping on HN. Itll be bankrupt in 12-18 mos and he wants his golden parachute because with HN ibis comp will be penny stocks. He never cared about the BU being successful, it’s just a pay check for him all while doing the near minimum of work. Just like other non BU VPs being spun off with HN, like that one cost center VP in Horsham that’s been with Mot, ARRIS, CommScope and now is being sent off with HN, who doesn’t work and knows if he leaves he’ll have to work so he stays cause he can basically do nothing. You all know who he is… and if you don’t you’ve seen him
Spot on regarding JC. He has been around long enough to demonstrate that he has what it takes to turn HN around. Instead, the decline accelerated on his watch. Now he confidently stated that he doesn't have big business experience! Jumping jehoshaphat, why admit to that failing? All he had to say was that he was building a success focused team. One can only hope that the spun off HN will not be the modern version of HMS Titanic on its maiden voyage.
Tingle does exactly what she was hired to do, why would they get rid of her? It’s not gender based so that’s a tad misogynistic. She is there to make sure every employee hates working at CommScope and to make sure benefits are the minimum possible that could appear to be competitive. HR is definitely the enemy but at least she’s doing the job she is paid to do, but she still a horrible soulless human or something less than human. Chuckie fat sack has no clue, or less than a clue. JC is a dreamer who is all over the place worst than a paranoid schizophrenic, don’t know where they find these people. Yea ok break into home health devices, sure JC compete with Amazon. Why not focus on core products, maybe put a Sufi extender and set too box into a speaker, you know, sh-t people actually want. Don’t know why Congress goes after good employers instead of the midsize shitholes run by white racists like Chuckie t. And seriously this is the best Carlyle group can do? Thought they had their sh-t together.
Ms Mingle doesn't know the meaning of employee motivation and retention that's for sure. When asked, she goes off on a tangent about AI. AI, and not people! Go figure! In fact, I cannot think of one recent initiative from her dept which says, we value you, we want you to stay. She has allowed employee low morale and high anxiety sentiments to thrive with nary a motivational word from her.
Let's all place bets on how long Mingle will last. My call is they will keep her for gender diversity purposes.
Don't be shy, come on, place yer bets.....
I'll be surprise if the spun off Home Network business survive more than a year. Inherited debt, declining video market with no new blue sky replacement products, semiconductor supply chain head winds, and with JC's unproven turn around strategy, all points to turbulent times ahead for that business.
Loved when ARRIS would spend billions in stock buy backs. Could you imagine if that money was used for innovation or targeted acquisitions? Glad they didn’t I guess, I may not have left and gotten my pandemic pay raise.
Remember that town hall when Pease came to Horsham and said stock is going to get back to $40/share. I knew he was clueless then.
Glad to see new Ruckus GM, finally getting his due, one of the genuinely good guys in that cesspool.
I bet you CommScope wanted to send Pease out with Home division and saddle him w the debt so he and JC can go completely destroy consumer devices together.
Looks like he landed on his feet with another Publicly traded company.
He certainly does have his share of culpability in the accelerated decline of CommScope.
I always wondered as to why they never used the cash to pay down debt, are they hoarding it or is Carlyle siphoning it off, oh well one could only theorize.
Agree with the previous posts. Pease totally mis-handled the finances, especially the $9.5B debt and basically kept kicking the can down the road, constantly selling new notes and refinancing to later due dates. How about getting this under control now and paid down? Now they are trying to spin-off the Home division because no one wants to buy them and they will saddle them with a good bit of this debt. Great money management there.
He is a POS. Just because you did one good deed, you don’t get a bye for the rest of you life. You must be one of the minions.
Yeah, the finance problems started with Alex but the minions need to go too. They can’t think and are only looking after their friend network, to h£ll with everyone else.
Imagine calling a Navy seal a POS.
Well Alex is one of the guys who did the maximum damage right from before Arris acquisition. All his fairy tales of share prices being $40+ to CommScope becoming a Fortune 100 company he is one of those who made CS where it is now.
His policy of cost cuts cost us skilled and knowledgable people. Now he is leaving with a mess behind.
Prob pushed out with such a quick departure. He was over paid and before Covid he rarely came into the office.
He is a POS anyway. He should have never been hired. Look at his employment history… barely stayed anywhere more then 2-3 years. Mistake they are making is not getting rid of Corp Controller and her staff too.