Revenue during the quarter surged 33.04 percent to $1,293.95 million from $972.60 million in the previous year period. Gross margin for the quarter expanded 711 basis points over the previous year period to 41.95 percent. Operating margin for the quarter period stood at positive 13.97 percent as compared to a negative 4.37 percent for the previous year period.

Operating income for the quarter was $180.75 million, compared with an operating loss of $42.52 million in the previous year period.

However, the adjusted operating income for the quarter stood at $296.70 million compared to $201 million in the prior year period. At the same time, adjusted operating margin improved 226 basis points in the quarter to 22.93 percent from 20.67 percent in the last year period.

"We are pleased to deliver year-over-year revenue growth and strong bottom-line results, which exceeded our expectations. Our fiber-to-the-X and wireless technologies were catalysts for this strong performance, especially in North America," said President and Chief Executive Officer Eddie Edwards. "Service providers continue to densify their wireless networks and push fiber deeper into their high-speed broadband networks. With our broad product portfolio, we are well positioned to enable customers to transition their networks to respond to the ever-growing demand for bandwidth.

For financial year 2016, Commscope Holding Company forecasts revenue to be in the range of $4,885 million to $4,935 million. The company forecasts operating income to be in the range of $566 million to $583 million. The company forecasts adjusted operating income to be in the range of $1,019 million to $1,039 million.  It expects diluted earnings per share to be in the range of $1.03 to $1.05 and expects diluted earnings per share to be in the range of $2.57 to $2.62 on adjusted basis.

For the fourth-quarter, Commscope Holding Company forecasts revenue to be in the range of $1,140 million to $1,190 million. The company forecasts operating income to be in the range of $111 million to $128 million. The company forecasts adjusted operating income to be in the range of $220 million to $240 million. The company expects diluted earnings per share to be in the range of $0.18 to $0.20. On an adjusted basis, the company expects diluted earnings per share to be in the range of $0.54 to $0.59.

Operating cash flow improves significantly
Commscope Holding Company has generated cash of $525.25 million from operating activities during the nine month period, up 182.79 percent or $339.52 million, when compared with the last year period.

The company has spent $39.52 million cash to meet investing activities during the nine month period as against cash outgo of $2,993.41 million in the last year period. It has incurred net capital expenditure of $43.01 million on net basis during the nine month period, down 98.56 percent or $2,953.67 million from year ago period.

The company has spent $532.25 million cash to carry out financing activities during the nine month period as against cash inflow of $2,710.89 million in the last year period.

Cash and cash equivalents stood at $517.28 million as on Sep. 30, 2016, down 16.29 percent or $100.69 million from $617.96 million on Sep. 30, 2015.

Working capital drops significantly
Commscope Holding Company has witnessed a decline in the working capital over the last year. It stood at $1,162.66 million as at Sep. 30, 2016, down 26.72 percent or $423.88 million from $1,586.54 million on Sep. 30, 2015. Current ratio was at 2.25 as on Sep. 30, 2016, down from 3.08 on Sep. 30, 2015.

Cash conversion cycle (CCC) has decreased to 48 days for the quarter from 103 days for the last year period. Days sales outstanding went down to 60 days for the quarter compared with 79 days for the same period last year.

Days inventory outstanding has decreased to 29 days for the quarter compared with 66 days for the previous year period. At the same time, days payable outstanding went down to 41 days for the quarter from 42 for the same period last year.