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CommScope Holding Company, Inc. (NASDAQ:COMM), a technology company with a market capitalization of $3.48 billion and showing remarkable YTD returns of over 200%, announced Thursday that its Board of Directors declared a dividend on its Series A Convertible Preferred Stock. According to InvestingPro data, while the company doesn’t pay regular dividends to common shareholders, it maintains a strong financial health score of 2.8 (GOOD). The dividend will be paid in kind as 17,343 shares of Series A Preferred Stock, with an additional $12.50 in cash in lieu of fractional shares. The company expects to pay the dividend on September 30. InvestingPro analysis reveals the company’s solid liquidity position with a current ratio of 2.18, indicating strong ability to meet short-term obligations.
The dividend relates to the 1,000,000 shares of Series A Preferred Stock originally issued in April 2019, as well as additional shares paid as dividends in kind through June 30, 2025. The shares were initially sold to Carlyle Partners VII S1 Holdings, L.P. under an investment agreement. The dividend is exempt from registration under the Securities Act of 1933, with Carlyle representing that it is an accredited investor and acquiring the shares for investment purposes.
Also on Wednesday, CommScope’s Compensation Committee approved an amendment to the stock option award held by Koen ter Linde, the company’s Senior Vice President and President of its Connectivity and Cable Solutions (CCS) segment. The amendment affects 32,050 non-qualified stock options granted in May 2019 with an exercise price of $18.60 per share, which are fully vested.
Under the revised terms, if Mr. ter Linde’s employment ends as a result of the closing of the previously announced sale of the CCS segment to Amphenol Corporation (NYSE:APH), his options will now lapse on the earlier of the options’ expiration date or one year after the termination, rather than three months after termination as previously stipulated. No other terms of the award were changed.
These announcements are based on a statement from CommScope’s recent SEC filing.
In other recent news, CommScope Holding announced its Q2 2025 earnings, significantly surpassing both earnings per share (EPS) and revenue forecasts. The company reported an EPS of $0.44, exceeding the expected $0.23, and revenue reached $1.39 billion, surpassing the forecast of $1.25 billion. These results reflect a surprise of 91.3% in EPS and an 11.2% increase in revenue compared to projections. Additionally, CommScope disclosed a Success Bonus Agreement with Koen ter Linde, Senior Vice President and President of its Connectivity and Cable Solutions segment. Mr. ter Linde is eligible for a cash award of $1,980,000 if he remains employed through the closing of the previously announced sale of the CCS segment to Amphenol Corporation. This transaction was initially detailed in a Form 8-K filed in August 2025. These developments highlight the company’s recent performance and strategic moves.
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