Investor Relations
UTStarcom Releases Financial Results for the Third Quarter of 2007
ALAMEDA, Calif., Nov. 9 /PRNewswire-FirstCall/ -- UTStarcom, Inc.
(Nasdaq: UTSI), a global leader in IP-based, end-to-end networking solutions
and services, today reported financial results for the third quarter of 2007.
UTStarcom Releases Financial Results for the Third Quarter of 2007
Third Quarter Revenues of $646 million, an Increase of 20% Sequentially and 8% Year-over-Year
(Logo: http://www.newscom.com/cgi-bin/prnh/20051013/SFTH063LOGO)
Net sales for the third quarter 2007 were
increase over the second quarter of 2007 was driven by strong sales in PCD as
well as growth in our Broadband and Wireless business units. Gross margins
for the third quarter of 2007 were 10%. The gross margins percentage was
impacted by a much larger percentage of PCD sales, as well as approximately
of 2006.
Our third quarter cash and short term investments totaled
increase of
cash and short term investments include approximately
investments that were previously accounted for as long term equity
investments.
'Our third quarter results do not yet reflect the benefits of changes we
are in the process of implementing in UTStarcom,' stated
Chief Operations Officer of UTStarcom, Inc.
'We have strong technology in IP communications and are building momentum
in IPTV, NGN and optical infrastructure and access devices. Management has a
high sense of urgency about improving the operational capabilities of the
company to ensure profitable growth. Our conference call will give details
about our progress on this.'
Guidance for the fourth quarter of 2007
-- Revenue flat to slightly up compared to third quarter 2007
-- Gross margins up 2 to 4 points from third quarter 2007
-- Operating expenses (excluding any special charges) down sequentially
Conference Call Details
The Company will host a conference call to discuss the third quarter 2007
results. The call will take place at
ID number is 24062138.
A replay of the call will be available for 30 days. The conference call
replay numbers are as follows:
706-645-9291. The Access Code is 24062138.
Investors will also have the opportunity to listen to the conference call
and the replay over the Internet through UTStarcom's Web site at:
http://www.utstar.com.
To listen to the live call, please go to the Web site at least 15 minutes
early to register, and to download and install any necessary audio software.
For those who cannot listen to the live broadcast, a replay will also be
available on this site.
About UTStarcom, Inc.
UTStarcom is a global leader in IP-based, end-to-end networking solutions
and international service and support. The company sells its broadband,
wireless, and handset solutions to operators in both emerging and established
telecommunications markets around the world. UTStarcom enables its customers
to rapidly deploy revenue-generating access services using their existing
infrastructure, while providing a migration path to cost-efficient, end-to-end
IP networks. Founded in 1991 and headquartered in Alameda, California, the
company has research and design operations in the
and
For more information about UTStarcom, visit the company's Web site at
http://www.utstar.com.
Forward-Looking Statements
This release includes forward-looking statements, including the foregoing
statements regarding the Company's expectations with respect to anticipated
improvements in its operational expenses to provide profitable growth, as well
as anticipated fourth quarter revenues, gross margins and operating expenses.
These statements are forward-looking in nature and subject to risks and
uncertainties that may cause actual results to differ materially. These risks
include the ability of the Company to develop and implement a successful new
corporate strategy and to identify and execute on opportunities and internal
improvements that will improve its competitiveness and profitability. The
Company also refers readers to the risk factors identified in its latest
Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports
on Form 8-K, as filed with the Securities and Exchange Commission.
Company Contact
Chesha Kamieniecki
Director of Investor Relations
UTStarcom, Inc.
(510) 749-1560
UTStarcom, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
(Unaudited)
September 30, December 31,
2007 2006
ASSETS (As reported)
Current assets:
Cash, cash equivalents and short-term
investments $643,868 $671,169
Accounts and notes receivable, net 335,864 406,080
Inventories and deferred costs 609,522 635,838
Prepaids and other current assets 140,483 123,521
Total current assets 1,729,737 1,836,608
Long-term assets:
Property, plant and equipment, net 212,835 213,155
Long-term deferred costs 166,503 176,649
Other long-term assets 89,540 147,538
Total assets $2,198,615 $2,373,950
LIABILITIES, MINORITY INTEREST AND
STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $194,941 $304,869
Short-term debt 414,977 102,758
Customer advances 304,554 265,812
Deferred revenue 90,137 95,742
Other current liabilities 228,591 273,883
Total current liabilities 1,233,200 1,043,064
Long-term liabilities:
Long-term debt 404 275,161
Long-term deferred revenue and other
liabilities 259,728 274,872
Total liabilities 1,493,332 1,593,097
Minority interest in consolidated
subsidiaries 4,532 6,493
Total stockholders' equity 700,751 774,360
Total liabilities, minority interest
and stockholders' equity $2,198,615 $2,373,950
UTStarcom, Inc.
Consolidated Statement of Operations
(in thousands, except per share amounts)
(Unaudited)
Three months ended Nine months ended
September 30, September 30,
2007 2006 2007 2006
(As reported) (As reported)
Net sales $646,494 $600,899 $1,660,640 $1,754,406
Cost of net sales 582,061 526,098 1,441,193 1,446,864
Gross profit 64,433 74,801 219,447 307,542
Operating expenses:
Selling, general and
administrative 74,297 80,076 242,999 246,908
Research and development 41,881 46,305 127,700 139,310
Amortization of intangible
assets 4,046 4,821 12,137 14,567
Gain on sale of semi-conductor
design assets (4,271) (12,291) (4,271) (12,291)
Total operating expenses 115,953 118,911 378,565 388,494
Operating loss (51,520) (44,110) (159,118) (80,952)
Interest income (expense), net (5,859) 594 (11,601) 1,406
Other income, net 4,347 1,835 8,476 12,289
Loss before income taxes and
minority interest (53,032) (41,681) (162,243) (67,257)
Income tax expense (3,095) (1,459) (10,735) (8,966)
Minority interest in losses of
consolidated subsidiaries 799 92 1,961 907
Net loss $(55,328) $(43,048) $(171,017) $(75,316)
Loss per share - Basic and
diluted $(0.46) $(0.36) $(1.41) $(0.62)
Weighted average shares used
in per-share calculation:
- Basic and diluted 121,011 120,676 120,965 120,628
UTStarcom, Inc.
Condensed Consolidated Statement of Cash Flows
(in thousands)
(Unaudited)
Nine months ended Nine months ended
September 30, 2007 September 30, 2006
(As reported)
Net cash (used in) provided by
operating activities $(189,720) $18,122
Cash flows from investing activities:
Property, plant and equipment, net (22,180) (17,040)
Proceeds from sale of semiconductor
design asset 4,271 19,965
Proceeds from sale of long-term
investments 3,334 -
Change in restricted cash and long-
term investments 7,273 26,536
Short-term investments, net (8,962) 1,939
Investment in affiliates, net of cash
acquired - (302)
Other (465) 1,538
Net cash (used in) provided by
investing activities (16,729) 32,636
Cash flows from financing activities:
Borrowings, net 33,045 (95,992)
Other 6,028 (364)
Net cash provided by (used in)
financing activities 39,073 (96,356)
Effect of exchange rate changes on
cash and cash equivalents 15,303 4,437
Net decrease in cash and cash
equivalents (152,073) (41,161)
Cash and cash equivalents at
beginning of period 661,623 645,571
Cash and cash equivalents at end of
period $509,550 $604,410
SOURCE UTStarcom, Inc.