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UTStarcom Aims to Make Profit This Year
(Comtex Business Via Thomson Dialog NewsEdge) BEIJING, Jun 22, 2006 (SinoCast China IT Watch via COMTEX) --Bill Huang, senior vice president and CTO (Chief Technical Officer) of UTStarcom Incorporated, recently said that they are taking a turn for the better in the PHS business, and their IPTV (Internet Protocol Television) begins to gain ground as well.
At present, the leading PHS handset maker takes around 60% share in the Chinese domestic market, and its aim is to build the number one IPTV brand in the world, according to the company's internal data.
Wu Ying, vice chairman and executive vice president of UTStarcom, pointed out too that IPTV has a much bigger market room than PHS. IPTV equipment can be sold worldwide, but PHS handsets can only be in the Chinese market. Even though at home, the 380 million TV sets indicates at least 200 million IPTV users, and it is really uneasy to develop 100 million PHS users.
Bill Huang noted that telecom carriers are shifting their focus from voice to broadband, and IPTV will become one of their core businesses. UTStarcom has already sensed the business opportunity, and is confident in maintaining the current market share.
In the light of the plan of UTStarcom (NASDAQ: UTSI), its form 10-Q for the first quarter of 2006 (Q1 2006 Form 10-Q), which has been put off for two times, will be debuted on June 22.
However, the company not long ago received an additional NASDAQ Staff Determination Notice stating that it had failed to file its Q1 2006 Form 10-Q, and therefore, it violated Marketplace Rule 4310(c) (14).
Previously, UTStarcom had been warned by NASDAQ due to the postponement of the release of its annual reports.
Bill Huang recently talked about matters concerning the financial reports at the Third China International New Media Forum.
With regard to the loss of over USD 400 million in 2005, Bill Huang stressed that the actual loss was not so high, and about USD 300 million was book loss.
"Because of some acquisitions, UTStarcom evaluated the value reduction of goodwill in 2005, which lowered the company's assets correspondingly," Bill Huang said. But he also admitted that UTStarcom is indeed in a sorry plight because of the decline of PHS business and the slow growth of some new businesses.
In order to pull through the difficult time, the company carried out expansions in other sectors such as NGN (Next Generation Network) in a bid to improve and balance its business development structure, according to Bill Huang.
If everything goes smoothly, UTStarcom's financial state will take a turn for the better in 2006. Although it forecast losses for the first three quarters of the year, it is expected to realize the the balance between revenue and expenditure in the fourth quarter.
Wu Ying previously also said that UTStarcom's positive cash flow in each quarter is on the rise, and it has already made profits in the Chinese market in the first quarter, and will pay off in the global market in the whole year of 2006.
About UTStarcom Incorporated
UTStarcom is a hi-tech enterprise specializing in developing, manufacturing, and selling modern communications technologies and products. Headquartered in Alameda, California, the company has a dozen of R&D centers distributed in America, China, India, South Korea, and Canada. In addition, it also has established a great many subsidiaries worldwide to expand the global communications market with innovative and competitive products and services.
From www.ccidnet.com, Page 1, Wednesday, June 21, 2006
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