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UTStarcom Reports Unaudited Financial Results for First Quarter 2018HONG KONG, May 11, 2018 (GLOBE NEWSWIRE) -- UTStarcom (“UTStarcom” or “the Company”) (NASDAQ:UTSI), a global telecommunications infrastructure provider, today reported its unaudited financial results for the first quarter ended March 31, 2018. UTStarcom’s Chief Executive Officer Tim Ti commented, “First quarter results reinforce our confidence in the long-term outlook for UT. Financial results were solid, with revenue at the higher end of expectations and gross margin over 40%, resulting in a return to profitability. We increased our investment in R&D when compared to last year while maintaining a strong balance sheet.” Tim continued, “Our commitment to R&D is starting to show promising results. We generated meaningful revenue in Taiwan. Orders are flowing in from India, and we expect substantial revenue from there for the balance of the year. We are also strengthening our product portfolio with high-performance, high value products such as the newly introduced SRv6 router. Finally, we see a multitude of opportunities in new applications like retail automation, and are pursuing those with key partnerships such as the recently announce uSTAR joint venture.” Business Highlights
First Quarter 2018 Financial Results Summary of Q1 2018 Key Financials
* Dollar comparisons are used where percentage comparisons are not meaningful. Total Revenues Q1 2018 total revenues were $22.6 million, essentially flat when compared to the corresponding period of 2017.
Gross Profit Q1 2018 gross profit was $9.1 million, or 40.5% of net sales, compared to $9.1 million, or 40.4% of net sales, for the corresponding period in 2017.
Operating Expenses Q1 2018 operating expenses were $6.8 million, compared to $5.5 million for the corresponding period in 2017.
Operating Income Q1 2018 operating income was $2.3 million, compared to $3.6 million for the corresponding period of 2017. Interest Income, Net Q1 2018 net interest income was $0.5 million, compared to $0.4 million for the corresponding period in 2017. Other Income (Expense), Net Q1 2018 net other expenses were $0.02 million, compared to net other income of $0.4 million for the corresponding period in 2017. Net Income Q1 2018 net income attributable to UTStarcom’s shareholder was $4.0 million, compared to $5.9 million for the corresponding period in 2017. Q1 2018 basic net income per share was $0.11, compared to $0.17 for the corresponding period of 2017. Cash Flow Cash used in operating activities was $5.1 million in the first quarter of 2018. Cash provided by investing activities was $2.9 million in the first quarter of 2018. As of March 31, 2018, UTStarcom had cash, cash equivalents and restricted cash of $98.9 million. Outlook For the second quarter of 2018, the Company expects to generate revenue in the range of $23 million to $28 million. First Quarter 2018 Conference Call Details The Company’s management will host an earnings conference call at 8:00 a.m. U.S. Eastern Time on Friday, May 11, 2018 (8:00 p.m. Hong Kong/Beijing Time). The conference call dial-in numbers are as follows: United States: +1 (866) 519-4004 The attendee pass code is 3438736. A replay of the call will be available two hours after the end of the conference call until 11:59a.m. U.S. Eastern Time on June 11, 2018. The conference call replay numbers are as follows: United States: +1 (855) 452-5696 The replay passcode for accessing the recording is 3438736. Investors will also have the opportunity to listen to the live conference call and the replay over the Internet through the investor relations section of UTStarcom’s web site at: http://www.utstar.com. About UTStarcom Holdings Corp. UTStarcom is a global telecom infrastructure provider dedicated to developing technology that will serve the rapidly growing demand for bandwidth from cloud-based services, mobile, streaming, and other applications. We work with carriers globally, from Asia to the Americas, to meet this demand through a range of innovative broadband packet optical transport and wireless/fixed-line access products and solutions. The Company’s end-to-end broadband product portfolio, enhanced through in-house Software Defined Networking (SDN)-based orchestration, enables mobile and fixed-line network operators and enterprises worldwide to build highly efficient and resilient future-proof networks for a range of applications, including mobile backhaul, metro aggregation, broadband access and Wi-Fi data offload. Our strategic investments in media operational support service providers expand UTStarcom’s capabilities in the field of next generation video platforms. UTStarcom was founded in 1991, started trading on NASDAQ in 2000, and has operating entities in Hong Kong; Tokyo, Japan; San Jose, USA; Delhi and Bangalore, India; Hangzhou and China. For more information about UTStarcom, please visit http://www.utstar.com. Forward-Looking Statements This press release includes forward-looking statements, including statements regarding the Company’s strategic initiatives and the Company’s business outlook. These statements are forward-looking in nature and subject to risks and uncertainties that may cause actual results to differ materially and adversely from the Company’s current expectations. These include risks and uncertainties related to, among other things, changes in the financial condition and cash position of the Company, changes in the composition of the Company’s management and their effect on the Company, the Company’s ability to realize anticipated results of operational improvements and benefits of the divestiture transaction, the ability to successfully identify and acquire appropriate technologies and businesses for inorganic growth and to integrate such acquisitions, the ability to internally innovate and develop new products, assumptions the Company makes regarding the growth of the market and the success of the Company’s offerings in the market, and the Company’s ability to execute its business plan and manage regulatory matters. The risks and uncertainties also include the risk factors identified in the Company’s latest annual report on Form 20-F and current reports on Form 6-K as filed with the Securities and Exchange Commission. The Company is in a period of strategic transition and the conduct of its business is exposed to additional risks as a result. All forward-looking statements included in this press release are based upon information available to the Company as of the date of this press release, which may change, and the Company assumes no obligation to update any such forward-looking statements. For investor and media inquiries, please contact: UTStarcom Holdings Corp. Ms. Fei Wang, Director of Investor Relations Ms. Ning Jiang, Investor Relations In the United States: The Blueshirt Group
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