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UTStarcom Reports Unaudited Financial Results for Second Quarter 2018HONG KONG, Aug. 03, 2018 (GLOBE NEWSWIRE) -- UTStarcom (“UT” or “the Company”) (NASDAQ: UTSI), a global telecommunications infrastructure provider, today reported its unaudited financial results for the second quarter ended June 30, 2018. UTStarcom’s Chief Executive Officer Tim Ti commented, “Second quarter results met our expectations. Revenue was at the high end of guidance due to the initiation of two large projects in India. Despite a gross margin decrease from a year ago due to changes in product and geographic mix, we achieved positive operating income for the quarter. Importantly, our financial position remains strong, with over $80 million in cash.” Tim continued, “Innovation is our strength and we are committed to technology leadership through continuing investments in our R&D capabilities. We are excited about the opportunities presented by the worldwide transition to 5G wireless network and are positioning our product portfolio accordingly. For instance, we are an early entrant in SRv6 routing platforms, as well as offering leading synchronization and software-defined network products. Our new product offerings enable network operators to meet the challenges of the rapidly escalating network traffic generated by new trends such as internet of things and 5G mobile data.” Business Highlights
Second Quarter 2018 Financial Results Summary of Q2 2018 Key Financials
*Dollar comparisons are used where percentage comparisons are not meaningful. Total Revenues Q2 2018 total revenues were $28.5 million, compared to $31.5 million in the corresponding period of 2017.
Gross Profit Q2 2018 gross profit was $7.5 million, or 26.2% of net sales, compared to $8.9 million, or 28.3% of net sales, in the corresponding period in 2017.
Operating Expenses Q2 2018 operating expenses were $7.0 million, compared to $7.2 million in the corresponding period in 2017.
Operating Income Q2 2018 operating income was $0.5 million, compared to $1.7 million in the corresponding period of 2017. Interest Income, Net Q2 2018 net interest income was $0.3 million, compared to $0.2 million in the corresponding period in 2017. Other Income (Expense), Net Q2 2018 net other expenses were $0.3 million, compared to net other income of $2.0 million in the corresponding period in 2017. Net Income (Loss) Q2 2018 net loss attributable to shareholders was $0.1 million, compared to net income of $2.4 million in the corresponding period in 2017. Q2 2018 basic net loss per share was $0.00, compared to basic net income per share of $0.07 for the corresponding period of 2017. Cash Flow In the second quarter of 2018, cash used in operating activities was $13.7 million, cash used in investing activities was $1.8 million, and cash used in financing activities (stock repurchases) was $1.1 million. As of June 30, 2018, UTStarcom had cash, cash equivalent and restricted cash of $80.5 million. Outlook Earnings results in the third quarter will be driven by the ongoing fulfillment of large projects in India. These projects should result in strong revenue growth, but at reduced gross margin relative to the second quarter of 2018. For the third quarter, the Company expects to generate revenue in the range of $38 million to $43 million. Second 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, August 3, 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 passcode is 6394963. A replay of the call will be available two hours after the end of the conference call until 9:59 a.m. U.S. Eastern Time on September 3, 2018. The conference call replay numbers are as follows: United States: +1 (855) 452-5696 The replay passcode for accessing the recording is 6394963. 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. Tel: +852-3951-9757 Ms. Ning Jiang, Investor Relations In the United States: The Blueshirt Group UTStarcom Holdings Corp.
UTStarcom Holdings Corp.
UTStarcom Holdings Corp.
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