UTStarcom Releases Financial Results for the First Quarter of 2007
ALAMEDA, Calif., Oct. 17 /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 first quarter of 2007.
The Company also announced it expected to file its financial results for the
second quarter of 2007 as soon as practicable, at which time the Company will
host a conference call with investors to discuss both first and second quarter
Company Expects to Report Second Quarter Financial Results As Soon As Practicable - At Which Time The Company Will Host a Conference Call to Discuss Both Q1 and Q2 Results
Net sales for the first quarter 2007 were
for the first quarter 2007 were 15.8% and net loss for the quarter was
'Although we are disappointed with our first quarter results, as we begin
to look forward, we are encouraged by the number of new contracts and new
customers we signed recently as well as the momentum of our core businesses,
particularly for IPTV in
Officer of UTStarcom, Inc.
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
For more information about UTStarcom, visit the company's Web site at
This release includes forward-looking statements, including the foregoing
statements regarding the Company's expectations with respect to the timing of
its filing of its financial statements for the second quarter of 2007 with the
Securities and Exchange Commission. 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 complete
its preparation of its Form 10-Q for the quarter ended
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.
UTStarcom, Inc. Condensed Consolidated Balance Sheets (in thousands) March 31, December 31, 2007 2006 ASSETS (Unaudited) (As reported) Current assets: Cash, cash equivalents and short-term investments $572,918 $671,169 Accounts receivable, net 352,936 406,080 Notes receivable 6,161 5,060 Inventories 654,662 635,838 Prepaids and other current assets 132,004 101,795 Short-term restricted cash and investments 5,620 16,666 Total current assets 1,724,301 1,836,608 Property, plant and equipment, net 210,042 213,155 Long-term investments 45,087 47,809 Goodwill 3,063 3,063 Intangible assets, net 52,397 56,443 Long-term deferred costs 172,895 176,649 Other long-term assets 39,575 40,223 Total assets $2,247,360 $2,373,950 LIABILITIES, MINORITY INTEREST AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $265,519 $304,869 Short-term debt 378,416 102,758 Income taxes payable - 2,483 Customer advances 312,363 265,812 Deferred revenue 96,874 95,742 Other current liabilities 191,807 271,400 Total current liabilities 1,244,979 1,043,064 Long-term deferred revenue 251,369 261,014 Long-term debt 521 275,161 Other long-term liabilities 21,881 13,858 Total liabilities 1,518,750 1,593,097 Minority interest in consolidated subsidiaries 6,029 6,493 Stockholders' equity: Common stock: $0.00125 par value; 750,000,000 authorized shares; 121,299,113 issued and 121,294,645 outstanding at March 31, 2007 and December 31, 2006 152 152 Additional paid-in capital 1,208,349 1,205,592 Accumulated deficit (549,577) (494,244) Accumulated other comprehensive income 63,696 62,899 Treasury stock: 4,468 shares held in treasury at March 31, 2007 and December 31, 2006 (39) (39) Total stockholders' equity 722,581 774,360 Total liabilities, minority interest and stockholders' equity $2,247,360 $2,373,950 UTStarcom, Inc. Condensed Consolidated Statement of Operations (in thousands, except per share amounts) Three months ended March 31, 2007 2006 (Unaudited) (As restated) Net sales $475,902 $601,981 Cost of sales 400,617 478,190 Gross profit 75,285 123,791 Operating expenses (income): Selling, general and administrative 79,837 83,727 Research and development 43,662 46,402 Amortization of intangible assets 4,046 4,925 Total net operating expenses 127,545 135,054 Operating loss (52,260) (11,263) Interest (expense) income (1,815) 32 Other income, net 3,970 3,568 Loss before income taxes, minority interest and equity in loss of affiliated companies (50,105) (7,663) Income tax expense (4,341) (2,839) Minority interest in losses of consolidated subsidiaries 464 556 Net loss $(53,982) $(9,946) Loss per share - Basic and diluted $(0.45) $(0.08) Weighted average shares used in per-share calculation: - Basic and diluted 120,900 120,600 UTStarcom, Inc. Condensed Consolidated Statement of Cash Flows (in thousands) March 31, 2007 2006 CASH FLOWS FROM OPERATING ACTIVITIES: (Unaudited) (As restated) Net loss $(53,982) $(9,946) Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Depreciation and amortization 14,744 17,476 Net (gain) loss on sale of asset (2,699) 4,708 Stock-based compensation expense 2,755 2,425 (Recovery of) provision for doubtful accounts (5,281) 892 (Recovery of) provision for deferred costs reserves (1,504) 795 Other 266 (578) Changes in operating assets and liabilities: Accounts receivable 60,296 28,787 Inventories (2,422) (4,337) Deferred costs (5,222) 3,248 Other assets (31,433) (6,771) Accounts payable (41,324) 18,077 Income taxes payable 5,969 (2,020) Customer advances 44,298 43,097 Deferred revenue (11,790) 8,789 Other current liabilities (79,336) (50,970) Net cash provided by (used in) operating activities (106,665) 53,672 CASH FLOWS FROM INVESTING ACTIVITIES: Additions to property, plant and equipment (5,221) (3,162) Proceeds from the disposition of an investment interest 1,800 - Proceeds from the sale of semiconductor design assets - 19,965 Change in restricted cash and long- term investments 10,365 (17,037) Purchase of short-term investments (15,576) (17,041) Proceeds from sale of short-term investments 10,483 13,309 Other (70) 499 Net cash provided by (used in) investing activities 1,781 (3,467) CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from borrowings 64,621 62,370 Payments on borrowings (64,676) (89,948) Other (654) (3,184) Net cash used in financing activities (709) (30,762) Effect of exchange rate changes on cash and cash equivalents 2,120 2,374 Net increase (decrease) in cash and cash equivalents (103,473) 21,817 Cash and cash equivalents at beginning of period 661,623 645,571 Cash and cash equivalents at end of period $558,150 $667,388 Supplemental disclosure of cash flow information: Cash paid: Interest $5,388 $2,511 Income taxes $2,788 $3,801 Non-cash operating activity: Accounts receivable transferred to notes receivable $9,240 $8,977
SOURCE UTStarcom, Inc.