Investor Relations
UTStarcom Releases Financial Results for the Second Quarter of 2007
ALAMEDA, Calif., Oct. 18 /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 second quarter of 2007.
UTStarcom Releases Financial Results for the Second Quarter of 2007
(Logo: http://www.newscom.com/cgi-bin/prnh/20051013/SFTH063LOGO)
Net sales for the second quarter 2007 were
for the second quarter 2007 were 14.8% and net loss for the quarter was
million
'Clearly the first half of 2007 was challenging for UTStarcom,' stated
pleased to report that we expect to file our Q2 2007 Form 10-Q within the next
few days, and as such, we will have completed all of our outstanding filings,
which will bring us current with both the NASDAQ listing qualifications panel
and our bondholders. Now, we look forward to executing on our new corporate
strategy and focusing on the opportunities and internal improvements that we
believe will drive the Company toward profitability.'
Conference Call Details
The Company will host a conference call to discuss both the first and
second quarter 2007 results. The call will take place at
are as follows:
The conference ID number is 19776282.
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 19776282.
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 the completion
of any outstanding filing required to be made with the Securities and Exchange
Commission, the anticipated execution on new corporate strategy and the
anticipated focus on opportunities and internal improvements that will drive
the Company to profitability. 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
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.
UTStarcom, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
June 30, December 31,
ASSETS 2007 2006
Current assets: (Unaudited) (As reported)
Cash, cash equivalents and short-term
investments $527,579 $671,169
Accounts receivable, net 322,892 406,080
Notes receivable 4,083 5,060
Inventories 652,956 635,838
Prepaids and other current assets 132,882 101,795
Short-term restricted cash and
investments 9,797 16,666
------------- -------------
Total current assets 1,650,189 1,836,608
Property, plant and equipment, net 212,873 213,155
Long-term investments 96,407 47,809
Goodwill 3,063 3,063
Intangible assets 48,351 56,443
Long-term deferred costs 169,745 176,649
Other long-term assets 38,445 40,223
------------- -------------
Total assets $2,219,073 $2,373,950
============= =============
LIABILITIES, MINORITY INTEREST AND
STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $219,736 $304,869
Short-term debt 379,935 102,758
Income taxes payable - 2,483
Customer advances 298,104 265,812
Deferred revenue 96,422 95,742
Other current liabilities 231,341 271,400
------------- -------------
Total current liabilities 1,225,538 1,043,064
Long-term deferred revenue 243,999 261,014
Long-term debt 460 275,161
Other long-term liabilities 21,307 13,858
------------- -------------
Total liabilities 1,491,304 1,593,097
------------- -------------
Minority interest in consolidated
subsidiaries 5,331 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 June 30, 2007 and
December 31, 2006 152 152
Additional paid-in capital 1,210,531 1,205,592
Accumulated deficit (611,284) (494,244)
Accumulated other comprehensive
income 123,078 62,899
Treasury stock: 4,468 shares held in
treasury at June 30, 2007 and
December 31, 2006 (39) (39)
------------- -------------
Total stockholders' equity 722,438 774,360
------------- -------------
Total liabilities, minority interest
and stockholders' equity $2,219,073 $2,373,950
============= =============
UTStarcom, Inc.
Consolidated Statement of Operations
(in thousands, except per share amounts)
Three months ended Six months ended
June 30, June 30,
--------- ---------
2007 2006 2007 2006
--------- --------- --------- ---------
(As (As
(Unaudited) restated) (Unaudited) restated)
Net sales $538,245 $551,525 $1,014,146 $1,153,506
Cost of net sales 458,515 442,575 859,132 920,765
--------- --------- --------- ---------
Gross profit 79,730 108,950 155,014 232,741
--------- --------- --------- ---------
Operating expenses:
Selling, general and
administrative 88,865 83,108 168,701 166,833
Research and development 42,158 46,603 85,819 93,005
Amortization of intangible
assets 4,046 4,821 8,092 9,746
--------- --------- --------- ---------
Total operating expenses 135,069 134,532 262,612 269,584
--------- --------- --------- ---------
Operating loss (55,339) (25,582) (107,598) (36,843)
--------- --------- --------- ---------
Interest income (expense), net (3,926) 781 (5,742) 812
Other income, net 158 6,887 4,129 10,454
--------- --------- --------- ---------
Loss before income taxes,
minority interest and equity
in loss of affiliated
companies (59,107) (17,914) (109,211) (25,577)
Income tax expense (3,298) (4,669) (7,640) (7,508)
Minority interest in losses of
consolidated subsidiaries 698 259 1,161 815
--------- --------- --------- ---------
Net loss $(61,707) $(22,324) $(115,690) $(32,270)
========= ========= ========= =========
Loss per share - Basic and
diluted $(0.51) $(0.19) $(0.96) $(0.27)
Weighted average shares used
in per-share calculation:
- Basic and diluted 120,982 120,608 120,941 120,604
========= ========= ========= =========
UTStarcom, Inc.
Condensed Consolidated Statement of Cash Flows
(in thousands)
Six months ended Six months ended
June 30, 2007 June 30, 2006
(Unaudited) (As restated)
---------------- ----------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $(115,690) $(32,270)
Adjustments to reconcile net loss to
net cash (used in) provided by
operating activities:
Depreciation and amortization 29,737 34,653
Net (gain) loss on sale and disposal
of assets (2,629) 2,169
Net gain on long-term investment (366) -
Stock-based compensation expense 4,939 7,542
(Recovery of) provision for doubtful
accounts 2,370 3,133
(Recovery of ) provision for deferred
costs reserves (8,136) 5,978
Deferred income taxes 1,267 -
Other (366) (537)
Changes in operating assets and liabilities:
Accounts receivable 84,696 97,596
Inventories (19,369) (36,916)
Deferred costs 31,563 (6,853)
Other assets (28,637) (7,784)
Accounts payable (89,502) 39,693
Income taxes payable 6,801 3,438
Customer advances 27,141 69,280
Deferred revenue (23,982) (10,512)
Other current liabilities (49,135) (89,454)
---------------- ----------------
Net cash (used in) provided by
operating activities (149,298) 79,156
---------------- ----------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to property, plant and
equipment (15,425) (12,288)
Proceeds from the disposition of a
long-term investment 1,800 -
Investment in affiliates, net of cash
acquired - (302)
Proceeds from sale of semiconductor
design operations - 19,965
Change in restricted cash and long- term
investments 6,615 (19,994)
Purchase of short-term investments (21,735) (28,032)
Proceeds from sale of short-term
investments 13,484 25,588
Other (230) 1,672
---------------- ----------------
Net cash used in investing activities (15,491) (13,391)
---------------- ----------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from borrowing 64,621 62,545
Payments on borrowings (64,732) (140,053)
Other 4,728 1,967
---------------- ----------------
Net cash provided by (used in)
financing activities 4,617 (75,541)
Effect of exchange rate changes on
cash and cash equivalents 7,972 5,225
Net decrease in cash and cash
equivalents (152,200) (4,551)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 661,623 645,571
---------------- ----------------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $509,423 $641,020
================ ================
Supplemental disclosure of cash flow
information:
Interest $7,054 $4,596
Income taxes $3,687 $3,529
Non-cash operating activity
Accounts receivable transferred to
notes receivable $11,462 $15,376
Property, plant and equipment
exchanged for long-term investment $- $5,500
SOURCE UTStarcom, Inc.