UTStarcom Releases Financial Results for the First Quarter of 2009

       On July 1, 2008, the UTStarcom Company divested its Personal Communications Division (“PCD”) which has historically represented a significant portion of the UTStarcom Company’s revenues. On December 18, 2008, the Company announced actions to wind down its Korea-based handset manufacturing operations. To enable a comparison of the financial results for the Company on a year-over-year basis the Company has prepared certain pro forma non-GAAP results which present the Company’s results as if both the divestiture of PCD and the wind down of the Company’s Korea-based handset operations were completed prior to each time period presented.
       The net loss for the first quarter of 2009 was $67.4 million, or ($0.54) per share, as compared to a net gain of $25.4 million, or $0.21 per share in the first quarter of 2008. Net cash, cash equivalents and short-term investments as of March 31, 2009 was $301 million compared to $314 million on December 31, 2008.
       Peter Blackmore, UTStarcom’s chief executive officer and president,said “Although the first quarter revenue was slightly below our expectations we are encouraged by the first quarter bookings which indicate continued demand for our products. Additionally, our quarter end cash balance was well above the level we previously anticipated.”
        “The execution of our recently announced initiatives led to further improvement in the Company’s ongoing cost structure. In order to accelerate our return to profitability we expect to announce further significant initiatives later this month,” Mr. Blackmore added.
       This news is from China electronics manufacturer.

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