Wednesday, November 4, 2009

UTStarcom Q3 Sales Fall to $70.5 Million

UTStarcom reported Q3 sales of $70.5 million as compared to $180.6 million in the third quarter of 2008. The decline in sales primarily reflects the China market's continued wind down of the PAS infrastructure and handset businesses. Gross margins for the third quarter of 2009 were 34% as compared to 32% in the third quarter of 2008. The third quarter 2009 operating expenses were $58.0 million compared to $92.2 million a year ago. The reduction in expenses primarily reflects the benefits of ongoing restructuring and cost cutting initiatives. The operating loss for the third quarter of 2009 and 2008 was $33.8 million and $34.9 million, respectively.

The net loss for the third quarter of 2009 was $34.6 million, or ($0.27) per share, and includes $8.9 million in charges primarily related to the restructuring actions announced in June. The third quarter of 2008 net loss was $55.9 million, or ($0.45) per share.

"The third quarter was a time of transition for our company as we worked aggressively to execute the corporate initiatives we announced in June," said Peter Blackmore, UTStarcom's chief executive officer and president. "We have implemented significant changes that enable us to invest in selective IP-based infrastructure products and key geographic regions. Meanwhile we continue to improve our operational structure so we can achieve our financial goals in 2010 and beyond."

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