UTStarcom Reports Unaudited Financial Results for First Half of 2024
UTStarcom (NASDAQ: UTSI) reported its unaudited financial results for the first half of 2024. The company saw a 12.3% decrease in revenue to $5.7 million, compared to $6.5 million in the same period of 2023. Despite this, the operating loss improved to $3.6 million from $4.0 million year-over-year. Key highlights include:
- Expansion orders for mobile transport network in Europe and broadband core solution in India
- Collection of $3.39 million from BSNL, leaving $4.57 million outstanding
- Gross profit of $1.7 million, with a margin of 30.0%
- Net loss remained stable at $2.0 million, with EPS at ($0.22)
- Cash balance of $56.0 million as of June 30, 2024
UTStarcom (NASDAQ: UTSI) ha riportato i suoi risultati finanziari non verificati per il primo semestre del 2024. L'azienda ha registrato un calo del 12,3% dei ricavi a 5,7 milioni di dollari, rispetto ai 6,5 milioni di dollari dello stesso periodo del 2023. Tuttavia, la perdita operativa è migliorata a 3,6 milioni di dollari, rispetto ai 4,0 milioni di dollari dell'anno precedente. I principali punti salienti includono:
- Ordini di espansione per la rete di trasporto mobile in Europa e la soluzione core per la banda larga in India
- Incasso di 3,39 milioni di dollari da BSNL, con 4,57 milioni di dollari ancora da riscuotere
- Utile lordo di 1,7 milioni di dollari, con un margine del 30,0%
- La perdita netta è rimasta stabile a 2,0 milioni di dollari, con un EPS di ($0,22)
- Saldo di cassa di 56,0 milioni di dollari al 30 giugno 2024
UTStarcom (NASDAQ: UTSI) reportó sus resultados financieros no auditados para la primera mitad de 2024. La compañía experimentó una disminución del 12,3% en los ingresos a 5,7 millones de dólares, en comparación con 6,5 millones de dólares en el mismo periodo de 2023. A pesar de esto, la pérdida operativa mejoró a 3,6 millones de dólares desde 4,0 millones de dólares del año anterior. Los puntos destacados incluyen:
- Órdenes de expansión para la red de transporte móvil en Europa y solución de núcleo de banda ancha en India
- Recaudación de 3,39 millones de dólares de BSNL, dejando 4,57 millones de dólares pendientes
- Ganancia bruta de 1,7 millones de dólares, con un margen del 30,0%
- La pérdida neta se mantuvo estable en 2,0 millones de dólares, con un EPS de ($0,22)
- Saldo de caja de 56,0 millones de dólares al 30 de junio de 2024
UTStarcom (NASDAQ: UTSI)이 2024년 상반기 비감사 재무 결과를 발표했습니다. 이 회사는 2023년 같은 기간의 650만 달러에 비해 수익이 12.3% 감소한 570만 달러를 기록했습니다. 그럼에도 불구하고 영업 손실이 개선되었습니다; 400만 달러에서 360만 달러로 감소했습니다. 주요 하이라이트는 다음과 같습니다:
- 유럽의 모바일 전송 네트워크와 인도의 광대역 코어 솔루션에 대한 확장 주문
- BSNL로부터 339만 달러를 징수, 미수금 457만 달러 남음
- 170만 달러의 총 이익, 마진 30.0%
- 순손실은 200만 달러로 안정세를 유지, EPS는 ($0.22)
- 2024년 6월 30일 기준 현금 잔액 5600만 달러
UTStarcom (NASDAQ: UTSI) a publié ses résultats financiers non audités pour le premier semestre 2024. L'entreprise a enregistré une diminution de 12,3% des revenus à 5,7 millions de dollars, contre 6,5 millions de dollars pour la même période en 2023. Cependant, la perte d'exploitation s'est améliorée, passant de 4,0 millions de dollars à 3,6 millions de dollars d'une année sur l'autre. Les points forts incluent :
- Commandes d'expansion pour le réseau de transport mobile en Europe et la solution centrale à large bande en Inde
- Recouvrement de 3,39 millions de dollars de BSNL, laissant 4,57 millions de dollars impayés
- Bénéfice brut de 1,7 million de dollars, avec une marge de 30,0%
- La perte nette est restée stable à 2,0 millions de dollars, avec un BPA à ($0,22)
- Solde de trésorerie de 56,0 millions de dollars au 30 juin 2024
UTStarcom (NASDAQ: UTSI) hat seine ungeprüften Finanzzahlen für das erste Halbjahr 2024 veröffentlicht. Das Unternehmen verzeichnete einen Rückgang der Einnahmen um 12,3% auf 5,7 Millionen Dollar, im Vergleich zu 6,5 Millionen Dollar im gleichen Zeitraum 2023. Dennoch verbesserte sich der operative Verlust auf 3,6 Millionen Dollar von 4,0 Millionen Dollar im Vorjahr. Zu den wichtigsten Punkten gehören:
- Erweiterungsbestellungen für das mobile Transportnetz in Europa und die Breitband-Kernlösung in Indien
- Eintreibung von 3,39 Millionen Dollar von BSNL, bei noch ausstehenden 4,57 Millionen Dollar
- Bruttogewinn von 1,7 Millionen Dollar, mit einer Marge von 30,0%
- Der Nettoverlust blieb mit 2,0 Millionen Dollar stabil, EPS bei ($0,22)
- Barguthaben von 56,0 Millionen Dollar zum 30. Juni 2024
- Improvement in operating loss from $4.0 million to $3.6 million year-over-year
- Gross profit margin increased to 30.0% from 28.0% in the previous year
- Service gross margin improved to 33.1% from 24.1% year-over-year
- Operating expenses decreased by 8.6% to $5.3 million
- Collection of $3.39 million from major customer BSNL in India
- Total revenue decreased by 12.3% to $5.7 million year-over-year
- Net equipment sales declined by 20.4% to $0.8 million
- Net services sales decreased by 10.7% to $4.9 million
- Equipment gross margin dropped to 10.6% from 49.2% in the previous year
- Cash balance (including restricted cash) decreased by 7.6% to $56.0 million
Insights
UTStarcom's 1H 2024 results show a concerning trend. Revenue declined
While gross margin improved slightly to
UTStarcom's focus on network expansion and evolution aligns with industry trends, but the company's execution appears lackluster. The new orders for mobile transport network upgrades in Europe and broadband core solutions in India demonstrate some market traction. However, the lack of significant new projects, especially in India, is concerning.
The company's work on SDN integration and testing is promising, as software-defined networking is important for future telecom infrastructure. Yet, UTStarcom's R&D spending decreased, which could hinder its ability to innovate and compete in a rapidly evolving market. The emphasis on maintenance and support services suggests a defensive strategy, potentially indicating difficulties in securing new, large-scale deployments. To regain growth, UTStarcom must accelerate its product development and expand its customer base beyond its current key markets.
HANGZHOU, China, Sept. 05, 2024 (GLOBE NEWSWIRE) -- UTStarcom (“UT,” “UTStarcom” or the “Company”) (NASDAQ: UTSI), a global telecommunications infrastructure provider, today reported its unaudited financial results and a business update for the six months ended June 30, 2024 (“the first half”).
Business Highlights:
- Expansion order for the mobile transport network of a Mobile Operator in Europe. In 1H 2024, UTStarcom received a new order for an updated NetRing PTN product that includes certain new features required by the customer to address its network expansion plans. UT also works with the customer on SDN solution integration and testing to enable the customer’s network evolution.
- Expansion order for the Broadband Core solution in India. Further expansion order for IMS solution deployed with one of our key Indian customers, including software, spare parts, and services.
- Maintenance and support services orders. In 1H 2024, UTStarcom received multiple maintenance and support orders in our key markets related to the deployed UT’s solutions such as PTN, NMS, SyncRing, and IMS.
- India Receivable. The Company collected a portion of the amount due from its major customer in India. During the first half of 2024, the Company collected a total of
$3.39 million from BSNL, leaving$4.57 million still outstanding.
UTStarcom’s Chief Executive Officer Mr. Hua Li commented, “We kept working on the direction we aimed to and have made progresses on the marketing side of our new products. We expect to see some results of our continuous efforts and extend our products to more application fields. Meanwhile we are continuously supporting our current products and customers for the products deployed.”
First Half 2024 Financial Results
| Summary of 1H 2024 Key Financials | |||||
| 1H 2024 | 1H 2023 | Y/Y Change | |||
| Revenue | - | ||||
| Gross Profit | - | ||||
| Operating Expenses | - | ||||
| Operating Loss | ( | ( | |||
| Net Loss | ( | ( | - | ||
| Basic EPS | ( | ( | - | ||
| Cash Balance (including Restricted Cash) | - | ||||
* Dollar comparisons are used where percentage comparisons are not meaningful.
* All amounts are in U.S. Dollars millions except for Earnings Per Share (EPS)
Total Revenues
Total revenues for the first half of 2024 were
- Net equipment sales were
$0.8 million , a decrease of20.4% from$1.0 million in the corresponding period in 2023, driven by lower sales to major customers in Japan. - Net services sales were
$4.9 million , a decrease of10.7% from$5.5 million in the corresponding period in 2023. The decrease was mainly due to the completion of current projects and no new major projects in India.
Gross Profit
Gross profit was
- Gross margin on equipment sales was
$0.1 million , compared to$0.5 million in the corresponding period in 2023. Equipment gross margin for the first half of 2024 was10.6% , compared to49.2% for the corresponding period in 2023. The decrease in gross margin was due to a decline in revenue from a mobile operator in Europe. - Service gross margin was
$1.6 million , compared to$1.3 million in the corresponding period in 2023. Service gross margin was33.1% , compared to24.1% for the corresponding period in 2023, due to decreased personnel cost as a result of the reduction of personnel.
Operating Expenses
Operating expenses for the first half of 2024 were
- Selling, general and administrative (“SG&A”) expenses for the first half of 2024 were
$2.7 million , compared to$2.9 million in the corresponding period in 2023. The decrease was mainly due to decreased personnel cost as a result of the reduction of personnel. - Research and development (“R&D”) expenses were
$2.6 million , compared to$2.9 million in the corresponding period in 2023. The decrease was mainly attributable to decreased personnel cost as a result of the reduction of personnel.
Operating Loss
Operating loss for the first half of 2024 was
Interest Income, Net
Net interest income for the first half of 2024 was
Other Income (Expenses), Net
Net other income for the first half of 2024 was
Net Loss
Net loss attributable to shareholders for the first half of 2024 was
Cash Flow
Cash used in operating activities in the first half of 2024 was
About UTStarcom Holdings Corp.
UTStarcom is committed to helping network operators offer their customers the most innovative, reliable and cost-effective communication services. UTStarcom offers high performance advanced equipment optimized for the most rapidly growing network functions, such as mobile backhaul, metro aggregation and broadband access. UTStarcom has operations and customers around the world, with a special focus on Japan, India and China. UTStarcom was founded in 1991 and listed its shares on the Nasdaq Market in 2000 (symbol: UTSI). 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: +86 (571) 8192 8888
Ms. Shelley Jiang, Investor Relations
Email: utsi-ir@utstar.com/ Shelleyjiang@utstar.com /
| UTStarcom Holdings Corp. Unaudited Condensed Consolidated Balance Sheets | ||||||||
| June 30, | December 31, | |||||||
| 2024 | 2023 | |||||||
| (In thousands) | ||||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 46,533 | $ | 49,968 | ||||
| Accounts and notes receivable, net | 6,916 | 8,870 | ||||||
| Short-term investments | 369 | — | ||||||
| Inventories and deferred costs | 783 | 886 | ||||||
| Short-term restricted cash | 6,991 | 7,117 | ||||||
| Prepaid and other current assets | 4,071 | 3,755 | ||||||
| Total current assets | 65,663 | 70,596 | ||||||
| Long-term assets: | ||||||||
| Property, plant and equipment, net | 531 | 610 | ||||||
| Operating lease right-of-use assets, net | 2,029 | 2,649 | ||||||
| Long-term restricted cash | 2,514 | 2,562 | ||||||
| Other long-term assets | 1,024 | 1,063 | ||||||
| Total long-term assets | 6,098 | 6,884 | ||||||
| Total assets | $ | 71,761 | $ | 77,480 | ||||
| LIABILITIES AND EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 6,998 | $ | 7,959 | ||||
| Customer advances | 237 | 226 | ||||||
| Deferred revenue | 61 | 72 | ||||||
| Income tax payable | 8,574 | 8,509 | ||||||
| Operating lease liabilities, current | 1,163 | 1,184 | ||||||
| Other current liabilities | 4,253 | 5,438 | ||||||
| Total current liabilities | 21,286 | 23,388 | ||||||
| Long-term liabilities: | ||||||||
| Operating lease liabilities, non-current | 1,067 | 1,660 | ||||||
| Long-term deferred revenue and other liabilities | 1,043 | 1,049 | ||||||
| Total liabilities | 23,396 | 26,097 | ||||||
| Total equity | 48,365 | 51,383 | ||||||
| Total liabilities and equity | $ | 71,761 | $ | 77,480 | ||||
| UTStarcom Holdings Corp. Unaudited Condensed Consolidated Statements of Operations | ||||||||
| Six months ended June 30, | ||||||||
| 2024 | 2023 | |||||||
| (In thousands, except per share data) | ||||||||
| Net sales | $ | 5,719 | $ | 6,514 | ||||
| Cost of net sales | 4,004 | 4,693 | ||||||
| Gross profit | 1,715 | 1,821 | ||||||
| 30.0 | % | 28.0 | % | |||||
| Operating expenses: | ||||||||
| Selling, general and administrative | 2,740 | 2,892 | ||||||
| Research and development | 2,575 | 2,874 | ||||||
| Total operating expenses | 5,315 | 5,766 | ||||||
| Operating loss | (3,600 | ) | (3,945 | ) | ||||
| Interest income, net | 1,332 | 866 | ||||||
| Other income, net | 806 | 1,912 | ||||||
| Loss before income taxes | (1,462 | ) | (1,167 | ) | ||||
| Income tax expense | (554 | ) | (844 | ) | ||||
| Net loss attributable to UTStarcom Holdings Corp. | $ | (2,016 | ) | $ | (2,011 | ) | ||
| Net loss per share attributable to UTStarcom Holdings Corp.—Basic | $ | (0.22 | ) | $ | (0.22 | ) | ||
| Weighted average shares outstanding—Basic | 9,141 | 9,098 | ||||||
| UTStarcom Holdings Corp. Unaudited Condensed Consolidated Statements of Cash Flows | ||||||||
| Six months ended June 30, | ||||||||
| 2024 | 2023 | |||||||
| (In thousands) | ||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
| Net Loss | $ | (2,016 | ) | $ | (2,011 | ) | ||
| Depreciation | 137 | 116 | ||||||
| Recovery of credit losses | (2 | ) | (998 | ) | ||||
| Stock-based compensation expense | 61 | 183 | ||||||
| Net gain on disposal of assets | — | (25 | ) | |||||
| Gain on release of tax liability due to expiration of the statute of limitations | (11 | ) | (11 | ) | ||||
| Right-of-use assets amortization | 579 | 616 | ||||||
| Changes in fair value of equity securities investment | (369 | ) | — | |||||
| Changes in operating assets and liabilities | (866 | ) | (1,687 | ) | ||||
| Net cash used in operating activities | (2,487 | ) | (3,817 | ) | ||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
| Additions to property, plant and equipment | (106 | ) | (182 | ) | ||||
| Net cash used in investing activities | (106 | ) | (182 | ) | ||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
| Proceeds from exercise of stock options | — | 4 | ||||||
| Net cash provided by financing activities | — | 4 | ||||||
| Effect of exchange rate changes on cash and cash equivalents | (1,016 | ) | (2,303 | ) | ||||
| Net decrease in cash and cash equivalents | (3,609 | ) | (6,298 | ) | ||||
| Cash, cash equivalents and restricted cash at beginning of period | 59,647 | 66,859 | ||||||
| Cash, cash equivalents and restricted cash at end of period | $ | 56,038 | $ | 60,561 | ||||
FAQ
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