UTSTARCOM INC : UTStarcom Releases Financial Results for Fourth Quarter and Full Year 2010
03/11/2011| 06:20am US/Eastern
Recommend:
BEIJING, March 11, 2011 /PRNewswire-Asia-FirstCall/ -- UTStarcom, Inc. ("UTStarcom" or "the Company") (Nasdaq: UTSI), a leading provider of interactive, IP-based network solutions in iDTV, IPTV, Internet TV and Broadband for cable and telecom operators, today reported financial results for the fourth quarter of 2010 and for the full year ended December 31, 2010.
"I am pleased we exceeded our adjusted revenue target for the year and had positive operational cash flow in the fourth quarter of 2010," said Jack Lu, President and CEO of UTStarcom. "Many of the changes made during the year have begun to pay off and we believe these efforts will allow us to return to profitability."
Fourth Quarter 2010 Financial Results
Net sales for the fourth quarter of 2010 were $76.1 million as compared to $116.3 million in the fourth quarter of 2009.
Gross margin for the fourth quarter of 2010 was 11% as compared to 30% in the fourth quarter of 2009. Gross margin for the fourth quarter of 2010 included the following significant items: $3.3 million loss contract reserve and $9.9 million inventory write-down. Gross profit was $8.1 million in the fourth quarter of 2010 compared to $35.0 million in the corresponding period of 2009.
Fourth quarter 2010 GAAP operating expenses were $34.7 million compared to $75.6 million in the same period of 2009.
The GAAP net loss attributable to UTStarcom for the fourth quarter of 2010 was $23.0 million, or a loss of $0.15 per share, as compared to a loss of $39.4 million, or a loss of $0.31 per share in the fourth quarter of 2009.
Full Year 2010 Financial Results
Net sales for the year 2010 exceeded the Company's adjusted target of $ 270-280 million mainly due to an increase in multimedia product related revenue as telecom operators strove to improve their infrastructure and completed large contracts earlier than expected.
Net sales for the year 2010 were $ 291.5 million, as compared to $ 386.3 million last year. This year over year decrease was mainly attributable to the wind-down of the Company's handset business.
Gross margins for the year 2010 were 24% as compared to 17% in 2009. Gross margins for the year 2010 included the following significant items: $14.6 million inventory write-down, $6.0 million decrease in cost of sales resulting from the reversal of an accrued third party commission liability as a result of expiration of the statute of limitations and $2.6 million in loss contract reserve including adjustments from the actualization of estimated costs related to certain fixed price contracts.
Gross profit for the year 2010 was $70.2 million as compared to $65.0 million for the year 2009.
GAAP operating expenses for the year 2010 were $144.0 million compared to $283.7 million in the same period of 2009.
The GAAP net loss attributable to UTStarcom for the full year 2010 was $65.1 million or a loss of $0.48 per share, as compared to a loss of $225.7 million, or $1.77 per share in the prior year.
Net cash, cash equivalents and short-term investments as of December 31, 2010 was $352.1 million compared to $266.9 million on December 31, 2009.
Non-GAAP Results
To enable a comparison of the financial results for the Company on a year-over-year basis the Company has prepared certain non-GAAP results which present the Company's results as if the wind-down of the Company's Korea-based handset operations were completed as of the beginning of the earliest time-period presented.
The fourth quarter of 2010 non-GAAP revenue was $76 million, non-GAAP gross margin was 9% and non-GAAP operating loss was $28 million. This compares to the fourth quarter of 2009 non-GAAP revenue of $104 million, non-GAAP gross margin of 32% and non-GAAP operating loss of $43 million.
The full year 2010 non-GAAP revenue, gross margin and operating loss were $288 million, 23% and $76 million, respectively. This compares to the full year 2009 non-GAAP revenue, gross margin and operating loss of $330 million, 26% and $192 million, respectively. The decrease in non-GAAP revenue reflects the expected zero demand for the PAS infrastructure products, the exit from certain low margin Broadband products, and minimal handset sales due to the wind-down of the Company's China handset business.
Fourth Quarter 2010 Highlights
-- Net cash provided in operating activities was $5.2 million in the fourth
quarter of 2010 compared to net cash used in operating activities of
$12.4 million in the third quarter of 2010.
-- The Company improved its corporate structure to better support its new
strategy and better align the Company for sales and marketing
performance.
-- The Company closed the acquisition of Stage Smart, which will enable it
to generate revenue by providing technology and operational support for
Internet TV services.
2011 Outlook
-- The company is aiming to achieve total revenue for the year in a range
of $300-320 million, which includes PAS deferred revenue through the end
of 2011 at the rate of $23 million per quarter.
-- UTStarcom targets to generate 10% of total sales in 2011 from its new
Operational Support Service business.
-- The Company is targeting annualized operating expenses of less than $100
million.
-- UTStarcom is committed to breaking even in 2011 on a full year basis.
Conference Call
The Company will host a conference call to discuss the Company's financial results for this period before market open on Friday, March 11, 2011.
The call will take place at 5:00 a.m. (PT) / 8:00 a.m. (ET) / 9:00 p.m. China time on Friday, March 11, 2011.
The conference call dial-in numbers are as follows: United States -- 877-246-9113; International - 706-643-0515. The conference ID number is 47996784.
A replay of the call will be available for 7 days. The conference call replay numbers are as follows: United States -- 800-642-1687; International -- 706-645-9291.
The Conference ID for accessing the recording is 47996784.
Investors will also have the opportunity to listen to the conference call and the replay over the Internet through the investor relations section of UTStarcom's website at: http://www.utstar.com.
To listen to the live call, please go to the website 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 leading provider of interactive, IP-based network solutions in iDTV, IPTV, Internet TV and Broadband for cable and telecom operators. The Company sells its solutions to operators in both emerging and established telecommunications and cable 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, listed on the NASDAQ in 2000, the Company has its operational headquarters in Beijing, China and research and development operations in China and India. For more information about UTStarcom, visit the Company's website at http://www.utstar.com.
Discussion of Non-GAAP Financial Measures
In this earnings release, UTStarcom refers to certain non-GAAP financial measures. Generally, a non-GAAP financial measure is a numerical measure of a company's performance, financial position, or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. A reconciliation between non-GAAP and GAAP measures can be found in the accompanying tables. UTStarcom believes that, while these non-GAAP measures are not a substitute for GAAP results, they provide a basis for evaluating the Company's planning and forecasting of future periods. These non-GAAP measures have been reconciled to the nearest GAAP measure as required under Securities and Exchange Commission rules.
On July 31, 2009, the Company divested its Korea-based handset manufacturing operations known as UTStarcom Korea Technologies Limited. To enable a comparison of the financial results for the Company on a year-over-year and a quarter-over-quarter basis the Company has prepared certain non-GAAP results which present the Company's results as if the wind down of the Company's Korea-based handset operations were completed prior to each time period presented. The reconciliation between GAAP and these non-GAAP financial measures is provided at the end of this press release and on the Company's website.
Forward-Looking Statements
This release includes forward-looking statements, including statements regarding the effects of the Company's corporate structure, expectations relating to the acquisition of Stage Smart and expectations regarding the Company's performance in 2011. These statements are forward-looking in nature and subject to risks and uncertainties that may cause actual results to differ materially. These include risks and uncertainties regard the ability of the Company to realize anticipated results of operational improvements, the Company's ability to integrate and capitalize on the opportunities by the acquisition of Stage Smart, revenues and expenses under its new business model, and executing on its business plan and managing regulatory matters as well as 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. The Company is in a period of significant transition and in the conduct of its business is exposed to additional risks as a result. All forward-looking statements included in this release are based upon information available to the Company as of the date of this release, which may change, and we assume no obligation to update any such forward-looking statement.
For investor and media inquiries, please contact:
Jing Ou-Yang
UTStarcom, Inc.
Phone: +8610 8520 5153
jouyang@utstar.com
Brion Tingler
Kreab Gavin Anderson
Phone: +8610 6535 3567
btingler@kreabgavinanderson.com
UTStarcom, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
December December
31, 31,
2010 2009
---- ----
ASSETS (Unaudited) (Audited)
Current assets:
Cash, cash equivalents and short-term
investments $352,053 $266,881
Accounts and notes receivable, net 30,177 43,773
Inventories and deferred costs 159,583 202,753
Prepaids and other current assets 62,772 74,354
Total current assets 604,585 587,761
Long-term assets:
Property, plant and equipment, net 4,819 130,612
Goodwill 13,820 -
Intangible assets, net 4,858 -
Long-term deferred costs 132,587 184,978
Other long-term assets 23,614 25,760
Total assets $784,283 $929,111
======== ========
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable $36,356 $54,115
Customer advances 82,607 120,364
Deferred revenue 182,963 170,777
Other current liabilities 88,923 147,914
------ -------
Total current liabilities 390,849 493,170
Long-term liabilities:
Long-term deferred revenue and other
liabilities 144,494 179,790
------- -------
Total liabilities 535,343 672,960
Total equity 248,940 256,151
------- -------
Total liabilities and equity $784,283 $929,111
======== ========
UTStarcom, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except per share amounts)
Three months ended
December 31,
2010 2009
---- ----
(Unaudited) (Unaudited)
Net sales $76,129 $116,337
Cost of net sales 68,065 81,361
Gross profit 8,064 34,976
----- ------
11 % 30 %
Operating expenses:
Selling, general and administrative 19,358 26,452
Research and development 9,021 11,260
Amortization of intangible assets 206 -
Impairment of goodwill and other long-
lived assets - 33,287
Restructuring 6,391 5,010
Net gain on divestiture (304) (432)
Total operating expenses 34,672 75,577
------ ------
Operating loss (26,608) (40,601)
------- -------
Interest income, net 555 275
Other income, net 2,741 5,644
Loss before income taxes (23,312) (34,682)
Income taxes benefit (expense) 128 (4,694)
Net loss (23,184) (39,376)
Net (income) loss attributable to
noncontrolling interest 155 (16)
Net loss attributable to UTStarcom,
Inc. $(23,029) $(39,392)
======== ========
Net loss per share attributable to
UTStarcom, Inc. -Basic and $(0.15) $(0.31)
Diluted
Weighted average shares used in per
share calculation:
Basic and Diluted 152,714 128,581
======= =======
Year ended December
31,
2010 2009
---- ----
(Unaudited) (Audited)
Net sales $291,535 $386,344
Cost of net sales 221,297 321,365
Gross profit 70,238 64,979
------ ------
24 % 17 %
Operating expenses:
Selling, general and administrative 95,240 140,742
Research and development 38,044 63,243
Amortization of intangible assets 206 -
Impairment of goodwill and other long-
lived assets - 33,287
Restructuring 16,018 46,495
Net gain on divestiture (5,548) (100)
Total operating expenses 143,960 283,667
------- -------
Operating loss (73,722) (218,688)
------- --------
Interest income, net 1,739 1,541
Other income, net 9,808 2,303
Loss before income taxes (62,175) (214,844)
Income taxes benefit (expense) (3,115) (10,860)
Net loss (65,290) (225,704)
Net (income) loss attributable to
noncontrolling interest 161 16
Net loss attributable to UTStarcom,
Inc. $(65,129) $(225,688)
======== =========
Net loss per share attributable to
UTStarcom, Inc. -Basic and $(0.48) $(1.77)
Diluted
Weighted average shares used in per
share calculation:
Basic and Diluted 137,057 127,346
======= =======
UTStarcom, Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands, except per share amounts)
(Unaudited)
Three months Three months
ended ended
December 31, December 31,
------------ ------------
2010 2009
---- ----
(In thousands) (In thousands)
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net cash provided by
operating activities 5,223 21,754
----- ------
CASH FLOWS FROM INVESTING
ACTIVITIES:
Additions to property,
plant and equipment (833) (361)
Net proceeds from
divestitures 533 -
Deposit received on pending
sale of building - 7,307
Change in restricted cash 5,881 (3,868)
Proceeds from settlement of
an investment interest - 1,039
Purchase of an investment
interest (2,152) -
Purchase of short-term
investments (581) (431)
Proceeds from sale of
short-term investments 2,990 2,534
Other 3 198
Net cash provided by
investing activities 5,841 6,418
----- -----
CASH FLOWS FROM FINANCING
ACTIVITIES:
Repurchase of common stock (9) -
--- ---
Net cash used in financing
activities (9) -
Effect of exchange rate
changes on cash and cash
equivalents 3,426 559
----- ---
Net increase in cash and
cash equivalents 14,481 28,731
Cash and cash equivalents
at beginning of period 337,026 237,112
Cash and cash equivalents
at end of period $351,507 $265,843
======== ========
UTStarcom, Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands, except per share amounts)
Year ended Year ended
December 31, December 31,
------------ ------------
2010 2009
---- ----
(Unaudited) (Audited)
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net cash used in operating
activities (92,182) (67,448)
------- -------
CASH FLOWS FROM INVESTING
ACTIVITIES:
Additions to property, plant and
equipment (3,449) (2,012)
Net proceeds from divestitures 3,381 11,508
Deposit received on pending sale of
building - 7,307
Change in restricted cash 13,260 (1,973)
Proceeds from settlement of an
investment interest 481 2,639
Purchase of an investment interest (2,702) -
Purchase of short-term investments (12,583) (6,945)
Proceeds from sale of short-term
investments 10,815 10,159
Other 335 635
Net cash provided by investing
activities 133,493 21,318
------- ------
CASH FLOWS FROM FINANCING
ACTIVITIES:
Issuance of stock and option, net
of expense 34,594 -
Issuance of common stock upon
exercise of options and ESPP - 367
Repurchase of common stock (67) -
Change in bank overdrafts - (755)
--- ----
Net cash provided by (used in)
financing activities 34,527 (388)
Effect of exchange rate changes on
cash and cash equivalents 9,826 2,758
----- -----
Net increase/ (decrease) in cash
and cash equivalents 85,664 (43,760)
Cash and cash equivalents at
beginning of period 265,843 309,603
Cash and cash equivalents at end of
period $351,507 $265,843
======== ========
UTSTARCOM, INC.
Mar 11, 2011 Conference Call
RECONCILIATION OF GAAP REVENUE TO NON-GAAP REVENUE
($ in millions)
(Unaudited)
To supplement our condensed consolidated financial statements
presented on a GAAP basis, UTStarcom uses certain non-GAAP measures
which are adjusted to present those metrics as if the Korea handsets
business had been wound down prior to each time period reflected
below. We believe this enables year over year comparisons to our
recent financial results. These adjustments to our GAAP results are
made with the intent of providing both management and investors a
more complete understanding of UTStarcom's underlying results and
trends. In addition, these adjusted non-GAAP results are among
the information management uses as a basis for our planning and
forecasting of future periods. The presentation of this additional
information is not meant to be considered in isolation or as a
substitute for results prepared in accordance with generally
accepted accounting principles in the United States.
Qtr Qtr Qtr Qtr Year
ended ended ended ended ended
30-
31-Mar- Jun- 30-Sep- 31-Dec- 31-Dec-
09 09 09 09 09
------- ---- ------- ------- -------
GAAP Revenue
(a) $119 $80 $71 $116 $386
Less: Korea
Handset Sales
to PCD (b) 39 (3) 8 12 56
Non-GAAP
Revenue $80 $83 $63 $104 $330
=== === === ==== ====
Qtr Qtr Qtr Qtr Year
ended ended ended ended ended
30-
31-Mar- Jun- 30-Sep- 31-Dec- 31-Dec-
10 10 10 10 10
------- ---- ------- ------- -------
GAAP Revenue
(a) $81 $73 $61 $76 $291
Less: Korea
Handset Sales
to PCD (b) 3 - - - 3
Non-GAAP
Revenue $78 $73 $61 $76 $288
=== === === === ====
(a) GAAP Revenue for each period is the consolidated revenue as
reported on Form 10-Q or Form 10-K, as applicable, for such period,
except for the consolidated revenue for the quarters ended December
31, 2008 and 2009, which is derived from the revenue reported in the
Form 10-Qs and Form 10-K with respect to fiscal years 2008 and 2009.
(b) Prior to the July 1, 2008 divestiture of PCD, Korea handset did
not record revenue for units shipped to PCD as this activity was an
intercompany transfer. After July 1, 2008 this activity was
recorded as a third party sale in the Handset segment.
UTSTARCOM, INC.
Mar 11, 2011 Conference Call
RECONCILIATION OF GAAP GROSS PROFIT TO NON-GAAP GROSS PROFIT
($ in millions)
(Unaudited)
To supplement our condensed consolidated financial statements
presented on a GAAP basis, UTStarcom uses certain non-GAAP measures
which are adjusted to present those metrics as the Korea handsets
business had been wound down prior to each time period reflected
below. We believe this enables year over year comparisons to our
recent financial results. These adjustments to our GAAP results are
made with the intent of providing both management and investors a
more complete understanding of UTStarcom's underlying results and
trends. In addition, these adjusted non-GAAP results are among the
information management uses as a basis for our planning and
forecasting of future periods. The presentation of this additional
information is not meant to be considered in isolation or as a
substitute for results prepared in accordance with generally
accepted accounting principles in the United States.
Qtr Qtr Qtr Year
ended Qtr ended ended ended ended
31-
Mar- 30-Sep- 31-Dec- 31-Dec-
09 30-Jun-09 09 09 09
---- --------- ------- ------- -------
GAAP Gross
Profit (a) $22 ($16) $24 $35 $65
GAAP Gross
Margin % 18% (20%) 34% 30% 17%
Less: Korea
Handset Gross
Profit from
Sales to PCD
(b) 3 (28) 2 2 (21)
Non-GAAP Gross
Profit $19 $12 $22 $33 $86
=== === === === ===
Non-GAAP Gross
Margin % 24% 14% 35% 32% 26%
Qtr Qtr Qtr Qtr Year
ended ended ended ended ended
31- 30-
Mar- Jun- 30-Sep- 31-Dec- 31-Dec-
10 10 10 10 10
---- ---- ------- ------- -------
GAAP Gross
Profit (a) $27 $23 $12 $8 $70
GAAP Gross
Margin % 34% 32% 20% 11% 24%
Less: Korea
Handset Gross
Profit from
Sales to PCD
(b) 1 1 (1) 1 2
Non-GAAP Gross
Profit $26 $22 $13 $7 $67
=== === === === ===
Non-GAAP Gross
Margin % 33% 30% 20% 9% 23%
(a) GAAP Gross Profit and GAAP Gross Margin % for each period is the
consolidated gross profit and gross margin % as reported on Form
10-Q or Form 10-K, as applicable, for such period, except for the
consolidated gross profit and gross margin % for the quarter ended
December 31, 2008 and 2009, which is derived from the gross profit
and gross margin % reported in the Form 10-Qs and Form 10-K with
respect to fiscal years 2008 and 2009.
(b) Prior to the July 1, 2008 divestiture of PCD, Korea handset
earned a gross profit on the intercompany transfer of inventory to
PCD. This gross profit was recorded in the Handset segment. After
July 1, 2008 this activity was recorded as a third party
transaction.
UTSTARCOM, INC.
Mar 11, 2011 Conference Call
RECONCILIATION OF GAAP OPERATING EXPENSE TO NON-GAAP OPERATING EXPENSE
($ in millions)
(Unaudited)
To supplement our condensed consolidated financial statements
presented on a GAAP basis, UTStarcom uses certain non-GAAP measures
which are adjusted to present those metrics as if the Korea handsets
business had been wound down prior to each time period reflected
below. We believe this enables year over year comparisons to our
recent financial results. These adjustments to our GAAP results are
made with the intent of providing both management and investors a
more complete understanding of UTStarcom's underlying results and
trends. In addition, these adjusted non-GAAP results are among the
information management uses as a basis for our planning and
forecasting of future periods. The presentation of this additional
information is not meant to be considered in isolation or as a
substitute for results prepared in accordance with generally
accepted accounting principles in the United States.
Qtr Qtr Qtr Qtr Year
ended ended ended ended ended
31- 30-
Mar- Jun- 30-Sep- 31-Dec- 31-Dec-
09 09 09 09 09
---- ---- ------- ------- -------
GAAP Operating
Expense (a) $81 $70 $58 $76 $285
Less: Korea
Handset
Operating
Expense (b) 3 2 1 - 6
Non-GAAP
Operating
Expense $78 $68 $57 $76 $279
=== === === === ====
Qtr Qtr Qtr Qtr Year
ended ended ended ended ended
30-
31-Mar- Jun- 30-Sep- 31-Dec- 31-Dec-
10 10 10 10 10
------- ---- ------- ------- -------
GAAP Operating
Expense (a) $46 $28 $35 $35 $144
Less: Korea
Handset
Operating
Expense (b) - - - - 0
Non-GAAP
Operating
Expense $46 $28 $35 $35 $144
=== === === === ====
(a) GAAP Operating Expense for each period is the consolidated
operating expense as reported on Form 10-Q or Form 10-K, as
applicable, for such period, except for the consolidated operating
expense for the quarter ended December 31, 2008 and 2009, which is
derived from the operating expenses reported in the Form 10-Qs and
Form 10-K with respect to the fiscal years 2008 and 2009.
(b) Both prior to and after the July 1, 2008 divestiture of PCD, all
direct operating expense relating to Korea handset has been recorded
in the Handset segment.
UTSTARCOM, INC.
Mar 11, 2011 Conference Call
RECONCILIATION OF GAAP OPERATING LOSS TO NON-GAAP OPERATING LOSS
($ in millions)
(Unaudited)
To supplement our condensed consolidated financial statements
presented on a GAAP basis, UTStarcom uses certain non-GAAP measures
which are adjusted to present those metrics as if the Korea handsets
business had been wound down prior to each time period reflected
below. We believe this enables year over year comparisons to our
recent financial results. These adjustments to our GAAP results are
made with the intent of providing both management and investors a
more complete understanding of UTStarcom's underlying results and
trends. In addition, these adjusted non-GAAP results are among the
information management uses as a basis for our planning and
forecasting of future periods. The presentation of this additional
information is not meant to be considered in isolation or as a
substitute for results prepared in accordance with generally
accepted accounting principles in the United States.
Qtr Qtr Qtr Qtr Year
ended ended ended ended ended
31- 30-
Mar- Jun- 30-Sep- 31-Dec- 31-Dec-
09 09 09 09 09
---- ---- ------- ------- -------
GAAP Operating
Loss (a) ($59) ($85) ($34) ($41) ($219)
Less: Korea
Handset
Operating
Income (Loss)
(b) - (30) 1 2 (27)
Non-GAAP
Operating Loss ($59) ($55) ($35) ($43) ($192)
==== ==== ==== ==== =====
Qtr Qtr Qtr Qtr Year
ended ended ended ended ended
31- 30-
Mar- Jun- 30-Sep- 31-Dec- 31-Dec-
10 10 10 10 10
---- ---- ------- ------- -------
GAAP Operating
Loss (a) ($19) ($5) ($23) ($27) ($74)
Less: Korea
Handset
Operating
Income (Loss)
(b) 1 1 (1) 1 2
Non-GAAP
Operating Loss ($20) ($6) ($23) ($28) ($76)
==== === ==== ==== ====
(a) GAAP Operating Loss for each period is the consolidated
operating loss as reported on Form 10-Q or Form 10-K, as applicable,
for such period, except for the consolidated operating loss for the
quarter ended December 31, 2008 and 2009, which is derived from the
operating loss reported in the Form 10-Qs and Form 10-K with respect
to fiscal years 2008 and 2009.
(b) Both prior to and after the July 1, 2008 divestiture of PCD, the
operating loss relating to Korea handset has been recorded in the
Handset segment.
UTSTARCOM, INC.
Mar 11, 2011 Conference Call
ABBREVIATED NON-GAAP P&L STATEMENT (a)
($ in millions)
(Unaudited)
To supplement our condensed consolidated financial statements
presented on a GAAP basis, UTStarcom uses certain non-GAAP measures
which are adjusted to present those metrics as if the Korea handsets
business had been wound down prior to each time period reflected
below. We believe this enables year over year comparisons to our
recent financial results. These adjustments to our GAAP results are
made with the intent of providing both management and investors a
more complete understanding of UTStarcom's underlying results and
trends. In addition, these adjusted non-GAAP results are among the
information management uses as a basis for our planning and
forecasting of future periods. The presentation of this additional
information is not meant to be considered in isolation or as a
substitute for results prepared in accordance with generally
accepted accounting principles in the United States.
Qtr Qtr Qtr Qtr Year
ended ended ended ended ended
31- 30-
Mar- Jun- 30-Sep- 31-Dec- 31-Dec-
09 09 09 09 09
---- ---- ------- ------- -------
Non-GAAP Revenue $80 $83 $63 $104 $330
Non-GAAP Gross Profit 19 12 22 33 86
Non-GAAP Gross Margin % 24% 14% 35% 32% 26%
Non-GAAP Operating 78 68 57 76 279
Expense
Non-GAAP Operating Loss ($59) ($55) ($35) ($43) ($192)
==== ==== ==== ==== =====
Qtr Qtr Qtr Qtr Year
ended ended ended ended ended
30-
31-Mar- Jun- 30-Sep- 31-Dec- 31-Dec-
10 10 10 10 10
------- ---- ------- ------- -------
Non-GAAP Revenue $78 $73 $61 $76 $288
Non-GAAP Gross Profit 26 22 13 7 67
Non-GAAP Gross Margin % 33% 30% 20% 9% 23%
Non-GAAP Operating 46 28 35 35 144
Expense
Non-GAAP Operating Loss (20) ($6) ($23) ($28) ($76)
=== === ==== ==== ====
(a) Please refer to the preceding reconciliation tables for the
adjustments to GAAP Revenue, Gross Profit, Operating Expense and
Operating Loss.
SOURCE UTStarcom, Inc.
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