UTStarcom Reports Unaudited Financial Results for Second Half and Full Year 2024
HANGZHOU, China, March 24, 2025 (GLOBE NEWSWIRE) -- UTStarcom (the Company) $(UTSI)$, a global telecommunications infrastructure provider, today reported its unaudited financial results for the six months and full year ended December 31, 2024, and provided a business update.
Business Update
-- China Telecom Research Institute RFP win. The second half of 2024 marked
a major milestone for UTStarcom's 5G transport network portfolio. The
Company's commitment to the development of a next generation
disaggregated 5G transport network solution and our cooperation with some
of the major mobile operators in China, culminated in a significant win
of a multi-million dollar China Telecom Research Institute RFP for
manufacturing 5G transport network routers. The equipment is intended for
use on China Telecom's STN network -- China Telecom's metropolitan area
network, which is crucial for supporting its 5G mobile network services,
as well as enterprise, broadband, cloud and other services. The RFP
covers the manufacturing of a substantial quantity of carrier-grade
disaggregated routers hardware. The related frame agreements were signed
in early 2025. Specific product quantities will be defined in purchase
orders expected throughout 2025.
-- Cooperation with a Mobile Network Operator customer in Europe. UTStarcom
completed the development of a customized version of the NG-PTN product,
NetRing TN704ES, specifically tailored to better support the customer's
future network expansion plans. Samples of the product have been provided
to the customer for testing. We anticipate receiving orders for this
product in 2025.
-- Post-sale support services to customers globally. The Company continued
to provide support to its customers around the world in accordance with
existing support and maintenance contracts for products such as NetRing
PTN, SyncRing, IMS, SSTP, etc. Furthermore, in 2H 2024, the Company also
received renewal orders for post-sale support pertaining to NG-PTN and
MSAN products.
UTStarcom's Chief Executive Officer Mr. Hua Li commented, "We have made important progresses by winning RFP from one of the major telecom operators in China; and we are also enhancing our co-operations with other business partners to expand the deployment of our products. We expect these progresses will bring improvements to our business."
Second Half and Full Year 2024 Financial Results (Unaudited)
Summary of 2H 2024 Key Financials (Unaudited)
2H 2024 2H 2023 Y/Y Change
----------------------------------------- ------- ------- ----------
Revenue $5.2 $9.2 -43.5%
----------------------------------------- ------- ------- ----------
Gross Profit $1.2 $2.6 -53.8%
----------------------------------------- ------- ------- ----------
Operating Expenses $4.9 $5.4 -9.3%
----------------------------------------- ------- ------- ----------
Operating Loss ($3.7) ($2.8) ($0.9)
----------------------------------------- ------- ------- ----------
Net Loss ($2.4) ($1.8) ($0.6)
----------------------------------------- ------- ------- ----------
Basic EPS ($0.26) ($0.20) ($0.06)
----------------------------------------- ------- ------- ----------
Cash Balance (including Restricted Cash) $53.1 $59.6 -10.9%
----------------------------------------- ------- ------- ----------
Summary of Full Year 2024 Key Financials (Unaudited)
2024 2023 Y/Y Change
----------------------------------------- ------- ------- ----------
Revenue $10.9 $15.8 -31.0%
----------------------------------------- ------- ------- ----------
Gross Profit $2.9 $4.4 -34.1%
----------------------------------------- ------- ------- ----------
Operating Expenses $10.2 $11.2 -8.9%
----------------------------------------- ------- ------- ----------
Operating Loss ($7.3) ($6.8) ($0.5)
----------------------------------------- ------- ------- ----------
Net Loss ($4.4) ($3.9) ($0.5)
----------------------------------------- ------- ------- ----------
Basic EPS ($0.48) ($0.42) ($0.06)
----------------------------------------- ------- ------- ----------
Cash Balance (including Restricted Cash) $53.1 $59.6 -10.9%
----------------------------------------- ------- ------- ----------
(*) 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
Six months ended December 31, 2024
Total revenues for the second half of 2024 were $5.2 million, compared to $9.2 million in the corresponding period in 2023.
-- Net equipment sales for the second half of 2024 were $0.6 million, a
decrease of 82.9% from $3.6 million in the corresponding period in 2023.
The decrease was mainly due to decreased revenue from customers in India.
-- Net services sales for the second half of 2024 were $4.6 million, a
decrease of 19.4% from $5.6 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.
Twelve months ended December 31, 2024
2024 total revenues were $10.9 million, a decrease of 31.0% from $15.8 million in 2023.
-- 2024 net equipment sales were $1.4 million, a decrease of 69.4% from $4.6
million in the corresponding period in 2023. The decrease was mainly due
to decreased revenue from customers in India.
-- 2024 net services sales were $9.5 million, a decrease of 15.1% from $11.2
million in 2023. The decrease was mainly due to the completion of current
projects and no new major projects in India.
Gross Profit
Six months ended December 31, 2024
Gross profit was $1.2 million, or 23.1% of net sales, for the second half of 2024, compared to $2.6 million, or 27.8% of net sales, in the corresponding period in 2023.
-- Equipment gross profit for the second half of 2024 was $0.1 million,
compared to $0.8 million in the corresponding period in 2023. Equipment
gross margin for the second half of 2024 was 16.2%, compared to 21.0% for
the corresponding period in 2023. The decrease in gross margin was
attributed to a lower equipment revenue in 2024.
-- Service gross profit for the second half of 2024 was $1.1 million,
compared to $1.8 million in the corresponding period in 2023. Service
gross margin for the second half of 2024 was 24.0%, compared to 32.2% for
the corresponding period in 2023, due to decreased activity with the
major customers in India and China.
Twelve months ended December 31, 2024
2024 gross profit was $2.9 million, or 26.7% of net sales, compared to $4.4 million, or 27.9% of net sales, in 2023.
-- 2024 equipment gross profit was $0.2 million, compared to $0.9 million in
2023. 2024 equipment gross margin was 13.0%, compared to 20.2% in 2023.
The decrease in gross margin was attributed to a lower equipment revenue
in 2024.
-- 2024 service gross profit was $2.7 million, compared to $3.5 million in
2023. 2024 service gross margin was 28.7%, compared to 31.0% in 2023, due
to decreased activity with the major customers in India and China.
Operating Expenses
Six months ended December 31, 2024
Operating expenses for the second half of 2024 were $4.9 million, compared to $5.4 million in the corresponding period in 2023.
-- Selling, general and administrative ("SG&A") expenses for the second half
of 2024 were $2.4 million, compared to $2.4 million in the corresponding
period in 2023.
-- Research and development ("R&D") expenses for the second half of 2024
were $2.5 million, compared to $3.0 million in the corresponding period
in 2023. The decrease reflected the different stages of 5G product
development.
Twelve months ended December 31, 2024
2024 operating expenses were $10.2 million, compared to $11.2 million in 2023.
-- 2024 SG&A expenses were $5.1 million, compared to $5.3 million in 2023.
The decrease was mainly attributable to decreased personnel cost as a
result of the reduction of personnel.
-- 2024 R&D expenses were $5.1 million, compared to $5.9 million in 2023.
The decrease reflected the different stages of 5G product development.
Operating Loss
Operating loss for the second half of 2024 was $3.7 million, compared to $2.8 million in the corresponding period in 2023.
Full year 2024 operating loss was $7.3 million, compared to $6.8 million in 2023.
Interest Income, Net
Net interest income for the second half of 2024 was $1.5 million, compared to $1.3 million in the corresponding period in 2023.
Full year 2024 net interest income was $2.8 million, compared to $2.2 million in 2023. The increase was mainly due to higher interest income in China.
Other Income (Expenses), Net
Net other income for the second half of 2024 was $0.1 million, compared to net other income of $0.1 million in the corresponding period in 2023.
Full year 2024 net other income was $0.9 million, compared to net other income of $2.0 million in 2023. Other income for 2024 was mainly a foreign exchange gain resulting from appreciation of the U.S. dollar against the Renminbi.
Net Loss
Net loss attributable to shareholders for the second half of 2024 was $2.4 million, compared to $1.8 million in the corresponding period in 2023. Basic net loss per share for the second half of 2024 was $0.26, compared to $0.20 for the corresponding period in 2023.
Full year 2024 net loss attributable to shareholders was $4.4 million, compared to $3.9 million in 2023. 2024 basic net loss per share was $0.48, compared to $0.42 in 2023.
Cash Flow
Cash used in operating activities in the second half of 2024 was $2.0 million, cash used in investing activities was $0.1 million, and cash provided by financing activities was nil. As of December 31, 2024, UTStarcom had cash, cash equivalents and restricted cash of $53.1 million.
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, the effect of the COVID-19 pandemic on the Company's business, 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
December 31, December 31,
2024 2023
-------------- --------------
(In thousands)
ASSETS
Current assets:
Cash and cash equivalents $ 43,913 $ 49,968
Notes receivable, net 659 490
Short-term investments 165 --
Accounts receivable, net 4,849 8,380
Inventories and deferred costs 2,156 886
Short-term restricted cash 6,824 7,117
Prepaid and other current assets 4,454 3,755
---------- ----------
Total current assets 63,020 70,596
Long-term assets:
Property, plant and equipment, net 476 610
Operating lease right-of-use
assets, net 1,399 2,649
Long-term restricted cash 2,406 2,562
Other long-term assets 848 1,063
---------- ----------
Total long-term assets 5,129 6,884
---------- ----------
Total assets $ 68,149 $ 77,480
========== ==========
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable $ 6,957 $ 7,959
Customer advances 769 226
Deferred revenue 62 72
Income tax payable 8,163 8,509
Operating lease liabilities,
current 1,084 1,184
Other current liabilities 4,342 5,438
---------- ----------
Total current liabilities 21,377 23,388
Long-term liabilities:
Operating lease liabilities,
non-current 504 1,660
Long-term deferred revenue and
other liabilities 1,042 1,049
---------- ----------
Total liabilities 22,923 26,097
Total equity 45,226 51,383
---------- ----------
Total liabilities and equity $ 68,149 $ 77,480
========== ==========
UTStarcom Holdings Corp.
Unaudited Condensed Consolidated Statements of Operations
Six months ended Twelve months ended
December 31, December 31,
2024 2023 2024 2023
------- ------- ------- -------
(In thousands, except per share data)
Net sales $ 5,159 $ 9,239 $10,878 $15,753
Cost of net sales 3,968 6,670 7,972 11,363
------ ------ ------ ------
Gross profit 1,191 2,569 2,906 4,390
------ ------ ------ ------
23.1% 27.8% 26.7% 27.9%
Operating expenses:
Selling, general and
administrative 2,412 2,426 5,152 5,318
Research and
development 2,510 3,007 5,085 5,881
------ ------ ------ ------
Total operating
expenses 4,922 5,433 10,237 11,199
------ ------ ------ ------
Operating loss (3,731) (2,864) (7,331) (6,809)
------ ------ ------ ------
Interest income, net 1,459 1,342 2,791 2,208
Other income
(expense), net 49 112 855 2,024
------ ------ ------ ------
Loss before income
taxes (2,223) (1,410) (3,685) (2,577)
Income tax expense (129) (430) (683) (1,274)
------ ------ ------ ------
Net loss
attributable to
UTStarcom Holdings
Corp. $(2,352) $(1,840) $(4,368) $(3,851)
====== ====== ====== ======
Net loss per share
attributable to
UTStarcom Holdings
Corp.--Basic $ (0.26) $ (0.20) $ (0.48) $ (0.42)
====== ====== ====== ======
Weighted average
shares
outstanding--Basic 9,179 9,116 9,150 9,113
====== ====== ====== ======
UTStarcom Holdings Corp.
Unaudited Condensed Consolidated Statements of Cash
Flows
Six months ended Twelve months ended
December 31, December 31,
2024 2023 2024 2023
------- ------- ------- -------
(In thousands)
CASH FLOWS FROM
OPERATING
ACTIVITIES:
Net loss $(2,352) $(1,840) $(4,368) $(3,851)
Depreciation 138 114 275 230
Recovery of
credit losses (37) (317) (39) (1,315)
Stock-based
compensation
expense 56 110 117 293
Net gain on
disposal of
assets -- -- -- (25)
Gain on release
of tax
liability due
to expiration
of the statute
of
limitations (10) (10) (21) (21)
Lease
amortization 544 584 1,123 1,200
Deferred income
taxes 154 275 154 275
Changes in fair
value for
trading
securities
investment 204 -- (165) --
Changes in
operating
assets and
liabilities (667) 423 (1,533) (1,264)
------ ------ ------ ------
Net cash used
in operating
activities (1,970) (661) (4,457) (4,478)
------ ------ ------ ------
CASH FLOWS FROM
INVESTING
ACTIVITIES:
Additions to
property,
plant and
equipment (86) (73) (192) (255)
Net cash used
in investing
activities (86) (73) (192) (255)
------ ------ ------ ------
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 (839) (180) (1,855) (2,483)
------ ------ ------ ------
Net decrease
in cash and
cash
equivalents (2,895) (914) (6,504) (7,212)
------ ------ ------ ------
Cash, cash
equivalents and
restricted cash
at beginning of
period 56,038 60,561 59,647 66,859
------ ------ ------ ------
Cash, cash
equivalents and
restricted cash
at end of period $53,143 $59,647 $53,143 $59,647
====== ====== ====== ======
(END) Dow Jones Newswires
March 24, 2025 06:27 ET (10:27 GMT)
免責聲明：投資有風險，本文並非投資建議，以上內容不應被視為任何金融產品的購買或出售要約、建議或邀請，作者或其他用戶的任何相關討論、評論或帖子也不應被視為此類內容。本文僅供一般參考，不考慮您的個人投資目標、財務狀況或需求。TTM對信息的準確性和完整性不承擔任何責任或保證，投資者應自行研究並在投資前尋求專業建議。