Business
UTStarcom Reports Unaudited Financial Results for Fourth Quarter and Full Year 2019
HANGZHOU, China, March 27, 2020 (GLOBE NEWSWIRE) -- UTStarcom (“UT” or “the Company”) (NASDAQ: UTSI), a global telecommunications infrastructure provider,
About this update from Utstarcom Holdings Corp
[{"type":"text","content":"HANGZHOU, China, March 27, 2020 (GLOBE NEWSWIRE) -- UTStarcom (“UT” or “the Company”) (NASDAQ: UTSI), a global telecommunications infrastructure provider, today reported its unaudited financial results for the fourth quarter and full year ended December 31, 2019, and provided a business update.\n Business Update Q4 Revenue Met Expectations. Fourth quarter revenue of $14.2 million was at the high end of the Company’s guidance range of $10 to $15 million. The net loss for the quarter was attributable to foreign currency losses and a slight operating loss.CEO Leave of Absence. As announced on March 16, 2020, the Company’s Chief Executive Officer (CEO) Mr. Tim Ti has taken a temporary leave of absence due to health reasons (unrelated to the COVID-19 virus). The Company’s Board of Directors appointed UT’s Senior Vice President of Sales and Business Development for Japan and Korea, Dr. Zhaochen Huang as acting CEO.Impact of the COVID-19 Virus. Due to the mandatory shutdowns implemented by the Chinese government, some customer shipments were temporarily interrupted during the first quarter of 2020, but with limited financial impact. As of the date of this release, production and operations in China have generally returned to normal. However, as the Coronavirus pandemic is escalating around the globe, the impact to the Company’s future operations, revenue and earnings is likely to be significant and prolonged.India Receivable. The Company continues to collect amounts due from its major customer in India which is in the process of implementing an India government backed restructuring plan. Since the Company’s last earnings release on November 8, 2019, over $12 million has been collected, with $54 million still outstanding. As a result of the recently announced 21-day national lockdown in India, the timing of future payments is uncertain.Status of Large 5G Network Opportunity in China. The Company was recently informed that the vendor team, of which the Company is a member, will not receive meaningful contract awards to support a large 5G project for a carrier in China for which its team was competing. The carrier recently announced that the majority of the business will be awarded to other local vendors.Business Streamlining. The Company has reassessed its less promising businesses and will discontinue its goSmart product line and exit t...