UTStarcom Holdings Corp · NASDAQ:UTSI
UTStarcom — Q3 2014 Earnings Presentation
21 slides from UTStarcom's earnings presentation, December 2014
Slide 1: UTStarcom Holdings Corp Investor Presentation
UTStarcom Holdings Corp Investor Presentation NASDAQ: UTSI December 2014
Slide 2: Investment Highlights
Investment Highlights Leading Packet Optical Transport, WiFi and SDN provider with global presence and multiple blue chip carrier customers Long-term partnerships with the Tier one carrier in Japan Proven portfolio of innovative solutions that help operators to quickly launch new services while also
Slide 3: Overview of Key Products
Overview of Key Products 100G Packet Optical Transport Nearly 10000 nodes have been deployed Surpassed $250 million milestone in early Global spending on Carrier Ethernet Switches: 2014 In 2013: $2.9B By 2018: $3.7B (projected) Flagship 100G TN765 launched in 2014 SDN - enabled Integrated Carrier Wi
Slide 4: Growth Strategy
Growth Strategy UTStarcom Has Four Core Strategies To Drive Future Growth 4
Slide 5: Our Product Portfolio
Our Product Portfolio Software Defined Network (SDN) & Network Management System (NMS) • SDN product Line: SOO (Software Defined Open Packet • Strong network and device management Optical) Network with e2e provisioning capability • SOO Station: SDN Sub/Central Controller • User friendly and large sc
Slide 6: Packet Optical Devices - From network edge to the Core
Packet Optical Devices - “From network edge to the Core” Access/Edge Device Edge/Aggregation Device Aggregation/Core Device TN 703E TN 765 TN 725/E • 960Gb/s / • 108/176Gb/s 1.28Tb/s SW • 44Gb/s SW SW • 100GE • FE/GE/XGE • 2.5/10G POS • 10GE • E1/STM-1 • FE/GE/XGE • WDM/ROADM • E1/STM-1 TN 703C/+ 7U
Slide 7: Packet Optical Transport – 100G TN765
Packet Optical Transport – 100G TN765 Flag ship product for TN series Support of 100GE transmission High capacity: 1Tbps Full-Duplex redundant MPLS Switching, up to 1.28Tpbs interfaces capability SDN-enabled device, support of L3VPN High port density: up to 96 x 10GE ports Integrated WDM
Slide 8: Outstanding In-House Manufacturing Capability
Outstanding In-House Manufacturing Capability Over 20 years focus on producing telecom equipments •From PCB Assembly To MEC Assembly To System Integration •From NPI (New Products Introduction) To MP (Mass Production) •SMT, THT (PTH), MEC Assembly, Micro BGA, CSP,0201 •BGA Rework and Re-Balling B
Slide 9: Multiple Tier-1 Carrier Customers
Multiple Tier-1 Carrier Customers Japan Taiwan Softbank Taiwan Chunghwa Telecom NEC India – around 35% broadband market share Indonesia BNSL Telkomsel Reliance Tata Brazil Bharti Oi Korea USA Key Partner Dasan Networks, who In pursuit of US telecom carriers and also holds our 5
Slide 10: Book Value of Our Investments
Book Value of Our Investments Unit: US$ in millions UTSI's Holding % Values on Book uiTV 49% 26.8 aioTV 44% 8.0 Wireless City Planning 33% 9.2 (Through ACELAND) Others in total N/A 24.5 Total N/A 68.5 10
Slide 11: uiTV, Inc.
uiTV,Inc. Overview Diversified Content Founded in 2010, uiTV is dedicated to pioneering the transition of traditional telecom networks to advanced triple-play entertainment services providers by delivering all-digital, high definition, intelligent, and interactive television services. In partner
Slide 12: aioTV, Inc.
aioTV, Inc. Overview aioTV is a middleware platform and back-office tool set that enables video service providers to easily aggregate, authenticate and deliver multiple sources of live, on-demand and freely available video content directly to the customer in a single, branded experience to the TV
Slide 13: Wireless City Planning, Inc.
Wireless City Planning, Inc. Overview Founded in June 2010, Wireless City Planning (WCP) engages in planning and provision of wireless broadband services, and became Worldwide No.1 and pioneer Mobile Virtual Network Operator (MVNO) in connectivity in the smartphone era. Use innovative TD-LTE com
Slide 14: Total Revenue
Total Revenue Third quarter total revenues were $32.3 million, compared to $41.2 million for the third quarter of 2013, and slightly increased on sequential basis. First nine months total revenues were $96.5million, compared to $126.1 million for the first nine months of 2013. US$ in millions 60 55
Slide 15: Gross Profit
Gross Profit Third quarter gross profit was $7.7 million, compared to $11.8 million in the third quarterr of 2013, and increased on sequential basis. First nine months gross profit was $18.7 million, compared to $33.1 million for the first nine months of 2013. US$ in millions 15 11.8 10 7.7 7.2 6.4
Slide 16: Gross Margin
Gross Margin Third quarter gross margin was 23.9%, compared to 28.7% for the third quarter of 2013, and improved on sequential basis. First nine months gross margin was 19.4%, compared to 26.2% for the first nine months of 2013. 40% 30% 28.7% 23.9% 20.1% 20% 18.7% 14.2% 10% 0% Q3 2013 Q4 2013 Q1 201
Slide 17: Operating Expenses
Operating Expenses Third quarter operating expenses were $9.6 million, decreased from $11.6 million for the third quarter of 2014. First nine months operating expenses were $26.7 million, decreased from $37.7 million for the first nine months of 2013. US$ in millions 30 25 20 15.7 15 11.6 9.2 9.6 10
Slide 18: Operating Loss
Operating Loss Third quarter operating loss was $1.9 million, compared to operating income of $0.2 million for the third quarter of 2013, but slightly improved on sequential basis. First nine months operating loss was $8.0 million, compared to operating loss of $4.7 million for the first nine months
Slide 19: Net Loss
Net Loss Third quarter net loss was $8.2 million, compared to net income of $0.4 million for the third quarter of 2013. First nine months net loss was $16.1 million, compared to net loss of $6.7 million for the first nine months of 2013. US$ in millions Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 2 2.8
Slide 20: Attractive Valuation
Attractive Valuation Unit: US$ Ticker UTSI CYNI CALX RKUS INFN CIEN Peer Avg Current Share Price 2.62 2.58 11.01 12.48 13.72 15.90 market cap (Millions) 116 147 471 1123 1312 1786 Cash 91 58 88 189 318 -- Debt 0 4 0 0 113 1463 Net Debt -91 -54 -88 -189 -205 -- Book value per share 3.27 -- 5.44 2.48
Slide 21: Outlook
Outlook The Company anticipates total revenues in the fourth quarter of 2014 to be in the range of $25 million to $30 million. Looking ahead to 2015, the Company currently expects to achieve double-digit percentage growth in revenue for the full year. The Company is fully committed to broadban