Slide 1: Fourth Quarter and Full Year 2018 Results
Fourth Quarter and Full Year 2018 Results Mr. Tim Ti, Chief Executive Officer Mr. Eric Lam, VP of Finance March 15, 2019 www.utstar.com
Slide 2: Disclosure and Forwarding Looking Statements
Disclosure and Forwarding Looking Statements This investor presentation contains forward-looking statements, including statements regarding the Company's expectation regarding its strategic initiatives and business outlook. Forward-looking statements are based on current expectations, estimates, for
Slide 3: Q4 and Full Year 2018 Financial Highlights
Q4 and Full Year 2018 Financial Highlights Q4 2018 Y/Y Q/Q 2018 Y/Y Change Change Change Revenues $12.7 -30.2% -75.6% $115.9 +18.0% Gross Profit $5.8 +26.3% -41.7% $32.3 -2.6% Operating Expenses $8.0 +23.1% +37.7% $27.6 +3.7% Operating Income (loss) -$2.2 -$0.3 -$6.3 $4.6 -28.7% Net Income (loss) -$
Slide 4: Innovation is our Focus
Innovation is our Focus Segment Routing (SR): SPN Technology ① A new forwarding paradigm Segment Routing ② Source routing technology New tunneling technology in packet network base on source routing: SR-TP/SR-BE ③ SR TP/SR BE FlexE: ④ Remove complexity of MPLS networks ① Various Ethernet MAC rates F
Slide 5: Key Market Opportunity: 5G Transition
Key Market Opportunity: 5G Transition New products focused on delivering compelling benefits • SkyFlux UAR: Segment Routing Product Family Based on segment routing over IPv6 or MPLS data plane Integrated with FlexE as well as SDN platform SOO network Value proposition: o Scalability o Greater
Slide 6: SkyFlux UAR Segment Router Family
SkyFlux UAR Segment Router Family Service Network Orchestrator Analytics Intelligent Networking: Source Routing + SDN + 10/100GE Integrated Control and Management April 19, 2018 Platform (SDN) Announced Enable POC-ready release network programmability, SDN-based automation, and high network scalabil
Slide 7: SyncRing: 4G/5G-ready Synchronization
SyncRing: 4G/5G-ready Synchronization SyncRing XGM30 Grand Master 4G 5G Sync requirements: Sync requirements: ±1.5µs 130ns to ±1.5µs SyncRing XBC510 GNSS Antenna Boundary Clock GNSS Antenna CO T-GM ePRTC IP Network T-BC T-BC T-GM SyncE/PTP support PRC T-BC DU (Cs) Fronthaul T-BCs Core Netman 6000 OM
Slide 8: Key Market Opportunity: Broadband Infrastructure
Key Market Opportunity: Broadband Infrastructure • Target markets: Japan, India, Asia Pacific • Demand drivers: • Low broadband penetration • Strong consumer demand for new broadband services • Japan • Transition from 10G to 100G metro networks continuing • Migrating to 5G • India • Strong market pr
Slide 9: Key Market Opportunity: Retail Store Automation
Key Market Opportunity: Retail Store Automation goBox Platform integrates leading-edge technologies: AI features including: o Facial recognition o Image analysis o Behavior identification Integrated load and image sensing Cloud-based system management and support E-payment Real-time intera
Slide 10: goBox
goBox • Smart commercial refrigerator automated cloud platform • Smoothly integrates with UT’s cloud platform shopping • Uses load and image recognition, sensors and big data for big data streamlined automated shopping experience image sensors • goBox is getting market traction recognition • Initial
Slide 11: Revenue
Revenue • 2018 revenue +18% y/y • Significant growth in India 60.0 52.1 50.0 40.0 31.5 28.5 30.0 26.0 22.5 22.6 18.2 20.0 12.7 10.0 0.0 2017 Q1 2017 Q2 2017 Q3 2017 Q4 2018 Q1 2018 Q2 2018 Q3 2018 Q4 Revenue($M) 11 3/15/2019 www.utstar.com ©2019 UTStarcom, Inc. All rights reserved.
Slide 12: Gross Profit and Gross Margin
Gross Profit and Gross Margin • Q4 gross profit +26% y/y • Higher Q4 gross margin reflects favorable product and geographic mix 12.0 10.6 50.0% 9.9 45.3% 10.0 9.1 8.9 9.1 45.0% 40.5% 40.5% 40.4% 40.0% 8.0 7.5 35.0% 30.0% 28.3% 6.0 5.8 25.0% 26.2% 4.6 25.0% 19.0% 20.0% 4.0 15.0% 2.0 10.0% 5.0% 0.0 0.
Slide 13: Operating Expense/Operating Income (Loss)
Operating Expense/Operating Income (Loss) • 2018 operating expenses +4% y/y • 2018 operating income -29% y/y 9.0 8.0 5.0 7.5 4.1 8.0 7.0 3.6 7.2 6.8 4.0 3.1 7.0 6.5 5.8 3.0 2.3 6.0 5.5 1.7 2.0 5.0 1.0 0.5 4.0 3.0 0.0 2.0 -1.0 1.0 -2.0 -1.9 -2.2 0.0 -3.0 2017 Q1 2017 Q2 2017 Q3 2017 Q4 2018 Q1 2018 Q
Slide 14: Net Income (Loss) and EPS
Net Income (Loss) and EPS • 2018 net income -27% y/y • 2018 EPS of $0.14, down from $0.20 in 2017 8.0 0.20 5.9 0.17 6.0 0.15 4.0 0.11 4.0 0.10 0.07 0.06 0.06 2.0 0.05 0.0 0.00 2.4 2.2 -0.1 2.1 -0.00 -2.0 -1.0 -0.05 -0.03 -4.0 -3.6 -0.10 -0.10 -6.0 -0.15 2017 Q1 2017 Q2 2017 Q3 2017 Q4 2018 Q1 2018 Q
Slide 15: Cash Flow
Cash Flow • Q4: • Positive cash flow from operations $4.3M • Additional cash from uSTAR consolidation $1.2M • Cash used for stock repurchase $0.5M • Year-end cash and equivalents $73.7M 15 3/15/2019 www.utstar.com ©2018 UTStarcom, Inc. All rights reserved.
Slide 16: Q1 2019 Outlook
Q1 2019 Outlook • Revenue $20 to $25 million • Quarterly revenue typically correlates with timing of project fulfillment 16 3/15/2019 www.utstar.com ©2019 UTStarcom, Inc. All rights reserved.
Slide 17: Investor Relations Contacts
Investor Relations Contacts For investor and media inquiries, please contact: China: United States: UTStarcom Holdings Corp. Fei Wang, Director of Investor Relations The Blueshirt Group Phone: +852-3951-9757 Email: fei.wang@utstar.com Ralph Fong Ning Jiang, Investor Relations Phone: +1 (415) 489-219