Utstarcom Holdings Corp · NASDAQ:UTSI
Utstarcom — Q1 2013 Earnings Presentation
24 slides from Utstarcom's earnings presentation, May 24, 2013
Slide 1: UTStarcom Holdings Corp. First Quarter 2013 Results
UTStarcom Holdings Corp. First Quarter 2013 Results NASDAQ: UTSI May 2013 Mr. William Wong, CEO Mr. Robert Pu, CFO 1
Slide 2: Disclosure & Forward Looking Statements
Disclosure & Forward Looking Statements This investor presentation contains forward-looking statements, including statements regarding the Company's expectation regarding its media operational support services business, the divestiture of its IPTV equipment business and the Company’s performance in
Slide 3: Earnings Call Agenda
3 Earnings Call Agenda 1 A summary of Operating-Progress 2 Update on Shareholder Value Initiatives Overview of First Quarter 2013 Results 2 3 4 Company Outlook Summary of Key Highlights 5
Slide 4: Update on Operating Progress
1 Update on Operating Progress 4
Slide 5: The Three Components of Our New Strategy
The Three Components of Our New Strategy Develop Media Operational Support Services Offering by Creating and Building a TV over IP Services Platform 1 Build Out New Services through a Combination of Internal Development and Strategic Acquisitions 2 Design an Optimal Operating Structure to Maximize t
Slide 6: A Summary of Operating Progress
A Summary of Operating Progress 6 Seeing benefits from changes we have taken to transform the Company. Operating results broadly in line with internal expectations. Nearly reached operating income breakeven excluding two one-time items. Made significant progress in lowering operating expenses as
Slide 7: iTV Media and aioTV
iTV Media and aioTV 7 iTV Media Continues to make gains with its successful commercial launch in Thailand through a strategic partnership with national telecommunications provider, TOT. The number of subscribers of iTV Media’s offering in Thailand exceeded 30,000, up from a few thousand from the end
Slide 8: Asset Disposals
Asset Disposals 8 Asset Disposals Continued divesting non-strategic assets in the first quarter. Dispose the Next Generation Network (NGN), specifically the mSwitch product related assets in March 2013. Disposal of the DOCSIS-EOC related assets in April 2013. Both disposals support overall strat
Slide 9: Update on Shareholder Value Initiatives
2 Update on Shareholder Value Initiatives 9
Slide 10: Returning Cash to Shareholders
Concluded several important initiatives to enhance shareholder value as part of the Company’s longstanding commitment to shareholders. In January 2013 completed a cash tender offer to repurchase 25,000,000 outstanding shares at $1.20 per share -- approximately 30% premium to the price of the stock a
Slide 11: Overview of First Quarter 2013 Results
3 Overview of First Quarter 2013 Results 11
Slide 12: Summary Overview
12 Summary Overview First quarter revenue, gross profit and gross margin are stable on sequential basis. Started to benefit from aggressive and focused cost reduction efforts as demonstrated by the significant decrease in Opex in Q1 2013. Will continue to monitor Opex and find ways to improve our co
Slide 13: Non-GAAP Total Revenue
Non-GAAP Total Revenue Non-GAAP total revenues for the first quarter of 2013 were $36.7 million, a decrease of 6.9% year-over-year from $39.4 million for the corresponding period of 2012. US$(mm) 13 US$(mm) 50 45 40 35 30 25 20 15 10 5 0 Q1 2012 Q1 2013 39.4 36.7
Slide 14: Non-GAAP Gross Profit
Non-GAAP Gross Profit Non-GAAP gross profit was $11.7 million for the first quarter of 2013, compared to $15.1 million for the corresponding period of 2012. US$(mm) 14 20 15 10 5 - Q1 2012 Q1 2013 15.1 11.7
Slide 15: Non-GAAP Gross Margin
Non-GAAP Gross Margin Non-GAAP gross margin was 31.8% for the first quarter of 2013, compared to 38.3% for the corresponding period of 2012. 15 40.0% 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% Q1 2012 Q1 2013 38.3% 31.8%
Slide 16: Non-GAAP Operating Expenses
US$ (mm) Non-GAAP Operating Expenses 16 Non-GAAP operating expenses were $15.4 million, a decrease of 8.6% year-over-year, from $16.8 million for the corresponding period in 2012. Loss on divestiture Leasehold Improvement OPEX 20 15 10 5 0 Q1 2012 Q1 2013 16.8 15.4 3.0 1.0 11.4
Slide 17: Non-GAAP Operating Result and Net Loss
Non-GAAP Operating Result and Net Loss US$ (mm) 17 Non-GAAP Operating Income/Loss Comparison Non-GAAP Net Income/Loss Comparison US$ (mm) 4 2 0 -2 -4 -6 Q1 2012 Q1 2013 -1.8 -3.7 -1.5 -2.1 -2.0 -5.0 Impact from iTV US$(mm)
Slide 18: Q1 2013 Cash Position
Cash balance of $136.0 million in cash, cash equivalents and short-term investment Zero debt Q1 2013 Cash Position Cash Distribution by Currency Cash Distribution by Region 18 Japan 23.6% Other 4.0% US31.1% China 33.9% India 7.4% JPY 9.8% TWD 2.0% INR 7.4% Other 1.2% USD 54.9% RMB 24.7%
Slide 19: Non-GAAP Cash Flow Analysis
Quarterly net cash used by operating activities was $4.7million. Cash used by investing activities was approximately $5.8 million as we continued to invest in iTV Media. Cash used from financing activities was approximately $30.7 million. Completed a $30 million tender offer in Q1 2013. Non-GAAP C
Slide 20: Company Outlook
4 Company Outlook 20
Slide 21: Company Outlook
21 2013 will be a year of investment and continued transition. Reiterating expectation for 2013: Expect to achieve a degree of incremental improvement in overall financial performance versus 2012. Revenue will be below last year as the top line is in transition. Will focus on holding margi
Slide 22: Summary of Key Highlights
5 Summary of Key Highlights 22
Slide 23: Summary of Key Highlights
23 Summary of Key Highlights Took several steps to maintain momentum in transitioning to a refined business and operating model. Strengthened our relationship with iTV Media Continued shedding non-strategic assets by disposing the NGN and EOC businesses. Made progress operationally and financially.
Slide 24: Investor Relations Contacts
Investor Relations Contacts 24 UTStarcom, Investor Realitions Jing Ou-Yang Tel: + 86-10-8520-5153 Email: jouyang@utstar@utstar.com FTI Consulting, Inc. May shen (Beijing) Tel: +86-10-8591-1951 Email: May.shen@fticonsulting.com Daniel Delre (hong kong) Tel: +852-3768-4547 Email: Daniel.DelRe@fticonsu