Slide 1: UTStarcom Holdings Corp. Second Quarter 2012 Results
UTStarcom Holdings Corp. Second Quarter 2012 Results NASDAQ: UTSI August 2012 Mr. Jack Lu, CEO Mr. William Wong, COO Ms. Jin Jiang, 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 operational support services business, the divestiture of its IPTV equipment business and the Company’s performance in 2012.
Slide 3: Agenda
Agenda Q2 2012 Highlights 1 Financial Overview New Strategic Initiatives 3 2 3
Slide 4: Second Quarter 2012 Highlights
Second Quarter 2012 Highlights Results in line with prior expectations with strong growth from first quarter 2012 levels. Second quarter of 2012, net sales decreased 17.9% year over year to $56.5 million compared to the second quarter of 2011, but increased 21.0% sequentially. Second quarter of 2012
Slide 5: Progress of VSC in Q2 2012
Progress of VSC in Q2 2012 System Deployment 12 nodes - Cover cities include Beijing, Shanghai, Maoming, Lanzhou, Hong Kong, Guangzhou, Wuhan, Chongqing etc. Video Distribution Network (“VDN”) Service - Commercial Service Ready B2B Cloud Based Service - Video Conference Commercial Service Ready Busi
Slide 6: Benefit of Divesting IPTV Business
Benefit of Divesting IPTV Business New Strategic Initiatives Focus resources on building out value-added services and investing in higher growth, higher return opportunities and growing the broadband business. Increases the overall margins for the remaining business. Strengthens the balance sheet an
Slide 7: Total Revenue
Total Revenue Second quarter 2012 total revenues decreased 17.9% year over year to $56.5 million, excluding $23.8 million PHS deferred revenue in second quarter 2011 Second quarter 2012 total revenues increased 21.0% sequentially. Fist half 2012 total revenue decreased 3.1% year over year to $103.1m
Slide 8: Gross Margin Improvement
Gross Margin Improvement Gross Margin excluding PHS deferred revenue Q2 2012 gross margin was 38.5% vs. Q2 2011 gross margin of 38.6%, excluding $23.8 million PHS deferred revenue with 34.8% gross margin in second quarter of 2011 Gross margin in the first half of 2012 was 38.9% vs. first half 2011 g
Slide 9: Continued Progress in Cost Cutting
Continued Progress in Cost Cutting US$ (mm) Q3 2011 OPEX One-time gain on divestiture21.9% decrease in operating expenses from second quarter 2011 levels 9
Slide 10: Operating Result and Net Income
Operating Result and Net Income US$ (mm) Operating Income Comparison Net Income Comparison US$ (mm) Q2 2012 $1.8M net loss includes $6.7M foreign exchange loss 10
Slide 11: Segment Reporting
Segment Reporting Note: Deferred revenue related to PHS is included in equipment sales through the end of 2011 at the average rate of $23.8 million per quarter. Gross margin associated with the PHS related deferred revenue is approximately 35%. Revenue by Segment Q2 2011 Q2 2012 Including PHS Exclud
Slide 12: Cash balance of $277.7 million, zero debt
Cash balance of $277.7 million in cash, cash equivalents and short-term investment Zero debt Q2 2012 Cash Position Cash Distribution by Region Cash Distribution by Currency 12
Slide 13: Cash Flow Analysis and Share Repurchase Program Update
Quarterly net cash provided by operating activities was $2.9 million. Share repurchase program update: The Company repurchased $2.8 million in ordinary shares in the second quarter of 2012 The cumulative total execution under the current program is $9.6 million Board extended the repurchase program
Slide 14: Investor Relations Contacts
Investor Relations Contacts UTStarcom, Investor Relations Jing Ou-Yang Tel: + 8610 8520 5153 Email: jouyang@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@fticonsulting.com Na