Slide 1: Third Quarter 2018 Results
Third Quarter 2018 Results Mr. Tim Ti, Chief Executive Officer Mr. Eric Lam, VP of Finance November 9, 2018 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: Q3 2018 Financial Highlights
Q3 2018 Financial Highlights Q3 2018 Y/Y Change Q/Q Change Revenues $52.1 +100.1% +82.5% Gross Profit $9.9 -6.4% +32.2% Operating Expenses $5.8 -22.5% -16.9% Operating Income $4.1 +33.1% +728.9% Net Income $2.1 -$0.0 +$2.2 Basic EPS $0.06 -- +$0.06 Cash Balance (Including $66.8 -39.0% -17.0% Restric
Slide 4: Key Business Highlights
Key Business Highlights SyncRing XGM30 Launched in November • IP65-compliant compact outdoor device • Uses GNSS satellite signal as primary time reference • Advanced features include: • Concurrent multi-GNSS multi-channel reception for highly improved timing accuracy and availability • Extra-high-pr
Slide 5: Key Business Highlights – ITSF 2018
Key Business Highlights – ITSF 2018 • The International Timing & Sync Forum (ITSF) – the largest specialist time and sync conference in the world held in Bucharest, Romania from November 5 to 8, 2018 • Key conference theme: “Time as a key enabler for SMART infrastructure” • UTStarcom is the Gold spo
Slide 6: Key Business Highlights
Key Business Highlights India • Key market presence • Expanding market share • Several major projects underway • Business is robust • Revenue far above expectations China • Products/architecture well suited for 5G migration in China • Collaborating with potential partners on next- generation mobile
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 OMC
Slide 8: SyncRing XGM30: Synchronization for 5G
SyncRing XGM30: Synchronization for 5G XGM30 TE accuracy per Grand Master PRTC-B Concurrent GNSS multi-system / at network edge! Sync Ethernet GNSS Antenna multi-frequency T-GM T-BC DU 1588v2 RRU DU Fronthaul eCPRI High-grade PTP OCXO IEEE 1588v2 DU TE ≤ ±40ns … Released DU CRAN Outdoor Performance
Slide 9: SkyFlux UAR: SRv6 Router Family
SkyFlux UAR: SRv6 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 scalabilit
Slide 10: Key Technologies for 5G Network
Key Technologies for 5G Network Segment Routing(SR): ① A new forwarding paradigm Segment Routing 01 ② Source routing technology Clock Synchronization: New tunneling technology in packet ③ Simplify MPLS networks ① Sync over packet NW NW base on sourcing routing ④ Great match SDN automation ② Distribu
Slide 11: Revenues
Revenues • +100% year over year • +83% sequentially 60.0 52.1 50.0 40.0 31.5 30.0 27.5 28.5 26.0 22.5 22.6 20.0 18.2 10.0 0.0 Revenue($M) 11 11/9/2018 www.utstar.com ©2018 UTStarcom, Inc. All rights reserved.
Slide 12: Gross Profit and Gross Margin
Gross Profit and Gross Margin • Gross Profit +32% sequentially primarily from revenue increase in India 12.0 45.0% 10.6 40.4% 40.5% 40.5% 10.1 9.9 10.0 9.1 40.0% 36.5% 8.9 9.1 35.0% 8.0 7.5 28.3% 30.0% 26.2% 25.0% 6.0 25.0% 4.6 19.0% 20.0% 4.0 15.0% 2.0 10.0% 5.0% 0.0 0.0% Gross Profit ($M) Gross Ma
Slide 13: Operating Expenses and Operating Income (Loss)
Operating Expenses and Operating Income (Loss) • Significant reduction in SG&A expenses while maintaining higher spending in R&D • Achieved the highest quarterly operating profit since 2012 8.0 7.2 7.5 5.0 6.8 7.0 3.8 4.1 7.0 6.3 6.5 4.0 3.6 5.8 3.1 6.0 5.5 3.0 2.3 5.0 2.0 1.7 4.0 1.0 0.5 3.0 0.0 2.
Slide 14: Net Income (Loss) and EPS
Net Income (Loss) and EPS • Returned to profitability despite absorbing a significant currency translation loss due to the devaluation of India Rupee 8.0 0.20 5.9 0.17 6.0 0.15 0.11 4.0 4.0 0.10 0.07 0.06 0.06 2.4 2.2 2.1 2.0 0.05 0.0 - -0.1 (0.00) -2.0 (0.05) -1.6 (0.05) -4.0 (0.10) -3.6 (0.10) (0.
Slide 15: Cash Flow
Cash Flow • Net Operating Cash reduction reflected the timing in cash collection from 2 large India projects completed near the end of the quarter 15 11/9/2018 www.utstar.com ©2018 UTStarcom, Inc. All rights reserved.
Slide 16: Q4 2018 Outlook
Q4 2018 Outlook • Revenue $10 to $15 million • Quarterly revenue stream is usually uneven • Depends on the timing of project fulfillments 16 11/9/2018 www.utstar.com ©2018 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