Utstarcom Holdings Corp · NASDAQ:UTSI
Utstarcom — Q3 2014 Earnings Presentation
24 slides from Utstarcom's earnings presentation, Nov 14, 2014
Slide 1: Third Quarter 2014 Results
UTStarcom Holdings Corp. Third Quarter 2014 Results Mr. William Wong, CEO Mr. Min Xu, CFO NASDAQ: UTSI November 14, 2014 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 strategic initiatives and business outlook. Forward-looking statements are based on current expectations, estimates, forecast
Slide 3: Earnings Call Agenda
Earnings Call Agenda 1 Update on Operating Progress 2 Our Go-forward Strategy 3 Update on Shareholder Value Initiatives 4 Overview of Third Quarter 2014 Results 5 Company Outlook 3
Slide 4: Update on Operating Progress
1 Update on Operating Progress 4
Slide 5: Operating Highlights
Operating Highlights We achieved a number of important milestones during the third quarter: Strengthened our relationship with Chunghwa Telecom Co. Ltd, the leading integrated telecommunications service provider in Taiwan, by winning an expansion contract originally won in 2013. Started the sh
Slide 6: Driving The Broadband Business
Driving The Broadband Business Broadband continues to be an engine of growth for the Company and we are making great advances in three key product categories: Packet Optical Transport Saw a great deal of interest in our flagship TN 765 with 100G services support and launched carrier-grade WiFi sol
Slide 7: Strategic Investment in New Media
Strategic Investment in New Media As the single largest investor in iTV Media and aioTV, we continue to benefit from their growth and we actively support the development of their businesses. In addition, we are exploring ways to package their media services and technology with our broadband products
Slide 8: Our Go-forward Strategy
2 Our Go-forward Strategy 8
Slide 9: Our Go-forward Strategy
Our Go-forward Strategy Our go-forward strategy includes three specific initiatives: Broadband will continue to be the driver of business globally in terms of future revenue growth. Expanded our global marketing and sales initiatives and appointed two executives to our global leadership team all
Slide 10: Our Go-forward Strategy
Our Go-forward Strategy We will maximize our investment return in iTV Media and aioTV We benefit as an investor in the appreciation in the value of their businesses and we continue to support them in their growth trajectory. Our investments in iTV Media and aioTV provide opportunities for UTSt
Slide 11: Update on Shareholder Value Initiatives
3 Update on Shareholder Value Initiatives 11
Slide 12: Returning Cash to Shareholders
Returning Cash to Shareholders The Company’s Board of Directors has approved a share repurchase program of up to $40 million of its outstanding shares over the next 24 months to enhance shareholder value as part of the Company’s commitment to shareholders. The share repurchase program was approv
Slide 13: Overview of Third Quarter 2014 Results
4 Overview of Third Quarter 2014 Results 13
Slide 14: Financial Highlights
Financial Highlights Revenue was better than expected in the third quarter. Gross margin improved sequentially despite the depreciation of the Japanese yen. Achieved positive operating cash flow. Continued to take significant OPEX out of the business. Maintained a strong balance sheet with
Slide 15: 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 16: 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 17: 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 18: 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 19: 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 20: 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 21: Cash Flow Analysis
Cash Flow Analysis Cash balance of $90.5 million in cash, cash equivalents and short-term investment, and no debt. Cash provided by operating activities for the third quarter of 2014 was $0.5 million. Cash used in investing activities for the third quarter of 2014 was $2.2 million, including c
Slide 22: Company Outlook
5 Company Outlook 22
Slide 23: Company Outlook
Company 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
Slide 24: Investor Relations Contacts
Investor Relations Contacts UTStarcom, Investor Relations Jane Zuo Tel: +852-3750-7632 Email: jane.zuo@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 Simona