Utstarcom Holdings Corp · NASDAQ:UTSI
Utstarcom — Q1 2018 Earnings Presentation
21 slides from Utstarcom's earnings presentation, May 11, 2018
Slide 1: First Quarter 2018 Results
First Quarter 2018 Results Mr. Tim Ti, Chief Executive Officer Mr. Eric Lam, VP of Finance 11 May 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: Q1 2018 Financial Highlights
Q1 2018 Financial Highlights Q1 2018 Y/Y Change Q/Q Change Revenues $22.6 +0.2% +23.9% Gross Margin 40.5% +0.1% +15.5% Operating Expenses $6.8 +25.1% +5.3% Operating Income $2.3 -$1.3 +$4.2 Net Income $4.0 -$1.9 +$7.6 Basic EPS $0.11 -$0.06 +$0.21 Cash Balance (Including $98.9 -9.7% -1.8% Restricted
Slide 4: Key Business Highlights
Key Business Highlights • The Launch of SRv6 Router Product Line • New routers are based on segment routing (SR) over IPv6 data plane integrated with SDN platform SOO network • SR is known as the “de facto” next-generation network architecture • The launch represents an important milestone, position
Slide 5: SyncRing
SyncRing 4G/5G-ready Synchronization SyncRing XGM ● Grand Master 4G 5G Sync requirements: Sync requirements: ±1.5µs ±260ns SyncRing XBC510 GNSS Antenna GNSS Antenna ● Boundary Clock/ Transparent Clock CO Core T-GM ePRTC IP Network T-BC T-BC T-GM SyncE/PTP support PRC (Cs) T-BC BBU Fronthaul Netman 6
Slide 6: SkyFlux UAR: SRv6 Routers Family
SkyFlux UAR: SRv6 Routers 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 scalabili
Slide 7: SkyFlux UAR: SRv6 Routers Family
SkyFlux UAR: SRv6 Routers Family Successful multi-vendor interoperability testing @ EANTC lab in Berlin (March 2018): • UAR500 & SOO Station • Multi-vendor tests incl. Segment Routing (SRv6), SDN&Netconf/YANG, Clocking Successful SRv6 live demo during MPLS+SDN+NFV @ Paris 2018 • UAR500 PE TG IXIA
Slide 8: Key Business Highlights
Key Business Highlights • Retail Store Automation Joint Venture, uSTAR • Formed a JV with a leading Chinese refrigerator manufacturer • JV to develop commercial “Smart refrigerators” initially • JV to expand its market opportunity and provide a comprehensive retail automation solution • Platform to
Slide 9: Integrated Smart Retail Solution
Integrated Smart Retail Solution 9 11-May-18 www.utstar.com ©2018 UTStarcom, Inc. All rights reserved.
Slide 10: Key Business Highlights
Key Business Highlights • India Business • Business is gaining momentum • In Q1, UTStarcom secured a large project win with a major carrier to support this customer to upgrade its nationwide network for next-generation voice and data services to its large customer base • UTStarcom will help build ou
Slide 11: Revenues
Revenues • Revenues in Q1 2018 were $22.6 million, compared to $22.5 million in Q1 2017 and $18.2 million in Q4 2017 • Equipment sales growth was primarily driven by increased PTN product sales in Japan 35.0 31.5 30.0 27.5 26.0 25.0 22.5 22.6 20.0 20.0 18.2 16.4 15.0 10.0 5.0 0.0 2016 Q2 2016 Q3 201
Slide 12: Gross Profit
Gross Profit • Gross profit in Q1 2018 was $9.1 million, compared to $9.1 million in Q1 2017 and $4.6 million in Q4 2017 12.00 10.6 10.1 10.00 9.1 8.9 9.1 8.3 8.00 6.00 4.6 4.0 4.00 2.00 0.00 2016 Q2 2016 Q3 2016 Q4 2017 Q1 2017 Q2 2017 Q3 2017 Q4 2018 Q1 Gross Profit ($M) 12 11-May-18 www.utstar.co
Slide 13: Gross Margin
Gross Margin • Gross margin in Q1 2018 was 40.5%, compared to 40.4% in Q1 2017 and 25.0% in Q4 2017 45.0% 41.2% 40.5% 40.5% 40.4% 40.0% 36.5% 35.0% 30.0% 28.3% 24.3% 25.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% 2016 Q2 2016 Q3 2016 Q4 2017 Q1 2017 Q2 2017 Q3 2017 Q4 2018 Q1 Gross Margin (%) 13 11-May-18
Slide 14: Operating Expenses
Operating Expenses • Operating expenses in Q1 2018 were $6.8 million, compared to $5.5 million in Q1 2017 and $6.5 million in Q4 2017 • R&D expenses in Q1 2018 were $2.9 million, up from $1.8 in Q1 2017. The increase was largely due to continuing investment in R&D 8.0 7.5 7.2 7.0 6.8 7.0 6.5 6.3 6.0
Slide 15: Operating Income (Loss)
Operating Income (Loss) • Operating income in Q1 2018 was $2.3 million, compared to an operating income of $3.6 million in Q1 2017 and an operating loss of $1.9 million in Q4 2017 • Operating margin in Q1 2018 was 10.2%, compared to 16.2% in Q1 2017 5.0 3.8 3.6 4.0 3.1 3.0 2.3 1.7 2.0 1.3 1.0 -1.4 -
Slide 16: Net Income (Loss)
Net Income (Loss) • Net income in Q1 2018 was $4.0 million, compared to a net income of $5.9 million in Q1 2017 and a net loss of 3.6 million in Q4 2017 8.0 5.9 6.0 4.8 4.0 4.0 2.4 2.2 2.0 -1.8 -1.6 -3.6 - -2.0 -4.0 -6.0 2016 Q2 2016 Q3 2016 Q4 2017 Q1 2017 Q2 2017 Q3 2017 Q4 2018 Q1 Net Income (Los
Slide 17: Earnings Per Share
Earnings Per Share • EPS was 11 cents in Q1 2018, compared to 17 cents in Q1 2017 and a loss of 10 cents per share in Q4 2017 0.20 0.17 0.15 0.13 0.11 0.10 0.07 0.06 0.05 (0.05) (0.10) (0.05) - (0.05) (0.10) (0.15) 2016 Q2 2016 Q3 2016 Q4 2017 Q1 2017 Q2 2017 Q3 2017 Q4 2018 Q1 Earnings (Loss) Per S
Slide 18: Cash Flow
Cash Flow • The Company held $99 million in cash, cash equivalents and restricted cash as of march 31, 2018, compared to $101 million as of December 31, 2017 • Cash used in operating activities was $5.1 million in Q1 2018 • Cash released from short term investments was $2.9 million in Q1 2018 18 11-
Slide 19: Q2 2018 Outlook
Q2 2018 Outlook • For the second quarter of 2018, the Company expects to generate revenue in the range of $23 million to $28 million. 19 11-May-18 www.utstar.com ©2018 UTStarcom, Inc. All rights reserved.
Slide 20: 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
Slide 21: Thank you !
Thank you !