Utstarcom Holdings Corp · NASDAQ:UTSI
Utstarcom — Q3 2013 Earnings Presentation
24 slides from Utstarcom's earnings presentation, Nov 14, 2013
Slide 1: UTStarcom Holdings Corp. Third Quarter 2013 Results
UTStarcom Holdings Corp. Third Quarter 2013 Results NASDAQ: UTSI November 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 strategic initiatives and business outlook. Forward-looking statements are based on current expectations, estimates, forecast
Slide 3: Earnings Call Agenda
3 Earnings Call Agenda Update on Operating Progress Overview of Third Quarter 2013 Results 1 Withdrawal of Non-Binding Going Private Proposal 2 3 Company Outlook 4 Summary of Key Highlights 5
Slide 4: Update on Operating Progress
Update on Operating Progress 4
Slide 5: A Summary of Operating Progress
A Summary of Operating Progress 5 Continued our transition into a provider of advanced media services. Reasserted the strength of our core broadband business Achieved several important financial milestones Net sales increased incrementally Continued reducing operating expenses Generated positive ope
Slide 6: Implementation of Our New Strategy
Implementation of Our New Strategy 6 Took several decisive steps to the new strategy into practice put practice. Disposed non - core business lines. Redeployed capital to support higher return opportunities. Established a base of subscribers to value - added services. Our results reflect the new str
Slide 7: Broadband Business
Broadband Business 7 Continued to streamline the broadband business into a producer of specialized, niche products. Built out product lines expanding our portfolio. Launched new and innovative extensions to our PTN product line and network management system. Demonstrated our commitment to the “simpl
Slide 8: iTV Media
8 iTV Media Continued to flourish in the first commercial launch of its flagship product, through a strategic partnership with national telecommunications provider, TOT. The number of subscribers of iTV Media’s offering in Thailand rose by a dramatic 50% in the quarter, reaching 90,000. iTV Media
Slide 9: Withdrawal of Non-Binding Going Private Proposal
9 Withdrawal of Non - Binding Going Private Proposal
Slide 10: Consortium decision not to pursue taking UTStarcom private
10 The consortium has decided not to pursue its intention to take UTStarcom private, and has delivered notice to this effect to the Special Committee in early November. This was a decision that the buyer consortium took on its own and in consultation with its own advisors. The due diligence process
Slide 11: Overview of Third Quarter 2013 Results
Overview of Third Quarter 2013 Results 11
Slide 12: Summary Overview Non-GAAP Key Financial Highlights
12 Summary Overview Non-GAAP Key Financial Highlights Revenue for both the third quarter and the first nine months increased incrementally on a year - over - year basis. Continued efforts to benefit from aggressive and focused cost reduction efforts, as demonstrated by the very significant decrease
Slide 13: Non-GAAP Total Revenue
Non-GAAP Total Revenue Non-GAAP total revenues for the third quarter of 2013 were $40.9 million, an increase of 10.5% from $37.0 million for the corresponding period of 2012. Non-GAAP total revenues for the first nine months ended September 30, 2013 were $125.0 million, an increase of 7.5% from $116
Slide 14: Non-GAAP Gross Profit
Non-GAAP Gross Profit Non-GAAP gross profit was $11.8 million for the third quarter of 2013, compared to $12.7 million for the corresponding period of 2012. Non-GAAP gross profit was $33.1 million for the first nine months ended September 30, 2013, compared to $40.7 million for the corresponding per
Slide 15: Non-GAAP Gross Margin
Non-GAAP Gross Margin Non-GAAP gross margin was 28.9% for the third quarter of 2013, compared to 34.4% for the corresponding period of 2012. Non-GAAP gross margin was 26.4% for the first nine months ended September 30, 2013, compared to 35.0% for the corresponding period in 2012. 15 34.4% 28.9% 10.0
Slide 16: Non-GAAP Operating Expenses
US$ (in millions) Non-GAAP Operating Expenses US$ (in millions) 16 Non-GAAP operating expenses were $11.6 million for the third quarter of 2013, a decrease of 38.3% year-over-year, from $18.9 million for the corresponding period of 2012. Non-GAAP operating expenses were $37.9 million for the first n
Slide 17: Non-GAAP Operating Income
Non-GAAP Operating Income US$ (in millions) 17 US$ (in millions) Non-GAAP operating income was $0.2 million for the third quarter of 2013, compared to operating loss of $6.1 million for the corresponding period of 2012. Non-GAAP operating loss was $4.8 million for the nine months ended September 30,
Slide 18: Non-GAAP Net Income
Non-GAAP net income US$ (in millions) 18 US$ (in millions) Non-GAAP net income was $0.4 million for the third quarter of 2013, compared to net loss of $0.2 million for the corresponding period of 2012. Non-GAAP net loss was $6.7 million for the nine months ended September 30, 2013, compared to net l
Slide 19: Cash Flow Analysis
Cash balance of $120.4 million in cash, cash equivalents and short-term investment. Quarterly non-GAAP cash generated from operating activities was $3.7 million. Cash used by investing activities was approximately $2.3 million. Cash used by financing activities was approximately $2.7 million. Cash F
Slide 20: Company Outlook
@ Company Outlook 20
Slide 21: Company Outlook
21 Continue to view 2013 as a year of investment and continued transition. Gross margin may experience headwinds from the Japanese Yen depreciation. Expect to achieve a degree of incremental improvement in overall financial performance compared to 2012 if Japanese Yen exchange rates remain the same
Slide 22: Summary of Key Highlights
Summary of Key Highlights 22
Slide 23: Summary of Key Highlights
23 Summary of Key Highlights Achieved ongoing financial improvements in several key metrics. Healthy top line growth and strengthening gross margin. Improved overall efficiency, cutting operating expenses significantly. Generated positive operating cash flow and net income. Strengthened the overall
Slide 24: Investor Relations Contacts
Investor Relations Contacts UTStarcom, Investor Relations Jane Zuo Tel: + 86-10-5638-3645 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 Rob