Slide 1: Fourth Quarter and Full Year 2014 Results
UTStarcom Holdings Corp. Fourth Quarter and Full Year 2014 Results Mr. William Wong, CEO Mr. Xu Min, CFO NASDAQ: UTSI March 13, 2015 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 Introduction 2 Business Update 3 Our Go-Forward Strategy 4 Update on Shareholder Value Initiative 5 Overview of Fourth Quarter and Full Year 2014 Results 6 Company Outlook 3
Slide 4: Introduction
1 Introduction 4
Slide 5: Introduction
Introduction We performed relatively well throughout in 2014 as we continue to transform our business. We demonstrated solid top line performance and have consistently exceeded revenue expectations for the past several quarters. Financial Highlights For the fourth quarter, we surpassed initial
Slide 6: Operating Highlights
Operating Highlights There are a number of things to highlight: Evolving product mix Successfully transitioned a number of our customer to higher-margin and more sophisticated products, like PTN 765. We are expecting more uptake in the coming months of 2015. Expanding key relationships Strengt
Slide 7: Business Update
2 Business Update 7
Slide 8: 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 key product categories: The flagship TN765 with 100G services support continue to draw widespread interest from tier-one service network providers and we expect producti
Slide 9: Strategic Investment in New Media
Strategic Investment in New Media As the single largest investor in UiTV (formerly 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 br
Slide 10: Our Go-Forward Strategy
C3) Our Go-Forward Strategy 10
Slide 11: Our Go-Forward Strategy
Our Go-Forward Strategy Our post-restructuring plan includes three specific initiatives: Broadband will continue to be the driver of business globally in terms of future revenue growth. Investing in our team to ensure the right talent on the ground to execute go-to- market strategy. Focused on
Slide 12: Our Go-Forward Strategy
Our Go-Forward Strategy We will maximize our investment return in UiTV Media and aioTV Continue to actively support these companies to realize their full potential, which in turn will allow us to generate a solid return on our investment. Both assets are maturing and evolving. Seeking additi
Slide 13: Update on Shareholder Value Initiative
4 Update on Shareholder Value Initiative 13
Slide 14: Returning Cash to Shareholders
Returning Cash to Shareholders The Company’s Board of Directors approved a share repurchase program of up to $40 million of its outstanding shares over the next 24 months. This reflects the Board’s confidence in our Company and our determination to deliver enhanced value for our shareholders.
Slide 15: Overview of Fourth Quarter and Full Year 2014 Results
5 Overview of Fourth Quarter and Full Year 2014 Results 15
Slide 16: Summary Overview
Summary Overview Revenue was better than the expected in the fourth quarter. Gross margin decrease sequentially due to unfavorable product mix and zero margin legacy IPTV revenue recognition. Continued to take significant OPEX out of the business. Maintained a strong balance sheet with $80.1
Slide 17: Total Revenue
Total Revenue Fourth quarter total revenues were $32.9 million, compared to $38.3 million for the fourth quarter of 2013. The twelve months total revenues were $129.4 million, compared to $164.4 million for the twelve months of 2013. US$ in millions 60.0 47.7 50.0 41.2 37.2 38.3 40.0 32.3 31.9 32.3
Slide 18: Gross Profit
Gross Profit Fourth quarter gross profit was $3.4 million, compared to $7.2 million in the fourth quarterr of 2013. The twelve months gross profit was $22.1 million, compared to $40.2 million for the twelve months of 2013. US$ in millions 14.0 12.0 11.7 11.8 10.0 9.5 8.0 7.2 7.7 6.4 6.0 4.6 4.0 3.4
Slide 19: Gross Margin
Gross Margin Fourth quarter gross margin was 10.3%, compared to 18.7% for the fourth quarter of 2013. The twelve months gross margin was 17.1%, compared to 24.5% for the twelve months of 2013. 35.0% 31.4% 30.0% 28.7% 23.9% 25.0% 20.0% 20.1% 20.0% 18.7% 14.2% 15.0% 10.3% 10.0% 5.0% 0.0% 2013 Q1 2013
Slide 20: Operating Expenses
Operating Expenses Fourth quarter operating expenses were $9.5 million, decreased from $15.7 million for the fourth quarter of 2014. The twelve months operating expenses were $36.2 million, decreased from $53.5 million for the twelve months of 2013. US$ in millions 18 16 15.3 15.7 14 11.6 12 10.9 9.
Slide 21: Operating Loss
Operating Loss Fourth quarter operating loss was $6.1 million, compared to operating loss of $8.6 million for the fourth quarter of 2013. The twelve months operating loss was $14.1 million, compared to operating loss of $13.2 million for the twelve months of 2013. US$ in millions 1 0.2 0 2013 Q1 201
Slide 22: Net Loss
Net Loss Fourth quarter net loss was $14.2million, compared to net loss of $16.1 million for the fourth quarter of 2013. The twelve months net loss was $30.3 million, compared to net loss of $22.7 million for the twelve months of 2013. US$ in millions 2.0 0.4 0.0 2013 Q1 2013 Q2 2013 Q3 2013 Q4 2014
Slide 23: Cash Flow Analysis
Cash Flow Analysis Cash balance of $80.1 million in cash, cash equivalents and short-term investment, and no debt. Cash used in operating activities for the fourth quarter was $9.6 million. Cash used in investing activities for the fourth quarter was $0.6 million. Cash used in financing acti
Slide 24: Company Outlook
6 Company Outlook 24
Slide 25: Company Outlook
Company Outlook The Company believes it is nearing the end of its transition and transformation. The Company expects total revenues in the first quarter of 2015 to be in the range of $25 million to $30 million and anticipates double-digit growth in non-GAAP revenue for the full year. New highe
Slide 26: Investor Relations Contacts
Investor Relations Contacts UTStarcom, Investor Relations Jiang Ning Tel: +852-3951-9757 Email: njiang@utstar.com FTI Consulting, Inc. Joanna Jiang (Beijing) Tel: +86-10-8591-1958 Email: Joanna.Jiang@fticonsulting.com Sean Pattwell (Hong Kong) Tel: +852-3768-4543 Email: Sean.Pattwell@fticonsul