Utstarcom Holdings Corp · NASDAQ:UTSI
Utstarcom — Q3 2019 Earnings Presentation
17 slides from Utstarcom's earnings presentation, Nov 8, 2019
Slide 1: Third Quarter 2019 Results
Third Quarter 2019 Results Mr. Tim Ti, Chief Executive Officer Mr. Eric Lam, VP of Finance November 8, 2019 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 2019 Financial Highlights
Q3 2019 Financial Highlights Q3 2019 Y/Y Change Q/Q Change Revenues $13.1 -74.9% -6.0% Gross Profit $7.2 -27.2% +43.0% Operating Expenses $9.6 +64.8% +34.8% Operating Loss -$2.4 -$6.4 -$0.3 Net Loss -$2.1 -$4.2 -$3.8 Basic EPS -$0.06 -$0.12 -$0.11 Cash Balance (including Restricted Cash) $47.6 -28.8
Slide 4: Key Recent Operating Highlights
Key Recent Operating Highlights • Making Good Progress at a Large 5G Opportunity in China • Provided Accounts Receivable reserve for a major customer in India • Expanding goSmart Automated Retail Solution to International Markets • Participated at Indian Mobile Congress (IMC) 2019 4 11/8/2019 www.ut
Slide 5: Market Opportunity: 5G Transition
Market Opportunity: 5G Transition • SkyFlux Platform: Segment Routing Product Family Based on Segment Routing over IPv6 or MPLS data plane Integrated with FlexE as well as SDN platform SOO network Excellent packet optical Value proposition: transport designed and o Scalability optimized to mee
Slide 6: Innovation Remains Our Focus
Innovation Remains Our Focus Segment Routing (SR): Skyflux Technology ① A new forwarding paradigm Segment Routing ② Source routing technology New tunneling technology in packet network base on source routing: SR-TP/SR-BE ③ SR TP/SR BE FlexE: ④ Remove complexity of MPLS networks ① Various Ethernet MA
Slide 7: SkyFlux UAR Segment Router Family
SkyFlux UAR Segment 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 scalabil
Slide 8: SyncRing: 4G/5G-ready Synchronization
SyncRing: 4G/5G-ready Synchronization 4G 5G XBC340/XBC341 SyncRing XGM30 Sync requirements: Sync requirements: Boundary Clock / POE Grand Master ±1.5µs 130ns to ±1.5µs GNSS Antenna GNSS Antenna CO SyncRing XBC510 SyncRing XGM20 T-GM Boundary Clock Grand Master ePRTC IP Network T-BC T-BC T-GM SyncE/P
Slide 9: goSmart Total Solution
goSmart Total Solution goSmart Cloud Management Device Business AI/Recognition Value-added Management Operation Service Services (DSMS) (MIMS) (AIRS) (VASS) MQTT/HTTPs Internet Wi-Fi/LTE/Ethernet Access goSmart APP goCube Vending Machine 9 11/8/2019 www.ustar-ai.com ©2018 uSTAR, Inc. All rights rese
Slide 10: UTStarcom @ IMC2019
UTStarcom @ IMC2019 Event Name: India Mobile Congress 2019 Venue: Aerocity, New Delhi, India Event website: https://www.indiamobilecongress.com/ Date: October 14-16, 2019 CXO Conclave: Imagine the Connected Future Large booth, extended UT product portfolio on display: ● CEO, Mr. Tim Ti presented his
Slide 11: Revenue
Revenue • Down 75% Y/Y and down 6% Q/Q • Japan accounted for the majority of Q3 revenue 60.0 52.1 50.0 40.0 28.5 30.0 24.7 22.6 20.0 18.2 12.7 13.9 13.1 10.0 0.0 2017 Q4 2018 Q1 2018 Q2 2018 Q3 2018 Q4 2019 Q1 2019 Q2 2019 Q3 Revenue($M) 11 11/8/2019 www.utstar.com ©2019 UTStarcom, Inc. All rights r
Slide 12: Gross Profit and Gross Margin
Gross Profit and Gross Margin • Gross profit: down 27% Y/Y and up 43% Q/Q • Gross margin: Higher margin reflects favorable product mix and a last-time-buy sales to Taiwan 9.9 10.00 9.1 9.00 60.0% 55.0% 8.00 7.5 7.2 50.0% 7.0 45.3% 7.00 40.5% 6.00 5.8 40.0% 36.2% 5.0 5.00 4.6 30.0% 28.3% 4.00 25.0% 2
Slide 13: Operating Expense/Operating Income (Loss)
Operating Expense/Operating Income (Loss) • SG&A expenses increased 93% Y/Y and 102% Q/Q solely due to increase in Accounts Receivable (AR) reserve for India • R&D expenses increased 29% Y/Y but decreased 17% Q/Q due to investment in 5G technologies 12.0 5.0 4.1 4.0 10.0 9.6 8.3 3.0 2.3 8.0 7.3 7.1
Slide 14: Net Income (Loss) and EPS
Net Income (Loss) and EPS • Net loss attributable to the increase in AR reserve in India 5.0 0.15 4.0 0.11 4.0 0.10 3.0 … 0.06 1.7 0.05 2.0 0.05 0.01 1.0 0.4 - - (0.00) -1.0 -0.1 (0.05) (0.04) -2.0 -1.3 (0.06) (0.10) -3.0 -2.1 (0.10) -4.0 -3.6 (0.15) 2017 Q4 2018 Q1 2018 Q2 2018 Q3 2018 Q4 2019 Q1 2
Slide 15: Cash Flow
Cash Flow • Cash used in • Operating activities $9.3M • Investing activities $0.2M • Cash provided by • Finance activities $4.4M • Quarter-end cash and equivalents $47.6M 15 11/8/2019 www.utstar.com ©2018 UTStarcom, Inc. All rights reserved.
Slide 16: Q4 2019 Outlook
Q4 2019 Outlook • Revenue expected to be in the range of $12 to $15 million 16 11/8/2019 www.utstar.com ©2019 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