Utstarcom Holdings Corp · NASDAQ:UTSI
Utstarcom — Q4 2019 Earnings Presentation
15 slides from Utstarcom's earnings presentation, Mar 27, 2020
Slide 1: Fourth Quarter and Full Year 2019 Results
Fourth Quarter and Full Year 2019 Results (Preliminary and Unaudited) March 27, 2020 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: Q4 and Full Year 2019 Financial Highlights
Q4 and Full Year 2019 Financial Highlights Q4 2019 Y/Y Q/Q 2019 Y/Y Change Change Change Revenue $14.2 +11.4% +8.4% $65.8 -43.2% Gross Profit $5.1 -10.7% -28.5% $24.4 -24.5% Operating Expenses $6.3 -24.1% -34.4% $30.2 +8.2% Operating Loss -$1.1 +$1.4 +$1.2 -$5.8 -$10.2 Net Loss -$3.6 -$2.3 -$1.5 -$3
Slide 4: Key Business Updates
Key Business Updates • CEO Tim Ti is taking a temporary leave of absence • Tim’s leave of absence is due to health reasons (unrelated to the COVID-19 virus) • Senior VP of Sales and Business Development for Japan and Korea, Dr. Zhaochen Huang, has been appointed as acting CEO • Impact from the COVID
Slide 5: Revenue
Revenue • Q4’19: up 11% Y/Y and up 8% Q/Q • 2019: down 43% • India accounted for over 50% of 2019 revenue 52.1 28.5 24.7 22.6 12.7 13.9 13.1 14.2 2018 Q1 2018 Q2 2018 Q3 2018 Q4 2019 Q1 2019 Q2 2019 Q3 2019 Q4 Revenue ($Million) 5 3/27/2020 www.utstar.com ©2019 UTStarcom, Inc. All rights reserved.
Slide 6: Gross Profit and Gross Margin
Gross Profit and Gross Margin • 2019 gross profit down 25% • 2019 gross margin of 37% was up from 28% in 2018 due to favorable product mix 55.0% 9.9 9.1 45.3% 40.5% 7.5 7.2 7.0 36.2% 36.3% 5.8 28.3% 5.0 5.1 26.2% 19.0% 2018 Q1 2018 Q2 2018 Q3 2018 Q4 2019 Q1 2019 Q2 2019 Q3 2019 Q4 2018 Q1 2018 Q2 2
Slide 7: Operating Expense/Operating Income (Loss)
Operating Expense/Operating Income (Loss) • 2019 operating expenses up 8% y/y • 2019 operating loss of $5.8M versus operating income of $4.4M in 2018 4.1 9.6 8.3 7.0 7.3 7.1 6.8 2.3 6.3 5.8 0.5 -0.3 -1.1 -2.1 -2.5 -2.4 2018 Q1 2018 Q2 2018 Q3 2018 Q4 2019 Q1 2019 Q2 2019 Q3 2019 Q4 2018 Q1 2018 Q2 2
Slide 8: Net Income (Loss) and EPS
Net Income (Loss) and EPS • 2019 net loss was $3.6M versus net income of $4.8M in 2018 • 2019 net loss per share was $0.10 versus net income per share of $0.14 in 2018 4.0 $0.11 2.1 1.7 $0.06 $0.05 0.4 $0.01 -0.1 ($0.00) -1.3 ($0.04) ($0.06) -2.1 ($0.10) -3.6 2018 Q1 2018 Q2 2018 Q3 2018 Q4 2019 Q1
Slide 9: Cash Flow
Cash Flow • Q4: • Positive cash flow from operations $3.3M • Cash used in financing activities $4.6M • Year-end cash and equivalents $48.6M 9 3/27/2020 www.utstar.com ©2018 UTStarcom, Inc. All rights reserved.
Slide 10: Q1 2020 Outlook
Q1 2020 Outlook • Co. expects revenue in the range of $8 to $12 million. 10 3/27/2020 www.utstar.com ©2019 UTStarcom, Inc. All rights reserved.
Slide 11: 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 12: 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 13: SkyFlux UAR Segment Routing Platform
SkyFlux UAR Segment Routing Platform 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 scala
Slide 14: 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 15: 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: +86-571-8192-8888 Email: fei.wang@utstar.com Ralph Fong Ning Jiang, Investor Relations Phone: +1 (415) 489-