Slide 1: UTStarcom Holdings Corp. First Quarter 2012 Results
UTStarcom Holdings Corp. First Quarter 2012 Results NASDAQ: UTSI May 2012 Mr. Jack Lu, CEO Ms. Jin Jiang, CFO
Slide 2: Disclosure & Forward Looking Statements
2 Disclosure & Forward Looking Statements This investor presentation contains forward-looking statements, including statements regarding the Company's expectation regarding its new services business, ability to successfully launch its internet TV platform, expected value and target customers from ne
Slide 3: Agenda
3 Agenda Q1 2012 Highlights 1 Q2 2012 VSC Business Forecast Progress of VSC Platform 3 2 Financial Overview 4
Slide 4: First Quarter 2012 Highlights
4 First Quarter 2012 Highlights Total revenues increased 23.8% year over year to $46.7 million excluding $23.6 million amortization of PHS deferred revenue in Q1 2011 Gross profit increased 69.6% year over year to $18.4 million excluding gross profit related to amortized PHS deferred revenue in Q1 2
Slide 5: Opportunity - Three Networks Convergence: Further Success in China Market
Opportunity - Three Networks Convergence announcement of 42 new trial cities IPTV broadcasting control platform (“IBCP”) wins in Q1 2012 Signed first contract in Chongqing Signed second contract in Hainan Eight IBCP contract wins since 2010 20 of 42 new trial cities will require IPTV broadcasting pl
Slide 6: Continued Investment from Cable Industry
Continued Investment from Cable Industry 6 Subscribers Total Subscribers of Cable Services (as of December 31, 2011) Demand for upgraded infrastructure capabilities Expect increased demand for our broadband products in 2012 → EPON-EOC product Source: SARFT Report and Guideline Research Report March
Slide 7: Video Service Cloud Platform (VSC)
Video Service Cloud Platform (VSC) 7 Cloud-based B2B services include: Video Conference Online Education Online Office Cloud storage and computing for video content RollingStream Technology Video Communication Technology Network Infrastructure Technology Nationwide Broadband Network Strategic Partne
Slide 8: Progress of VSC in Q1 2012
8 Progress of VSC in Q1 2012 System Deployment Five internet nodes - Beijing, Shanghai, Maoming, Lanzhou and Hong Kong Video Distribution Network (“VDN”) Service - Commercial Service Ready B2B Cloud Based Service - Video Conference Commercial Service Ready
Slide 9: VSC Development in Q2 2012
9 VSC Development in Q2 2012 System Deployment Target to establish ten more VDN nodes in China More cloud-based B2B services that are commercially - Online office / Online training / Cloud storage & computing
Slide 10: Competitive Advantage of VSC
10 Competitive Advantage of VSC Strategic partner with nationwide cable backbone network resource Low Operational Cost Utilize our existing IPTV solutions and broadband products Low Broadband Cost Low CAPEX Cost Leverage our strong relationships with TV stations and cable operators Accelerate growth
Slide 11: Maintain High Standard of Corporate Governance
11 Maintain High Standard of Corporate Governance Filed 2011 Form 20-F in a timely manner Successfully completed 404 internal control audit Successfully remediated all material weaknesses reported in 2010 annual report
Slide 12: Total Revenue
12 Total Revenue Total revenues increased 23.8% year over year to $46.7 million excluding $23.6 million PHS deferred revenue in the first quarter 2011 Book-to-bill ratio for the first quarter was 0.81 US$(mm) 23.8% y-o-y
Slide 13: Gross Margin Improvement
13 Gross Margin Improvement Q1 2012 gross margin was 39.5% vs. Q1 2011 gross margin of 31.1% US$ (mm) Gross Profit Comparison Gross Margin Comparison 19.1 (GAAP) Gross Margin excluding PHS deferred revenue in Q1 2011 69.6% y-o-y 37.2% y-o-y
Slide 14: Continued Progress in Cost Cutting
14 Continued Progress in Cost Cutting US$ (mm) Q3 2011 opex included a $4.2 million one-time net gain on divestitures
Slide 15: Operating Result
Operating Result US$ (mm) 15 Net Loss Comparison Operating Loss Comparison US$ (mm)
Slide 16: Segment Reporting
16 Segment Reporting Note: Deferred revenue related to PHS is included in equipment sales through the end of 2011 at the average rate of $23.8 million per quarter. Gross margin associated with the PHS related deferred revenue is approximately 35%. Revenue by Segment Q1 2012 Q1 2011 Including PHS Exc
Slide 17: Q1 2012 Cash Position
17 Cash balance of $285.4 million in cash, cash equivalents, and short-term investment Zero debt Q1 2012 Cash Position
Slide 18: Cash Flow Analysis
18 Quarterly net cash used in operating activities was $14.7 million, compared to $39.4 million in the first quarter of 2011 Collection was weaker due to the Chinese New Year holiday Approximately $7 million corporate shares repurchased as of the end of the first quarter 2012 Cash Flow Analysis
Slide 19: Investor Relations Contacts
19 Investor Relations Contacts UTStarcom, Investor Relations Jing Ou-Yang Tel: + 8610 8520 5153 Email: jouyang@utstar.com Ogilvy Financial In China: Agustin Bautista Tel: +86-10-8520-6166 Email: utsi@ogilvy.com In the U.S.: Jessica Barist Cohen Tel: +1-646-460-9989 Email: utsi@ogilvy.com