World News: 10:00 GMT Friday 15th March 2019. [UTStarcom Holdings Corp. via Globe Newswire via SPi World News]
HONG KONG, March 15, 2019 (GLOBE NEWSWIRE) -- UTStarcom (“UT” or “the Company”) (NASDAQ: UTSI), a global telecommunications infrastructure provider, today reported its unaudited financial results for the fourth quarter and full year ended December 31, 2018.
UTStarcom’s Chief Executive Officer Mr. Tim Ti commented, “We are pleased with our strong execution in 2018. We achieved year-over-year revenue growth of 18%, maintained profitability in a competitive environment, secured key project wins in India and introduced advanced products that have strengthened our competitive position. Fourth quarter revenue was within our guidance, and gross margin increased more than 20 percentage points, driven by favorable product and geographic mix.”
Ti continued, “We are committed to investing in R&D to develop new products, enabling network operators to meet the challenges of growing network traffic generated by new technology trends such as internet of things and 5G mobile data. We are especially excited about the 5G opportunity, as network operators around the globe begin this massive rollout, which will require wholesale upgrades of network architectures. UTStarcom is positioned to benefit from 5G. In 2019, we will drive more product development and marketing effort, which will set us up for solid growth in 2020 and beyond.”
*Dollar comparisons are used where percentage comparisons are not meaningful.*All the numbers in U.S. Dollars are in millions except for EPS.
Q4 2018 total revenues were $12.7 million, compared to $18.2 million in the corresponding period in 2017.
2018 total revenues were $115.9 million, an increase of 18% from $98.3 million in 2017.
Q4 2018 gross profit was $5.8 million, or 45.3% of net sales, compared to $4.6 million, or 25.0% of net sales, in the corresponding period in 2017.
2018 gross profit was $32.3 million, or 27.8% of net sales, compared to $33.1 million, or 33.7% of net sales, in 2017.
Q4 2018 operating expenses were $8.0 million, compared to $6.5 million in the corresponding period in 2017.
2018 operating expenses were $27.6 million, compared to $26.6 million in 2017.
Q4 2018 operating loss was $2.2 million, compared to $1.9 million in the corresponding period in 2017.
Full year 2018 operating income was $4.6 million, compared to $6.5 million in 2017.
Q4 2018 net interest income was $0.5 million, compared to $0.3 million in the corresponding period in 2017.
Full year 2018 net interest income was $1.7 million, compared to $1.1 million in 2017.
Q4 2018 net other income was $1.5 million, compared to $0.6 million in the corresponding period in 2017. The increase in other income was due to foreign exchange gains resulting from the appreciation of Indian Rupee against U.S. dollars during the quarter.
Full year 2018 net other expenses were $0.6 million, compared to net other income of $3.0 million in 2017. The change was a result of the gain on liquidating the Korea subsidiary in 2017 and foreign exchange gains in 2017.
Q4 2018 net loss attributable to shareholders was $1.0 million, compared to net loss of $3.6 million in the corresponding period in 2017. Q4 2018 basic EPS was $(0.03), compared to basic EPS $(0.10) for the corresponding period in 2017.
Full year 2018 net income attributable to shareholders was $5.1 million, compared to net income of $7.0 million in 2017. 2018 basic EPS was $0.14, compared to basic EPS of $0.20 in 2017.
During Q4 2018, cash generated from operating activities was $4.3 million, cash from investing activities was $1.2 million, and cash used in financing activities was $0.5 million. As of December 31, 2018, UTStarcom had cash, cash equivalent and restricted cash of $73.7 million.
For the first quarter of 2019, the Company expects to generate revenue in the range of $20 to $25 million. The Company’s quarterly revenue pattern is typically uneven due to the timing of project fulfillments.
The Company’s management will host an earnings conference call at 8:00 a.m. U.S. Eastern Time on Friday, March 15, 2019 (8:00 p.m. Hong Kong/Beijing Time).
The conference call dial-in numbers are as follows:
United States: +1 (866) 519-4004Canada: + 1 (866) 386-1016Hong Kong: +852-3018-6771China: 4006-208-038 Other International: +65 6713-5090
The attendee passcode is 1598797.
A replay of the call will be available two hours after the end of the conference call until 9:59 a.m. U.S. Eastern Time on April 15, 2019.
The conference call replay numbers are as follows:
United States: +1 (855) 452-5696Hong Kong: 800-963-117China: 4006-022-065Other International: +61-2-8199-0299
The replay passcode for accessing the recording is 1598797.
Investors will also have the opportunity to listen to the live conference call and the replay over the Internet through the investor relations section of UTStarcom’s web site at: .
This press release includes forward-looking statements, including statements regarding the Company’s strategic initiatives and the Company’s business outlook. These statements are forward-looking in nature and subject to risks and uncertainties that may cause actual results to differ materially and adversely from the Company’s current expectations. These include risks and uncertainties related to, among other things, changes in the financial condition and cash position of the Company, changes in the composition of the Company’s management and their effect on the Company, the Company’s ability to realize anticipated results of operational improvements and benefits of the divestiture transaction, the ability to successfully identify and acquire appropriate technologies and businesses for inorganic growth and to integrate such acquisitions, the ability to internally innovate and develop new products, assumptions the Company makes regarding the growth of the market and the success of the Company’s offerings in the market and the Company’s ability to execute its business plan and manage regulatory matters. The risks and uncertainties also include the risk factors identified in the Company’s latest annual report on Form 20-F and current reports on Form 6-K as filed with the Securities and Exchange Commission. The Company is in a period of strategic transition and the conduct of its business is exposed to additional risks as a result. All forward-looking statements included in this press release are based upon information available to the Company as of the date of this press release, which may change and the Company assumes no obligation to update any such forward-looking statements.
UTStarcom Holdings Corp.
Tel: +852-3951-9757Ms. Fei Wang, Director of Investor Relations Email:
Ms. Ning Jiang, Investor RelationsEmail:
In the United States:
The Blueshirt Group Mr. Ralph FongTel: +1 (415) 489-2195Email:
Globe Newswire: 10:00 GMT Friday 15th March 2019
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