Investor Relations
UTStarcom Updates Anticipated Filing Date for Its 2005 Annual Report
ALAMEDA, Calif., April 25 /PRNewswire-FirstCall/ -- UTStarcom, Inc.
(Nasdaq: UTSI), announced today that it now expects to file its Annual Report
on Form 10-K for the fiscal year ended December 31, 2005 (the '2005 Form
10-K') on or about June 1, 2006.
UTStarcom Updates Anticipated Filing Date for Its 2005 Annual Report
The Company Now Targets Filing Its 2005 Annual Report on or about June 1, 2006, Pending Completion of Audit Committee Investigation and Internal Control Assessment
The Company Also Expects to Delay the Filing of Its Quarterly Report on Form 10-Q for the Quarter Ended March 31, 2006
The Company Will Remain Listed on Nasdaq Stock Exchange As the Nasdaq Listing Qualifications Panel Deliberates the Company's Deadline Extension Request
(Logo: http://www.newscom.com/cgi-bin/prnh/20051013/SFTH063LOGO)
The Company continues to require additional time (i) to enable the Audit
Committee of the Board of Directors of the Company to complete an
investigation with regard to the circumstances surrounding the previously
disclosed premature recognition of revenue on a contract with a customer in
preparation of its 2005 consolidated financial statements and its assessment
as of
reporting under Section 404 of the Sarbanes-Oxley Act of 2002. Additional
details of the investigation and the internal control assessment can be found
in the Company's press release dated
In addition, as a result of the above mentioned delay, the Company does
not expect that it will be able to file its Quarterly Report on Form 10-Q for
the quarter ended
deadline. As such, the Company will file a Form 12b-25 Notification of Late
Filing with the SEC relating to the delay in filing the Q1 Form 10-Q. The
Company expects that it will file the Q1 Form 10-Q on or about the same time
it files its 2005 Form 10-K.
Nasdaq Update:
As discussed in its press release of
a notice from the staff of The Nasdaq Stock Market indicating that the Company
was not in compliance with Marketplace Rule 4310(c) (14) because it had not
yet filed its 2005 Form 10-K. The notice indicated that due to such
noncompliance, the Company's common stock would be delisted unless the Company
requested a hearing in accordance with the Nasdaq Marketplace Rules.
Members of the Company's management and Board of Directors participated in
a hearing before the Nasdaq Listing Qualifications Panel (the 'Panel') on
the 2005 Form 10-K until
UTStarcom will remain listed and continue to trade on the Nasdaq Stock
Exchange pending the Panel's decision. There can be no assurance that the
Panel will grant the Company's request for an extension of the 10-K filing
date.
About UTStarcom, Inc.
UTStarcom is a global leader in IP-based, end-to-end networking solutions
and international service and support. The company sells its broadband,
wireless, and handset solutions to operators in both emerging and established
telecommunications markets around the world. UTStarcom enables its customers
to rapidly deploy revenue-generating access services using their existing
infrastructure, while providing a migration path to cost-efficient, end-to-end
IP networks. Founded in 1991 and headquartered in Alameda, California, the
company has research and design operations in the
and
For more information about UTStarcom, visit the company's Web site at
www.utstar.com.
Forward-Looking Statements
This release contains statements that are forward-looking in nature,
including without limitation statements about the outcome of the actions being
taken by the Company and its audit committee and the anticipated timing of the
filing of the Company's 2005 Form 10-K and the Q1 Form 10-Q with the
Securities and Exchange Commission. Such forward-looking statements are
subject to risks and uncertainties that may cause actual results to differ
materially. These risks include the ultimate timing and outcome of the
pending investigation. The Company also refers readers to the risk factors
identified in its latest Annual Report on Form 10-K, Quarterly Reports on Form
10-Q and Current Reports on Form 8-K, as filed with the Securities and
Exchange Commission.
SOURCE UTStarcom, Inc.