IR/インベスターリレーションズ
UTStarcom Releases Financial Results for the Third Quarter of 2008
ALAMEDA, Calif., Nov. 6 /PRNewswire-FirstCall/ -- UTStarcom, Inc.
(Nasdaq: UTSI) today reported financial results for the third quarter ended
September 30, 2008.
UTStarcom Releases Financial Results for the Third Quarter of 2008
Third Quarter 2008 Total Revenues of $181 Million
(Logo: http://www.newscom.com/cgi-bin/prnh/20051013/SFTH063LOGO)
On
('PCD') which has historically represented a significant portion of the
company's revenues. To enable a comparison of the financial results for the
company on a year-over-year basis that reflects the PCD divestiture, the
company has prepared certain pro forma non-GAAP results. The reconciliation
between GAAP and these pro forma non-GAAP financial measures is provided at
the end of this press release.
Net sales for the third quarter of 2008 were
quarter of 2008 and 2007 were 32.0% and 10%, respectively. The third quarter
2007 pro forma non-GAAP revenue and gross margins after adjusting for the PCD
divestiture were
reflects the expected decline in our PAS business. The third quarter 2008
gross margins were positively impacted by our high margin NGN product and
certain one time adjustments.
The operating loss for the third quarter of 2008 and 2007 was
forma non-GAAP operating loss after adjusting for the PCD divestiture was
2008 was primarily due to a reduction in year over year operating expenses.
During the third quarter 2008 the company incurred other expenses of
currency devaluation and
The net loss for the third quarter of 2008 was
per share, as compared to a net loss of
the third quarter of 2007.
Net cash and cash equivalents as of
compared to
from the sale of PCD and certain short term investments partially offset by
operating usage of cash.
'During the third quarter we continued to execute on our strategy of
divesting our non-core businesses. As a result, we have reduced our operating
expenses and greatly improved our balance sheet,' said
UTStarcom's chief executive officer and president. 'Meanwhile our lead
IP-based infrastructure products continued to support telecom networks in our
key geographic markets.'
Q4 2008 Guidance
The Company will provide fourth quarter financial guidance during the
conference call.
Conference Call
The company will host a conference call to discuss the results. The call
will take place at
conference call dial-in numbers are:
International 706-634-2327. The conference ID number is 71195495.
A replay of the call will be available for 30 days. The conference call
replay numbers are as follows:
706-645-9291. The conference ID number is 71195495.
Investors will also have the opportunity to listen to the conference call
and the replay over the Internet through the investor relations section of
UTStarcom's Web site at: http://www.utstar.com.
To listen to the live call, please go to the Web site at least 15 minutes
early to register, and to download and install any necessary audio software.
For those who cannot listen to the live broadcast, a replay will also be
available on this site.
Discussion of Pro Forma Non-GAAP Financial Measures
UTStarcom has supplemented its condensed consolidated financial statements
presented on a GAAP basis with pro forma non-GAAP revenues, gross profits,
operating expenses and operating profit (loss) measures in order to present
the company's results as if PCD had been divested prior to each time period
reflected below.
We believe use of these pro forma non-GAAP measures is appropriate to
enable relevant year over year comparisons to our current financial results
and is intended to provide both management and investors with a more complete
understanding of UTStarcom's underlying results and trends. In addition,
these pro forma non-GAAP measures are among the information management uses as
a basis for our planning and forecasting of future periods. The presentation
of this additional information is not meant to be considered in isolation or
as a substitute for results prepared in accordance with generally accepted
accounting principles in
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 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
development operations in
information about UTStarcom, visit the company's Web site at
http://www.utstar.com.
Forward-Looking Statements
This release includes forward-looking statements, including the foregoing
statements regarding the company's strategy of divesting its non-core
businesses, and expectations with respect to anticipated future results.
These statements are forward-looking in nature and subject to risks and
uncertainties that may cause actual results to differ materially. These risks
include the ability of the company to realize anticipated results of
operational improvements and execute on its liquidity plans as well as 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.
UTStarcom, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
(Unaudited)
September 30, December 31,
2008 2007
ASSETS
Current assets:
Cash, cash equivalents and short-term
investments $330,562 $503,078
Accounts and notes receivable, net 166,831 343,525
Inventories and deferred costs 337,714 524,727
Prepaids and other current assets 149,181 121,636
Total current assets 984,288 1,492,966
Long-term assets:
Property, plant and equipment, net 203,411 209,094
Long-term deferred costs 156,789 164,766
Other long-term assets 96,651 117,762
Total assets $1,441,139 $1,984,588
LIABILITIES, MINORITY INTEREST AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $135,995 $148,440
Short-term debt - 322,829
Customer advances 179,065 229,050
Deferred revenue 118,264 100,502
Other current liabilities 230,338 302,395
Total current liabilities 663,662 1,103,216
Long-term liabilities:
Long-term debt - 333
Long-term deferred revenue and other
liabilities 237,678 259,358
Total liabilities 901,340 1,362,907
Minority interest in consolidated
subsidiaries 789 3,705
Total stockholders' equity 539,010 617,976
Total liabilities, minority interest
and stockholders' equity $1,441,139 $1,984,588
UTStarcom, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except per share amounts)
(Unaudited)
Three months ended Nine months ended
September 30, September 30,
2008 2007 2008 2007
Net sales $180,607 $646,494 $1,399,352 $1,660,640
Cost of net sales 123,280 582,061 1,167,998 1,441,193
Gross profit 57,327 64,433 231,354 219,447
Operating expenses (income):
Selling, general and
administrative 59,445 74,297 211,199 242,999
Research and development 35,971 41,881 116,657 127,700
Amortization of intangible
assets 279 4,046 3,833 12,137
Net gain on divestitures (3,455) (4,271) (3,455) (4,271)
Total operating expenses 92,240 115,953 328,234 378,565
Operating loss (34,913) (51,520) (96,880) (159,118)
Interest income (expense), net 1,697 (5,859) (3,724) (11,601)
Other income (expense), net (14,943) 4,347 38,107 8,476
Loss before income taxes and
minority interest (48,159) (53,032) (62,497) (162,243)
Income tax expense (7,791) (3,095) (7,396) (10,735)
Minority interest in losses of
consolidated subsidiaries 6 799 526 1,961
Net loss $(55,944) $(55,328) $(69,367) $(171,017)
Loss per share - Basic and
diluted $(0.45) $(0.46) $(0.56) $(1.41)
Weighted average shares used
in per share calculation:
- Basic and diluted 123,884 121,011 123,036 120,965
UTStarcom, Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(Unaudited)
Nine months ended Nine months ended
September 30, 2008 September 30, 2007
Net cash used in operating activities $(31,872) $(193,355)
Cash flows from investing activities:
Property, plant and equipment, net (12,671) (22,530)
Investments, net (3,841) 3,334
Proceeds from repayment of loan by a
variable interest entity 7,728 -
Net proceeds from divestitures 207,097 4,271
Change in restricted cash (10,380) 7,273
Short-term investments, net 57,506 (8,962)
Other 245 (115)
Net cash provided by (used in)
investing activities 245,684 (16,729)
Cash flows from financing activities:
Borrowings, net (325,317) 33,045
Other (7,907) 6,028
Net cash (used in) provided by
financing activities (333,224) 39,073
Effect of exchange rate changes on
cash and cash equivalents 10,932 18,938
Net decrease in cash and cash
equivalents (108,480) (152,073)
Cash and cash equivalents at
beginning of period 437,449 661,623
Cash and cash equivalents at end of
period $328,969 $509,550
UTSTARCOM, INC.
RECONCILIATION OF GAAP REVENUE TO PRO FORMA NON-GAAP REVENUE
($ in millions)
(Unaudited)
To supplement our condensed consolidated financial statements presented on
a GAAP basis, UTStarcom uses certain pro forma non-GAAP measures which are
adjusted to present those metrics as if PCD had been divested prior to each
time period reflected below. We believe this enables year over year
comparisons to our current financial results. These adjustments to our GAAP
results are made with the intent of providing both management and investors a
more complete understanding of UTStarcom's underlying results and trends. In
addition, these adjusted pro forma non-GAAP results are among the information
management uses as a basis for our planning and forecasting of future periods.
The presentation of this additional information is not meant to be considered
in isolation or as a substitute for results prepared in accordance with
generally accepted accounting principles in
Q3 Earnings Release Conference Call - November 6, 2008
Reconciliation of 2007, Q1 2008 and Q2 2008 pro forma non-GAAP Information
$ in millions
Consolidated
Consolidated Consolidated Consolidated Consolidated Revenue
Revenue Revenue Revenue Revenue as
as as as as Reported
Reported Reported Reported Reported in
in in in in Full
Q1 2007 Q2 2007 Q3 2007 Q4 2007 Year 2007
Form 10Q Form 10Q Form 10Q Form 10Q Form 10K
GAAP Revenue $476 $538 $646 $806 $2,466
Less: PCD
Segment(a) 288 358 458 560 1,664
Add: Handset
Sales to PCD(b) 77 70 60 53 260
Total Non
GAAP Revenue $265 $250 $248 $299 $1,062
Consolidated Consolidated
Revenue Revenue Consolidated
as Reported as Reported Revenue
in in as Reported
Q1 2008 Q2 2008 in
Form 10Q Form 10Q Q3 2008
GAAP Revenue $586 $633 $181
Less: PCD Segment (a) 431 449 0
Add: Handset Sales to PCD (b) 35 56 0
Total Non-GAAP Revenue $190 $240 $181
(a) Effective July 1, 2008 the PCD segment was divested by the Company
(b) The pro forma adjustment reflects estimated revenue from products sold
to PCD, as if PCD was a third party entity. For consolidated reporting
purposes these sales were considered intercompany sales and eliminated in
consolidation.
UTSTARCOM, INC.
RECONCILIATION OF GAAP GROSS MARGIN TO PRO FORMA NON-GAAP GROSS MARGIN
($ in millions)
(Unaudited)
To supplement our condensed consolidated financial statements presented on
a GAAP basis, UTStarcom uses certain pro forma non-GAAP measures which are
adjusted to present those metrics as if PCD had been divested prior to each
time period reflected below. We believe this enables year over year
comparisons to our current financial results. These adjustments to our GAAP
results are made with the intent of providing both management and investors a
more complete understanding of UTStarcom's underlying results and trends. In
addition, these adjusted pro forma non-GAAP results are among the information
management uses as a basis for our planning and forecasting of future periods.
The presentation of this additional information is not meant to be considered
in isolation or as a substitute for results prepared in accordance with
generally accepted accounting principles in
Q3 Earnings Release Conference Call - November 6, 2008
Reconciliation of 2007, Q1 2008 and Q2 2008 pro forma non GAAP Information
$ in millions
Consolidated
Consolidated Consolidated Consolidated GM as
GM as GM as GM as Consolidated Reported
Reported Reported Reported as in
in in in Derived Full
Q1 2007 Q2 2007 Q3 2007 from Year 2007
Form 10Q Form 10Q Form 10Q 10Qs & 10K Form 10K
GAAP Gross
Profit $75 $80 $64 $102 $321
GAAP Gross
Margin % 16% 15% 10% 13% 13%
Less: PCD
Segment Gross
Profit(a) 17 16 27 36 95
Add: Handsets
Gross Profit
from sales
to PCD(b) 1 2 2 1 7
Total Non-
GAAP Gross
Profit $59 $66 $39 $71 $233
Non-GAAP Gross
Margin % 22% 26% 16% 24% 22%
Consolidated Consolidated
GM as GM as Consolidated
Reported in Reported in GM as
Q1 2008 Q2 2008 Reported in
Form 10Q Form 10Q Q3 2008
GAAP Gross Profit $92 $82 $57
GAAPGross Margin % 16% 13% 32%
Less: PCD Segment Gross Profit (a) 33 36 0
Add: Handsets Gross Profit from sales
to PCD (b) 2 0 0
Total Non-GAAP Gross Profit $61 $46 $57
Non-GAAP Gross Margin % 32% 19% 32%
(a) Effective July 1, 2008 the PCD segment was divested by the Company
(b) The pro forma adjustment reflects estimated gross profit from products
sold to PCD, as if PCD was a third party entity. For consolidated
reporting purposes these sales were considered intercompany sales and
eliminated in consolidation.
UTSTARCOM, INC.RECONCILIATION OF GAAP OPERATING EXPENSES TO PRO FORMA NON-GAAP OPERATING
EXPENSES
($ in millions)
(Unaudited)
To supplement our condensed consolidated financial statements presented on
a GAAP basis, UTStarcom uses certain pro forma non-GAAP measures which are
adjusted to present those metrics as if PCD had been divested prior to each
time period reflected below. We believe this enables year over year
comparisons to our current financial results. These adjustments to our GAAP
results are made with the intent of providing both management and investors a
more complete understanding of UTStarcom's underlying results and trends. In
addition, these adjusted pro forma non-GAAP results are among the information
management uses as a basis for our planning and forecasting of future periods.
The presentation of this additional information is not meant to be considered
in isolation or as a substitute for results prepared in accordance with
generally accepted accounting principles in
Q3 Earnings Release Conference Call - November 6, 2008
Reconciliation of 2007, Q1 2008 and Q2 2008 pro forma non-GAAP Information
$ in millions
Consolidated Consolidated Consolidated Consolidated Consolidated
OPEX as OPEX as OPEX as as Derived OPEX as
Reported in Reported in Reported in from Reported in
Q1 2007 Q2 2007 Q3 2007 10Qs & 10K Full Year
Form 10Q Form 10Q Form 10Q 2007 Form 10K
GAAP
Operating
Expenses $128 $135 $116 $155 $534
Less: PCD
Operating
Expense (a) 9 8 7 7 31
Non-GAAP
Operating
Expense $119 $127 $109 $148 $503
Consolidated Consolidated Consolidated
OPEX as OPEX as OPEX as
Reported in Reported in Reported in
Q1 2008 Q2 2008 Q3 2008
Form 10Q Form 10Q
GAAP
Operating
Expenses $123 $113 $92
Less: PCD
Operating
Expense (a) 8 8 0
Non-GAAP
Operating
Expense $115 $105 $92
(a) Effective July 1, 2008 the PCD segment was divested by the Company
UTSTARCOM, INC. RECONCILIATION OF GAAP OPERATING LOSS TO PRO FORMA NON-GAAP OPERATING LOSS
($ in millions)
(Unaudited) To supplement our condensed consolidated financial statements presented on
a GAAP basis, UTStarcom uses certain pro forma non-GAAP measures which are
adjusted to present those metrics as if PCD had been divested prior to each
time period reflected below. We believe this enables year over year
comparisons to our current financial results. These adjustments to our GAAP
results are made with the intent of providing both management and investors a
more complete understanding of UTStarcom's underlying results and trends. In
addition, these adjusted pro forma non-GAAP results are among the information
management uses as a basis for our planning and forecasting of future periods.
The presentation of this additional information is not meant to be considered
in isolation or as a substitute for results prepared in accordance with
generally accepted accounting principles in
Q3 Earnings Release Conference Call - November 6, 2008
Reconciliation of 2007, Q1 2008 and Q2 2008 pro forma non-GAAP Information
$ in millions
Consolidated
Consolidated Consolidated Consolidated Consolidated Operating
Operating Operating Operating as Derived Loss From
Loss From Loss From Loss From from Full Year
Q1 2007 Q2 2007 Q3 2007 10Qs & 2007 Form
Form 10Q Form 10Q Form 10Q 10K 10K
GAAP
Operating
Loss ($52) ($55) ($52) ($53) ($212)
Less: PCD
Segment
Gross
Profit (a) 17 16 27 36 95
Add:
Handsets
Gross
Profit
from sales
to PCD (b) 1 2 2 1 7
Add: PCD
Operating
Expense (a) 9 8 7 7 31
Non-GAAP
Operating
Loss ($59) ($61) ($70) ($79) ($269)
Consolidated Consolidated Consolidated
Operating Loss From Operating Loss From Operating Loss From
Q1 2008 Form 10Q Q2 2008 Form 10Q Q2 2008
GAAP Operating
Loss ($31) ($31) ($35)
Less: PCD
Segment Gross
Profit (a) 33 36 0
Add: Handsets
Gross Profit
from sales to
PCD (b) 2 0 0
Add: PCD
Operating
Expense (a) 8 8 0
Non-GAAP
Operating
Loss ($54) ($59) ($35)
(a) Effective July 1, 2008 the PCD segment was divested by the Company
(b) The pro forma adjustment reflects estimates from activities with PCD,
as if PCD was a third party entity. For consolidated reporting
purposes these activities were considered intercompany and eliminated
in consolidation.
SOURCE UTStarcom, Inc.