IR/インベスターリレーションズ
UTStarcom Releases Fourth Quarter and Full Year 2007 Financial Results
ALAMEDA, Calif., Feb. 28 /PRNewswire-FirstCall/ -- UTStarcom, Inc.
(Nasdaq: UTSI), a global leader in IPTV and IP-based broadband and switching
solutions, today reported financial results for the fourth quarter of 2007 and
for the full year ended December 31, 2007.
UTStarcom Releases Fourth Quarter and Full Year 2007 Financial Results
Fourth Quarter Revenue of $806 Million up 14.5% Year-over-Year
Company Also Announces it has Transferred $289.5 Million To the Trustee of its Convertible Notes Due March 1, 2008 to Pay in Full its Principal and Interest Obligations Under the Note
(Logo: http://www.newscom.com/cgi-bin/prnh/20051013/SFTH063LOGO)
2007 Financial Results
Net sales for the fourth quarter 2007 were
quarter 2007 were 12.7% as compared to 11.1% in the fourth quarter of 2006.
Net loss for the fourth quarter of 2007 was
(
in the fourth quarter of 2006.
Certain significant items in the fourth quarter include:
-- A restructuring charge of $14.5 million
-- A $23 million non-cash impairment of long lived assets primarily
related to the IP-CDMA business unit
-- A tax accrual of $17.1 million related to China withholding tax on
dividends and capital gains for anticipated future remittances
-- A cash gain of $53.5 million related to the sale of securities
Net sales for the full year 2007 were
billion
with 15.7% in 2006. Net loss for the year was
(
share in 2006.
'Beginning in the fourth quarter of 2007, we launched a number of
initiatives, including a restructure of the Company to focus on our core
growth technologies, including IPTV, and IP-based softswitch and broadband
devices. Through 2008, we shall be very focused on continued operational
improvements and the execution of our new strategy,' stated
chief operating officer of UTStarcom. 'We are also actively pursuing our
liquidity plan to strengthen our cash position, which includes the divestiture
of certain non-core assets. We are committed to fulfilling our goal of
returning the company to profitability and positive cash flows.'
Convertible Notes
The Company also announced that it has transferred
Trustee of its 10 7/8% Convertible Subordinated Notes, due
full repayment of its principal and interest obligations under the Notes.
Added Blackmore, 'We are very pleased to be able to pay off the Notes
using our own cash; we worked hard to ensure that we would not dilute our
equity holders.'
Going Concern
As a result of the Company's recurring net losses, the continued use of
cash in its operations, and the repayment of the convertible notes described
above, the Company expects its independent registered public accounting firm
will issue a going concern uncertainty explanatory paragraph in its audit
report on the financial statements for the year ended
However, management believes that it has developed a liquidity plan that,
if executed successfully, will provide sufficient liquidity to finance the
Company's anticipated working capital and capital expenditure requirements for
the next twelve months.
Q1 2008 Guidance
-- Revenue is expected to improve modestly year-over-year and should be in
the range of $500-$520 million.
-- Overall gross margins in the first quarter is expected to be
approximately 13%
-- First quarter operating expenses is expected to range between $115-$120
million, excluding any one-time items
-- Gains of approximately $35 million from the sale of securities
-- Cash flow from operations is expected to be about neutral
Conference Call
The Company will conduct a conference call, which is open to the public,
to discuss these results. The call will take place today,
States
number is 34095806.
A replay of the call will be available for 30 days. The conference call
replay numbers are as follows:
706-645-9291. The Access Code is 34095806.
Investors will also have the opportunity to listen to the conference call
and the replay over the Internet through UTStarcom's Web site at:
http://www.utstar.com
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
http://www.utstar.com.
Forward-Looking Statements
This release includes forward-looking statements, including the foregoing
statements regarding the Company's expectations with respect to its
anticipated results for the first quarter of 2008, anticipated realization of
operational improvements, and the Company's developing plans to provide
sufficient liquidity to finance the Company's anticipated working capital and
capital expenditure requirements for the next twelve months. 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)
December 31, December 31,
2007 2006
ASSETS
Current assets:
Cash, cash equivalents and short-term
investments $503,078 $671,169
Accounts and notes receivable, net 343,525 411,140
Inventories and deferred costs 524,727 635,838
Prepaids and other current assets 121,636 126,879
Total current assets 1,492,966 1,845,026
Long-term assets:
Property, plant and equipment, net 209,094 213,155
Long-term deferred costs 164,766 176,649
Other long-term assets 117,762 148,475
Total assets $1,984,588 $2,383,305
LIABILITIES, MINORITY INTEREST AND
STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $148,440 $304,869
Short-term debt 322,829 102,758
Customer advances 229,050 265,812
Deferred revenue 100,502 95,742
Other current liabilities 302,395 275,489
Total current liabilities 1,103,216 1,044,670
Long-term liabilities:
Long-term debt 333 275,161
Long-term deferred revenue and other
liabilities 259,358 282,621
Total liabilities 1,362,907 1,602,452
Minority interest in consolidated
subsidiaries 3,705 6,493
Total stockholders' equity 617,976 774,360
Total liabilities, minority interest
and stockholders' equity $1,984,588 $2,383,305
UTStarcom, Inc.
Consolidated Statement of Operations
(in thousands, except per share amounts)
(Unaudited)
Three months ended Twelve months ended
December 31, December 31,
2007 2006 2007 2006
Net sales $806,330 $704,456 $2,466,970 $2,458,861
Cost of net sales 704,326 626,253 2,145,519 2,073,117
Gross profit 102,004 78,203 321,451 385,744
Operating expenses:
Selling, general and
administrative 76,146 87,547 319,145 334,455
Research and development 40,575 43,559 168,275 182,869
Amortization of intangible
assets 3,824 4,304 15,961 18,871
Gain on sale of semi-conductor
design assets - - (4,271) (12,291)
Impairment of goodwill and
other long-lived assets 19,912 - 19,912 -
Restructuring charges 14,474 - 14,474 -
Total operating expenses 154,931 135,410 533,496 523,904
Operating loss (52,927) (57,207) (212,045) (138,160)
Interest (expense)/income, net (6,612) 1,734 (18,216) 3,141
Other income, net 56,318 (11,198) 64,796 1,092
Loss before income taxes and
minority interest (3,221) (66,671) (165,465) (133,927)
Income taxes (22,164) 23,991 (32,898) 15,024
Minority interest in losses of
consolidated subsidiaries 828 651 2,788 1,558
Net loss $(24,557) $(42,029) $(195,575) $(117,345)
Loss per share - Basic and
diluted $(0.20) $(0.35) $(1.62) $(0.97)
Weighted average shares used
in per-share calculation:
- Basic and diluted 121,340 120,741 121,059 120,657
UTStarcom, Inc.
Condensed Consolidated Statement of Cash Flows
(in thousands)
(Unaudited)
Twelve months Twelve months
ended December ended December
31, 2007 31, 2006
Net cash (used in) provided by
operating activities $(218,209) $66,079
Cash flows from investing activities:
Property, plant and equipment, net (27,324) (26,274)
Proceeds from sale of semiconductor
design asset 4,271 35,965
Proceeds from sale of long-term
investments 3,334 775
Change in restricted cash and long-
term investments 6,591 20,882
Short-term investments, net 41,950 4,028
Investment in affiliates, net of cash
acquired (79) (302)
Other 695 991
Net cash provided by investing
activities 29,438 36,065
Cash flows from financing activities:
Borrowings, net (61,605) (100,113)
Other 3,500 604
Net cash (used in) financing
activities (58,105) (99,509)
Effect of exchange rate changes on
cash and cash equivalents 22,702 13,417
Net (decrease) increase in cash and
cash equivalents (224,174) 16,052
Cash and cash equivalents at
beginning of period 661,623 645,571
Cash and cash equivalents at end of
period $437,449 $661,623
SOURCE UTStarcom, Inc.