HANGZHOU, China, March 24, 2025 (GLOBE NEWSWIRE) -- UTStarcom (the Company) (NASDAQ:UTSI), a global telecommunications infrastructure provider, today reported its unaudited financial results for the six months and full year ended December 31, 2024, and provided a business update.
Business Update
UTStarcom's Chief Executive Officer Mr. Hua Li commented, "We have made important progresses by winning RFP from one of the major telecom operators in China; and we are also enhancing our co-operations with other business partners to expand the deployment of our products. We expect these progresses will bring improvements to our business."
Second Half and Full Year 2024 Financial Results (Unaudited)
Summary of 2H 2024 Key Financials (Unaudited)
| 2H 2024 | 2H 2023 | Y/Y Change | |||
| Revenue | $5.2 | $9.2 | -43.5% | ||
| Gross Profit | $1.2 | $2.6 | -53.8% | ||
| Operating Expenses | $4.9 | $5.4 | -9.3% | ||
| Operating Loss | ($3.7) | ($2.8) | ($0.9) | ||
| Net Loss | ($2.4) | ($1.8) | ($0.6) | ||
| Basic EPS | ($0.26) | ($0.20) | ($0.06) | ||
| Cash Balance (including Restricted Cash) | $53.1 | $59.6 | -10.9% | ||
Summary of Full Year 2024 Key Financials (Unaudited)
| 2024 | 2023 | Y/Y Change | |
| Revenue | $10.9 | $15.8 | -31.0% |
| Gross Profit | $2.9 | $4.4 | -34.1% |
| Operating Expenses | $10.2 | $11.2 | -8.9% |
| Operating Loss | ($7.3) | ($6.8) | ($0.5) |
| Net Loss | ($4.4) | ($3.9) | ($0.5) |
| Basic EPS | ($0.48) | ($0.42) | ($0.06) |
| Cash Balance (including Restricted Cash) | $53.1 | $59.6 | -10.9% |
* Dollar comparisons are used where percentage comparisons are not meaningful.
* All amounts are in U.S. Dollars millions except for Earnings Per Share (EPS)
Total Revenues
Six months ended December 31, 2024
Total revenues for the second half of 2024 were $5.2 million, compared to $9.2 million in the corresponding period in 2023.
Twelve months ended December 31, 2024
2024 total revenues were $10.9 million, a decrease of 31.0% from $15.8 million in 2023.
Gross Profit
Six months ended December 31, 2024
Gross profit was $1.2 million, or 23.1% of net sales, for the second half of 2024, compared to $2.6 million, or 27.8% of net sales, in the corresponding period in 2023.
Twelve months ended December 31, 2024
2024 gross profit was $2.9 million, or 26.7% of net sales, compared to $4.4 million, or 27.9% of net sales, in 2023.
Operating Expenses
Six months ended December 31, 2024
Operating expenses for the second half of 2024 were $4.9 million, compared to $5.4 million in the corresponding period in 2023.
Twelve months ended December 31, 2024
2024 operating expenses were $10.2 million, compared to $11.2 million in 2023.
Operating Loss
Operating loss for the second half of 2024 was $3.7 million, compared to $2.8 million in the corresponding period in 2023.
Full year 2024 operating loss was $7.3 million, compared to $6.8 million in 2023.
Interest Income, Net
Net interest income for the second half of 2024 was $1.5 million, compared to $1.3 million in the corresponding period in 2023.
Full year 2024 net interest income was $2.8 million, compared to $2.2 million in 2023. The increase was mainly due to higher interest income in China.
Other Income (Expenses), Net
Net other income for the second half of 2024 was $0.1 million, compared to net other income of $0.1 million in the corresponding period in 2023.
Full year 2024 net other income was $0.9 million, compared to net other income of $2.0 million in 2023. Other income for 2024 was mainly a foreign exchange gain resulting from appreciation of the U.S. dollar against the Renminbi.
Net Loss
Net loss attributable to shareholders for the second half of 2024 was $2.4 million, compared to $1.8 million in the corresponding period in 2023. Basic net loss per share for the second half of 2024 was $0.26, compared to $0.20 for the corresponding period in 2023.
Full year 2024 net loss attributable to shareholders was $4.4 million, compared to $3.9 million in 2023. 2024 basic net loss per share was $0.48, compared to $0.42 in 2023.
Cash Flow
Cash used in operating activities in the second half of 2024 was $2.0 million, cash used in investing activities was $0.1 million, and cash provided by financing activities was nil. As of December 31, 2024, UTStarcom had cash, cash equivalents and restricted cash of $53.1 million.
About UTStarcom Holdings Corp.
UTStarcom is committed to helping network operators offer their customers the most innovative, reliable and cost-effective communication services. UTStarcom offers high performance advanced equipment optimized for the most rapidly growing network functions, such as mobile backhaul, metro aggregation and broadband access. UTStarcom has operations and customers around the world, with a special focus on Japan, India and China. UTStarcom was founded in 1991 and listed its shares on the Nasdaq Market in 2000 (symbol: UTSI). For more information about UTStarcom, please visit http://www.utstar.com.
Forward-Looking Statements
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, the effect of the COVID-19 pandemic on the Company's business, 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.
For investor and media inquiries, please contact:
UTStarcom Holdings Corp.
Tel: +86 571 8192 8888
Ms. Shelley Jiang, Investor Relations
Email: utsi-ir@utstar.com/ Shelleyjiang@utstar.com /
| UTStarcom Holdings Corp. Unaudited Condensed Consolidated Balance Sheets | ||||||||
| December 31, | December 31, | |||||||
| 2024 | 2023 | |||||||
| (In thousands) | ||||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 43,913 | $ | 49,968 | ||||
| Notes receivable, net | 659 | 490 | ||||||
| Short-term investments | 165 | — | ||||||
| Accounts receivable, net | 4,849 | 8,380 | ||||||
| Inventories and deferred costs | 2,156 | 886 | ||||||
| Short-term restricted cash | 6,824 | 7,117 | ||||||
| Prepaid and other current assets | 4,454 | 3,755 | ||||||
| Total current assets | 63,020 | 70,596 | ||||||
| Long-term assets: | ||||||||
| Property, plant and equipment, net | 476 | 610 | ||||||
| Operating lease right-of-use assets, net | 1,399 | 2,649 | ||||||
| Long-term restricted cash | 2,406 | 2,562 | ||||||
| Other long-term assets | 848 | 1,063 | ||||||
| Total long-term assets | 5,129 | 6,884 | ||||||
| Total assets | $ | 68,149 | $ | 77,480 | ||||
| LIABILITIES AND EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 6,957 | $ | 7,959 | ||||
| Customer advances | 769 | 226 | ||||||
| Deferred revenue | 62 | 72 | ||||||
| Income tax payable | 8,163 | 8,509 | ||||||
| Operating lease liabilities, current | 1,084 | 1,184 | ||||||
| Other current liabilities | 4,342 | 5,438 | ||||||
| Total current liabilities | 21,377 | 23,388 | ||||||
| Long-term liabilities: | ||||||||
| Operating lease liabilities, non-current | 504 | 1,660 | ||||||
| Long-term deferred revenue and other liabilities | 1,042 | 1,049 | ||||||
| Total liabilities | 22,923 | 26,097 | ||||||
| Total equity | 45,226 | 51,383 | ||||||
| Total liabilities and equity | $ | 68,149 | $ | 77,480 | ||||
| UTStarcom Holdings Corp. Unaudited Condensed Consolidated Statements of Operations | ||||||||||||||||
| Six months ended December 31, | Twelve months ended December 31, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| (In thousands, except per share data) | ||||||||||||||||
| Net sales | $ | 5,159 | $ | 9,239 | $ | 10,878 | $ | 15,753 | ||||||||
| Cost of net sales | 3,968 | 6,670 | 7,972 | 11,363 | ||||||||||||
| Gross profit | 1,191 | 2,569 | 2,906 | 4,390 | ||||||||||||
| 23.1 | % | 27.8 | % | 26.7 | % | 27.9 | % | |||||||||
| Operating expenses: | ||||||||||||||||
| Selling, general and administrative | 2,412 | 2,426 | 5,152 | 5,318 | ||||||||||||
| Research and development | 2,510 | 3,007 | 5,085 | 5,881 | ||||||||||||
| Total operating expenses | 4,922 | 5,433 | 10,237 | 11,199 | ||||||||||||
| Operating loss | (3,731 | ) | (2,864 | ) | (7,331 | ) | (6,809 | ) | ||||||||
| Interest income, net | 1,459 | 1,342 | 2,791 | 2,208 | ||||||||||||
| Other income (expense), net | 49 | 112 | 855 | 2,024 | ||||||||||||
| Loss before income taxes | (2,223 | ) | (1,410 | ) | (3,685 | ) | (2,577 | ) | ||||||||
| Income tax expense | (129 | ) | (430 | ) | (683 | ) | (1,274 | ) | ||||||||
| Net loss attributable to UTStarcom Holdings Corp. | $ | (2,352 | ) | $ | (1,840 | ) | $ | (4,368 | ) | $ | (3,851 | ) | ||||
| Net loss per share attributable to UTStarcom Holdings Corp.—Basic | $ | (0.26 | ) | $ | (0.20 | ) | $ | (0.48 | ) | $ | (0.42 | ) | ||||
| Weighted average shares outstanding—Basic | 9,179 | 9,116 | 9,150 | 9,113 | ||||||||||||
| UTStarcom Holdings Corp. Unaudited Condensed Consolidated Statements of Cash Flows | ||||||||||||||||
| Six months ended December 31, | Twelve months ended December 31, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| (In thousands) | ||||||||||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||||||||
| Net loss | $ | (2,352 | ) | $ | (1,840 | ) | $ | (4,368 | ) | $ | (3,851 | ) | ||||
| Depreciation | 138 | 114 | 275 | 230 | ||||||||||||
| Recovery of credit losses | (37 | ) | (317 | ) | (39 | ) | (1,315 | ) | ||||||||
| Stock-based compensation expense | 56 | 110 | 117 | 293 | ||||||||||||
| Net gain on disposal of assets | — | — | — | (25 | ) | |||||||||||
| Gain on release of tax liability due to expiration of the statute of limitations | (10 | ) | (10 | ) | (21 | ) | (21 | ) | ||||||||
| Lease amortization | 544 | 584 | 1,123 | 1,200 | ||||||||||||
| Deferred income taxes | 154 | 275 | 154 | 275 | ||||||||||||
| Changes in fair value for trading securities investment | 204 | — | (165 | ) | — | |||||||||||
| Changes in operating assets and liabilities | (667 | ) | 423 | (1,533 | ) | (1,264 | ) | |||||||||
| Net cash used in operating activities | (1,970 | ) | (661 | ) | (4,457 | ) | (4,478 | ) | ||||||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||||||||
| Additions to property, plant and equipment | (86 | ) | (73 | ) | (192 | ) | (255 | ) | ||||||||
| Net cash used in investing activities | (86 | ) | (73 | ) | (192 | ) | (255 | ) | ||||||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||||||||
| Proceeds from exercise of stock options | — | — | — | 4 | ||||||||||||
| Net cash provided by financing activities | — | — | — | 4 | ||||||||||||
| Effect of exchange rate changes on cash and cash equivalents | (839 | ) | (180 | ) | (1,855 | ) | (2,483 | ) | ||||||||
| Net decrease in cash and cash equivalents | (2,895 | ) | (914 | ) | (6,504 | ) | (7,212 | ) | ||||||||
| Cash, cash equivalents and restricted cash at beginning of period | 56,038 | 60,561 | 59,647 | 66,859 | ||||||||||||
| Cash, cash equivalents and restricted cash at end of period | $ | 53,143 | $ | 59,647 | $ | 53,143 | $ | 59,647 | ||||||||
