Thursday October 26, 4:02 pm Eastern Time
Press Release
SOURCE: UTStarcom, Inc.
UTStarcom Reports Third Quarter Results
Revenues Up by 89% Over Previous Year
Pro Forma Earnings per Share $0.14
ALAMEDA, Calif., Oct. 26 /PRNewswire/ -- UTStarcom, Inc. (Nasdaq: UTSI - news) today reported its third quarter results for the period ending September 30, 2000.
Net sales for the third quarter of 2000 increased to $103.8 million, an 89% increase over the $55.0 million in net sales reported in the prior year period. Pro forma net income (excluding stock compensation expense and amortization of intangible assets) for the third quarter of 2000 increased to $14.0 million, or $0.14 per share, from $9.2 million, or $0.12 per share in the prior year period.
``This quarter we fulfilled several key elements in our business plan and model for success,'' said Hong Lu, President and Chief Executive Officer of UTStarcom. ``In our primary market of Mainland China, we signed first-time contracts in that country's most populous province and also continued to expand our presence with new product introductions. Business in Mainland China continued to be extremely strong. We also extended our reach into new markets through the addition of three new sales offices in Taipei, Hong Kong and Miami -- effectively extending our access further into Asia, the Indian subcontinent, and Latin America. We reached agreements with two new strategic partners, Zaffire and Foundry Networks, as a means of adding their systems and expertise (DWDM optical networks and broadband server and routing solutions, respectively) to our telecom access equipment capabilities and network.''
Actual net income (including stock compensation expense and amortization of intangible assets) for the third quarter of 2000 was $10.9 million, or $0.11 per share compared to $6.6 million, or $0.09 per share for the third quarter of 1999.
Net sales for the first nine months of 2000 increased to $242.6 million, a 95% increase over the $124.7 million in net sales reported in the prior year period. Pro forma net income (excluding stock compensation expense and amortization of intangible assets) for the first nine months of 2000 increased to $28.0 million, or $0.28 per share, from $12.7 million, or $0.17 per share in the prior year period.
``Our business strategy and sales efforts continued to yield both high growth and profitability,'' said Mike Sophie, Chief Financial Officer of UTStarcom. ``Our balance sheet is equally strong, with $262 million in cash and short term investments. This financial strength in turn provided our foundation as we continued to invest in both human resources and technology in order to successfully meet the demands of our customers.''
Actual net income (including stock compensation expense and amortization of intangible assets) for the first nine months of 2000 was $14.1 million, or $0.14 per share compared to $8.8 million, or $0.12 per share for the first nine months of 1999.
Note: UTStarcom will conduct a conference call on October 26 at 1:30 p.m. (PDT) which is open to the public. The conference call dial-in numbers are: United States -- 800-260-0712; International -- 612-332-0345.
A conference call replay will be available following the conference call from approximately 5:00 pm (PDT) on October 26 through November 2. The conference call replay numbers are: United States -- 800-475-6701; International -- 320-365-3844. The Access Code is 544413.
About UTStarcom, Inc.
UTStarcom designs, sells, manufactures and installs an integrated suite of wireless and wireline network access and switching systems that allow communications service providers to offer efficient and scalable voice, data and Internet access services. The Company's customers are public telecommunications service providers that operate wireless and wireline voice and data networks in rapidly growing communications markets around the world. Current product offerings include: Airstar network access system, which provides voice and data services over city-wide mobile wireless (PAS(TM)) and fixed wireless (WLL) networks; AN-2000, a broadband and narrowband access system for wireline networks; and WACOS, an IP-based SoftSwitch platform designed to deliver multiple voice and data services using a highly distributed architecture. WACOS contains a SoftSwitch call server, a distributed multi-service IP gateway and a full suite of subscriber management, mediation and billing services.
The Company manufactures the majority of its products at two ISO9002 certified facilities located in China, and maintains sales and customer support sites throughout Mainland China and in Iselin, NJ; Alameda, CA; Miami, FL; Taipei, Taiwan; Hong Kong; and Tel Aviv, Israel. UTStarcom's research and development facilities are located in the USA and China.
UTStarcom was founded in 1991 and is headquartered in Alameda, California. For more information about UTStarcom, visit the Company's website at www.utstar.com.
NOTE: Airstar, PAS, AN-2000, WACOS and the UTStarcom name and logo are trademarks of UTStarcom, Inc. and its subsidiaries.
UTStarcom, Inc.
Pro Forma Consolidated Statements of Operations
Excluding Stock Compensation Expense and Amortization of Intangible Assets
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended Nine Months Ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
2000 1999 2000 1999
Net sales $103,812 $55,019 $242,579 $124,701
Cost of sales 67,853 31,956 157,348 73,781
Gross profit 35,959 23,063 85,231 50,920
Operating expenses:
Selling, general
and administrative 11,114 8,755 30,056 22,634
Research and
development 10,356 4,307 24,896 12,490
Total operating
expenses 21,470 13,062 54,952 35,124
Operating income 14,489 10,001 30,279 15,796
Interest and other
income (expenses) 4,380 22 8,191 (687)
Equity in income (loss)
of affiliated companies (256) 92 (583) 984
Income before income
taxes and minority
interest 18,613 10,115 37,887 16,093
Income tax expense 3,786 303 8,501 488
Minority interest in
earnings of
consolidated
subsidiaries (838) (644) (1,363) (1,233)
Income from continuing
operations 13,989 9,168 28,023 14,372
Loss from discontinued
operations 0 0 0 (1,656)
Net income $13,989 $9,168 $28,023 $12,716
Basic earnings (loss)
per share:
Income from
continuing
operations $0.15 $1.05 $0.38 $1.67
Loss from
discontinued
operations $0.00 $0.00 $0.00 ($0.20)
Net income $0.15 $1.05 $0.38 $1.47
Diluted earnings (loss)
per share:
Income from
continuing
operations $0.14 $0.12 $0.28 $0.19
Loss from
discontinued
operations $0.00 $0.00 $0.00 ($0.02)
Net income $0.14 $0.12 $0.28 $0.17
Shares used in
per-share calculation:
- Basic 94,153 8,701 74,587 8,639
- Diluted 103,517 73,859 100,959 73,880
The above pro forma amounts for the quarter ended September 30, 2000 have been adjusted to eliminate $1,895 of stock compensation expense and $1,224 of amortization of intangible assets.
The above pro forma amounts for the nine months ended September 30, 2000 have been adjusted to eliminate $10,257 of stock compensation expense and $3,671 of amortization of intangible assets.
The above pro forma amounts for the quarter ended September 30, 1999 have been adjusted to eliminate $2,484 of stock compensation expense and $38 of amortization of intangible assets.
The above pro forma amounts for the nine months ended September 30, 1999 have been adjusted to eliminate $3,759 of stock compensation expense and $112 of amortization of intangible assets.
UTStarcom, Inc.
Consolidated Statements of Operations
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended Nine Months Ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
2000 1999 2000 1999
Net sales $103,812 $55,019 $242,579 $124,701
Cost of sales 67,853 31,956 157,348 73,781
Gross profit 35,959 23,063 85,231 50,920
Operating expenses:
Selling, general
and administrative 11,114 8,755 30,056 22,634
Research and
development 10,356 4,307 24,896 12,490
Stock compensation
expense 1,895 2,484 10,257 3,759
Amortization of
intangible assets 1,224 38 3,671 112
Total operating
expenses 24,589 15,584 68,880 38,995
Operating income 11,370 7,479 16,351 11,925
Interest and other
income (expenses) 4,380 22 8,191 (687)
Equity in income
(loss) of affiliated
companies (256) 92 (583) 984
Income before income
taxes and minority
interest 15,494 7,593 23,959 12,222
Income tax expense 3,786 303 8,501 488
Minority interest in
earnings of
consolidated
subsidiaries (838) (644) (1,363) (1,233)
Income from continuing
operations 10,870 6,646 14,095 10,501
Loss from discontinued
operations 0 0 0 (1,656)
Net income $10,870 $6,646 $14,095 $8,845
Basic earnings (loss)
per share:
Income from
continuing
operations $0.12 $0.76 $0.19 $1.22
Loss from
discontinued
operations $0.00 $0.00 $0.00 ($0.20)
Net income $0.12 $0.76 $0.19 $1.02
Diluted earnings (loss)
per share:
Income from
continuing
operations $0.11 $0.09 $0.14 $0.14
Loss from
discontinued
operations $0.00 $0.00 $0.00 ($0.02)
Net income $0.11 $0.09 $0.14 $0.12
Shares used in per-share
calculation:
- Basic 94,153 8,701 74,587 8,639
- Diluted 103,517 73,859 100,959 73,880
UTStarcom, Inc.
Consolidated Balance Sheets
(In thousands)
September 30, December 31,
2000 1999
(Unaudited)
Assets
Current assets:
Cash and cash equivalents $189,928 $87,364
Short-term investments 72,021 0
Accounts receivable, net 120,572 77,823
Receivable from related parties 0 339
Inventories, net 89,687 55,204
Other 15,798 8,326
Total current assets 488,006 229,056
Property, plant and equipment, net 11,717 8,168
Investment in affiliated companies 12,102 4,460
Intangible assets, net 21,461 25,132
Deferred tax assets 9,081 4,352
Other 1,945 620
Total assets $544,312 $271,788
Liabilities, Minority Interest
and Stockholders' Equity
Current liabilities:
Accounts payable $35,106 $21,745
Short-term debt 39,768 34,593
Debt to shareholder and related parties 0 8,745
Income taxes payable 936 2,985
Customer deposits 26,971 5,249
Other 26,967 29,102
Total current liabilities 129,748 102,419
Long-term debt 12,048 0
Minority interest in consolidated subsidiaries 5,012 3,649
Stockholders' equity:
Convertible preferred stock 0 88
Common stock 120 13
Common stock warrant 0 389
Additional paid-in capital 427,094 218,303
Deferred stock compensation (8,306) (17,792)
Accumulated deficit (20,726) (34,821)
Notes receivable from shareholders (723) (555)
Unrealized holding loss (24) 0
Cumulative translation adjustment 69 95
Total stockholders' equity 397,504 165,720
Total liabilities, minority interest
and stockholders' equity $544,312 $271,788
SOURCE: UTStarcom, Inc.
Press Release
SOURCE: UTStarcom, Inc.
UTStarcom Reports Third Quarter Results
Revenues Up by 89% Over Previous Year
Pro Forma Earnings per Share $0.14
ALAMEDA, Calif., Oct. 26 /PRNewswire/ -- UTStarcom, Inc. (Nasdaq: UTSI - news) today reported its third quarter results for the period ending September 30, 2000.
Net sales for the third quarter of 2000 increased to $103.8 million, an 89% increase over the $55.0 million in net sales reported in the prior year period. Pro forma net income (excluding stock compensation expense and amortization of intangible assets) for the third quarter of 2000 increased to $14.0 million, or $0.14 per share, from $9.2 million, or $0.12 per share in the prior year period.
``This quarter we fulfilled several key elements in our business plan and model for success,'' said Hong Lu, President and Chief Executive Officer of UTStarcom. ``In our primary market of Mainland China, we signed first-time contracts in that country's most populous province and also continued to expand our presence with new product introductions. Business in Mainland China continued to be extremely strong. We also extended our reach into new markets through the addition of three new sales offices in Taipei, Hong Kong and Miami -- effectively extending our access further into Asia, the Indian subcontinent, and Latin America. We reached agreements with two new strategic partners, Zaffire and Foundry Networks, as a means of adding their systems and expertise (DWDM optical networks and broadband server and routing solutions, respectively) to our telecom access equipment capabilities and network.''
Actual net income (including stock compensation expense and amortization of intangible assets) for the third quarter of 2000 was $10.9 million, or $0.11 per share compared to $6.6 million, or $0.09 per share for the third quarter of 1999.
Net sales for the first nine months of 2000 increased to $242.6 million, a 95% increase over the $124.7 million in net sales reported in the prior year period. Pro forma net income (excluding stock compensation expense and amortization of intangible assets) for the first nine months of 2000 increased to $28.0 million, or $0.28 per share, from $12.7 million, or $0.17 per share in the prior year period.
``Our business strategy and sales efforts continued to yield both high growth and profitability,'' said Mike Sophie, Chief Financial Officer of UTStarcom. ``Our balance sheet is equally strong, with $262 million in cash and short term investments. This financial strength in turn provided our foundation as we continued to invest in both human resources and technology in order to successfully meet the demands of our customers.''
Actual net income (including stock compensation expense and amortization of intangible assets) for the first nine months of 2000 was $14.1 million, or $0.14 per share compared to $8.8 million, or $0.12 per share for the first nine months of 1999.
Note: UTStarcom will conduct a conference call on October 26 at 1:30 p.m. (PDT) which is open to the public. The conference call dial-in numbers are: United States -- 800-260-0712; International -- 612-332-0345.
A conference call replay will be available following the conference call from approximately 5:00 pm (PDT) on October 26 through November 2. The conference call replay numbers are: United States -- 800-475-6701; International -- 320-365-3844. The Access Code is 544413.
About UTStarcom, Inc.
UTStarcom designs, sells, manufactures and installs an integrated suite of wireless and wireline network access and switching systems that allow communications service providers to offer efficient and scalable voice, data and Internet access services. The Company's customers are public telecommunications service providers that operate wireless and wireline voice and data networks in rapidly growing communications markets around the world. Current product offerings include: Airstar network access system, which provides voice and data services over city-wide mobile wireless (PAS(TM)) and fixed wireless (WLL) networks; AN-2000, a broadband and narrowband access system for wireline networks; and WACOS, an IP-based SoftSwitch platform designed to deliver multiple voice and data services using a highly distributed architecture. WACOS contains a SoftSwitch call server, a distributed multi-service IP gateway and a full suite of subscriber management, mediation and billing services.
The Company manufactures the majority of its products at two ISO9002 certified facilities located in China, and maintains sales and customer support sites throughout Mainland China and in Iselin, NJ; Alameda, CA; Miami, FL; Taipei, Taiwan; Hong Kong; and Tel Aviv, Israel. UTStarcom's research and development facilities are located in the USA and China.
UTStarcom was founded in 1991 and is headquartered in Alameda, California. For more information about UTStarcom, visit the Company's website at www.utstar.com.
NOTE: Airstar, PAS, AN-2000, WACOS and the UTStarcom name and logo are trademarks of UTStarcom, Inc. and its subsidiaries.
UTStarcom, Inc.
Pro Forma Consolidated Statements of Operations
Excluding Stock Compensation Expense and Amortization of Intangible Assets
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended Nine Months Ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
2000 1999 2000 1999
Net sales $103,812 $55,019 $242,579 $124,701
Cost of sales 67,853 31,956 157,348 73,781
Gross profit 35,959 23,063 85,231 50,920
Operating expenses:
Selling, general
and administrative 11,114 8,755 30,056 22,634
Research and
development 10,356 4,307 24,896 12,490
Total operating
expenses 21,470 13,062 54,952 35,124
Operating income 14,489 10,001 30,279 15,796
Interest and other
income (expenses) 4,380 22 8,191 (687)
Equity in income (loss)
of affiliated companies (256) 92 (583) 984
Income before income
taxes and minority
interest 18,613 10,115 37,887 16,093
Income tax expense 3,786 303 8,501 488
Minority interest in
earnings of
consolidated
subsidiaries (838) (644) (1,363) (1,233)
Income from continuing
operations 13,989 9,168 28,023 14,372
Loss from discontinued
operations 0 0 0 (1,656)
Net income $13,989 $9,168 $28,023 $12,716
Basic earnings (loss)
per share:
Income from
continuing
operations $0.15 $1.05 $0.38 $1.67
Loss from
discontinued
operations $0.00 $0.00 $0.00 ($0.20)
Net income $0.15 $1.05 $0.38 $1.47
Diluted earnings (loss)
per share:
Income from
continuing
operations $0.14 $0.12 $0.28 $0.19
Loss from
discontinued
operations $0.00 $0.00 $0.00 ($0.02)
Net income $0.14 $0.12 $0.28 $0.17
Shares used in
per-share calculation:
- Basic 94,153 8,701 74,587 8,639
- Diluted 103,517 73,859 100,959 73,880
The above pro forma amounts for the quarter ended September 30, 2000 have been adjusted to eliminate $1,895 of stock compensation expense and $1,224 of amortization of intangible assets.
The above pro forma amounts for the nine months ended September 30, 2000 have been adjusted to eliminate $10,257 of stock compensation expense and $3,671 of amortization of intangible assets.
The above pro forma amounts for the quarter ended September 30, 1999 have been adjusted to eliminate $2,484 of stock compensation expense and $38 of amortization of intangible assets.
The above pro forma amounts for the nine months ended September 30, 1999 have been adjusted to eliminate $3,759 of stock compensation expense and $112 of amortization of intangible assets.
UTStarcom, Inc.
Consolidated Statements of Operations
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended Nine Months Ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
2000 1999 2000 1999
Net sales $103,812 $55,019 $242,579 $124,701
Cost of sales 67,853 31,956 157,348 73,781
Gross profit 35,959 23,063 85,231 50,920
Operating expenses:
Selling, general
and administrative 11,114 8,755 30,056 22,634
Research and
development 10,356 4,307 24,896 12,490
Stock compensation
expense 1,895 2,484 10,257 3,759
Amortization of
intangible assets 1,224 38 3,671 112
Total operating
expenses 24,589 15,584 68,880 38,995
Operating income 11,370 7,479 16,351 11,925
Interest and other
income (expenses) 4,380 22 8,191 (687)
Equity in income
(loss) of affiliated
companies (256) 92 (583) 984
Income before income
taxes and minority
interest 15,494 7,593 23,959 12,222
Income tax expense 3,786 303 8,501 488
Minority interest in
earnings of
consolidated
subsidiaries (838) (644) (1,363) (1,233)
Income from continuing
operations 10,870 6,646 14,095 10,501
Loss from discontinued
operations 0 0 0 (1,656)
Net income $10,870 $6,646 $14,095 $8,845
Basic earnings (loss)
per share:
Income from
continuing
operations $0.12 $0.76 $0.19 $1.22
Loss from
discontinued
operations $0.00 $0.00 $0.00 ($0.20)
Net income $0.12 $0.76 $0.19 $1.02
Diluted earnings (loss)
per share:
Income from
continuing
operations $0.11 $0.09 $0.14 $0.14
Loss from
discontinued
operations $0.00 $0.00 $0.00 ($0.02)
Net income $0.11 $0.09 $0.14 $0.12
Shares used in per-share
calculation:
- Basic 94,153 8,701 74,587 8,639
- Diluted 103,517 73,859 100,959 73,880
UTStarcom, Inc.
Consolidated Balance Sheets
(In thousands)
September 30, December 31,
2000 1999
(Unaudited)
Assets
Current assets:
Cash and cash equivalents $189,928 $87,364
Short-term investments 72,021 0
Accounts receivable, net 120,572 77,823
Receivable from related parties 0 339
Inventories, net 89,687 55,204
Other 15,798 8,326
Total current assets 488,006 229,056
Property, plant and equipment, net 11,717 8,168
Investment in affiliated companies 12,102 4,460
Intangible assets, net 21,461 25,132
Deferred tax assets 9,081 4,352
Other 1,945 620
Total assets $544,312 $271,788
Liabilities, Minority Interest
and Stockholders' Equity
Current liabilities:
Accounts payable $35,106 $21,745
Short-term debt 39,768 34,593
Debt to shareholder and related parties 0 8,745
Income taxes payable 936 2,985
Customer deposits 26,971 5,249
Other 26,967 29,102
Total current liabilities 129,748 102,419
Long-term debt 12,048 0
Minority interest in consolidated subsidiaries 5,012 3,649
Stockholders' equity:
Convertible preferred stock 0 88
Common stock 120 13
Common stock warrant 0 389
Additional paid-in capital 427,094 218,303
Deferred stock compensation (8,306) (17,792)
Accumulated deficit (20,726) (34,821)
Notes receivable from shareholders (723) (555)
Unrealized holding loss (24) 0
Cumulative translation adjustment 69 95
Total stockholders' equity 397,504 165,720
Total liabilities, minority interest
and stockholders' equity $544,312 $271,788
SOURCE: UTStarcom, Inc.
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