Financial Performance - Total revenue for the first half of 2023 was $6.5 million, a decrease of 13.3% compared to $7.5 million in the first half of 2022[6] - Gross profit increased to $1.8 million, representing a gross margin of 28.0%, up from $1.3 million and 17.7% in the same period last year[8] - Operating expenses rose to $5.8 million, a 41.5% increase from $4.1 million in the first half of 2022[9] - The net loss attributable to shareholders for the first half of 2023 was $2.0 million, compared to a net loss of $1.7 million in the same period of 2022, resulting in a basic net loss per share of $0.22[13] - Net loss for the six months ended June 30, 2023, was $2,011,000, compared to a net loss of $1,680,000 for the same period in 2022[25] Cash Flow and Balance - Cash balance, including restricted cash, decreased by 6.0% to $60.6 million from $64.5 million at the end of 2022[6] - Cash flows from operating activities resulted in a net cash used of $3,817,000, a significant decrease from the net cash provided of $3,849,000 in the prior year[25] - Cash and cash equivalents at the end of the period decreased to $60,561,000 from $64,457,000 at the end of the previous period[25] - Changes in operating assets and liabilities led to a cash outflow of $1,687,000, contrasting with a cash inflow of $6,148,000 in the same period last year[25] - The effect of exchange rate changes on cash and cash equivalents resulted in a loss of $2,303,000, compared to a loss of $5,579,000 in the previous year[25] - The net cash provided by financing activities was $4,000, compared to a net cash used of $13,000 in the previous year[25] Expenses and Investments - Research and development expenses were $2.9 million, reflecting ongoing product development efforts[10] - The company reported a depreciation expense of $116,000, up from $106,000 in the prior year[25] - Additions to property, plant, and equipment amounted to $182,000, an increase from $76,000 in the same period last year[25] - The company recorded stock-based compensation expense of $183,000, down from $339,000 in the prior year[25] - The recovery of credit losses was reported at $(998,000), compared to $(1,798,000) in the same period last year[25] Product Development and Market Strategy - The gross margin on equipment sales improved to 49.2%, compared to a gross loss of 15.8% in the same period last year[8] - UTStarcom introduced the new SyncRing XGM30E indoor PTP grandmaster product, expanding its product portfolio[2] - The company aims to expand its market share in China, achieving MII certification for its SkyFlux UAR500B-12X product[4] - The company collected $5.80 million from its major customer in India, leaving $5.75 million still outstanding[4]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 20-F ☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022. OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to OR ☐ SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SEC ...

[Executive Summary & Business Update](index=1&type=section&id=Executive%20Summary%20%26%20Business%20Update) [Business Update](index=1&type=section&id=Business%20Update) UTStarcom made significant 2H 2022 progress in 5G transport, new platform launch, expansion orders, and India receivables reduction - Progressed collaboration with China Unicom Research Institute on a disaggregated networking solution for 5G transport networks, winning two RFPs for v.2.x NOS development (including SRv6 and protocol stack) and a disaggregated hardware platform[2](index=2&type=chunk) - Launched the new SkyFlux UAR Disaggregated Router platform, including three chassis-based modular routers (SkyFlux UAR400A-04X, SkyFlux UAR500A-08X, SkyFlux UAR500B-12X) and the SkyFlux NOS Network Operating System[3](index=3&type=chunk) - Received an expansion order for NetRing® TN704E metro access and aggregation products for a mobile operator's 5G transport network deployment in Europe[3](index=3&type=chunk) - Secured multiple expansion orders for the IMS solution deployed in India, aimed at increasing subscriber capacity to meet growing demand[4](index=4&type=chunk) - Collected **$23.4 million** in India receivables in 2022, reducing the outstanding balance to **$9.8 million** by year-end, an over **80% decline** from its peak[4](index=4&type=chunk) [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO Hua Li cited COVID-19 and geopolitical impacts on 2022 results, emphasizing progress in network disaggregation and new growth initiatives - Second half and full year 2022 results were negatively affected by the COVID-19 pandemic and geopolitical issues[5](index=5&type=chunk) - The company is progressing with business partners in China to implement network disaggregation solutions[5](index=5&type=chunk) - Actively working on other opportunities to restore growth[5](index=5&type=chunk) [Financial Highlights (Unaudited)](index=2&type=section&id=Financial%20Highlights%20(Unaudited)) [Second Half 2022 Financial Summary](index=2&type=section&id=Second%20Half%202022%20Financial%20Summary) 2H 2022 revenue decreased 9.72% to **$6.5 million**, but gross profit turned positive to **$1.3 million**, and net loss narrowed to **$3.4 million** 2H 2022 Key Financials (Unaudited) | Metric | 2H 2022 ($M) | 2H 2021 ($M) | Y/Y Change | |:---|:---|:---|:---| | Revenue | $6.50 | $7.20 | -9.72% | | Gross Profit | $1.30 | ($3.30) | -139.39% | | Operating Expenses | $3.00 | $2.90 | 3.45% | | Operating Loss | ($1.70) | ($6.20) | $4.50 | | Net Loss | ($3.40) | ($6.10) | $2.70 | | Basic EPS | ($0.38) | ($0.67) | $0.29 | | Cash Balance (including Restricted Cash) | $66.80 | $66.30 | 0.75% | [Full Year 2022 Financial Summary](index=2&type=section&id=Full%20Year%202022%20Financial%20Summary) Full year 2022 revenue decreased 11.95% to **$14.0 million**, with gross profit improving to **$2.7 million** and net loss narrowing to **$5.1 million** Full Year 2022 Key Financials (Unaudited) | Metric | 2022 ($M) | 2021 ($M) | Y/Y Change | |:---|:---|:---|:---|\ | Revenue | $14.00 | $15.90 | -11.95% | | Gross Profit | $2.70 | ($1.10) | -345.45% | | Operating Expenses | $7.20 | $4.20 | 71.43% | | Operating Loss | ($4.50) | ($5.30) | $0.80 | | Net Loss | ($5.10) | ($5.80) | $0.70 | | Basic EPS | ($0.56) | ($0.65) | $0.09 | | Cash Balance (including Restricted Cash) | $66.80 | $66.30 | 0.75% | [Detailed Financial Performance Analysis](index=2&type=section&id=Detailed%20Financial%20Performance%20Analysis) [Total Revenues](index=2&type=section&id=Total%20Revenues) 2H 2022 revenues decreased to **$6.5 million** due to lower equipment sales and JPY depreciation; full year revenues declined to **$14.0 million** from reduced service sales - 2H 2022 net equipment sales decreased by **42.5%** to **$0.8 million**, mainly due to decreased revenue from major customers in India[9](index=9&type=chunk) - 2H 2022 net services sales decreased by **1.3%** to **$5.7 million**, primarily due to lower Japan service revenue as JPY depreciated against the U.S. dollar[9](index=9&type=chunk) - Full year 2022 total revenues were **$14.0 million**, an **11.9% decrease** from **$15.9 million** in 2021[9](index=9&type=chunk) - Full year 2022 net services sales decreased by **13.5%** to **$11.8 million**, mainly due to the completion of current projects and no new major projects in India, and lower Japan service revenue due to JPY depreciation[11](index=11&type=chunk) [Gross Profit](index=3&type=section&id=Gross%20Profit) Gross profit significantly improved in 2H and full year 2022, turning positive due to a 2021 inventory reserve and increased service gross margin - 2H 2022 gross profit was **$1.3 million** (**20.6% of net sales**), compared to negative **$3.3 million** (negative **45.0%**) in 2H 2021[12](index=12&type=chunk) - 2H 2022 equipment gross loss improved to **$0.3 million** (**32.4% negative margin**) from **$4.8 million** (**325.4% negative margin**) in 2H 2021, attributed to a one-time inventory reserve in 2021[12](index=12&type=chunk) - Full year 2022 gross profit was **$2.7 million** (**19.1% of net sales**), compared to negative **$1.1 million** (negative **6.8%**) in 2021[13](index=13&type=chunk) - Full year 2022 service gross margin increased to **28.0%** from **24.1%** in 2021[13](index=13&type=chunk) [Operating Expenses](index=3&type=section&id=Operating%20Expenses) Operating expenses increased to **$3.0 million** in 2H 2022 and **$7.2 million** for the full year, mainly due to less reversal of credit loss allowance, despite lower R&D - 2H 2022 operating expenses were **$3.0 million**, compared to **$2.9 million** in 2H 2021[14](index=14&type=chunk) - 2H 2022 SG&A expenses were **$0.9 million** (compared to negative **$0.7 million** in 2H 2021), higher due to less reversal of allowance for credit loss from India customer[14](index=14&type=chunk) - Full year 2022 operating expenses were **$7.2 million**, compared to **$4.2 million** in 2021, with SG&A increasing to **$2.4 million** (from negative **$2.6 million**) for similar reasons[16](index=16&type=chunk) - R&D expenses decreased in both 2H 2022 (**$2.1 million** from **$3.6 million**) and full year 2022 (**$4.8 million** from **$6.9 million**), reflecting different stages of 5G product development[14](index=14&type=chunk)[16](index=16&type=chunk) [Operating Loss](index=4&type=section&id=Operating%20Loss) Operating loss significantly narrowed in both 2H and full year 2022, driven by improved gross profit despite higher operating expenses - 2H 2022 operating loss was **$1.7 million**, a significant improvement from **$6.2 million** in 2H 2021[17](index=17&type=chunk) - Full year 2022 operating loss was **$4.5 million**, compared to **$5.3 million** in 2021[17](index=17&type=chunk) [Interest Income, Net](index=4&type=section&id=Interest%20Income,%20Net) Net interest income increased in both 2H and full year 2022, primarily due to higher interest income from India - 2H 2022 net interest income was **$1.3 million**, up from **$0.7 million** in 2H 2021[18](index=18&type=chunk) - Full year 2022 net interest income was **$2.2 million**, up from **$1.1 million** in 2021[18](index=18&type=chunk) - The increase in interest income was mainly due to higher interest income in India[18](index=18&type=chunk) [Other Income (Expenses), Net](index=4&type=section&id=Other%20Income%20(Expenses),%20Net) Net other expenses were reported in 2H and full year 2022, mainly due to foreign exchange losses from Indian Rupee depreciation - 2H 2022 net other expense was **$2.3 million**, compared to net other income of **$0.5 million** in 2H 2021, mainly due to foreign exchange loss from Indian Rupee depreciation[19](index=19&type=chunk) - Full year 2022 net other expense was **$0.7 million**, compared to net other income of **$1.6 million** in 2021, also mainly due to foreign exchange loss from Indian Rupee depreciation[19](index=19&type=chunk) [Net Loss](index=4&type=section&id=Net%20Loss) Net loss attributable to shareholders decreased in both 2H and full year 2022, with basic net loss per share also improving - 2H 2022 net loss attributable to shareholders was **$3.4 million**, compared to **$6.1 million** in 2H 2021[20](index=20&type=chunk) - 2H 2022 basic net loss per share was **$0.38**, compared to **$0.67** in 2H 2021[20](index=20&type=chunk) - Full year 2022 net loss attributable to shareholders was **$5.1 million**, compared to **$5.8 million** in 2021[20](index=20&type=chunk) - Full year 2022 basic net loss per share was **$0.56**, compared to **$0.65** in 2021[20](index=20&type=chunk) [Cash Flow](index=4&type=section&id=Cash%20Flow) 2H 2022 operating activities generated **$3.4 million**, investing used **$0.2 million**, with cash balance at **$66.8 million** by year-end - Cash provided by operating activities in 2H 2022 was **$3.4 million**[21](index=21&type=chunk) - Cash used in investing activities in 2H 2022 was **$0.2 million**[21](index=21&type=chunk) - Cash provided by financing activities in 2H 2022 was nil[21](index=21&type=chunk) - As of December 31, 2022, cash, cash equivalents, and restricted cash totaled **$66.8 million**[21](index=21&type=chunk) [Company Information & Disclosures](index=5&type=section&id=Company%20Information%20%26%20Disclosures) [About UTStarcom Holdings Corp.](index=5&type=section&id=About%20UTStarcom%20Holdings%20Corp.) UTStarcom is a global telecommunications infrastructure provider, founded in 1991, listed on Nasdaq, focusing on mobile backhaul, metro aggregation, and broadband access in key markets - UTStarcom is a global telecommunications infrastructure provider[22](index=22&type=chunk) - Offers high-performance advanced equipment for mobile backhaul, metro aggregation, and broadband access[22](index=22&type=chunk) - Has operations and customers worldwide, with a special focus on Japan, India, and China[22](index=22&type=chunk) - Founded in 1991 and listed on the Nasdaq Market in 2000 (symbol: UTSI)[22](index=22&type=chunk) [Forward-Looking Statements](index=5&type=section&id=Forward-Looking%20Statements) This section contains forward-looking statements subject to risks including COVID-19, financial condition changes, operational improvements, new product development, and regulatory matters - Statements regarding strategic initiatives and business outlook are forward-looking and subject to risks and uncertainties[23](index=23&type=chunk) - Risks include the effect of the COVID-19 pandemic, changes in financial condition, management changes, ability to realize anticipated results, integrate acquisitions, develop new products, market growth assumptions, and regulatory matters[23](index=23&type=chunk) - The company is in a period of strategic transition, exposing its business to additional risks[23](index=23&type=chunk) [Investor and Media Inquiries](index=5&type=section&id=Investor%20and%20Media%20Inquiries) Contact information for investor and media inquiries is provided, including UTStarcom Holdings Corp and The Blueshirt Group - Contact information for UTStarcom Holdings Corp Investor Relations (Ms Shelley Jiang) is provided[24](index=24&type=chunk) - Contact information for The Blueshirt Group (Mr Gary Dvorchak) for inquiries in the United States is provided[24](index=24&type=chunk) [Unaudited Condensed Consolidated Financial Statements](index=6&type=section&id=Unaudited%20Condensed%20Consolidated%20Financial%20Statements) [Balance Sheets](index=6&type=section&id=Balance%20Sheets) As of December 31, 2022, total assets decreased to **$88.9 million**, liabilities to **$31.6 million**, and equity to **$57.4 million**, mainly due to reduced accounts receivable Unaudited Condensed Consolidated Balance Sheets (in thousands) | ASSETS | Dec 31, 2022 | Dec 31, 2021 | |:---|:---|:---|\ | Cash and cash equivalents | $54,500 | $53,797 | | Accounts receivable, net | $11,357 | $27,445 | | Total current assets | $81,722 | $97,793 | | Total assets | $88,923 | $108,279 | | **LIABILITIES AND EQUITY** | | | | Accounts payable | $12,974 | $19,031 | | Total current liabilities | $28,527 | $35,427 | | Total liabilities | $31,563 | $39,928 | | Total equity | $57,360 | $68,351 | [Statements of Operations](index=7&type=section&id=Statements%20of%20Operations) Unaudited statements show 2H 2022 net loss of **$3.4 million** and full year net loss of **$5.1 million**, with improved gross profit, increased SG&A, decreased R&D, and foreign exchange losses Unaudited Condensed Consolidated Statements of Operations (in thousands, except per share data) | Metric | Six months ended Dec 31, 2022 | Six months ended Dec 31, 2021 | Twelve months ended Dec 31, 2022 | Twelve months ended Dec 31, 2021 | |:---|:---|:---|:---|:---|\ | Net sales | $6,533 | $7,229 | $14,025 | $15,921 | | Gross profit | $1,348 | ($3,252) | $2,675 | ($1,075) | | Operating expenses | $3,033 | $2,942 | $7,167 | $4,244 | | Operating loss | ($1,685) | ($6,194) | ($4,492) | ($5,319) | | Interest income, net | $1,342 | $668 | $2,154 | $1,136 | | Other income (expense), net | ($2,303) | $545 | ($706) | $1,649 | | Net loss attributable to UTStarcom Holdings Corp. | ($3,426) | ($6,080) | ($5,107) | ($5,828) | | Net loss per share—Basic | ($0.38) | ($0.67) | ($0.56) | ($0.65) | [Statements of Cash Flows](index=8&type=section&id=Statements%20of%20Cash%20Flows) Full year 2022 operating activities provided **$7.26 million**, investing used **$0.25 million**, with cash, cash equivalents, and restricted cash totaling **$66.84 million** Unaudited Condensed Consolidated Statements of Cash Flows (in thousands) | Cash Flow | Six months ended Dec 31, 2022 | Six months ended Dec 31, 2021 | Twelve months ended Dec 31, 2022 | Twelve months ended Dec 31, 2021 | |:---|:---|:---|:---|:---|\ | Net cash provided by operating activities | $3,410 | $6,126 | $7,260 | $19,829 | | Net cash provided by (used in) investing activities | ($174) | ($208) | ($250) | $1,752 | | Net cash provided by financing activities | $20 | $0 | $7 | $0 | | Effect of exchange rate changes on cash and cash equivalents | ($872) | ($1,591) | ($6,452) | ($3,693) | | Cash, cash equivalents and restricted cash at end of period | $66,841 | $66,276 | $66,841 | $66,276 |

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 20-F ☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2019. OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to OR ☐ SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SEC ...

UTStarcom Holdings Corp. (NASDAQ:UTSI) Q3 2019 Earnings Conference Call November 8, 2019 8:00 AM ET Company Participants Gary Dvorchak - MD, The Blueshirt Group Asia Tim Ti - CEO Eric Lam - VP Finance Conference Call Participants Timothy Savageaux - Northland Capital Markets Operator Hello, ladies and gentlemen, thank you for standing by for UTStarcom's Third Quarter 2019 Earnings Conference Call. Please note that, we are recording today's conference call. I will now hand over the call to Mr. Gary Dvorchak, ...