UTStarcom Holdings Corp. (NASDAQ:UTSI) Q2 2019 Earnings Conference Call August 13, 2019 5:00 PM ET Company Participants Gary Dvorchak - Managing Director of The Blueshirt Group Asia Tim Ti - Chief Executive Officer Eric Lam - Vice President of Finance Conference Call Participants Operator Hello, ladies and gentlemen. Thank you for standing by for UTStarcom's Second Quarter 2019 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker’s presentation, there will be ...

UTStarcom Holdings Corp. (NASDAQ:UTSI) Q1 2019 Earnings Conference Call May 10, 2019 8:00 AM ET Company Participants Gary Dvorchak - MD, The Blueshirt Group Asia Tim Ti - CEO Eric Lam - VP, Finance Conference Call Participants Tim Savageaux - Northland Capital Operator Hello, ladies and gentlemen, thank you for standing by for UTStarcom's First Quarter 2019 Earnings Conference Call. Please note that we are recording today's conference call. I will now turn over the call to Mr. Gary Dvorchak, Managing Direct ...

Financial Performance - Revenues for Q1 2019 were $24.7 million, a 9.1% increase year-over-year and a 93.7% increase quarter-over-quarter[5] - Gross profit was $7.0 million, a 23.6% decrease year-over-year but a 21.2% increase quarter-over-quarter[5] - Operating expenses were $7.3 million, a 6.1% increase year-over-year but a 12.3% decrease quarter-over-quarter[5] - The company experienced an operating loss of $0.3 million, an improvement of $2.2 million compared to the previous quarter[5] - Net income was $0.4 million, an improvement of $1.7 million compared to the previous quarter[5] - Basic earnings per share were $0.01, an increase of $0.05 compared to the previous quarter[5] - Cash balance, including restricted cash, was $64.1 million, a 35.2% decrease year-over-year and a 13.0% decrease quarter-over-quarter[5] Business Updates and Outlook - The company is evaluating 5G transport network technologies with a major telecom carrier in China[7, 20, 27] - The company is ramping up its goBox business and launched its first 5G smart vending machine[7, 20, 27] - Cross-selling activities with strategic partner TongDing are underway[7, 20, 27] - The company expects Q2 2019 revenue to be between $13 million and $17 million[43]

Financial Performance - Net sales for 2018 were $115.9 million, an increase from $98.3 million in 2017, representing a growth of approximately 17%[15] - Gross profit for 2018 was $32.3 million, slightly down from $33.1 million in 2017, indicating a gross margin of about 27.8%[15] - Operating income for 2018 was $4.4 million, a decrease from $6.5 million in 2017, reflecting a decline of approximately 32.9%[15] - Net income attributable to UTStarcom Holdings Corp. for 2018 was $4.8 million, down from $7.0 million in 2017, a decrease of about 31.4%[20] - Cash and cash equivalents as of December 31, 2018, were $57.0 million, a decrease from $79.7 million in 2017[16] - Working capital increased to $90.4 million in 2018 from $78.5 million in 2017, representing an increase of approximately 15.5%[16] - Total assets decreased to $177.4 million in 2018 from $187.0 million in 2017, a decline of about 5.7%[16] Customer Dependence - Dependence on key customers: net sales to Softbank were approximately $31.9 million in 2018, accounting for about 28% of total net sales, while sales to BSNL were approximately $67.0 million, representing about 58% of total net sales[31] Strategic Outlook - The company anticipates that its strategic plan focusing on profitable broadband products will modify its revenue profile and improve margins over time[23] - The company is exploring new market segments and product offerings, which may increase operational complexity and present technological challenges[38] - Future product sales are unpredictable, with operating results likely to fluctuate due to factors such as order timing, customer acceptance, and lengthy sales cycles[39] - The company must continually introduce new products and enhancements to remain competitive in a rapidly changing technological landscape[46] Competition and Market Risks - The company faces intense competition, which may lead to reduced prices, revenues, and market share, impacting financial performance[42] - Average selling prices of products may decrease, affecting revenues and gross profit, necessitating the development of higher-priced products[45] Supply Chain and Operational Risks - Key components are sourced from sole suppliers, and any inability to secure these components could harm competitive position and business operations[50] - Currency fluctuations have historically impacted cash flow, with the Indian Rupee depreciating by approximately 9.0% against the U.S. dollar in 2018, affecting financial results[60] - The company does not currently hedge against foreign currency risks, which may lead to significant financial impacts from currency fluctuations[60] Regulatory and Compliance Risks - Multinational operations present various economic, political, and regulatory risks that could strain resources and affect business performance[52] - The company is subject to complex and evolving laws regarding privacy and data protection, which may impose significant compliance costs and operational burdens[82] - The company may face significant costs related to intellectual property infringement claims, which could adversely affect its financial condition[70] Internal Control and Governance - As of December 31, 2018, the company identified material weaknesses in its internal control over financial reporting, concluding that these controls were not effective[86] - The company may not be able to take advantage of acquisition opportunities or achieve anticipated benefits from completed acquisitions, which could limit growth[66] Market Presence and Operations - The company operates significantly in China, making its financial condition and results subject to economic, political, and legal developments in the region[88] - A significant portion of the company's business is conducted in China and India, where foreign-owned entities can convert RMB or INR into foreign currency for "current account" transactions without pre-approval[62] - The company maintains a direct sales strategy in key markets including Japan, India, and Taiwan, supported by local customer service operations[190] Research and Development - R&D expenses increased to $12.7 million in 2018, up from $9.9 million in 2017, reflecting ongoing investment in product development and new technology[196] - The company is actively involved in R&D for new products in areas like smart retail and merchandising machines, leveraging its expertise in optical communications and broadband access technologies[160] Shareholder and Capital Structure - As of March 31, 2019, Shah Capital and other entities collectively owned approximately 57% of the company's outstanding shares, allowing them significant influence over management decisions[137] - The company may require additional capital in the future, which could lead to dilution of existing shareholders if new equity is issued[140] - The company has incurred additional costs due to being a public entity, impacting net income and liquidity[149] Taxation and Financial Regulations - The company is treated as a U.S. corporation for federal income tax purposes, subjecting it to a 30% withholding tax on dividends paid to Non-U.S. Holders[152] - The Value-Added Tax rate for sales and imported goods was reduced from 16% to 13% effective April 1, 2019, which may impact the company's financial condition[98] Product and Service Offerings - The core business focuses on next-generation broadband telecommunication network products, including packet optical and broadband access solutions[158] - The Packet Optical Products line includes the NetRing Transport Network series, which has seen significant demand, particularly for high bandwidth devices like the 100GE TN765[162] - The company has successfully deployed carrier Wi-Fi solutions since 2013, with significant projects in India, including a large-scale rural public Wi-Fi network[175]

UTStarcom Holdings Corp. (NASDAQ:UTSI) Q4 2018 Results Earnings Conference Call March 15, 2019 8:00 AM ET Company Participants Gary Dvorchak - Managing Director, The Blueshirt Group Asia Tim Ti - CEO Eric Lam - VP of Finance Conference Call Participants Tim Savageaux - Northland Capital Operator Hello, ladies and gentlemen, thank you for standing by for UTStarcom's Fourth Quarter and Full Year 2018 Earnings Conference Call. At this time all participants are in a listen-only mode. There will be a presentatio ...