Core Viewpoint - UTStarcom reported significant declines in revenue and profit for the second half and full year of 2024, while also highlighting a major contract win with China Telecom Research Institute for 5G transport network routers, indicating potential future growth opportunities despite current financial challenges [1][3][7]. Financial Results Summary Second Half of 2024 - Revenue decreased to $5.2 million, down 43.5% from $9.2 million in the same period of 2023 [4]. - Gross profit was $1.2 million, representing a 53.8% decline from $2.6 million year-over-year [4]. - Operating loss increased to $3.7 million from $2.8 million in the prior year [4]. - Net loss attributable to shareholders was $2.4 million, compared to $1.8 million in the same period of 2023 [19]. - Basic EPS was reported at ($0.26), down from ($0.20) [19]. - Cash balance decreased by 10.9% to $53.1 million from $59.6 million [4]. Full Year 2024 - Total revenue for the year was $10.9 million, a decrease of 31.0% from $15.8 million in 2023 [6]. - Gross profit for the year was $2.9 million, down 34.1% from $4.4 million [6]. - Operating loss for the year was $7.3 million, compared to $6.8 million in 2023 [16]. - Net loss attributable to shareholders was $4.4 million, compared to $3.9 million in 2023 [19]. - Basic EPS for the year was ($0.48), down from ($0.42) [19]. - Cash balance remained at $53.1 million, consistent with the second half of the year [6]. Business Developments - The company secured a multi-million dollar RFP from China Telecom Research Institute for manufacturing 5G transport network routers, marking a significant milestone in its 5G transport network portfolio [7]. - Cooperation with a European mobile network operator led to the development of a customized NG-PTN product, with anticipated orders in 2025 [7]. - Continued global post-sale support services were provided, with renewal orders received for existing products [7]. Operating Expenses - Operating expenses for the second half of 2024 were $4.9 million, a decrease of 9.3% from $5.4 million in the same period of 2023 [4]. - Full year operating expenses totaled $10.2 million, down from $11.2 million in 2023 [15]. Cash Flow and Financial Position - Cash used in operating activities for the second half of 2024 was $2.0 million, with no cash provided by financing activities [20]. - As of December 31, 2024, the company had cash, cash equivalents, and restricted cash of $53.1 million [20].
UTStarcom Reports Unaudited Financial Results for Second Half and Full Year 2024