Core Viewpoint - UTStarcom reported a significant decline in financial performance for the first half of 2025, with revenues and gross profits decreasing year-over-year, while the company continues to pursue growth opportunities through new client development and support for existing customers [3][5][9]. Financial Results - Total revenues for the first half of 2025 were $4.6 million, down 19.3% from $5.7 million in the first half of 2024 [5]. - Gross profit decreased to $0.8 million, representing 16.2% of net sales, compared to $1.7 million and 30.0% in the same period of 2024 [9][24]. - Operating expenses were reduced to $4.9 million from $5.3 million year-over-year, reflecting cost control measures [10][17]. - The operating loss increased to $4.2 million from $3.6 million in the prior year [11]. - Net loss attributable to shareholders was $3.7 million, compared to $2.0 million in the first half of 2024, with a basic net loss per share of $0.41 versus $0.22 [14][24]. Business Highlights - UTStarcom secured a major contract with the Guangdong Research Institute of China Telecom for the production of disaggregated router hardware platforms, essential for supporting China Telecom's 5G services [7]. - The company received multiple maintenance and warranty support orders related to its deployed solutions, indicating ongoing customer engagement [7]. - Expansion orders were noted, including a PTN network expansion for a European mobile operator and an IMS Broadband Core solution expansion for a key Indian customer [7]. Sales Performance - Net equipment sales were $0.5 million, a decrease of 31.6% from $0.8 million in the same period in 2024, primarily due to lower sales in India [8]. - Net services sales were $4.1 million, down 16.9% from $4.9 million in the prior year, attributed to the completion of current projects and lack of new major projects in India [8]. Cash Flow and Balance Sheet - Cash used in operating activities was $4.5 million, with a cash balance of $49.2 million as of June 30, 2025, down 12.1% from $56.0 million at the end of 2024 [15][21]. - Total assets decreased to $62.9 million from $68.2 million at the end of 2024, with total liabilities also declining [21][22].