UTStarcom (“UTStarcom” or “the Company”) (NASDAQ:UTSI), a global
telecommunications infrastructure provider, today reported its
unaudited financial results for the second quarter ended June 30,
2016.
Mr. Tim Ti, UTStarcom’s Chief Executive Officer, stated,
“We are glad to report a solid quarter with revenues at the high
end of our expectations, gross margin above forty percent, and
non-GAAP net profitability. We expect relatively soft demand in
second half of 2016 due to seasonality but continue to see healthy
deal pipelines for our PTN products.”
In addition to disclosing financial measures prepared in
accordance with U.S. Generally Accepted Accounting Principles
(“GAAP”), the Company also provides non-GAAP financial measures
which better reflect the Company’s core business status and the
development trend. A further explanation of the use of non-GAAP
financial information and a reconciliation of the non-GAAP
financial measures to the GAAP comparative balances can be found at
the end of this release.
Second Quarter 2016 Milestones and Operating
Highlights
- Moved the Company’s global R&D and Operation Center to a
new location in Hangzhou.
- Subsequent to the second quarter, the Company participated in
the SoftBank World 2016 Exhibition and Conference in Tokyo on July
21-22. The Company displayed the latest developments in its
broadband and optical network infrastructure technology, including
the newest SyncRing product family, and presented its view on
development of mobile backhaul transport infrastructure in view of
current and emerging market trends.
Second Quarter 2016 Financial Performance
Highlights
- Second quarter 2016 GAAP revenues were $20.0 million, a
decrease of 35.0% from $30.8 million for the corresponding period
of 2015. Second quarter 2016 Non-GAAP revenues were $20.0 million,
an increase of 19.9% from $16.7 million for the corresponding
period of 2015.
- Second quarter 2016 GAAP gross margin was 41.2%, compared to
29.5% for the corresponding period of 2015. Second quarter 2016
Non-GAAP gross margin was 41.2%, compared to 16.2% for the
corresponding period of 2015.
- Second quarter 2016 GAAP operating expenses were $7.0 million,
compared to $12.2 million for the corresponding period in 2015.
Second quarter 2016 Non-GAAP operating expenses were $6.4 million,
a decrease of 45.5% from $11.7 million for the corresponding period
in 2015.
- Second quarter 2016 GAAP operating income was $1.3 million,
compared to operating loss of $3.1 million for the corresponding
period of 2015.Second quarter 2016 Non-GAAP operating income was
$1.9 million, compared to operating loss of $9.0 million for the
corresponding period of 2015.
- Second quarter 2016 GAAP net income attributable to UTStarcom’s
shareholders was $4.8 million, compared to net income of $2.9
million for the corresponding period of 2015. Second quarter 2016
Non-GAAP net income attributable to UTStarcom’s shareholders was
$5.5 million, compared to net loss of $0.9 million for the
corresponding period of 2015.
- Second quarter 2016 GAAP basic income per share was $0.13,
compared to basic net income per share of $0.08 for the
corresponding period of 2015. Second quarter 2016 Non-GAAP basic
net income per share was $0.15, compared to basic net loss per
share of $0.02 for the corresponding period of 2015.
- As of Jun 30, 2016, cash and cash equivalents were $81.5
million.
Mr. Min Xu, UTStarcom’s Chief Financial Officer, commented, “We
are pleased to see our focus on margin resulted in positive
operating income and net profitability during the quarter. Our cash
balance was higher than previous quarter with help from strong
Japanese Yen.”
Second Quarter 2016 Financial Results
Total Revenues
Three months ended June 30, 2016 and 2015
Total revenues for the second quarter of 2016 were $20.0
million, a decrease of 35.0 % from $30.8 million for the
corresponding period of 2015. Indian Department of
Telecommunications (“DoT”) revenue was zero in the second quarter
of 2016 and $11.8 million in the second quarter of 2015.
Total Non-GAAP revenues for the second quarter of 2016 were
$20.0 million, an increase of 19.9% from $16.7 million for the
corresponding period of 2015.
- Non-GAAP net sales from equipment for the second quarter of
2016 were $16.3 million, an increase of 32.6% from $12.3 million
for the corresponding period in 2015. The increase was mainly due
to the increase in sales of the Packet Transport Network (“PTN”)
products, partially offset by the decrease in sales of Multi
Service Access Network (“MSAN”) products.
- Non-GAAP net sales from services for the second quarter of 2016
were $3.7 million, a decrease of 15.6% from $4.4 million for the
corresponding period in 2015. The decrease was mainly due to the
expiration of the Japan service contract for discontinued product
line.
Six months ended June 30, 2016 and
2015
Total revenues for the first half of 2016 were $42.6 million, a
decrease of 33.2% from $63.7 million for the corresponding period
of 2015. DoT revenue was zero in the first half of 2016 and $11.8
million in the first half of 2015.
Total Non-GAAP revenues for the first half of 2016 were $42.3
million, a decrease of 13.9% from $49.1 million for the
corresponding period of 2015.
- Non-GAAP net sales from equipment for the first half of 2016
were $32.4 million, a decrease of 13.1% from $37.3 million for the
corresponding period in 2015. The decrease was mainly due to the
strategic reduction of sales of value added Third Party Sales
(“TPS”) and decrease sales of MSAN product, partially offset by the
increased sales of the PTN product.
- Non-GAAP net sales from services for the first half of 2016
were $9.9 million, a decrease of 16.6% from $11.8 million for the
corresponding period in 2015. The decrease was mainly due to the
expiration of the Japan service contract for discontinued product
line.
Gross Profit
Three months ended June 30, 2016 and 2015
Gross profit was $8.3 million, or 41.2% of net sales, for the
second quarter of 2016, compared to $9.1 million, or 29.5% of net
sales, for the corresponding period in 2015. DoT related gross
margin was zero in the second quarter of 2016 and $6.4 million in
the second quarter of 2015.
Non-GAAP gross profit was $8.3 million, or 41.2 % of net sales,
for the second quarter of 2016, compared to $2.7 million or 16.2%
of net sales, for the corresponding period in 2015.
- Non-GAAP gross profit for equipment sales for the second
quarter of 2016 was $7.1 million, compared to $3.9 million for the
corresponding period in 2015. Non-GAAP gross margin for equipment
sales for the second quarter of 2016 was 43.8%, compared to 31.7%
for the corresponding period in 2015. The increase in gross margin
was primarily due to the favorable mix of product and one-time
non-cash benefit related to legacy product revenue amortization in
India.
- Non-GAAP gross profit for services for the second quarter of
2016 was $1.1 million, compared to gross profit of negative $1.2
million for the corresponding period in 2015. Non-GAAP gross margin
for equipment-based services for the second quarter of 2016 was
29.8%, compared to negative 27.2% for the corresponding period in
2015. The low gross margin in second quarter of 2015 was primarily
caused by legacy India MSAN product related service cost.
Six months ended June 30, 2016 and
2015
Gross profit was $14.3 million, or 33.6% of net sales, for the
first half of 2016, compared to $13.9 million, or 21.9% of net
sales, for the corresponding period in 2015. DoT related gross
margin was zero in the first half of 2016 and $6.4 million in the
first half of 2015.
Non-GAAP gross profit was $14.3 million, or 33.8% of net sales,
for the first half of 2016, compared to $7.6 million, or 15.4% of
net sales, for the corresponding period in 2015.
- Non-GAAP gross profit for equipment sales for the first half of
2016 was $12.3 million, an increase of 27.8% from $9.6 million for
the corresponding period in 2015. Non-GAAP gross margin for
equipment sales for the first half of 2016 was 38.0%, compared to
25.8% for the corresponding period in 2015. The increase in gross
margin was primarily caused by the favorable mix of product, mainly
from Japan and India region.
- Non-GAAP gross profit for services for the first half of 2016
was $2.0 million, compared to gross profit of negative $2.1 million
for the corresponding period in 2015. Non-GAAP service gross margin
for the first half of 2016 was 20.2%, compared to negative 17.8%
for the corresponding period in 2015. The low service gross margin
in second quarter of 2015 was primarily caused by legacy India MSAN
product related service cost.
Operating Expenses
Three months ended June 30, 2016 and 2015
Operating expenses for the second quarter of 2016 were $7.0
million, compared to $12.2 million for the corresponding period in
2015.
Non-GAAP operating expenses for the second quarter of 2016 were
$6.4 million, a decrease of 45.5% from $11.7 million for the
corresponding period in 2015.
- Non-GAAP selling, general and administrative (SG&A)
expenses in the second quarter of 2016 were $3.8 million, compared
to $8.1 million for the corresponding period in 2015. The decrease
was mainly due to the decrease in people cost, whistleblower
investigation cost, and severance cost.
- Non-GAAP research and development expenses in the second
quarter of 2016 were $2.6 million, compared to $3.6 million for the
corresponding period in 2015. The decrease was mainly due to the
decrease in severance cost related to the new strategic plan
announced in Jun 5, 2015.
Six months ended June 30, 2016 and
2015
Operating expenses for the first half of 2016 were $15.0
million, a decrease of 25.8% from $20.2 million for the
corresponding period in 2015.
Non-GAAP operating expenses for the first half of 2016 were
$13.0 million, a decrease of 33.3% from $19.5 million for the
corresponding period in 2015.
- Non-GAAP selling, general and administrative expenses in the
first half of 2016 were $8.1 million, compared to $13.3 million for
the corresponding period in 2015. The decrease was mainly due to
the whistleblower investigation cost and severance cost in the
first half of 2015.
- Non-GAAP research and development expenses in the first half of
2016 were $4.9 million, compared to $6.2 million for the
corresponding period in 2015. The decrease was mainly due to
severance cost in the first half of 2015.
Operating Income (Loss)
Three months ended Jun 30, 2016 and 2015
Operating income for the second quarter of 2016 was $1.3
million, compared to operating loss of $3.1 million for the
corresponding period of 2015. Non-GAAP operating income
for the second quarter of 2016 was $1.9 million, compared to
Non-GAAP operating loss of $9.0 million for the corresponding
period of 2015.
Six months ended June 30, 2016 and
2015
Operating loss for the first half of 2016 was $0.7 million,
compared to operating loss of $6.2 million for the corresponding
period of 2015.
Non-GAAP operating income for the first half of 2016 was $1.3
million, compared to Non-GAAP operating loss of $11.9 million for
the corresponding period of 2015.
Other Income (Expense), Net
Three months ended June 30, 2016 and 2015
Net other income for the second quarter of 2016 was $1.3
million, compared to net other income of $4.9 million for the
corresponding period in 2015. Net other income in the second
quarter of 2016 included $0.8 million Korea tax accrual reversal
due to the expiration of the statute of limitations and $0.1
million realized gain from the Cortina investment. Net other income
in second quarter of 2015 included $0.7 million realized gain from
the Cortina investment, $2.8 million ESA loan impairment reversal,
and $1.1 million ESA interest income.
Six months ended June 30, 2016 and
2015
Net other income for the first half of 2016 was $1.9 million,
compared to net other income of $5.4 million for the corresponding
period in 2015. Net other income in the first half of 2016 included
$0.7 million of foreign exchange gain, which was mainly due to the
appreciation of the JPY against the U.S. dollar, $0.8 million Korea
tax accrual reversal due to the expiration of the statute of
limitations, and $0.1 million realized gain from the Cortina
investment. Net other income in the first half of 2015 included
$0.7 million realized gain from the Cortina investment, $2.8
million ESA loan impairment reversal, and $1.1 million ESA interest
income.
Equity Pick Up of Losses of an Associate
After recognizing UiTV Media losses of $14.0 million and
impairment charges of $6.0 million in 2015, the convertible bond
investments balance was reduced to zero as of December 31,
2015.
Three months ended Jun 30, 2016 and 2015
Equity pick up of losses of an associate was nil for the second
quarter of 2016 due to the convertible bond balance was zero as of
December 31, 2015. Equity pick up of losses of an associate was
$3.4 million for the second quarter of 2015, which represented 100%
recognition of UiTV Media losses.
Six months ended June 30, 2016 and
2015
Equity pick up of losses of an associate was nil for the first
half of 2016. Equity pick up of losses of an associate was $6.6
million for the first half of 2015, which represented 100%
recognition of UiTV Media losses.
Net Income (Loss)
Three months ended Jun 30, 2016 and 2015
Net income attributable to UTStarcom’s shareholders for the
second quarter of 2016 was $4.8 million, compared to net income
attributable to UTStarcom’s shareholders of $2.9 million for the
corresponding period in 2015. Basic income per share for the second
quarter of 2016 was $0.13, compared to basic net income per share
of $0.08 for the corresponding period of 2015.
Non-GAAP net income attributable to UTStarcom’s shareholders for
the second quarter of 2016 was $5.5 million, compared to Non-GAAP
net loss attributable to UTStarcom’s shareholders of $0.9 million
for the corresponding period in 2015. Non-GAAP basic net income per
share for the second quarter of 2016 was $0.15, compared to
Non-GAAP basic net loss per share of $0.02 for the corresponding
period of 2015.
Six months ended Jun 30, 2016 and 2015
Net income attributable to UTStarcom’s shareholders for the
first half of 2016 was $3.8 million, compared to net loss
attributable to UTStarcom’s shareholders of $2.5 million for the
corresponding period in 2015. Basic income per share for the first
half of 2016 was $0.10, compared to basic net loss per share of
$0.07 for the corresponding period of 2015.
Non-GAAP net income attributable to UTStarcom’s shareholders for
the first half of 2016 was $5.7 million, compared to Non-GAAP net
loss attributable to UTStarcom’s shareholders of $6.0 million for
the corresponding period in 2015. Non-GAAP basic net income per
share for the first half of 2016 was $0.16, compared to Non-GAAP
basic net loss per share of $0.16 for the corresponding period of
2015.
Cash Flow
- Cash provided by operating activities for the second quarter of
2016 was $0.6 million.
- Cash provided by investing activities for the second quarter of
2016 was $1.1 million.
- Cash used in financing activities for the second quarter of
2016 was $2.0 million, mainly due to the shares repurchase.
As of June 30, 2016, UTStarcom had cash and cash equivalents of
$81.5million.
Overview of Recent Key Events
Returning Cash to Shareholders
In November 2014, the Company's Board of Directors approved a
share repurchase program of up to $40 million of its outstanding
shares over the following 24 months to enhance shareholder value as
part of the Company's longstanding commitment to shareholders. As
of Aug 10, 2016, the Company has repurchased approximately 3.3
million shares for $7.3 million in total.
Business Outlook
The company will continue its focus on profitability and
operating cash flow. The Company believes that the improvement in
business fundamentals is the necessary first step to achieve
sustainable future growth in the long run.
For the third quarter of 2016, the Company expects to generate
non-GAAP revenue in the range of $15 million to $20 million.
Mr. Ti concluded, “We continue to strike a balance between
investment in existing product lines and new products for data
center and smart city markets. We believe we will continue to
capture opportunities in PTN markets and improve our profitability.
Meanwhile, we are building a solid foundation for future
growth.”
Second Quarter 2016 Conference Call Details
The Company’s management will host an earnings conference call
at 8:00 a.m. U.S. Eastern Time on Friday, Aug 12, 2016 (8:00 p.m.
Hong Kong/Beijing Time).
The conference call dial-in numbers are as follows:
United States: +1-855-298-3404New York: +1-631-514-2526Canada:
+1-855-842-3490Hong Kong:
+852-5808-3202
China: 4001-200-539
The attendee passcode is: 6629005
A replay of the call will be available two hours after the end
of the conference call until 11:59 a.m. U.S. Eastern Time on
September 12, 2016.
The conference call replay numbers are as follows:
United States: +1-866-846-0868Hong Kong: 800-966-697China:
4001-842-240International: +61-2-9641-7900
The replay passcode for accessing the recording is 6629005.
Investors will also have the opportunity to listen to the live
conference call and the replay over the Internet through the
investor relations section of UTStarcom’s web site at:
http://www.utstar.com.
About UTStarcom Holdings Corp.
UTStarcom (NASDAQ:UTSI) is a global telecom infrastructure
provider dedicated to developing technology that will serve the
rapidly growing demand for bandwidth from cloud-based services,
mobile, streaming, and other applications. We work with carriers
globally, from Asia to the Americas, to meet this demand through a
range of innovative broadband packet optical transport and
wireless/fixed-line access products and solutions. The Company’s
end-to-end broadband product portfolio, enhanced through in-house
Software Defined Networking (SDN)-based orchestration, enables
mobile and fixed-line network operators and enterprises worldwide
to build highly efficient and resilient future-proof networks for a
range of applications, including mobile backhaul, metro
aggregation, broadband access and Wi-Fi data offload. Our strategic
investments in media operational support service providers expand
UTStarcom’s capabilities in the field of next generation video
platforms. UTStarcom was founded in 1991, started trading on NASDAQ
in 2000, and has operating entities in Hong Kong; Tokyo, Japan; San
Jose, USA; Delhi and Bangalore, India; Hangzhou, China. For more
information about UTStarcom, please visit
http://www.utstar.com.
Forward-Looking Statements
This press release includes forward-looking statements,
including statements regarding the Company’s strategic initiatives
and the Company’s business outlook. These statements are
forward-looking in nature and subject to risks and uncertainties
that may cause actual results to differ materially and adversely
from the Company’s current expectations. These include risks and
uncertainties related to, among other things, changes in the
financial condition and cash position of the Company, changes in
the composition of the Company’s management and their effect on the
Company, the Company’s ability to realize anticipated results of
operational improvements and benefits of the divestiture
transaction, the ability to successfully identify and acquire
appropriate technologies and businesses for inorganic growth and to
integrate such acquisitions, the ability to internally innovate and
develop new products, assumptions the Company makes regarding the
growth of the market and the success of the Company’s offerings in
the market, and the Company’s ability to execute its business plan
and manage regulatory matters. The risks and uncertainties
also include the risk factors identified in the Company’s latest
annual report on Form 20-F and current reports on
Form 6-K as filed with the Securities and Exchange Commission.
The Company is in a period of strategic transition and the conduct
of its business is exposed to additional risks as a result. All
forward-looking statements included in this press release are based
upon information available to the Company as of the date of this
press release, which may change, and the Company assumes no
obligation to update any such forward-looking statements.
For investor and media inquiries, please
contact:
UTStarcom Holdings Corp.Tel: +852-3951-9757
Fei Wang, IR Director Email: fei.wang@utstar.com
Ning Jiang, Investor Relations Email: njiang@utstar.com
UTStarcom Holdings Corp. |
Unaudited Condensed Consolidated Balance
Sheets |
|
|
|
June 30, |
|
December 31, |
|
|
2016 |
|
2015 |
ASSETS |
|
(In thousands, except par value) |
Current assets: |
|
|
|
|
Cash, cash equivalents |
|
$ |
81,457 |
|
|
$ |
77,050 |
|
Accounts and notes receivable,
net |
|
|
13,379 |
|
|
|
17,936 |
|
Inventories and deferred costs |
|
|
54,993 |
|
|
|
42,969 |
|
Prepaids and other current
assets |
|
|
19,482 |
|
|
|
23,652 |
|
Total current assets |
|
|
169,311 |
|
|
|
161,607 |
|
Long-term assets: |
|
|
|
|
Property, plant and equipment,
net |
|
|
1,356 |
|
|
|
1,510 |
|
Long-term deferred costs |
|
|
296 |
|
|
|
332 |
|
Other long-term assets |
|
|
43,163 |
|
|
|
41,431 |
|
Total long-term assets |
|
|
44,815 |
|
|
|
43,273 |
|
Total assets |
|
$ |
214,126 |
|
|
$ |
204,880 |
|
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
|
Current
liabilities: |
|
|
|
|
Accounts payable |
|
$ |
24,325 |
|
|
$ |
16,400 |
|
Customer advances |
|
|
34,143 |
|
|
|
30,976 |
|
Deferred revenue |
|
|
14,095 |
|
|
|
16,965 |
|
Other current liabilities |
|
|
24,579 |
|
|
|
33,447 |
|
Total current liabilities |
|
|
97,142 |
|
|
|
97,788 |
|
Long-term
liabilities: |
|
|
|
|
Long-term deferred revenue and
other liabilities |
|
|
20,764 |
|
|
|
16,814 |
|
Total liabilities |
|
|
117,906 |
|
|
|
114,602 |
|
|
|
|
|
|
Total equity |
|
|
96,220 |
|
|
|
90,278 |
|
Total liabilities and equity |
|
$ |
214,126 |
|
|
$ |
204,880 |
|
UTStarcom Holdings Corp. |
Unaudited Condensed Consolidated Statements of
Operations |
|
|
|
Three months ended June 30 |
|
Six months ended June 30 |
|
|
2016 |
|
2015 |
|
2016 |
|
2015 |
|
|
(In thousands, except per share
data) |
|
|
|
|
|
|
|
|
|
Net sales |
|
$ |
20,026 |
|
|
$ |
30,786 |
|
|
$ |
42,577 |
|
|
$ |
63,743 |
|
Cost of net sales |
|
|
11,776 |
|
|
|
21,702 |
|
|
|
28,270 |
|
|
|
49,811 |
|
Gross profit |
|
|
8,250 |
|
|
|
9,084 |
|
|
|
14,307 |
|
|
|
13,932 |
|
|
|
|
41.2 |
% |
|
|
29.5 |
% |
|
|
33.6 |
% |
|
|
21.9 |
% |
Operating
expenses: |
|
|
|
|
|
|
|
|
Selling,
general and administrative |
|
|
4,369 |
|
|
|
8,551 |
|
|
|
10,051 |
|
|
|
13,926 |
|
Research
and development |
|
|
2,625 |
|
|
|
3,634 |
|
|
|
4,922 |
|
|
|
6,249 |
|
Total operating
expenses |
|
|
6,994 |
|
|
|
12,185 |
|
|
|
14,973 |
|
|
|
20,175 |
|
|
|
|
|
|
|
|
|
|
Operating Income
(loss) |
|
|
1,256 |
|
|
|
(3,101 |
) |
|
|
(666 |
) |
|
|
(6,243 |
) |
|
|
|
|
|
|
|
|
|
Interest income (loss),
net |
|
|
139 |
|
|
|
(158 |
) |
|
|
333 |
|
|
|
178 |
|
Other income, net |
|
|
1,264 |
|
|
|
4,907 |
|
|
|
1,868 |
|
|
|
5,425 |
|
Equity pick up of
losses of an associate |
|
|
- |
|
|
|
(3,356 |
) |
|
|
- |
|
|
|
(6,576 |
) |
Income(loss) before
income taxes |
|
|
2,659 |
|
|
|
(1,708 |
) |
|
|
1,535 |
|
|
|
(7,216 |
) |
Income taxes
benefit |
|
|
2,185 |
|
|
|
4,560 |
|
|
|
2,218 |
|
|
|
4,677 |
|
Net Income (loss) |
|
|
4,844 |
|
|
|
2,852 |
|
|
|
3,753 |
|
|
|
(2,539 |
) |
Net Income(loss)
attributable to UTStarcom Holdings Corp. |
|
$ |
4,844 |
|
|
$ |
2,852 |
|
|
$ |
3,753 |
|
|
$ |
(2,539 |
) |
|
|
|
|
|
|
|
|
|
Net
Income(loss) per share attributable to UTStarcom Holdings
Corp.—Basic |
|
$ |
0.13 |
|
|
$ |
0.08 |
|
|
$ |
0.10 |
|
|
$ |
(0.07 |
) |
Weighted
average shares outstanding—Basic |
|
|
35,906 |
|
|
|
37,307 |
|
|
|
36,160 |
|
|
|
37,316 |
|
UTStarcom Holdings Corp. |
Unaudited Condensed Consolidated Statements of Cash
Flows |
|
|
|
Three months ended June 30 |
|
Six months ended June 30 |
|
|
2016 |
|
2015 |
|
2016 |
|
2015 |
|
|
(In thousands) |
CASH FLOWS FROM
OPERATING ACTIVITIES: |
|
|
|
|
|
|
|
|
Net Income
(loss) |
|
$ |
4,844 |
|
|
$ |
2,852 |
|
|
$ |
3,753 |
|
|
$ |
(2,539 |
) |
Depreciation and
amortization |
|
|
398 |
|
|
|
610 |
|
|
|
794 |
|
|
|
1,228 |
|
Provision for doubtful
accounts |
|
|
223 |
|
|
|
14 |
|
|
|
614 |
|
|
|
31 |
|
Provision for (recovery of)
deferred costs |
|
|
(864 |
) |
|
|
5,373 |
|
|
|
(2,698 |
) |
|
|
(2,153 |
) |
Stock-based compensation
expense |
|
|
616 |
|
|
|
500 |
|
|
|
1,979 |
|
|
|
725 |
|
Net (gain) loss on disposal of
assets,net |
|
|
(93 |
) |
|
|
156 |
|
|
|
(91 |
) |
|
|
262 |
|
Gain on release of tax liability
due to expiration of the statute of limitations |
|
|
(807 |
) |
|
|
(7,747 |
) |
|
|
(807 |
) |
|
|
(7,747 |
) |
Deferred income taxes |
|
|
- |
|
|
|
(26 |
) |
|
|
49 |
|
|
|
(49 |
) |
Loss from equity investments,
net |
|
|
- |
|
|
|
3,356 |
|
|
|
- |
|
|
|
6,576 |
|
Gain on sale of
investments |
|
|
(140 |
) |
|
|
(665 |
) |
|
|
(140 |
) |
|
|
(1,250 |
) |
Gain from CTA write off |
|
|
(46 |
) |
|
|
- |
|
|
|
(46 |
) |
|
|
- |
|
Changes in operating assets and
liabilities: |
|
|
(3,517 |
) |
|
|
(8,758 |
) |
|
|
(817 |
) |
|
|
(8,587 |
) |
Net cash provided by (used
in) operating activities |
|
|
614 |
|
|
|
(4,335 |
) |
|
|
2,590 |
|
|
|
(13,503 |
) |
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES: |
|
|
|
|
|
|
|
|
Additions to property, plant and
equipment |
|
|
(557 |
) |
|
|
(434 |
) |
|
|
(616 |
) |
|
|
(813 |
) |
Proceeds from sale of property,
plant and equipment |
|
|
86 |
|
|
|
- |
|
|
|
86 |
|
|
|
- |
|
Loan to UiTV |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(1,170 |
) |
Convertible bond repayment from
IPTV |
|
|
- |
|
|
|
10,000 |
|
|
|
- |
|
|
|
10,000 |
|
Change in restricted cash |
|
|
1,420 |
|
|
|
1,484 |
|
|
|
1,251 |
|
|
|
1,215 |
|
Dividend Payment from SBI |
|
|
57 |
|
|
|
83 |
|
|
|
57 |
|
|
|
83 |
|
Proceeds from sale of
investments |
|
|
83 |
|
|
|
665 |
|
|
|
361 |
|
|
|
3,076 |
|
Net cash provided by investing
activities |
|
|
1,089 |
|
|
|
11,798 |
|
|
|
1,139 |
|
|
|
12,391 |
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES: |
|
|
|
|
|
|
|
|
Repurchase of ordinary share |
|
|
(2,005 |
) |
|
|
(1,110 |
) |
|
|
(2,900 |
) |
|
|
(2,653 |
) |
Net cash used in financing
activities |
|
|
(2,005 |
) |
|
|
(1,110 |
) |
|
|
(2,900 |
) |
|
|
(2,653 |
) |
Effect of exchange rate
changes on cash and cash equivalents |
|
|
1,591 |
|
|
|
(719 |
) |
|
|
3,578 |
|
|
|
(525 |
) |
Net increase(decrease) in cash and
cash equivalents |
|
|
1,289 |
|
|
|
5,634 |
|
|
|
4,407 |
|
|
|
(4,290 |
) |
Cash and cash
equivalents at beginning of period |
|
|
80,168 |
|
|
|
67,900 |
|
|
|
77,050 |
|
|
|
77,824 |
|
Cash and cash
equivalents at end of period |
|
$ |
81,457 |
|
|
$ |
73,534 |
|
|
$ |
81,457 |
|
|
$ |
73,534 |
|
UTStarcom Holdings Corp. |
Unaudited Condensed Consolidated Statements of
Operations |
|
To supplement our condensed consolidated financial statements
presented on a GAAP basis, UTStarcom uses certain non-GAAP measures
which are adjusted to present those metrics as if stock
compensation expenses, one-time India DoT related and China IPTV-
related deferred revenue amortization had been excluded in prior
years comparatives. We believe this enables year over year
comparisons to our recent financial results. These adjustments to
our GAAP results are made with the intent of providing both
management and investors a more complete understanding of
UTStarcom’s underlying results and trends. In addition, these
adjusted non-GAAP results are among the information management uses
as a basis for our planning and forecasting of future periods. The
presentation of this additional information is not meant to be
considered in isolation or as a substitute for results prepared in
accordance with generally accepted accounting principles in the
United States. |
|
|
Three months ended June 30 |
|
Six months ended June 30, |
|
2016 |
|
2015 |
|
2016 |
|
2015 |
|
(in thousands, except per share data) |
Non-GAAP Revenue |
$ |
20,018 |
|
|
$ |
16,699 |
|
|
$ |
42,301 |
|
|
$ |
49,146 |
|
Non-GAAP Gross
profit |
|
8,250 |
|
|
|
2,713 |
|
|
|
14,308 |
|
|
|
7,560 |
|
Non-GAAP Gross Margin
% |
|
41.2 |
% |
|
|
16.2 |
% |
|
|
33.8 |
% |
|
|
15.4 |
% |
Non-GAAP Operating
Income(loss) |
|
1,872 |
|
|
|
(8,994 |
) |
|
|
1,313 |
|
|
|
(11,911 |
) |
Non-GAAP Net
Income(loss) attributable to UTStarcom |
$ |
5,460 |
|
|
$ |
(867 |
) |
|
$ |
5,732 |
|
|
$ |
(6,033 |
) |
Non-GAAP
Net Income(loss) per share attributable to UTStarcom Holdings
Corp.—Basic |
$ |
0.15 |
|
|
$ |
(0.02 |
) |
|
$ |
0.16 |
|
|
$ |
(0.16 |
) |
Weighted
average shares outstanding—Basic |
|
35,906 |
|
|
|
37,307 |
|
|
|
36,160 |
|
|
|
37,316 |
|
UTStarcom Holdings Corp. |
GAAP to Non-GAAP Reconciliation |
|
|
Three months Ended June 30 |
|
Six months Ended June 30 |
|
2016 |
|
2015 |
|
2016 |
|
2015 |
|
(in thousands, except per share data) |
Reconciliation
of Revenue |
|
|
|
|
|
|
|
GAAP Net
revenue |
$ |
20,026 |
|
|
$ |
30,786 |
|
|
$ |
42,577 |
|
|
$ |
63,743 |
|
Less: India DoT revenue |
|
- |
|
|
|
11,839 |
|
|
|
- |
|
|
|
11,839 |
|
Less: China IPTV revenue |
|
8 |
|
|
|
2,248 |
|
|
|
276 |
|
|
|
2,758 |
|
Non-GAAP Net
revenue |
$ |
20,018 |
|
|
$ |
16,699 |
|
|
$ |
42,301 |
|
|
$ |
49,146 |
|
|
|
|
|
|
|
|
|
GAAP Gross
Margin |
|
|
|
|
|
|
|
US. GAAP as
reported |
$ |
8,250 |
|
|
$ |
9,084 |
|
|
$ |
14,307 |
|
|
$ |
13,932 |
|
Less: India DoT gross profit |
|
- |
|
|
|
6,393 |
|
|
|
- |
|
|
|
6,393 |
|
Add: Stock based compensation -
COGS |
|
- |
|
|
|
22 |
|
|
|
1 |
|
|
|
21 |
|
Non-GAAP Gross
Margin |
$ |
8,250 |
|
|
$ |
2,713 |
|
|
$ |
14,308 |
|
|
$ |
7,560 |
|
|
|
|
|
|
|
|
|
Reconciliation
of Operation Income(loss) |
|
|
|
|
|
|
|
GAAP Operation
Income(loss) |
$ |
1,256 |
|
|
$ |
(3,101 |
) |
|
$ |
(666 |
) |
|
$ |
(6,243 |
) |
Less: India DoT gross profit |
|
- |
|
|
|
6,393 |
|
|
|
- |
|
|
|
6,393 |
|
Add: Stock based compensation |
|
616 |
|
|
|
500 |
|
|
|
1,979 |
|
|
|
725 |
|
Non-GAAP
Operation Income(loss) |
$ |
1,872 |
|
|
$ |
(8,994 |
) |
|
$ |
1,313 |
|
|
$ |
(11,911 |
) |
|
|
|
|
|
|
|
|
Reconciliation
of Net Income(loss) |
|
|
|
|
|
|
|
GAAP Net
Income(loss) |
$ |
4,844 |
|
|
$ |
2,852 |
|
|
$ |
3,753 |
|
|
$ |
(2,539 |
) |
Less: India DoT gross profit |
|
- |
|
|
|
6,393 |
|
|
|
- |
|
|
|
6,393 |
|
Add: India DoT tax provision |
|
- |
|
|
|
2,174 |
|
|
|
- |
|
|
|
2,174 |
|
Add: Stock based compensation |
|
616 |
|
|
|
500 |
|
|
|
1,979 |
|
|
|
725 |
|
Non-GAAP
Net
Income(loss) |
$ |
5,460 |
|
|
$ |
(867 |
) |
|
$ |
5,732 |
|
|
$ |
(6,033 |
) |
UTStarcom (NASDAQ:UTSI)
Historical Stock Chart
From Apr 2024 to May 2024
UTStarcom (NASDAQ:UTSI)
Historical Stock Chart
From May 2023 to May 2024