UTStarcom (“UTStarcom” or “the Company”) (NASDAQ:UTSI), a global
telecommunications infrastructure provider, today reported its
unaudited financial results for the fourth quarter and full year
ended December 31, 2017.
UTStarcom’s Chief Executive Officer Tim Ti stated, “Our
performance in 2017 was excellent. This is the second
consecutive year that we delivered operating profits. Revenue
growth was in the double digits, gross margin expanded and non-GAAP
EPS was up 200%. We exceeded our financial goals and continue
to invest aggressively in R&D to develop and introduce new and
improved products to strengthen our competitive position.
Although fourth quarter revenue was lower than anticipated, this
does not diminish the outstanding performance we delivered for the
year, as the fourth quarter revenue was simply impacted by the
timing of order delivery.”
Tim continued, “We are confident that our technologies, product
solutions and geographic coverage provide the foundation for a
solid future. We are seeing strength in India, and early
traction in South America and Taiwan. We have introduced
important new products, specifically SyncRing, and see other
opportunities developing, such as in retail store automation.
Our operating achievements in 2017 position us well for future
growth. We have a dedicated, talented team in place to deliver
long-term value to our shareholders.”
Business Highlights
- In October 2017, the Company announced that the special
committee of the Company’s board of directors had received a notice
from Shah Capital Opportunity Fund LP, Himanshu H. Shah, Hong Liang
Lu and certain of his affiliates and Tim Ti (collectively, the
“Consortium”) to withdraw the preliminary non-binding take-private
proposal letter dated March 31, 2017 from the Consortium to the
Board
- In November 2017, Mr. Xiaoping Li resigned from the Company's
Board of Directors in November 2017 and was replaced by Ms. Wendong
Zhang
- The Company achieved significant milestones in developing its
business in India, including important customer wins and
outsourcing of product manufacturing to a local
manufacturer
- The Company announced an agreement has been signed to form a
joint venture with a leading Zhejiang-based manufacturer of
refrigerators to develop a “smart merchandising machine” utilizing
the Company’s advanced communication and cloud based
technologies
Fourth Quarter and Full Year 2017 Financial
Results
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.
The Company believes that the public’s understanding of the
Company’s business is enhanced when it has access to the same
information that management uses to analyze and operate the
business. The Company believes that the non-GAAP measures
presented here offer additional insight into the condition and
trends of its business. Further explanation of the use of
non-GAAP financial information, and reconciliation to the
corresponding GAAP measures, can be found at the end of this
release.
Summary of Q4 2017 Key
Financials
|
Q4 2017GAAP |
Y/Y Change* |
Q4 2017Non-GAAP |
Y/Y Change* |
Revenue |
$18.2 |
-33.8% |
$18.2 |
-33.8% |
Gross Margin |
25.0% |
-1150 bps |
25.1% |
-1140 bps |
Operating Expenses |
$6.5 |
+3.6% |
$6.3 |
-0.5% |
Operating Income/(Loss) |
$(1.9) |
-$5.7 |
$(1.7) |
-$5.5 |
Net Income/(Loss) |
$(3.5) |
-$1.9 |
$(3.3) |
-$1.6 |
Basic EPS |
$(0.10) |
-$0.05 |
$(0.09) |
-$0.04 |
Operating Cash Flow |
$(8.0) |
-$9.6 |
|
|
Cash Balance |
$79.7 |
-5.0% |
|
|
* Dollar comparisons are used where percentage comparisons are
not meaningful.* All the numbers in U.S. Dollars are in million
except EPS
Summary of Full Year 2017 Key
Financials
|
2017 GAAP |
Y/Y Change* |
2017 Non-GAAP |
Y/Y Change* |
Revenue |
$98.3 |
+13.6% |
$98.3 |
+14.0% |
Gross Margin |
33.7% |
+90 bps |
33.7% |
+80 bps |
Operating Expenses |
$26.6 |
-0.1% |
$25.8 |
+5.6% |
Operating Income/(Loss) |
$6.5 |
+$4.8 |
$7.4 |
+$3.4 |
Net Income/(Loss) |
$7.0 |
+$6.7 |
$7.8 |
+$5.3 |
Basic EPS |
$0.20 |
+$0.19 |
$0.22 |
+$0.15 |
Operating Cash Flow |
$3.8 |
-$1.9 |
|
|
Cash Balance |
$79.7 |
-5.0% |
|
|
Total Revenues
Three months ended December 31, 2017 and
2016
Q4 2017 total GAAP revenues were $18.2 million, a decrease of
33.8 % from $27.5 million for the corresponding period of 2016.
GAAP and Non-GAAP revenues are essentially the same.
- Q4 2017 Non-GAAP net equipment sales were $13.4 million, a
decrease of 28.3% from $18.7 million for the corresponding period
in 2016. The decrease was mainly due to timing of order
delivery
- Q4 2017 Non-GAAP net services sales were $4.8 million, a
decrease of 45.4% from $8.9 million for the corresponding period in
2016. The decrease was mainly attributable to the unusually
high India services revenue attained in Q4 2016
Twelve months ended December 31, 2017 and
2016
2017 total GAAP revenues were $98.3 million, an increase of
13.6% from $86.5 million in 2016.
2017 total Non-GAAP revenues were $98.3 million, an increase of
14.0% from $86.2 million in 2016.
- 2017 Non-GAAP net equipment sales were $77.2 million, an
increase of 25.7% from $61.4 million for the corresponding period
in 2016. The increase was mainly due to the increased sales
of the 100G Packet Transport Network (“PTN”) products and Third
Party Sales (“TPS”)
- 2017 Non-GAAP net services sales for 2017 were $21.0 million, a
decrease of 15.2% from $24.8 million for the corresponding period
in 2016. The decrease was mainly attributable to unusally
high India services revenue attained in 2016
Gross Profit
Three months ended December 31, 2017 and
2016
Q4 2017 GAAP gross profit was $4.5 million, or 25.0% of net
sales, compared to $10.1 million, or 36.5% of net sales, for the
corresponding period in 2016.
Q4 2017 Non-GAAP gross profit was $4.6 million, or 25.1% of net
sales, compared to $10.1 million or 36.5% of net sales, for the
corresponding period in 2016.
- Q4 2017 Non-GAAP equipment gross profit was $3.5 million,
compared to $5.4 million for the corresponding period in 2016.
Q4 2017 Non-GAAP equipment gross margin was 26.3%, compared
to 28.8% for the corresponding period in 2016. The reduced
gross profit was primarily due to sales of lower-margin equipment
in India
- Q4 2017 Non-GAAP service gross profit was $1.0 million,
compared to $4.7 million for the corresponding period in 2016.
Q4 2017 Non-GAAP service gross margin was 21.6%, compared to
52.8% for the corresponding period in 2016. This decrease was
primarily attributable to unusually high services margin in India
in Q4 2016
Twelve months ended December 31, 2017 and
2016
2017 GAAP gross profit was $33.1 million, or 33.7% of net sales,
compared to $28.4 million, or 32.8% of net sales, in 2016.
2017 Non-GAAP gross profit was $33.2 million, or 33.7% of net
sales, compared to $28.4 million, or 32.9% of net sales, in
2016.
- 2017 Non-GAAP equipment gross profit was $26.6 million,
compared to $20.3 million for the corresponding period in 2016.
2017 Non-GAAP equipment gross margin was 34.5%, compared to
33% in 2016
- 2017 Non-GAAP service gross profit was $6.5 million, compared
to $8.1 million in 2016. 2017 Non-GAAP service gross margin
was 30.9%, compared to 32.7% in 2016
Operating Expenses
Three months ended December 31, 2017 and
2016
Q4 2017 GAAP operating expenses were $6.5 million, compared to
$6.3 million for the corresponding period in 2016.
Q4 2017 Non-GAAP operating expenses were $6.3 million, compared
to $6.3 million for the corresponding period in 2016.
- Q4 2017 Non-GAAP selling, general and administrative
(“SG&A”) expenses were $2.8 million, compared to $4.9 million
for the corresponding period in 2016. The decrease was
primarily due to the reversal of a bad debt allowance in India and
one-time expenses for the Virtual Gateway Labs (“VGL”) that were
reclassified from research and development (“R&D”) to Selling
in 2016
- Q4 2017 Non-GAAP R&D expenses were $3.5 million, compared
to $1.4 million for the corresponding period in 2016. The
increase was primarily due to higher headcount to strengthen the
research and development team and one-time expenses
reclassification of VGL’s expenses to SG&A to properly reflect
the nature of these expenses
Twelve months ended December 31, 2017 and
2016
2017 GAAP operating expenses were $26.6 million, a decrease of
0.1% from $26.6 million in 2016.
2017 Non-GAAP operating expenses were $25.8 million, an increase
of 5.6% from $24.4 million in 2016.
- 2017 Non-GAAP SG&A expenses were $16.0 million, compared to
$16.0 million in 2016. Higher professional fees were offset by the
one-time reclassification of VGL expenses
- 2017 Non-GAAP R&D expenses were $9.8 million, compared to
$8.5 million in 2016. The increase was mainly due to higher
headcount to strengthen the research and development team
Operating Income (Loss)
Three months ended December 31, 2017 and
2016
Q4 2017 GAAP operating loss was $1.9 million, compared to GAAP
operating income of $3.8 million for the corresponding period of
2016. Q4 2017 Non-GAAP operating loss was $1.7 million,
compared to Non-GAAP operating income of $3.7 million for the
corresponding period of 2016.
Twelve months ended December 31, 2017 and
2016
2017 GAAP operating income was $6.5 million, compared to $1.7
million in 2016.
2017 Non-GAAP operating income was $7.4 million, compared to
$3.9 million in 2016.
Equity Pick Up of Losses of an Associate
Three months ended December 31, 2017 and
2017
Q4 2017 equity pick up of losses of an associate was $0.4
million, compared to equity pick up of gains of an associate of
$1.0 million in Q4 2016.
Twelve months ended December 31, 2017 and
2016
2017 equity pick up of losses of an associate was $0.7 million,
compared to equity pick up of gains of an associate of $1.0 million
in 2016.
Investment Impairment
Three months ended December 31, 2017 and
2016
Q4 2017 investment impairment was $0.4 million, compared to $5.3
million in the corresponding period in 2016. The $0.4 million
investment impairment in Q4 2017 was in the AioTV Inc. (“AioTV”)
investment. The $5.3 million investment impairment in Q4 2016
consisted of $4.3 million impairment on AioTV, $0.8 million
impairment on GCT Semiconductor, Inc. (“GCT”) investment and
$0.2 million impairment on SBI NEO Technology (“SBI”)
investment.
Twelve months ended December 31, 2017 and
2016
2017 investment impairment was $1.7 million, compared to $5.3
million in 2016. The $1.7 million investment impairment in 2017 was
from the AioTV investment. The $5.3 million investment
impairment in 2016 consisted of $4.3 million impairment on AioTV,
$0.8 million impairment on GCT and $0.2 million impairment on
SBI.
Net Income (Loss)
Three months ended December 31, 2017 and
2016
Q4 2017 GAPP net loss attributable to UTStarcom’s shareholder
was $3.5 million, compared to net loss attributable to UTStarcom’s
shareholders of $1.6 million for the corresponding period in 2016.
Q4 2017 basic loss per share was $0.10, compared to basic net
loss per share of $0.05 for the corresponding period of 2016.
Q4 2017 Non-GAAP net loss attributable to UTStarcom’s
shareholders was $3.3 million, compared to Non-GAAP net loss
attributable to UTStarcom’s shareholders of $1.7 million for the
corresponding period in 2016. Q4 2017 Non-GAAP basic net loss
per share was $0.09, compared to Non-GAAP basic net loss per share
of $0.05 for the corresponding period of 2016.
Twelve months ended December 31, 2017 and
2016
2017 GAAP net income attributable to UTStarcom’s shareholders
was $7.0 million, compared to net income attributable to
UTStarcom’s shareholders of $0.3 million in 2016. 2017 basic
net income per share was $0.20, compared to basic net income per
share of $0.01 in 2016.
2017 Non-GAAP net income attributable to UTStarcom’s
shareholders was $7.8 million, compared to Non-GAAP net income
attributable to UTStarcom’s shareholders of $2.5 million in 2016.
2017 Non-GAAP basic net income per share in 2017 was $0.22,
compared to Non-GAAP basic net income per share of $0.07 in
2016.
Cash Flow
Q4 2017, cash used in operating activities was $8.0 million.
Q4 2017, cash used in investing activities was $3.4 million.
Q4 2017, cash provided by financing activities was $0.1
million.
As of December 31, 2017, UTStarcom had cash and cash equivalents
of $79.7 million.
Outlook
For Q1 2018, the Company expects to generate non-GAAP revenue in
the range of $18 million to $23 million.
Fourth Quarter and full year 2017 Conference Call
Details
The Company’s management will host an earnings conference call
at 8:00 a.m. U.S. Eastern Time on Friday, March 9, 2018 (9:00 p.m.
Hong Kong/Beijing Time).
The conference call dial-in numbers are as follows:
United States: +1 (855) 821-9305Canada: + 1 (855) 691-7946Hong
Kong:
+852-3077-3569
China: 4006-126-501
The attendee passcode is: 17700145.
A replay of the call will be available two hours after the end
of the conference call until 11:59a.m. U.S. Eastern Time on April
8, 2018.
The conference call replay number is +65 6653 5846. The
replay passcode for accessing the recording is 515076704.
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 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; and 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
Ms. Fei Wang, Director of Investor Relations Email:
fei.wang@utstar.com
Ms. Ning Jiang, Investor Relations Email: njiang@utstar.com
In the United States:
The Blueshirt Group Mr. Ralph FongTel: +1 (415) 489-2195Email:
ralph@blueshirtgroup.com
|
UTStarcom Holdings Corp. |
Unaudited Condensed Consolidated Balance
Sheets |
|
|
|
|
|
December 31, |
|
December 31, |
|
2017 |
|
2016 |
ASSETS |
(In thousands) |
Current assets: |
|
|
|
Cash,
cash equivalents |
$ |
79,749 |
|
$ |
83,922 |
Short-term investments |
|
3,143 |
|
|
479 |
Accounts
and notes receivable, net |
|
16,911 |
|
|
18,329 |
Inventories and deferred costs |
|
36,348 |
|
|
41,896 |
Prepaids
and other current assets |
|
26,326 |
|
|
18,392 |
Total
current assets |
|
162,477 |
|
|
163,018 |
Long-term assets: |
|
|
|
Property,
plant and equipment, net |
|
1,714 |
|
|
1,610 |
Long-term
deferred costs |
|
277 |
|
|
276 |
Other
long-term assets |
|
18,240 |
|
|
13,799 |
Total
long-term assets |
|
20,231 |
|
|
15,685 |
Total
assets |
$ |
182,708 |
|
$ |
178,703 |
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
Current
liabilities: |
|
|
|
Accounts
payable |
$ |
27,452 |
|
$ |
22,480 |
Customer
advances |
|
21,828 |
|
|
29,046 |
Deferred
revenue |
|
7,286 |
|
|
10,779 |
Other
current liabilities |
|
27,362 |
|
|
24,863 |
Total
current liabilities |
|
83,928 |
|
|
87,168 |
Long-term
liabilities: |
|
|
|
Long-term
deferred revenue and other liabilities |
|
7,788 |
|
|
8,794 |
Total
liabilities |
|
91,716 |
|
|
95,962 |
|
|
|
|
Total equity |
|
90,992 |
|
|
82,741 |
Total
liabilities and equity |
$ |
182,708 |
|
$ |
178,703 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UTStarcom Holdings Corp. |
|
|
|
|
|
|
|
Unaudited Condensed Consolidated Statements of
Operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended December 31, |
|
Twelve months ended December 31, |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
|
(In thousands, except per share
data) |
|
|
|
|
|
|
|
|
Net sales |
$ |
18,235 |
|
|
$ |
27,546 |
|
|
|
98,292 |
|
|
$ |
86,512 |
|
Cost of net sales |
|
13,671 |
|
|
|
17,487 |
|
|
|
65,145 |
|
|
|
58,156 |
|
Gross profit |
|
4,564 |
|
|
|
10,059 |
|
|
|
33,147 |
|
|
|
28,356 |
|
|
|
25.0 |
% |
|
|
36.5 |
% |
|
|
33.7 |
% |
|
|
32.8 |
% |
Operating
expenses: |
|
|
|
|
|
|
|
Selling,
general and administrative |
|
2,939 |
|
|
|
4,843 |
|
|
|
16,779 |
|
|
|
18,146 |
|
Research
and development |
|
3,556 |
|
|
|
1,423 |
|
|
|
9,852 |
|
|
|
8,502 |
|
Total operating
expenses |
|
6,495 |
|
|
|
6,266 |
|
|
|
26,631 |
|
|
|
26,648 |
|
|
|
|
|
|
|
|
|
Operating Income
(loss) |
|
(1,931 |
) |
|
|
3,793 |
|
|
|
6,516 |
|
|
|
1,708 |
|
|
|
|
|
|
|
|
|
Interest income,
net |
|
335 |
|
|
|
252 |
|
|
|
1,129 |
|
|
|
816 |
|
Other income (expense),
net |
|
581 |
|
|
|
1,020 |
|
|
|
2,976 |
|
|
|
2,748 |
|
Equity pick up of gains
(losses) of an associate |
|
(397 |
) |
|
|
984 |
|
|
|
(687 |
) |
|
|
984 |
|
Investment
Impairment |
|
(382 |
) |
|
|
(5,336 |
) |
|
|
(1,690 |
) |
|
|
(5,336 |
) |
Income (loss) before
income taxes |
|
(1,794 |
) |
|
|
713 |
|
|
|
8,244 |
|
|
|
920 |
|
Income taxes
expenses |
|
(1,759 |
) |
|
|
(2,498 |
) |
|
|
(1,263 |
) |
|
|
(788 |
) |
Net Income (loss) |
|
(3,553 |
) |
|
|
(1,785 |
) |
|
|
6,981 |
|
|
|
132 |
|
Net loss attributable
to noncontrolling interests |
|
- |
|
|
|
158 |
|
|
|
- |
|
|
|
158 |
|
Net Income (loss)
attributable to UTStarcom Holdings Corp. |
$ |
(3,553 |
) |
|
$ |
(1,627 |
) |
|
$ |
6,981 |
|
|
$ |
290 |
|
|
|
|
|
|
|
|
|
Net
Income (loss) per share attributable to UTStarcom Holdings
Corp.—Basic |
$ |
(0.10 |
) |
|
$ |
(0.05 |
) |
|
$ |
0.20 |
|
|
$ |
0.01 |
|
Weighted
average shares outstanding—Basic |
|
35,535 |
|
|
|
35,390 |
|
|
|
35,467 |
|
|
|
35,806 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UTStarcom Holdings Corp. |
|
|
|
|
|
|
|
|
Unaudited Condensed Consolidated Statements of Cash
Flows |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended December 31, |
|
Twelve months ended December 31, |
|
|
2017 |
|
2016 |
|
2017 |
|
2016 |
|
|
(In thousands) |
|
|
|
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES: |
|
|
|
|
|
|
|
|
Net Income
(Loss) |
$ |
(3,553 |
) |
|
$ |
(1,785 |
) |
|
$ |
6,981 |
|
|
$ |
132 |
|
|
Depreciation |
|
155 |
|
|
|
171 |
|
|
|
628 |
|
|
|
1,208 |
|
|
Provision
for doubtful accounts |
|
(709 |
) |
|
|
840 |
|
|
|
4 |
|
|
|
1,564 |
|
|
Provision
for (recovery of) deferred costs |
|
334 |
|
|
|
173 |
|
|
|
4,159 |
|
|
|
(2,654 |
) |
|
Stock-based compensation expense |
|
211 |
|
|
|
(54 |
) |
|
|
866 |
|
|
|
2,238 |
|
|
Net loss
(gain) on disposal of assets |
|
- |
|
|
|
22 |
|
|
|
- |
|
|
|
(62 |
) |
|
Gain on
release of tax liability due to expiration of the statute of
limitations |
|
- |
|
|
|
(2,465 |
) |
|
|
(1,478 |
) |
|
|
(3,272 |
) |
|
Deferred
income taxes |
|
(870 |
) |
|
|
722 |
|
|
|
(963 |
) |
|
|
771 |
|
|
Loss
(gain) from equity investments, net |
|
397 |
|
|
|
(984 |
) |
|
|
687 |
|
|
|
(984 |
) |
|
Other-than-temporary impairment of equity investments |
|
382 |
|
|
|
5,336 |
|
|
|
1,690 |
|
|
|
5,336 |
|
|
Loss
(gain) on Cumulative Transfer Adjustment recognition from
liquidation subsidiaries |
|
- |
|
|
|
9 |
|
|
|
(1,703 |
) |
|
|
(38 |
) |
|
Loss
(gain) on sale investments |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(83 |
) |
|
Changes
in operating assets and liabilities |
|
(4,370 |
) |
|
|
(408 |
) |
|
|
(7,033 |
) |
|
|
1,576 |
|
|
Net cash
provided by (used in) operating activities |
|
(8,023 |
) |
|
|
1,577 |
|
|
|
3,838 |
|
|
|
5,732 |
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES: |
|
|
|
|
|
|
|
|
Additions
to property, plant and equipment |
|
(439 |
) |
|
|
(161 |
) |
|
|
(731 |
) |
|
|
(1,527 |
) |
|
Proceeds
from sale of property, plant and equipment |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
85 |
|
|
Change in
restricted cash |
|
(3,141 |
) |
|
|
581 |
|
|
|
(6,219 |
) |
|
|
1,322 |
|
|
Purchase
of investment interests |
|
- |
|
|
|
(300 |
) |
|
|
(481 |
) |
|
|
(300 |
) |
|
Purchase
of short-term investment interests |
|
209 |
|
|
|
- |
|
|
|
(3,164 |
) |
|
|
- |
|
|
Proceeds
from refund of investment interests |
|
- |
|
|
|
7,263 |
|
|
|
499 |
|
|
|
7,683 |
|
|
Net cash
provided by (used in) investing activities |
|
(3,371 |
) |
|
|
7,383 |
|
|
|
(10,096 |
) |
|
|
7,263 |
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES: |
|
|
|
|
|
|
|
|
Purchase
the non-controlling interest |
|
- |
|
|
|
(304 |
) |
|
|
- |
|
|
|
(304 |
) |
|
Issuance(Repurchase) of stock, net of expenses |
|
113 |
|
|
|
- |
|
|
|
113 |
|
|
|
- |
|
|
Repurchase of ordinary share |
|
- |
|
|
|
(474 |
) |
|
|
(140 |
) |
|
|
(4,096 |
) |
|
Net cash
provided by (used in) financing activities |
|
113 |
|
|
|
(778 |
) |
|
|
(27 |
) |
|
|
(4,400 |
) |
|
Effect of exchange rate
changes on cash and cash equivalents |
|
(195 |
) |
|
|
(5,383 |
) |
|
|
2,112 |
|
|
|
(1,723 |
) |
|
Net
increase (decrease) in cash and cash equivalents |
|
(11,476 |
) |
|
|
2,799 |
|
|
|
(4,173 |
) |
|
|
6,872 |
|
|
Cash and cash
equivalents at beginning of period |
|
91,225 |
|
|
|
81,123 |
|
|
|
83,922 |
|
|
|
77,050 |
|
|
Cash and cash
equivalents at end of period |
$ |
79,749 |
|
|
$ |
83,922 |
|
|
$ |
79,749 |
|
|
$ |
83,922 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UTStarcom Holdings Corp. |
Unaudited Condensed Consolidated Statements of
Operations |
|
|
|
|
|
|
|
|
To supplement our unaudited 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 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 December 31, |
|
Twelve months ended December 31, |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
|
(In thousands) |
Non-GAAP Revenue |
$ |
18,227 |
|
|
$ |
27,534 |
|
|
$ |
98,259 |
|
|
$ |
86,216 |
|
Non-GAAP Gross
profit |
|
4,571 |
|
|
|
10,059 |
|
|
|
33,159 |
|
|
|
28,357 |
|
Non-GAAP Gross Margin
% |
|
25.1 |
% |
|
|
36.5 |
% |
|
|
33.7 |
% |
|
|
32.9 |
% |
Non-GAAP Operating
Income (loss) |
|
(1,720 |
) |
|
|
3,739 |
|
|
|
7,382 |
|
|
|
3,946 |
|
Non-GAAP Net
Income (loss) attributable to UTStarcom |
$ |
(3,342 |
) |
|
$ |
(1,681 |
) |
|
$ |
7,847 |
|
|
$ |
2,528 |
|
Non-GAAP
Net Income (loss) per share attributable to UTStarcom Holdings
Corp.—Basic |
$ |
(0.09 |
) |
|
$ |
(0.05 |
) |
|
$ |
0.22 |
|
|
$ |
0.07 |
|
Weighted
average shares outstanding—Basic |
|
35,535 |
|
|
|
35,390 |
|
|
|
35,467 |
|
|
|
35,806 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UTStarcom Holdings Corp. |
|
Unaudited GAAP to unaudited Non-GAAP
Reconciliation |
|
|
|
|
|
|
|
|
|
|
To supplement our unaudited 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 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 December 31, |
|
Twelve months ended December 31, |
|
|
2017 |
|
2016 |
|
2017 |
|
2016 |
|
|
(In thousands) |
|
Reconciliation
of Revenue |
|
|
|
|
|
|
|
|
GAAP Net
revenue |
$ |
18,235 |
|
|
$ |
27,546 |
|
|
$ |
98,292 |
|
$ |
86,512 |
|
Less:
China IPTV revenue |
|
8 |
|
|
|
12 |
|
|
|
33 |
|
|
296 |
|
Non-GAAP Net
revenue |
$ |
18,227 |
|
|
$ |
27,534 |
|
|
$ |
98,259 |
|
$ |
86,216 |
|
|
|
|
|
|
|
|
|
|
GAAP Gross
Margin |
|
|
|
|
|
|
|
|
U.S. GAAP as
reported |
$ |
4,564 |
|
|
$ |
10,059 |
|
|
$ |
33,147 |
|
$ |
28,356 |
|
Add:
Stock based compensation - COGS |
|
7 |
|
|
|
- |
|
|
|
12 |
|
|
1 |
|
Non-GAAP Gross
Margin |
$ |
4,571 |
|
|
$ |
10,059 |
|
|
$ |
33,159 |
|
$ |
28,357 |
|
|
|
|
|
|
|
|
|
|
Reconciliation
of Operation Income(loss) |
|
|
|
|
|
|
|
|
GAAP Operation
Income(loss) |
$ |
(1,931 |
) |
|
$ |
3,793 |
|
|
$ |
6,516 |
|
$ |
1,708 |
|
Add:
Stock based compensation |
|
211 |
|
|
|
(54 |
) |
|
|
866 |
|
|
2,238 |
|
Non-GAAP
Operation Income(loss) |
$ |
(1,720 |
) |
|
$ |
3,739 |
|
|
$ |
7,382 |
|
$ |
3,946 |
|
|
|
|
|
|
|
|
|
|
Reconciliation
of Net Income(loss) |
|
|
|
|
|
|
|
|
GAAP Net
Income(loss) |
$ |
(3,553 |
) |
|
$ |
(1,627 |
) |
|
$ |
6,981 |
|
$ |
290 |
|
Add:
Stock based compensation |
|
211 |
|
|
|
(54 |
) |
|
|
866 |
|
|
2,238 |
|
Non-GAAP
Net
Income(loss) |
$ |
(3,342 |
) |
|
$ |
(1,681 |
) |
|
$ |
7,847 |
|
$ |
2,528 |
|
|
|
|
|
|
|
|
|
|
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