UTStarcom Cuts 4Q Outlook, Cites China
01.06.2005, 05:32 PM
Wireless services and systems provider UTStarcom Inc. on Thursday slashed its fourth-quarter revenue outlook, citing challenges in its Chinese market.
UTStarcom shares fell 77 cents, or 3.7 percent, to close at $19.94 on the Nasdaq, then fell an additional $3.34, or 16.8 percent, to $16.60 in aftermarket trading.
The company now expects to post a quarterly loss of 40 cents to 45 cents on revenue of $740 million to $745 million. Previously, UTStarcom had expected fourth-quarter revenue of $875 million to $885 million per share. Last year, the company posted fourth-quarter profit of 52 cents per share on revenue of $643.6 million.
Analysts surveyed by Thomson First Call expect earnings of 1 cent per share on revenue of $874 million.
The company said it lowered expectations on a slowing Chinese economy, as well as a cut in capital expenditures due to executive changes at the main carriers in that country, where contract decisions were delayed.
"Clearly we are disappointed with our performance in China this quarter," said Hong Lu, chief executive and president. "The primary reason behind the lower than expected financial results was the challenging market environment that UTStarcom faced in the region."
For the first quarter, the company expects to post a profit of 20 cents to 22 cents per share on revenue of $770 million to $780 million. Analysts expect earnings of 12 cents per share on revenue of $810.7 million. Last year the company posted a first-quarter profit of 40 cents per share on revenue $622.3 million.
UTStarcom will report fourth-quarter and full-year 2004 results Feb. 8. |
