a story with some holes in it, and trying with decent dilig3nce to plug them, I find it increasingly difficult to get a handle on UTSI's numbers. Tehy focus on revenues, but the issue has been margins for over a year.
Their recent analyst conference has generated an interesting diversity of opinions. The positive analyses seem to parrot the slides unquestioning of important stuff, like 2005 expected revenues: 40% from CDMA handsets, 20% from broadband, 20% from TD-CDMA.
UTSI has made its money in PAS in China. 2005 revenues?-- They anticipate 10% PAS infra, 5% PAS handsets, worldwide.
UTSI says they will increase margins overall from about 28%to 30% during the next few quarters via volume efficiencies and cost cutting. Everything other than that statement emphasizes increasing revenues. The 40% 2005 revenues from CDMA handsets is Audiovox, which has had terrific handset sales lately, but sold the business cheap. Increasing competition and low margins, obviously. UTSI's Broadband products are competitive, low margin, while Chinese politics and "TD-CDMA" are the wildest cards in telecom.
disclaimer: not an expert, no position at all now-- jmho--but this company is getting a lot of attention and is also getting weird, so it's pretty interesting. |
