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Technology Stocks : UTStarcom Inc. (UTSI) -- Ignore unavailable to you. Want to Upgrade?

To: quartersawyer who wrote (415)	12/22/2004 1:07:52 PM
From: Howard Salwen	Respond to of 438

This press release mentions UTSI's position in the VoIP market; Voice over Broadband Driving Growth in VoIP Equipment Market, Reveals Research Report by Mercator Capital -------------------------------------------------------------------------------- BusinessWire 11:27 a.m. 12/22/2004 RESTON, Va., Dec 22, 2004 (BUSINESS WIRE) -- An industry update on VoIP carrier equipment published today by Mercator Capital, a privately held investment bank, reveals that the main driving force behind the present growth in VoIP is Voice over Broadband (VoB). According to the report, many VoIP equipment vendors stand to gain from the proliferation of VoB in countries where mature broadband markets already exist. Based on a survey of 30 vendors, Mercator Capital established market revenues and line shipments in VoIP equipment segments including Softswitch, IP Centrex, Session Border Controller, and Media Servers. The combined contribution made by Class 5 lines, Class 4 lines and Media Gateways (i.e. the Softswitch solution) in third quarter 2004 was $169 million. Once relegated to deployments in long distance networks, Softswitches have made a major impact at the edge. Mercator Capital attributes this to the VoB phenomenon. As a result, Softswitches continue to account for the majority of revenue for the VoIP carrier equipment industry. Revenue from VoIP equipment that enables enhanced applications (and contribution from other allied equipment sectors in VoIP such as Session Border Controllers) continues to be modest in comparison to the Softswitch. According to the report, in Q3 2004, Carrier IP Centrex equipment generated $7.7 million in revenues. The Session Border Controller segment generated $15.5 million, while the Media Server segment generated $12.5 million. According to Rod Hackman, Partner at Mercator Capital, "VoB appears to be the main market driver for VoIP in the immediate future. This will in turn drive business for several VoIP equipment segments. As VoB offerings proliferate, Softswitch and IP Centrex vendors will be providing the voice feature set, Session Border Controllers will address the inherent security risks, and Media Servers will be the hardware on which enhanced applications are deployed. The need to interconnect with PSTN (since IP-to-IP calls in VoB offerings are a very small portion as compared to IP-to-PSTN calls) will drive the demand for Media Gateways." The research report is the first of its kind addressing and tracking segments outside of the Softswitch in the VoIP market. Within the Softswitch segment, the Mercator report also provides a breakdown into Class 5 and Class 4 lines shipped during Q3 2004. Nortel (NT) and Sonus (SONS) dominate the Class 4 market. Nortel and UTStarcom (UTSI) were the leaders in Class 5 business in Q3. The leaders in the Media Gateway segment were Nortel, UTStarcom, Cisco (CSCO), and Sonus. About Mercator Capital Mercator Capital is a privately held investment bank committed to helping its clients achieve superior results. Mercator's success stems from a focus on providing clients with quality advice and developing creative solutions. With decades of Wall Street leadership and extensive industry knowledge, Mercator prides itself on a culture of excellence that promotes intellectual insight and rigorous analysis. The firm focuses on building long-term relationships with clients rather than pursuing individual transactions. For Mercator's clients, the approach means a much greater understanding of their business and markets, a more thoughtful and committed effort and an unmatched degree of senior-level service. Mercator's clients rely on Mercator's technological vision and financial expertise to assure the successful execution of their strategic initiatives. Additional information on Mercator Capital is available at mercatorcapital.com . Mercator Capital Rod Hackman, 703-995-5524 rhackman@mercatorcapital.com or David Ballarini, 703-995-5521 dballarini@mercatorcapital.com or Lior Samuelson, 703-995-5525 lsamuelson@mercatorcapital.com Copyright (C) 2004 Business Wire. All rights reserved. Will they be able to capitalize on this???

To: quartersawyer who wrote (415)	2/9/2006 7:17:12 PM
From: quartersawyer	Respond to of 438

UTStarcom Reports Q4 US$20.6 Million Loss And Questionable Contract February 10, 2006 UTStarcom (UTSI) has reported preliminary financial results for the fourth quarter of 2005. It also announced that its Audit Committee has initiated an investigation surrounding the circumstances of a specific contract in India signed in 2002. The company's net loss for the fourth quarter was US$20.6 million, inclusive of all one-time charges and gains. Total operating expenses for the fourth quarter were US$142.3 million. Included in this total are restructuring costs of approximately US$11 million, as well as a benefit from the reduction in the company's allowance for bad debt. Approximately US$12 million of this benefit resulted from strong collections on previously reserved accounts receivable balances, and a further benefit of US$8 million was due to updated estimates on the remaining balances outstanding. Net sales for the fourth quarter of 2005 were US$685.5 million, above company guidance. Fourth quarter sales include US$40 million in revenue related to a Softbank BB IPTV contract. Consolidated gross profit margin for the fourth quarter was 12.1%, at the low end of company guidance due to additional inventory and warranty reserves taken in the quarter. The company's Audit Committee of the Board of Directors has initiated an investigation by independent counsel with regard to the circumstances surrounding the premature recognition of revenue on a contract with a customer in India, and other related issues. UTStarcom recognized approximately US$22 million in revenue on the contract, with total gross margin of less than one million dollars. This revenue was recognized during several of the quarters from 2003 through 2005. At the conclusion of the investigation, the Audit Committee will assess the findings, and will evaluate the materiality of any adjustments to determine if previously issued financial statements need to be adjusted. ----------- tip of the iceberg, but most is buried deep in Chinese imponderables.