UTStarcom posts revenues of $46.7 million in first quarter 2012

Telecom Lead Asia: UTStarcom has posted revenues of $46.7
million in the first quarter 2012, a decrease of 23.8 percent year over year
from $61.3 million for the same period of 2011.

Net loss in the first quarter 2012 was $4.2 million
against net loss of $10.3 million for the first quarter 2011.


We continue to experience an uptick in demand in China
among higher-margin cable customers, as the country’s cable operators increase
their investments in network infrastructure upgrades. For 2012, we anticipate a
healthy revenue growth rate, stable gross margin and improvement in operational
cash flow,” said UTStarcom Chief Executive Officer and Chairman Jack Lu.

UTStarcom’s video service cloud (VSC) distribution
network and video conferencing service have several clients in a trial phase.
The company expects some of them to commercialize in the second quarter of this

Net sales from equipment in first quarter of 2012 were
$38.7 million, a decrease of 26.8 percent year over year.

Net sales from equipment-based services in Q1 2012 were
$7.8 million, a decrease of 6.6 percent year over year. The decrease was
primarily driven by less next generation network (NGN) service contracts in
China, partially offset by increased service revenue from the company’s
international business.

Sales from operational support services in Q1 2012 were
$0.2 million as a result of IP signage revenue sharing project and technology
service revenue generated by the Company’s iTV.cn subsidiary.

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