UTSI UTStarcom Holdings Corporation

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 6-K

 

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 UNDER

THE SECURITIES EXCHANGE ACT OF 1934

For the month of August 2023

Commission File Number: 001-35216

 

UTSTARCOM HOLDINGS CORP.

 

 

4th Floor, South Wing, 368 Liuhe Road,

Binjiang District, Hangzhou, P.R. China

(Address of principal executive office)

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F Form 40-F

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):

Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes  No 

 

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EXHIBIT INDEX

Exhibit No.		Description
99.1		Press Release regarding UTStarcom Reports Unaudited Financial Results for First Half of 2023

 

 

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	UTSTARCOM HOLDINGS CORP.
Date: August 30, 2023	By:	/s/ Dan Xie
		Name: Dan Xie
		Title: Chief Financial Officer

 

 

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Exhibit 99.1

UTStarcom Reports Unaudited Financial Results for First Half of 2023

 

Hangzhou, August 30, 2023— UTStarcom (“UT,” “UTStarcom” or the “Company”) (NASDAQ: UTSI), a global telecommunications infrastructure provider, today reported its unaudited financial results and a business update for the six months ended June 30, 2023 (“the first half”).

 

Business Highlights:

 

 

UTStarcom’s Chief Executive Officer Mr. Hua Li commented, “Since the end of the pandemic, economic recovery is slower than expected, which is creating more challenges for us. However, our commitment to providing quality products and support to our customers remains unchanged.”

Li continued, “We made progress on developing and marketing cutting-edge products and solutions that are optimized for swiftly growing market segments such as 5G transport networks. We expect the new products to be in the field soon but meanwhile we are supporting current products and customers. We are also trying to diversify our revenue streams, which can improve our financial performance and eventually create long-term value for shareholders.”

 

 

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First Half 2023 Financial Results

 

Summary of 1H 2023 Key Financials

	1H 2023	1H 2022	Y/Y Change
Revenue	$6.5	$7.5	-13.3%
Gross Profit	$1.8	$1.3	+38.5%
Operating Expenses	$5.8	$4.1	+41.5%
Operating Loss	($4.0)	($2.8)	-$1.2
Net Loss	($2.0)	($1.7)	-$0.3
Basic EPS	($0.22)	($0.19)	-$0.03
Cash Balance (including Restricted Cash)	$60.6	$64.5	-6.0%

 

* Dollar comparisons are used where percentage comparisons are not meaningful.

* All amounts are in U.S. Dollars millions except for Earnings Per Share (EPS)

 

Total Revenues

 

Total revenues for the first half of 2023 were $6.5 million, compared to $7.5 million in the corresponding period in 2022.

 

 

 

Gross Profit

 

Gross profit was $1.8 million, or 28.0% of net sales, for the first half of 2023, compared to $1.3 million, or 17.7% of net sales, in the corresponding period in 2022.

 

 

 

Operating Expenses

 

Operating expenses for the first half of 2023 were $5.8 million, compared to $4.1 million in the corresponding period in 2022.

 

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Operating Loss

 

Operating loss for the first half of 2023 was $4.0 million, compared to $2.8 million in the corresponding period in 2022.

 

Interest Income, Net

 

Net interest income for the first half of 2023 was $0.9 million, compared to $0.8 million in the corresponding period in 2022.

 

Other Income (Expenses), Net

 

Net other income for the first half of 2023 was $1.9 million, compared to $1.6 million in the corresponding period in 2022. Other income mainly reflects a foreign exchange gain resulting from the appreciation of the U.S. dollar against the Japanese Yen.

 

Net Loss

 

Net loss attributable to shareholders for the first half of 2023 was $2.0 million, compared to $1.7 million in the corresponding period in 2022. Basic net loss per share for the first half of 2023 was $0.22, compared to $0.19 for the corresponding period in 2022.

 

Cash Flow

 

Cash used in operating activities in the first half of 2023 was $3.8 million, cash used in investing activities was $0.2 million, and cash provided by financing activities was nil. As of June 30, 2023, UTStarcom had cash, cash equivalents and restricted cash of $60.6 million.

 

 

About UTStarcom Holdings Corp.

 

UTStarcom is committed to helping network operators offer their customers the most innovative, reliable and cost-effective communication services. UTStarcom offers high performance advanced equipment optimized for the most rapidly growing network functions, such as mobile backhaul, metro aggregation and broadband access. UTStarcom has operations and customers around the world, with a special focus on Japan, India and China. UTStarcom was founded in 1991 and listed its shares on the Nasdaq Market in 2000 (symbol: UTSI). 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,

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the effect of the COVID-19 pandemic on the Company’s business, 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: +86 (571) 8192 8888

Ms. Shelley Jiang, Investor Relations

Email: utsi-ir@utstar.com/ Shelleyjiang@utstar.com /

 

In the United States:

The Blueshirt Group

Mr. Gary Dvorchak

Email: gary@blueshirtgroup.com

 

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UTStarcom Holdings Corp.

Unaudited Condensed Consolidated Balance Sheets

		June 30,				December 31,
		2023				2022
		(In thousands)
ASSETS
Current assets:
Cash and cash equivalents		$	49,010			$	54,517
Accounts and notes receivable, net			8,228				12,005
Inventories and deferred costs			1,164				1,322
Short-term restricted cash			8,841				9,862
Prepaid and other current assets			4,271				4,095
Total current assets			71,514				81,801
Long-term assets:
Property, plant and equipment, net			659				604
Operating lease right-of-use assets, net			2,306				2,969
Long-term restricted cash			2,710				2,480
Other long-term assets			1,341				1,376
Total long-term assets			7,016				7,429
Total assets		$	78,530			$	89,230
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable		$	7,249			$	12,974
Customer advances			882				123
Deferred revenue			93				79
Income tax payable			8,758				8,349
Operating lease liabilities, current			1,031				1,228
Other current liabilities			4,741				6,098
Total current liabilities			22,754				28,851
Long-term liabilities:
Operating lease liabilities, non-current			1,459				1,894
Long-term deferred revenue and other liabilities			1,016				1,021
Total liabilities			25,229				31,766
Total equity			53,301				57,464
Total liabilities and equity		$	78,530			$	89,230

 

 

 

 

 

 

 

 

 

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UTStarcom Holdings Corp.

Unaudited Condensed Consolidated Statements of Operations

 

		Six months ended June 30,
		2023				2022
		(In thousands, except per share data)
Net sales		$	6,514			$	7,492
Cost of net sales			4,693				6,165
Gross profit			1,821				1,327
			28.0	%			17.7	%
Operating expenses:
Selling, general and administrative			2,892				1,520
Research and development			2,874				2,614
Total operating expenses			5,766				4,134
Operating loss			(3,945	)			(2,807	)
Interest income, net			866				813
Other income, net			1,912				1,597
Loss before income taxes			(1,167	)			(397	)
Income tax expense			(844	)			(1,283	)
Net loss attributable to UTStarcom    Holdings Corp.		$	(2,011	)		$	(1,680	)
Net loss per share attributable to    UTStarcom Holdings Corp.—Basic		$	(0.22	)		$	(0.19	)
Weighted average shares outstanding—Basic			9,098				9,053

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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UTStarcom Holdings Corp.

Unaudited Condensed Consolidated Statements of Cash Flows

		Six months ended June 30,
		2023				2022
		(In thousands)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Loss		$	(2,011	)		$	(1,680	)
Depreciation			116				106
Recovery of credit losses			(998	)			(1,798	)
Stock-based compensation expense			183				339
Net gain on disposal of assets			(25	)			—
Gain on release of tax liability due to expiration of the statute of limitations			(11	)			(11	)
Right-of-use assets amortization			616				745
Changes in operating assets and liabilities			(1,687	)			6,148
Net cash provided by (used in) operating activities			(3,817	)			3,849
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to property, plant and equipment			(182	)			(76	)
Net cash used in investing activities			(182	)			(76	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repurchase of ordinary share			—				(13	)
Proceeds from exercise of stock options			4				—
Net cash provided by (used in) financing activities			4				(13	)
Effect of exchange rate changes on cash and cash equivalents			(2,303	)			(5,579	)
Net decrease in cash and cash equivalents			(6,298	)			(1,819	)
Cash, cash equivalents and restricted cash at beginning of period			66,859				66,276
Cash, cash equivalents and restricted cash at end of period		$	60,561			$	64,457

 

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