UTStarcom Climbs on Estimate Boost

Shares of UTStarcom Inc. (Nasdaq: UTSI) rose more than 4 percent in trading today on revised 2004 revenue estimates from Pacific Growth Equities Inc.

A report, issued today by analyst Joe Noel, raised 2004 revenue estimates for UTStarcom because of the company's entry into larger Chinese cities, as well as other markets outside of China.

"For example, we see significant opportunities for revenue expansion, in India, Latin America, Taiwan, Vietnam, the Caribbean, Eastern Europe and within a couple of areas in Africa," Noel writes.

"The current consensus revenue estimate for 2004 stands at $2.1 billion ($400 million increase), which is a 23 percent year-over-year increase. We believe enough visibility exists to conclude that current estimates are too conservative," Noel adds.

Because of UTStarcom's continued success, its attempts to add more products, and its recent expansion into new markets, Noel says he's raising his UTStarcom revenue estimate $2.5 billion for 2004, a 43 percent year-over–year jump.

Noel writes that he expects 66 percent of UTStarcom's revenues to come from China and 24 percent of its total sales to be from wireline equipment, such as DSLAMs, DLCs, and optical transport gear.

He even goes so far as to say the stock is more valuable than the market thinks right now. Noel writes, "We believe the stock should trade at... a price of $45."

UTStarcom shares rose $1.55 (4.74%) to $34.25 in trading on Thursday. Representatives from UTStarcom did not immediately return calls on Thursday afternoon.

— Phil Harvey, Senior Editor, Light Reading

materialgirl 12/4/2012 | 11:50:37 PM
re: UTStarcom Climbs on Estimate Boost By providing very low-cost communications, UTSI seems to have hit a nail on the head. HOWEVER, they have something like 180 days worth of revenues in the ground in China, in "inventory" that have yet to be paid for. I wonder how they manage that risk.
BobbyMax 12/4/2012 | 11:50:30 PM
re: UTStarcom Climbs on Estimate Boost UtStarcom has some good low cost produts. THe company has reduced the cost by establshing R&S centers in India and china.

UtStarcom's interfaces to Softswitch are very powerful indeed.
gea 12/4/2012 | 11:50:29 PM
re: UTStarcom Climbs on Estimate Boost BobbyMax:

All your base are belong to us.
HeadsorTails 12/4/2012 | 11:50:27 PM
re: UTStarcom Climbs on Estimate Boost If you missed the ride on UTSI, you might want to roll the dice on SSPI. They had 3 wins last year with UTSI, but the company has not said yet, what % revenue will come from UTSI this year. 22 million last year and looking for 26 to 29 million this year. Selling for .8 X last years slaes! Military play to boot. Just got off of the 6 month warning list from Nasdaq.
Joe Chen 12/4/2012 | 11:49:33 PM
re: UTStarcom Climbs on Estimate Boost Yes, SSPI support UTSI NGN project, it's real Hero. NGN is the hope of Telecommunications Future.
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