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Guidance-beating Q1 results include revenues of $622.3M, up 88% from last year, for net income of $54.8M ($0.40/share), up 47% from 1Q03
April 27, 2004
4 Min Read
ALAMEDA, Calif. -- UTStarcom, Inc. (Nasdaq: UTSI), a global leader in IP access networking and services, today reported record first quarter revenues and earnings for the three months ended March 31, 2004.
The company will conduct a conference call today, Tuesday, April 27, to discuss these results. The call will take place at 1:30 p.m. PDT. (Please see Conference Call section below for dial-in numbers.)
"It is my privilege to report a record first quarter performance for UTStarcom," said Hong Lu, chief executive officer of UTStarcom. "We are extremely pleased with our ability to continually deliver profitable growth to our stockholders. In addition, over the last several quarters, UTStarcom has focused on broadening our technology base, our product lines, and our global reach through organic growth, strategic partnerships, and M&A activity. We are now seeing results from this strategy, yielding strong revenue growth and profitability, and driving higher value to our stockholders."
Net sales for the first quarter of 2004 were $622.3 million, an increase of 88 percent over net sales of $330.5 million reported in the first quarter of 2003.
Net income for the first quarter of 2004 was $54.8 million, or $0.40 per share, compared to net income of $37.3 million, or $0.33 per share, for the first quarter of 2003, an increase in net income of 47 percent year-over-year.
Q1 2004 Highlights
Stellar Financial Performance
Marks 17th consecutive quarter exceeding revenue and earnings guidance
Announced over $500 million in new contracts in China
Signed $100 million in new contracts outside of China
Global Leadership
The number of UTStarcom PAS subscribers in China reached 26 million at the end of Q1, while total PAS subscribers in China are approximately 45 million.
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Technology Leadership
Expanded global wireless strategy to include CDMA, WCDMA, TDCDMA, and TD-SCDMA:
Signed CDMA subscriber unit and licensing agreement with QUALCOMM
Announced strategic partnership and licensing agreement with IPWireless to develop and manufacture TDCDMA solutions worldwide
Acquired CDMA intellectual property portfolio from Hyundai Syscomm
Introduced MovingMedia(tm) product family, which provides operators with a cost-effective, scalable approach to 3G
Launched company's first dual-mode PAS/GSM handset
Announced partnership with Cisco Systems to promote IP technology for 3G networks
Demonstrated world's first 1xEV-DV system with Samsung at CTIA Wireless 2004
Unveiled Total Control(TM) 2000 wireless access platform
Worldwide Market Strength
Ranked #1 worldwide in iPAS/PAS, CDMA PDSN, IP-DSLAM, Media Gateway, and Next-Generation Softswitch Markets.
Updated Guidance:
Guidance before acquisitions for 2004 would have been $2.7 billion in revenues and $1.95 GAAP Earnings per Share.
Guidance reflects the recently announced acquisitions of Hyundai Syscomm and TELOS. Guidance for the second quarter reflects initial acquisition-related expenses. In addition, the company anticipates increased R&D spending in both the second and third quarters as a result of these acquisitions. Finally, the company expects these acquisitions to be accretive in the second full quarter of ownership, which is the fourth quarter of 2004.
Q2 2004 Revenues:
Revenues for the second quarter are anticipated to be approximately $650-$660 million. With a 7% anticipated sequential increase targeted each quarter for the balance of the year.
Q2 2004 GAAP EPS:
GAAP earnings per share for the second quarter is targeted at $0.33, inclusive of $0.07 dilution associated with In-Process R&D and other expenses related to the Hyundai Syscomm and TELOS acquisitions.
FY 2004 Revenues:
Full-Year 2004 revenues are targeted at $2.75 Billion.
FY 2004 GAAP EPS:
GAAP earnings per share for the full-year 2004 is targeted at $1.85, inclusive of approximately $0.10 dilution incurred in the second and third quarters related to the Hyundai Syscomm and TELOS acquisitions.
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