UTStarcom Expects Fall Fall
This all came out on the second-quarter earnings call late Wednesday, as UTStarcom officials said third-quarter revenues will be between $170 million and $190 million. The two analysts polled by Reuters Research had been expecting third-quarter revenues of $238 million.
One factor affecting the third quarter is that UTStarcom got to recognize some revenues earlier than expected, beefing up the second-quarter results. By the way, those revenues didn't come from the Personal Communications Divison (PCD) that's being sold off. (See UTStarcom Sheds Some Wireless Weight.)
Another $20 million of would-be revenues was erased as PCD -- which will be a customer for UTStarcom-built handsets -- had some contracts "lost or delayed," as CFO Fran Barton put it.
In the fourth quarter, UTStarcom expects to see the effects of cost-cutting and customer-generating programs that have been going on for a while, part of new CEO Peter Blackmore's turnaround plan. (See UTStarcom Unveils New Look and Axe Falls at UTStarcom.)
In the here-and-now, UTStarcom reported second-quarter pro forma losses of 31 cents per share, worse than the 28 cents predicted by Reuters. (See UTStarcom Reports Q2.)
— Craig Matsumoto, West Coast Editor, Light Reading