UTStarcom (UTSI) on PAS, and the timing of 3G licenses (1Q05 conf call quotes)

May. 6.05 | About: UTStarcom, Inc. (UTSI)

UTStarcom (ticker: UTSI) released Q1 2005 earnings results yesterday. Here are key quotes from President and CEO Hong Lu, and EVP and CEO, China Operations, Ying Wu, on the company's earnings results conference call:

On PAS Decline

....we had initially anticipated this year's decline in overall China PAS
revenue to be around 30%, and the shares estimated with you on our
earlier call. What we see now is the much faster dropoff in PAS
spending as (indiscernible) reserve modest in anticipation of the 3G
rollout in China.

....based on our worldwide estimates, we expect this year's decline to be between 40 and 50%.

On Future PAS Spending

....we expect PAS spending will continue even when 3G is introduced, as it addressed the needs of a very large base of a low-end consumers in China.

On the Timing of 3G Licenses

....As a matter of fact, there is no clear instruction from Chinese. So, we don't have any clear informations on that, but we estimate China should give realizes around the fourth quarter some time. In terms of the restructuring, it's very, very complicated. Right now, according to our source, there is no clear plan yet, approved by the central government.

....I really do believe that they will not be able to wait any longer beyond the…end of this year, beginning of next year that they will have to start giving out the license.

(Quotes are from the CCBN StreetEvents transcript.)

Comment: More on PAS here.