Annotated article summary from this weekend's Barron's. Receive all our Barron's summaries by signing up here:
UTStarcom Flaming Out by Mark Veverka
Summary: Barron's Plugged In editor Mark Veverka is ready to throw in the towel on wireless equipment/technology company UTStarcom Inc. (NASDAQ:UTSI). Due to ongoing SEC and internal investigations (options backdating, insider trading and bribery), the company has published no meaningful information for one year. On June 1, co-founder Ying Wu mysteriously resigned over differences of opinion regarding strategy. He's now free to sell his 4.7 million share stake. Wu was seen as the key link between the company and Chinese bureaucrats and business leaders, and was slated to become UTStarcom's next CEO. Shares are down 21% to $5.71 since then. Before ceasing to publish financial info, sales were slipping. UTStarcom's internet video technology will be on display this week, but critics say the new product is weak. Prices of high-end phones from China Mobile Ltd. (NYSE:CHL) are dropping, increasing the pressure.
Earnings call transcript: UTStarcom Q2 2006