UTStarcom (ticker: UTSI) reported weak Q2 2005 earnings results as the company continues to restructure its operations. Key stats from the quarter:
(all percentage changes and comparisons are year on year, unless stated otherwise)
- Revenue rose 4.8% to $723.0 million vs consensus estimate of $735.08 million.
- Unrelated party revenue rose 3.6% to $692.3 million.
- Related party revenue rose 45.4% to $30.6 million.
- Gross margin was 15.1% vs 25.6%.
- Operating expenses rose 52.6% to $191.0 million.
- SG&A expenses rose 51.6% to $102.8 million.
- Research and development expenses rose 24.8% to $65.6 million.
- In-process research and development expenses fell 52.9% to $660,000.
- Operating loss of $81.5 million vs operating income of $51.1 million.
- Net loss of $74.7 million vs net income of $44.0 million in Q2 2004.
- Loss per share of $0.65 vs earnings per share of $0.33, and vs consensus loss of $0.77.
- Note: Excluding restructuring charges and other items -- net loss of $51.6 million and loss per share of $0.45.
- Total revenue of approximately $660.0 - 680.0 million versus consensus of $778.39 million.
- Gross margin of 15% - 18% -- not including PCD: 30% - 32%.
- Restructuring charges of approximately $5.0 - $10.0 million.
- GAAP loss per share of approximately $0.35 - $0.40 including restructuring charges vs consensus loss of $0.08.
- Cash and equivalents of $350.3 million as of June 30, 2005.
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