UTStarcom Lowers Full Year Revenue Target
BEIJING, Oct 21, 2010 - UTStarcom, Inc. (Nasdaq: UTSI) lowered the company's full year revenue target range to US$ 270-280 million, down from the US$ 325 million target that previous management had articulated. The decision to lower the target range was driven primarily by slower than expected final acceptances and project completions for several large contracts.
Jack Lu, newly appointed President and CEO said that, "These kinds of delays can occur in equipment sales-based businesses, and they are among the key factors in our decision to lower our range of targeted revenues. We are working to correct this dynamic by shifting our business model, adding to our existing equipment-sales based business, new service-based opportunities, that can provide more predictable, high margin, recurring revenues. The strategic cooperation in Internet TV which we announced today is an example of this."
In another press release issued today, the Company announced three shifts in its business strategy and a new strategic partnership with Cristar Media (Beijing) Co., Ltd. ("Cristar"), a company affiliated with China Radio International, one of China's three national level broadcasters, to provide Internet TV services in China, as well as to Chinese in overseas Chinese communities and China watchers around the world.
About UTStarcom, Inc.
UTStarcom is a global leader in IP-based, end-to-end networking solutions and international service and support. The Company sells its solutions to operators in both emerging and established telecommunications markets around the world. UTStarcom enables its customers to rapidly deploy revenue-generating access services using their existing infrastructure, while providing a migration path to cost-efficient, end-to-end IP networks.
Founded in 1991, listed in NASDAQ in 2000, the Company has its operational headquarters in Beijing, China and research and development operations in China and India. For more information about UTStarcom, visit the Company's Web site at www.utstar.com.
SOURCE UTStarcom, Inc.
UTStarcom, Inc.
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