Utstarcom Holdings Corporation (UTSI) saw its loss narrow to $1.84 million, or $0.05 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $5.13 million, or $0.14 a share. On an adjusted basis, net loss for the quarter was $1.52 million, when compared with $4.80 million in the last year period.
Revenue during the quarter plunged 39.97 percent to $16.39 million from $27.30 million in the previous year period. Gross margin for the quarter expanded 207 basis points over the previous year period to 24.34 percent. Operating margin for the quarter stood at negative 8.66 percent as compared to a negative 3.53 percent for the previous year period.
Operating loss for the quarter was $1.42 million, compared with an operating loss of $0.96 million in the previous year period.
However, the adjusted operating loss for the quarter stood at $1.11 million compared to operating loss of $0.64 million in prior year period.
UTStarcom’s chief executive officer Tim Ti stated, “The third quarter was transitional for us, as we progress from the strong demand environment in the first half of the year, to the ramp of exciting new growth opportunities in 2017. During the quarter we introduced our newest SyncRing product, which provides critical functionality for next generation mobile backhaul networks. Our PTN product line is poised to benefit next year from a rollout of 100G metro networks in our prime geographies, such as Japan. We believe that our new strategy is the right one, with a tight focus on a small set of markets in which we can add the most value for our customers. We are seeing the payoff from this strategy, with stable revenue and higher margins.”
For the fourth-quarter, Utstarcom Holdings Corporation expects adjusted revenue to be in the range of $15 million to $20 million.
Operating cash flow turns positive
Utstarcom Holdings Corporation has generated cash of $4.16 million from operating activities during the nine month period as against cash outgo of $18.18 million in the last year period.
The company has spent $0.12 million cash to meet investing activities during the nine month period as against cash inflow of $18.54 million in the last year period
The company has spent $3.62 million cash to carry out financing activities during the nine month period as against cash outgo of $3.45 million in the last year period.
Cash and cash equivalents stood at $81.12 million as on Sep. 30, 2016, up 9.51 percent or $7.05 million from $74.08 million on Sep. 30, 2015.
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