ALAMEDA, Calif.-UTStarcom Inc. announced net sales of $635.3 million and a net loss of $402.7 million, or $3.40 per share, in its third quarter.
Those figures include a charge of $341.4 million, or $2.89 per share, associated with an asset impairment.
The company provided an update on its restructuring process, which was initiated in May and scheduled for completion by the end of the year. To date, the company has reduced its working capital by $271.4 million against a goal of a $200 million. In addition, the company’s operating expenses for the third quarter totaled about $160 million against a goal of $140 million per quarter.
Further, the company said it has identified new areas of savings it hopes to achieve during the fourth quarter, including bringing total operating expenses closer to $130 million per quarter beginning next year. The company said it expects to incur restructuring charges of between $20 and $25 million during the fourth quarter.
UTStarcom provided fourth-quarter guidance of revenues between $650 million and $680 million, and a loss of about 45 cents to 55 cents per share.
“UTStarcom reported inline with its pre-announced range for September, and gave another dismal outlook across all product lines,” wrote Jason Tsai with ThinkEquity Partners. “It was, once again, another disappointing quarter with disappointing guidance. We remain skeptical of the company’s short-term prospects and are growing increasingly concerned about the company’s ability to ‘right the ship.'”
Despite the company’s less-than-stellar results, Wall Street boosted its stock after the news. UTStarcom’s shares were up more than 11 percent after its earnings announcement to $6.02 per share.
