ALAMEDA, Calif.—Handset maker UTStarcom Inc. said its chairman and chief executive officer, Hong Lu, plans to resign from the company at the end of the year.
Lu will focus on strategic opportunities and assist during the transition to a new CEO during his remaining time at UTStarcom, and is expected to continue as a strategic adviser after his formal resignation in December, said the company.
Tom Toy, an independent director of the company, is set to assume the chairman of the board position in January. Ying Wu, currently CEO of the company’s China group, will assume UTStarcom’s CEO position.
The company’s chief financial officer, Mike Sophie, resigned from the company last month. In addition, UTStarcom said it has begun a search for a chief operating officer.
UTStarcom has suffered through a variety of financial setbacks during the past several months. The company has delayed its 2005 annual report due to premature recognition of certain revenues, and the Securities and Exchange Commission is investigating some of the company’s financial disclosures.
UTStarcom acquired the handset business of Audiovox Communications Corp. and supplies phones to the likes of Verizon Wireless, Cingular Wireless L.L.C., Sprint Nextel Corp. and others.
UTStarcom’s stock was down slightly after the news to about $6.98 per share.
