ALAMEDA, Calif.-UTStarcom Inc. reported a net loss for the first quarter of 2006 of $10.6 million, or 9 cents per share, a reversal from the net profit of $37 million the company reported during last year’s first quarter.
In addition, sales for the first quarter were $596.6 million, down significantly from sales of $901.9 million last year. Analysts, however, were expecting revenues of $517.8 million.
“We will continue to strive to make improvements in our business operations,” said Hong Lu, chief executive officer of the company. “We will also continue to drive our strategic focus to evolve our product portfolio, build new customer relationships and to maintain our technology and market leadership in key markets around the world.”
The company offered second-quarter guidance of between $545 million and $575 million in revenues and a loss of between 45 cents and 55 cents per share.
UTStarcom has suffered through a variety of financial setbacks during the past several months. The company 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.
