UTStarcom recently published its Q3 2009 financial results posting a drop in revenues from $ 180.6 million last year to $ 70.5 million at the end of September 30, 2009 at a drop of 60.5%. The decline in sales was mainly on account of reduced demand from the Chinese market.
The company’s cost cutting initiatives reflected positively in the results with opex declining from $ 92.2 million to $ 58.0 million on a yoy basis. Gross margins too were at 34 % as compared to 32 % in Q3 08.
Operating loss for the quarter was at $$ 33.8 million as compared to $ 34.9 million last year.
"The third quarter was a time of transition for our company as we worked aggressively to execute the corporate initiatives we announced in June," said Peter Blackmore, UTStarcom's chief executive officer and president. "We have implemented significant changes that enable us to invest in selective IP-based infrastructure products and key geographic regions. Meanwhile we continue to improve our operational structure so we can achieve our financial goals in 2010 and beyond."
Cash and cash equivalents amounted to $ 241.7 million at the end of quarter.