UTStarcom, Inc.
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UTStarcom, Inc. Financial Snapshot
Operating Performance
Fast Facts
20F, Tower E1, The Towers, Oriental Plaza, The company reported revenue of US$291.54 million
Headquarters Address
Alameda, ,China during the fiscal year 2010 (2010). The company's
revenue declined at a compounded rate of -41.32%
Telephone + 86 10 85205588
during 2006–2010, with an annual decline of -24.54%
over 2009. In 2010, the company recorded an
Fax + 86 10 85205599 operating margin of -25.12%, as against -58.03% in
2009.
Website www.utstar.com
Ticker Symbol, Stock Exchange UTSI, NASDAQ Revenue and Margins
Number of Employees 1,900
Fiscal Year End December
Revenue (in US$ million) 291.54
SWOT Analysis
Strengths Weaknesses
Return on Equity
Market Leading Position Lawsuits
The company recorded a return on equity (ROE) of -
27.03% for 2010, as compared to its peers, Cisco
Strong Customer Base Overdependence on China Systems, Inc. (Ticker: CSCO), Alcatel-Lucent (Ticker:
ALU) and Sprint Nextel Corporation (Ticker: S), which
Wide service offerings recorded ROEs of 17.55%, -9.42% and -23.82%
respectively. The company reported a net profit
margin of -25.12% in 2010.
Opportunities Threats Return on Equity
Growing broadband market Depends on third parties
Growing demand for 3G technology Fluctuations in foreign currencies
Launching new services Industry consolidation
Strategic Investments
Liquidity Position
The company reported a current ratio of 1.55 in 2010,
as compared to its peers, Cisco Systems, Inc.,
Alcatel-Lucent and Sprint Nextel Corporation, which
recorded current ratios of 2.67, 1.27 and 1.25
respectively. As of December 2010, the company
recorded cash and short-term investments of worth
US$352.05 million, against zero current debt. The
company reported a debt to equity ratio of 0.00 in
2010 as compared to its peers, Cisco Systems, Inc.,
Alcatel-Lucent and Sprint Nextel Corporation, which
recorded debt to equity ratios of 0.35, 1.52 and 1.39
respectively.
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UTStarcom, Inc. - SWOT Profile Page 1
UTStarcom, Inc.
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TABLE OF CONTENTS
1 Business Analysis ................................................................................................................................... 5
1.1 Company Overview ................................................................................................................................................5
1.2 Business Description ..............................................................................................................................................5
1.3 Major Products and Services .................................................................................................................................6
2 Analysis of Key Performance Indicators ............................................................................................... 7
2.1 Five Year Snapshot: Overview of Financial and Operational Performance Indicators ..........................................7
2.2 Key Financial Performance Indicators .................................................................................................................10
2.2.1 Revenue and Operating Profit .........................................................................................................................10
2.2.2 Asset, Liabilities and Capex .............................................................................................................................11
2.2.3 Operational Efficiency ......................................................................................................................................12
2.2.4 Solvency ..........................................................................................................................................................13
2.3 Competitive Benchmarking ..................................................................................................................................14
2.3.1 Efficiency ..........................................................................................................................................................14
2.3.2 Capital Expenditure ..........................................................................................................................................15
2.3.3 Turnover – Inventory and Asset .......................................................................................................................16
3 Recent Developments ........................................................................................................................... 17
4 SWOT Analysis ...................................................................................................................................... 19
4.1 SWOT Analysis - Overview ..................................................................................................................................19
4.2 Strengths ..............................................................................................................................................................19
4.3 Weaknesses .........................................................................................................................................................19
4.4 Opportunities ........................................................................................................................................................20
4.5 Threats .................................................................................................................................................................20
5 UTStarcom, Inc. - Company Statement ................................................................................................ 22
6 History .................................................................................................................................................... 24
7 UTStarcom, Inc. - Key Employees ........................................................................................................ 25
8 Key Employee Biographies................................................................................................................... 26
9 Locations and Subsidiaries .....................