Telecoms equipment vendor UTStarcom Inc is expecting lower than expected revenue for the year after a slowdown in sales of its core PAS (personal access systems) and a delay in recognizing a $290m Japan Telecom contract until 2005.
It now forecasts that revenue in 2004 will rise 40% to $2.8bn though
Wall Street analysts polled by Reuters were looking for a figure of $2.93bn. It is sticking to its forecast that in 2005 revenue will increase 25% to a range of $4bn to $4.43bn.
CEO Hong Lu said that as UTStarcom evolved from a company that dominated the PAS market in China into a worldwide supplier of diverse telecom equipment, it experienced many of the successes and challenges typical of a company undertaking a transformation of this magnitude.
He said it continues to see strong demand in markets outside of China, specifically in Japan, India, Latin America, Africa, Europe, and North America, but there has been a maturation of the PAS market in China.