UTStarcom Inc, a leading player in IP access networking and services, has posted a stunning set of results, with both revenue and profit doubling compared with the previous year.
The company is based in Alameda, California, although its core business is in China. It also serves customers in developing markets in Asia, Latin America and Africa, in addition to more established customers in North America and Europe.
The company maintains the largest all-IP network in the world. The number of subscribers on UTStarcom’s PAS networks in China reached 21 million at the end of the fourth quarter.
For the fourth quarter, net income rose a staggering 96% to $66.4m, from $33.9m. Likewise, revenues shot up 114% to $643.6m, from $301.1m. For the year ended December 31, 2003, net income rose 87% to $202.3m, compared to $107.9m. Full year revenues doubled to $1.96bn, from $981.8m.
The maker of telecommunications gear has logged sixteen quarters of record revenues and profitability since its IPO in March 2000.
The impressive financial results aren’t surprising considering China’s steady growth of new wireless phone subscribers and broadband users. At the end of 2003, UTStarcom had a backlog of $1.06bn, an increase of 75% over the $605.4m backlog reported at the end of 2002.
The record year-end backlog of over $1bn, combined with the announcement last week of a $200m dollar contract with China Telecom, which is incremental to that backlog, gives us a tremendous amount of visibility in 2004, said senior vice president and CFO Mike Sophie.
Handsets represent approximately 11% of backlog, but typically produce between 40% to 50% of revenues due to the book-and-ship nature of handset sales, leading Sophie to expect significant additional handset bookings and revenues throughout 2004.
The cash that we raised in our recent equity offering puts us in a strong position to aggressively pursue strategic initiatives to increase shareholder value throughout 2004, Sophie added.
Looking ahead, UTStarcom expects annual 2004 revenues of between $2.5bn and $2.55bn. The current quarter should see revenues of $570m to $580m, the company said.
This article is based on material originally published by ComputerWire