UTStarcom Reports Unaudited Financial Results for First Half of 2025

Rhea-AI Summary

UTStarcom (NASDAQ: UTSI), a global telecommunications infrastructure provider, reported challenging financial results for H1 2025. The company posted revenue of $4.6 million, down 19.3% year-over-year, with a net loss of $3.7 million ($0.41 per share).

Despite financial headwinds, UTStarcom secured notable business wins, including a major RFP from China Telecom Research Institute for manufacturing disaggregated router hardware platforms. The company also received multiple maintenance and support service orders for PTN, NMS, SyncRing, and IMS solutions, along with expansion orders from European and Indian customers.

Financial metrics showed broad deterioration with gross profit declining 52.9% to $0.8 million, while operating loss widened to $4.2 million. The company maintained a solid cash position of $49.2 million as of June 30, 2025.

Positive

• Won major RFP from China Telecom Research Institute for STN-A equipment hardware production
• Secured multiple maintenance and support services orders for existing solutions
• Received network expansion orders from European and Indian customers
• Maintained strong cash position of $49.2 million
• Reduced operating expenses by 7.5% through cost control measures

Negative

• Revenue declined 19.3% year-over-year to $4.6 million
• Net loss increased to $3.7 million from $2.0 million year-over-year
• Gross profit dropped 52.9% to $0.8 million
• Equipment sales showed negative gross margin of 30.4%
• Service gross margin decreased to 22.4% from 33.1%

Insights

Financial Analyst

UTStarcom reports deteriorating financials despite contract wins; revenues down 19.3% with widening losses amid structural challenges.

UTStarcom's H1 2025 results reveal concerning financial deterioration despite securing new contracts. Revenue declined by 19.3% to $4.6 million, with both equipment sales (-31.6%) and services revenue (-16.9%) showing significant contraction. Most troubling is the negative equipment gross margin of -30.4%, a stark reversal from the positive 10.6% margin in H1 2024.

The company's net loss widened substantially to $3.7 million (vs. $2.0 million in H1 2024), resulting in EPS declining to -$0.41 from -$0.22. While management has maintained tight cost control with operating expenses down 7.5%, this hasn't offset the revenue decline. The cash burn rate remains problematic, with $4.5 million used in operations during H1 2025, contributing to the 12.1% decrease in cash reserves to $49.2 million.

The China Telecom Research Institute RFP win for disaggregated router hardware manufacturing represents a potential bright spot, though no revenue figures were disclosed. This contract could help diversify revenue away from the declining Indian market, where both equipment and service sales have fallen significantly. However, given the company's execution challenges and deteriorating margins, it remains uncertain whether this new contract can meaningfully reverse UTStarcom's negative financial trajectory. The remaining cash cushion of $49.2 million provides some runway, but with accelerating losses, management needs to quickly translate contract wins into profitable revenue.

HANGZHOU, China, Aug. 29, 2025 (GLOBE NEWSWIRE) -- UTStarcom (“UT,” “UTStarcom” or the “Company”) (NASDAQ: UTSI), a global telecommunications infrastructure provider, today reported its unaudited financial results and a business update for the six months ended June 30, 2025 (“the first half”).

Business Highlights:

• Multi-million dollar China Telecom Research Institute RFP win. UTStarcom has been selected as a major winner of the RFP “Self-developed STN-A Equipment Hardware Production and OEM Procurement Project” from Guangdong Research Institute of China Telecom Co., Ltd (“China Telecom Research Institute”) for manufacturing of a large number of disaggregated router hardware platforms intended for use on China Telecom’s STN network – China Telecom’s metropolitan area network, which is crucial for supporting its 5G mobile network services, as well as enterprise, broadband, cloud, and other services.
  
  
• Maintenance and support services orders. In 1H 2025, UTStarcom received multiple maintenance and warranty support orders from our customers. The ordered services are related to the deployed UT’s solutions such as PTN, NMS, SyncRing, and IMS.
  
  
• Expansion orders. In 1H 2025, UTStarcom continued receiving expansion orders, including the NetRing PTN network expansion for the mobile transport network of a Mobile Operator in Europe, and the features expansion order for the IMS Broadband Core solution deployed by one of our key Indian customers.

UTStarcom’s Chief Executive Officer, Mr. Hua Li, commented, “We have been working hard to develop and market our products to new clients, while continuing to support our existing customers. We are pleased with the progress we have made so far, and we will continue to explore additional opportunities for growth.”

First Half 2025 Financial Results

Summary of 1H 2025 Key Financials

	1H 2025	1H 2024	Y/Y Change
Revenue	$4.6	$5.7	-19.3%
Gross Profit	$0.8	$1.7	-52.9%
Operating Expenses	$4.9	$5.3	-7.5%
Operating Loss	($4.2)	($3.6)	-$0.6%
Net Loss	($3.7)	($2.0)	-$1.7%
Basic EPS	($0.41)	($0.22)	-$0.19%
Cash Balance (including Restricted Cash)	$49.2	$56.0	-12.1%

<sup>* Dollar comparisons are used where percentage comparisons are not meaningful.
* All amounts are in U.S. Dollars millions except for Earnings Per Share (EPS)</sup>

Total Revenues

Total revenues for the first half of 2025 were $4.6 million, compared to $5.7 million in the corresponding period in 2024.

• Net equipment sales were $0.5 million, a decrease of 31.6% from $0.8 million in the corresponding period in 2024, driven by lower sales to major customers in India.
   
• Net services sales were $4.1 million, a decrease of 16.9% from $4.9 million in the corresponding period in 2024. The decrease was mainly due to the completion of current projects and no new major projects in India.

Gross Profit

Gross profit was $0.8 million, or 16.2% of net sales, for the first half of 2025, compared to $1.7 million, or 30.0% of net sales, in the corresponding period in 2024.

• Gross loss on equipment sales was $0.2 million, compared to gross profit of $0.1 million in the corresponding period in 2024. Equipment gross margin for the first half of 2025 was negative 30.4%, compared to 10.6% for the corresponding period in 2024. The decrease in gross margin was due to a lower equipment revenue and higher inventory reserves.
   
• Service gross margin was $1.0 million, compared to $1.6 million in the corresponding period in 2024. Service gross margin was 22.4%, compared to 33.1% for the corresponding period in 2024, due to decreased activity with the major customer in India.

Operating Expenses

Operating expenses for the first half of 2025 were $4.9 million, compared to $5.3 million in the corresponding period in 2024.

• Selling, general and administrative (“SG&A”) expenses for the first half of 2025 were $2.6 million, compared to $2.7 million in the corresponding period in 2024. The decrease was mainly due to continued tight cost controls.
   
• Research and development (“R&D”) expenses were $2.3 million, compared to $2.6 million in the corresponding period in 2024. The decrease was mainly attributable to the completion of current projects and continued tight cost controls.

Operating Loss

Operating loss for the first half of 2025 was $4.2 million, compared to $3.6 million in the corresponding period in 2024.

Interest Income, Net

Net interest income for the first half of 2025 was $1.2 million, compared to $1.3 million in the corresponding period in 2024.

Other Income (Expenses), Net        

Net other expense for the first half of 2025 was $0.2 million, compared to net other income of $0.8 million for the corresponding period in 2024. Other expense mainly reflects a foreign exchange loss resulting from the depreciation of the U.S. dollar against the Renminbi, and a loss in fair value changes.

Net Loss

Net loss attributable to shareholders for the first half of 2025 was $3.7 million, compared to $2.0 million in the corresponding period in 2024. Basic net loss per share for the first half of 2025 was $0.41, compared to $0.22 for the corresponding period in 2024.

Cash Flow

Cash used in operating activities in the first half of 2025 was $4.5 million, cash used in investing activities was $0.05 million, and cash provided by financing activities was nil. As of June 30, 2025, UTStarcom had cash, cash equivalents and restricted cash of $49.2 million.

About UTStarcom Holdings Corp.

UTStarcom is committed to helping network operators offer their customers the most innovative, reliable and cost-effective communication services. UTStarcom offers high performance advanced equipment optimized for the most rapidly growing network functions, such as mobile backhaul, metro aggregation and broadband access. UTStarcom has operations and customers around the world, with a special focus on Japan, India and China. UTStarcom was founded in 1991 and listed its shares on the Nasdaq Market in 2000 (symbol: UTSI). For more information about UTStarcom, please visit http://www.utstar.com.

Forward-Looking Statements

This press release includes forward-looking statements, including statements regarding the Company’s strategic initiatives and the Company’s business outlook. These statements are forward-looking in nature and subject to risks and uncertainties that may cause actual results to differ materially and adversely from the Company’s current expectations. These include risks and uncertainties related to, among other things, changes in the financial condition and cash position of the Company, changes in the composition of the Company’s management and their effect on the Company, the Company’s ability to realize anticipated results of operational improvements and benefits of the divestiture transaction, the ability to successfully identify and acquire appropriate technologies and businesses for inorganic growth and to integrate such acquisitions, the ability to internally innovate and develop new products, assumptions the Company makes regarding the growth of the market and the success of the Company’s offerings in the market and the Company’s ability to execute its business plan and manage regulatory matters. The risks and uncertainties also include the risk factors identified in the Company’s latest annual report on Form 20-F and current reports on Form 6-K as filed with the Securities and Exchange Commission. The Company is in a period of strategic transition and the conduct of its business is exposed to additional risks as a result. All forward-looking statements included in this press release are based upon information available to the Company as of the date of this press release, which may change and the Company assumes no obligation to update any such forward-looking statements.

For investor and media inquiries, please contact:

UTStarcom Holdings Corp.
Tel: +86 (571) 8192 8888
Ms. Shelley Jiang, Investor Relations
Email: utsi-ir@utstar.com/ Shelleyjiang@utstar.com /

UTStarcom Holdings Corp.
Unaudited Condensed Consolidated Balance Sheets
		June 30,				December 31,
		2025				2024
		(In thousands)
ASSETS
Current assets:
Cash and cash equivalents		$	40,423			$	43,913
Accounts and notes receivable, net			5,293				5,508
Short-term investments			105				165
Inventories and deferred costs			2,024				2,207
Short-term restricted cash			6,681				6,824
Prepaid and other current assets			4,051				4,454
Total current assets			58,577				63,071
Long-term assets:
Property, plant and equipment, net			430				476
Operating lease right-of-use assets, net			926				1,399
Long-term restricted cash			2,097				2,406
Other long-term assets			870				848
Total long-term assets			4,323				5,129
Total assets		$	62,900			$	68,200
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable		$	5,602			$	7,008
Customer advances			512				769
Deferred revenue			39				62
Income tax payable			8,305				8,163
Operating lease liabilities, current			1,085				1,184
Other current liabilities			4,072				4,342
Total current liabilities			19,615				21,528
Long-term liabilities:
Operating lease liabilities, non-current			25				404
Long-term deferred revenue and other liabilities			1,052				1,042
Total liabilities			20,692				22,974
Total equity			42,208				45,226
Total liabilities and equity		$	62,900			$	68,200

UTStarcom Holdings Corp.
Unaudited Condensed Consolidated Statements of Operations
		Six months ended June 30,
		2025				2024
		(In thousands, except per share data)
Net sales		$	4,634			$	5,719
Cost of net sales			3,883				4,004
Gross profit			751				1,715
			16.2	%			30.0	%
Operating expenses:
Selling, general and administrative			2,580				2,740
Research and development			2,324				2,575
Total operating expenses			4,904				5,315
Operating loss			(4,153)				(3,600)
Interest income, net			1,155				1,332
Other income (expense), net			(161)				806
Loss before income taxes			(3,159)				(1,462)
Income tax expense			(563)				(554)
Net loss attributable to UTStarcom Holdings Corp.		$	(3,722)			$	(2,016)
Net loss per share attributable to UTStarcom Holdings Corp.—Basic		$	(0.41)			$	(0.22)
Weighted average shares outstanding—Basic			9,150				9,141

UTStarcom Holdings Corp.
Unaudited Condensed Consolidated Statements of Cash Flows
		Six months ended June 30,
		2025				2024
		(In thousands)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Loss		$	(3,722)			$	(2,016)
Depreciation			100				137
Allowance(Recovery) for credit losses			43				(2)
Stock-based compensation expense			57				61
Gain on release of tax liability due to expiration of the statute of limitations			(11)				(11)
Right-of-use assets amortization			533				579
Changes in fair value of equity securities investment			60				(369)
Changes in operating assets and liabilities			(1,595)				(866)
Net cash used in operating activities			(4,535)				(2,487)
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to property, plant and equipment			(46)				(106)
Net cash used in investing activities			(46)				(106)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net cash provided by financing activities			—				—
Effect of exchange rate changes on cash and cash equivalents			639				(1,016)
Net decrease in cash and cash equivalents			(3,942)				(3,609)
Cash, cash equivalents and restricted cash at beginning of period			53,143				59,647
Cash, cash equivalents and restricted cash at end of period		$	49,201			$	56,038

FAQ

What were UTStarcom's (UTSI) key financial results for H1 2025?

UTStarcom reported revenue of $4.6 million (down 19.3% YoY), net loss of $3.7 million, and loss per share of $0.41. The company maintained a cash position of $49.2 million.

What major contract did UTStarcom win from China Telecom in H1 2025?

UTStarcom won a major RFP from China Telecom Research Institute for manufacturing disaggregated router hardware platforms for China Telecom's STN network, supporting 5G mobile network services.

How did UTStarcom's gross margin perform in H1 2025?

UTStarcom's gross margin declined significantly, with overall gross profit dropping 52.9% to $0.8 million. Equipment sales showed a negative gross margin of 30.4%, while service gross margin decreased to 22.4%.

What were UTStarcom's operating expenses in H1 2025?

Operating expenses were $4.9 million, down 7.5% from $5.3 million in H1 2024, with SG&A at $2.6 million and R&D at $2.3 million, reflecting continued cost control measures.

How much cash does UTStarcom (UTSI) have as of June 2025?

As of June 30, 2025, UTStarcom maintained a cash balance of $49.2 million (including restricted cash), representing a 12.1% decrease from the previous year.