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Gross Profit

Gross profit was $1.7 million, or 30.0% of net sales, for the first half of 2024, compared to $1.8 million, or 28.0% of net sales, in the corresponding period in 2023.

• Gross margin on equipment sales was $0.1 million, compared to $0.5 million in the corresponding period in 2023. Equipment gross margin for the first half of 2024 was 10.6%, compared to 49.2% for the corresponding period in 2023. The decrease in gross margin was due to a decline in revenue from a mobile operator in Europe.

• Service gross margin was $1.6 million, compared to $1.3 million in the corresponding period in 2023. Service gross margin was 33.1%, compared to 24.1% for the corresponding period in 2023, due to decreased personnel cost as a result of the reduction of personnel.

Operating Expenses

Operating expenses for the first half of 2024 were $5.3 million, compared to $5.8 million in the corresponding period in 2023.

• Selling, general and administrative (“SG&A”) expenses for the first half of 2024 were $2.7 million, compared to $2.9 million in the corresponding period in 2023. The decrease was mainly due to decreased personnel cost as a result of the reduction of personnel.

• Research and development (“R&D”) expenses were $2.6 million, compared to $2.9 million in the corresponding period in 2023. The decrease was mainly attributable to decreased personnel cost as a result of the reduction of personnel.

Operating Loss

Operating loss for the first half of 2024 was $3.6 million, compared to $4.0 million in the corresponding period in 2023.

Interest Income, Net

Net interest income for the first half of 2024 was $1.3 million, compared to $0.9 million in the corresponding period in 2023.

Other Income (Expenses), Net

Net other income for the first half of 2024 was $0.8 million, compared to $1.9 million in the corresponding period in 2023. Other income mainly reflects a foreign exchange gain resulting from the appreciation of the U.S. dollar against the Renminbi and U.S. dollar against the Japanese Yen.

Net Loss

Net loss attributable to shareholders for the first half of 2024 was $2.0 million, compared to $2.0 million in the corresponding period in 2023. Basic net loss per share for the first half of 2024 was $0.22, compared to $0.22 for the corresponding period in 2023.

Cash Flow

Cash used in operating activities in the first half of 2024 was $2.5 million, cash used in investing activities was $0.1 million, and cash provided by financing activities was nil. As of June 30, 2024, UTStarcom had cash, cash equivalents and restricted cash of $56.0 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 /