UTStarcom Holdings Inc. (UTSI) stock surged by 6.9% at the last trading close while the UTSI stock price continued to rise by 34.18% in the after-hours trading session. As of now, there is no recent news available regarding this gain in UTSI stock whereas UTStarcom has recently launched its second half and full-year 2020 results. UTStarcom is dedicated to assisting network operators in providing the most advanced, dependable, and cost-effective connectivity services to their customers. UTStarcom provides specialized infrastructure that is designed for the fastest-growing network features, such as mobile backhaul, metro aggregation, and broadband access.
On March 25, 2021, UTSI released its second half and full-year 2020 financial results. Given below is the summary:
- In the second half of 2020, total revenues for UTSI were $10.6 million, relative to $27.1 million in the same timeframe of 2019. Total sales for 2020 were $24.3 million, down 63% from $65.6 million in 2019.
- In the second half of 2020, gross profit was $0.9 million, or 8.6% of net sales, relative to $12.1 million, or 44.9 percent of net sales, in the same timeframe in 2019. In 2020, gross profit was $3.5 million, or 14.5 percent of net revenue, compared to $24.2 million, or 36.8%, in 2019.
- Operating costs were $14.9 million in the second half of 2020, compared to $15.9 million in the same timeframe of 2019. Operating costs in 2020 were $26.8 million, down from $30.3 million in 2019.
- In the second half of 2020, the operating loss was $14.0 million, compared to $3.8 million in the same timeframe of 2019. The net loss for the full year of 2020 was $23.2 million, compared to $6.1 million in 2019.
- In the second half of 2020, net interest income was $0.5 million, relative to $0.7 million in the same timeframe of 2019. Net interest income for the full year 2020 was $1.0 million, down from $1.3 million in 2019.
- In the second half of 2020, cash was used in operating activities of $2.6 million, cash was used in investment activities of $0.03 million, and cash was used in funding activities of $0.2 million. UTStarcom had $48.4 million in currency, cash equivalents, and restricted cash as of December 31, 2020.
About these financial results, the CEO of UTStarcom Dr. Zhaochen Huang said,
The COVID-19 pandemic had a negative impact on UTSI’s performance for the second half and full year of 2020. As a result, the UTSI team is concentrating on creating innovative products that take advantage of key technological developments, as well as working with network operators to meet and support their needs. He also added that they are pleased to announce the launch of SkyFlux CPT, their 5G transport solution, as well as their collaboration with two major Chinese carriers to develop network disaggregation solutions.