Utstarcom Holdings Corporation (UTSI) saw its loss narrow to $0.92 million, or $0.03 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $12.99 million, or $0.35 a share. On the other hand, adjusted net loss for the quarter narrowed to $0.98 million, or $0.03 a share from a loss of $14.66 million or $0.40 a share, a year ago. Revenue during the quarter dropped 18.59 percent to $21.22 million from $26.06 million in the previous year period. Gross margin for the quarter expanded 184 basis points over the previous year period to 31.98 percent. Total expenses were 93.94 percent of quarterly revenues, up from 91.49 percent for the same period last year. That has resulted in a contraction of 245 basis points in operating margin to 6.06 percent.
Operating income for the quarter was $1.29 million, compared with $2.22 million in the previous year period.
However, the adjusted operating income for the quarter stood at $1.23 million compared to $2.72 million in the prior year period. At the same time, adjusted operating margin contracted 462 basis points in the quarter to 5.81 percent from 10.43 percent in the last year period.
UTStarcoms chief executive officer Tim Ti stated, "We continue to execute our stated strategy to streamline our product lines focusing on high margin products in support of our valued customers while controlling our costs. This strategy had a positive impact on our financial results in 2016. We achieved positive Non GAAP Operating Income in Q4 and full-year 2016 as well as a positive Net Profit for 2016. We also continued to invest in research and development, strengthening our product portfolio with high-value, high-margin product solutions that will drive future growth".
For the first-quarter, Utstarcom Holdings Corp forecasts adjusted revenue to be in the range of $18 million to $22 million.
Operating cash flow turns positiveUtstarcom Holdings Corporation has generated cash of $5.57 million from operating activities during the year as against cash outgo of $11.64 million in the last year. Cash flow from investing activities was $7.07 million for the year, down 59.45 percent or $10.36 million, when compared with the last year.
The company has spent $4.10 million cash to carry out financing activities during the year as against cash outgo of $3.66 million in the last year period.
Cash and cash equivalents stood at $83.92 million as on Dec. 31, 2016, up 8.92 percent or $6.87 million from $77.05 million on Dec. 31, 2015.
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