Beijing-based telecoms equipment vendor UTStarcom has completed the divestiture of its IPTV business announced last July, creating a privately-held standalone business to be helmed by outgoing CEO Jack Lu.
The divestiture is expected to cut around US$ 17mn of annual operating expenses, and enable UTStarcom to focus on higher-growth, more profitable areas of business.
As part of the transition process, interim COO William Wong has taken over from Jack Lu to become permanent CEO, while Lead Independent Director Xiaoping Li has been elected as chairman of the board by the directors of the company.
Mr. Wong most recently served as CEO of Borqs International, a Beijing-based provider of software platforms for mobile operators and chip manufacturers.
UTStarcom posted total revenues across all operations of US$ 56.5mn for the second quarter of this year, down 18% on an annual basis, while gross profits also fell 18% to US$ 21.7mn.