Beijing-based telecoms equipment vendor UTStarcom has posted a US$ 5mn net loss for the first quarter of this year, but expects profitability to improve once it can count the IPTV business it sold last August as discontinued operations.
Total revenues across all operations for the first three months of this year (excluding the IPTV unit) were down 7% from one year earlier to US$ 36.7mn, due to decreased sales of Multi-Service Access Network products in Japan and Multi-Service Optical Transport products in Taiwan.
Describing 2013 as a “year of investment and continued transition”, UTStarcom expects profit from TV over IP services to become the major contributor for UTStarcom by 2015, as the new TV over IP business is expected to have gross margin exceeding 50%.
William Wong, president and CEO of UTStarcom, said: “Overall, we are pleased with our performance in the first quarter of 2013. We continued and advanced many of the strategic initiatives that we launched in late 2012 and made a concerted effort to accelerate the company’s transition to a higher growth and more profitable business.
“All of our efforts are geared towards better positioning the company for the long term and ensuring that we are delivering value to our business partners and our shareholders. While there is certainly more to do, we are pleased with the progress we are making and the improvements that have been made in a short time.”