Sales of xiaolingtong equipment help give the company a boost and it expects stronger results throughout the year
Earnings at UTStarcom nearly doubled last year on strong sales of xiaolingtong equipment to run limited, citywide mobile-phone services on the mainland.
The Nasdaq-listed company yesterday said net income rose 87.5 per cent to US$202.25 million. Earnings were $1.64 per share, beating company estimates of $1.26 to $1.27 per share and higher than 94 cents for 2002.
Full-year turnover jumped 100.07 per cent to US$1.96 billion.
'The company has scored very impressively with its low-cost wireless solutions in China,' said Wachovia Securities analyst Stephen Koffler, who has an 'outperform' rating on the stock. 'We believe [UTStarcom] can replicate this achievement in other developing countries and also diversify its sources of product revenue to other technologies.'
He cited internet protocol, digital symmetric line and third-generation wireless equipment as new growth opportunities for the company.
UTStarcom, based in Hangzhou, Zhejiang province but registered in California, competes with Shenzhen's ZTE Corp and Lucent Technologies for the mainland telecommunications equipment market. It makes 60 per cent of network equipment and 70 per cent of handsets for xiaolingtong on the mainland.