UTStarcom (UTSI) has reported its financial results for the second quarter of 2005 ended on June 30, 2005. Net income for the second quarter of 2005 was a loss of $74.7 million, or ($0.65) diluted earnings per share. This compares to net income of $43.9 million, or $0.33 diluted earnings per share, in the second quarter of 2004.
Net sales for the second quarter of 2005 were $723.0 million, an increase of five percent over net sales of $689.6 million reported in the second quarter of 2004.
The Personal Communications Division contributed $342.3 million of sales in the second quarter.
Second quarter consolidated gross profit margin was 15.1 percent of sales, which was negatively impacted by an inventory write-down of approximately $5.5 million, associated with the company's restructuring plan. This compares to gross profit margin of 25.6 percent for the second quarter of 2004.
Gross profit margin excluding the Personal Communications Division was 24.5 percent of sales. Gross profit margin for the Personal Communications Division business was 4.7 percent of sales.