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UTStarcom Warns Of Loss, Declining Revenue

UTStarcom's (UTSI) net loss for the third quarter ended on September 30, 2005 was $402.7 million, the company said today prior to its conference call.

Net sales were $635.3 million.

GAAP net loss for the quarter was $402.7 million, or ($3.40) loss per share, which includes charges of approximately $341.4 million, or ($2.89) loss per share associated with long-lived asset impairment, the tax effect of the impairment and deferred tax asset valuation allowance.

The company collected just over $1 billion in cash during the quarter with which it generated approximately $223 million in cash flow from operations and paid-down approximately $90 million in long-term and $39 million in short-term debt.

In addition to the impairment charges, the company has determined that it is required to record a non-cash tax charge of $123 million related to the impairment.

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