UTStarcom Exceeds Previous Guidance

UTStarcom announced preliminary results for its fiscal first quarter ended March 31, 2008 which exceed its previously announced guidance. The company now expects Q1revenues to be in the range of $580 million to $590 million, compared with the initial guidance of $500 million to $520 million.


UTStarcom attributed the stronger than expected results to its Personal Communications Division as well as to its core business units. Revenue in the first quarter of 2007 was $475.9 million. Gross margins are now expected to be in the range of 15% to 16% compared to the initial guidance of approximately 13%. The first quarter operating expenses are now expected to be in the range of $120 million to $125 million, compared to the initial guidance of $115 million to $120 million. The higher than expected operating expenses are in part due to unanticipated professional services expenses. Operating expenses in the first quarter of 2007 were $127.5 million.
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