UTStarcom Profit Falls on Weak China Sales ; 17% Staff Cut
From MarketWatch: UTStarcom profit falls; 17% staff cut
UTStarcom Inc., which reported a lower first-quarter profit, said Thursday it will cut 17% of its global workforce to counter a faster than expected decline in a unique wireless service it offers in China.
"In the first quarter, UTStarcom said net income fell to $38 million, or 29 cents a share, from $54.8 million or 40 cents a share a year ago.
Revenue jumped 45% to $901.9 million from $622.3 in the year-ago period, but the gain stemmed from the company's recent purchase of Audiovox Communications, a developer of wireless phones. That segment contributed $315.6 million to total sales.
Looking ahead, UTStarcom (UTSI) forecast that sales would fall to $740 million in the second quarter -- below Wall Street's estimate of $844 million -- because the company's wireless phone service in China is declining more rapidly than expected."