UTStarcom Reports Unaudited Financial Results for Second Half and Full Year 2025

• Market Performance: The NASDAQ 100 Pre-Market Indicator rose by 208.41 points to 30,176.54, indicating investor optimism that may drive positive performance in upcoming trading sessions.
• Active Stocks: UTStarcom Holdings Corp (UTSI) increased by $0.94 to $3.90 with a trading volume of 14,956,919 shares, suggesting growing market confidence in its future performance.
• Tech Stock Dynamics: Space Exploration Technologies Corp (SPCX) rose by $3.90 to $205.70, with a trading volume of 9,018,270 shares, marking a 52-week high and reflecting sustained investor interest in the space exploration sector.
• Analyst Ratings: Nokia Corporation (NOK) increased by $0.36 to $14.34, with a trading volume of 5,356,333 shares, and the current mean recommendation is in the 'buy range', indicating analysts' optimistic outlook on its future growth.

• Annual Report Filing: On April 24, 2026, UTStarcom filed its Form 20-F annual report for the year ended December 31, 2025, demonstrating the company's ongoing commitment to transparency and regulatory compliance.
• Report Access: The annual report is available on the SEC's EDGAR website and can be downloaded in PDF format from UTStarcom's website, with interested parties able to request a hard copy free of charge, reflecting the company's dedication to investor service.
• Company Background: Founded in 1991 and listed on Nasdaq in 2000, UTStarcom focuses on providing innovative, reliable, and cost-effective communication services to global network operators, with a particular emphasis on markets in Japan and India.
• Technological Edge: UTStarcom offers high-performance advanced equipment optimized for rapidly growing network functions such as mobile backhaul, metro aggregation, and broadband access, further solidifying its competitive position in the global telecommunications infrastructure market.

• Loss Report: UTStarcom's FY GAAP EPS stands at -$0.87, indicating a significant decline in profitability, which reflects the challenges and operational pressures the company is currently facing.
• Revenue Decline: The company reported revenue of $9 million, a 17.4% year-over-year decrease, suggesting that its sales performance is adversely affected by unfavorable market conditions, potentially leading to tighter future cash flows.
• Gross Margin Drop: Gross profit for 2025 was $1.1 million, representing 11.7% of net sales, compared to $2.9 million or 26.7% in 2024, highlighting deficiencies in cost control and pricing strategies.
• Cash Reserves Decrease: Total cash, including restricted cash, amounts to $42.4 million, down 20.2% year-over-year, which may limit the company's future investment capacity and operational flexibility, increasing financial risk.

• Product Launch: UTStarcom has introduced the SkyFlux SPN310 router, featuring a 16Gbps switching capacity aimed at meeting the needs of SMEs and metro edge networks, thereby enhancing its competitive position in the rapidly evolving telecommunications market.
• Technological Innovation: This router integrates modern networking technologies such as Segment Routing and FlexE with a software-defined networking approach, optimizing performance and flexibility for 5G and enterprise networks, which further advances the company's strategic positioning in next-generation communication platforms.
• Market Positioning: The SkyFlux SPN310 is specifically designed for SME connectivity and broadband aggregation, featuring low power consumption and a compact form factor that effectively reduces operational costs while meeting the high-performance demands of modern business applications, thus increasing UTStarcom's market appeal.
• Strategic Expansion: By simultaneously releasing a firmware version compatible with the NG-PTN NetRing platform, UTStarcom not only expands its product portfolio but also offers the latest hardware and software solutions to a broader customer base at lower costs, further solidifying its market position.

Business Highlights

• RFP Win: UTStarcom secured a significant contract with the Guangdong Research Institute of China Telecom for the production of disaggregated router hardware platforms, essential for China Telecom's STN network, which supports 5G services and other applications.
• Maintenance Orders: The company received multiple maintenance and warranty support orders related to its existing solutions, including PTN, NMS, SyncRing, and IMS.
• Expansion Orders: UTStarcom continued to receive expansion orders, notably for the NetRing PTN network in Europe and an IMS Broadband Core solution for a key customer in India.

First Half 2025 Financial Results

• Revenue Decline: Total revenues for the first half of 2025 were $4.6 million, down 19.3% from $5.7 million in the same period of 2024. Net equipment sales decreased by 31.6% to $0.5 million, while net services sales fell by 16.9% to $4.1 million.
• Gross Profit: Gross profit was $0.8 million, representing 16.2% of net sales, a significant drop from $1.7 million (30.0% of net sales) in 1H 2024. The gross loss on equipment sales was $0.2 million, with a negative equipment gross margin of 30.4%.
• Operating Expenses: Operating expenses decreased to $4.9 million from $5.3 million in 2024, with SG&A expenses slightly down to $2.6 million and R&D expenses reduced to $2.3 million due to cost controls.
• Net Loss: The net loss attributable to shareholders was $3.7 million, compared to $2.0 million in 2024, resulting in a basic net loss per share of $0.41, up from $0.22.

Cash Flow and Financial Position

• Cash Flow: Cash used in operating activities was $4.5 million, with minimal cash used in investing activities. As of June 30, 2025, UTStarcom had a cash balance of $49.2 million, down 12.1% from $56.0 million at the end of 2024.
• Balance Sheet: Total assets decreased to $62.9 million from $68.2 million, with current liabilities also declining to $19.6 million. Total equity fell to $42.2 million from $45.2 million.

Company Overview

• UTStarcom's Commitment: The company focuses on providing innovative and cost-effective communication services, with a strong presence in Japan, India, and China. Founded in 1991 and listed on Nasdaq in 2000, UTStarcom continues to adapt to market demands and technological advancements.

• Annual Report Filing: UTStarcom has filed its Annual Report on Form 20-F for the year ended December 31, 2024, with the U.S. Securities and Exchange Commission, which is available online and can be requested in hard copy.

• Company Overview: UTStarcom is a telecommunications infrastructure provider focused on delivering innovative communication services globally, particularly in Japan and India, since its founding in 1991.