UTStarcom Launches SkyFlux SPN310 Router with 16Gbps Switching Capacity

• 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.