Macxroaxis estimates UTSI's probability of bankruptcy within the next 24 months at 78.4%. Since Yahoo doesn't allow links any more, Google "macroaxis utsi probability of bankruptcy" and follow the top link.
When you hear "to increase shareholder value" from management lips run for the hills.Reverse splits are desperate half measure that do not work.The only case of positive effect of r/s on pps that I'm aware off is the situation of broad market collapse as a "main" reason behind r/s.
In most other cases pps comes back down to previous level,in time.
I will not take long for $3 to become $1 so I expect another r/s next year or two.
I think new management is slowly trying to restore investor confidence, something previous management teams failed to do for years. They've significantly reduced expenses, bought back shares on the cheap, and are now taking steps to boost share price. I would not be surprised if once the reverse split is completed, they start paying a very small dividend. It wouldn't be much, since I believe they will allocate most of their cash balance to acquiring new content and technologies to support their new business model. However, such shareholder friendly gestures would generate new interest in the firm.
bankruptcy implies debt: they have none. Might be a bumpy ride and they could eventually become insolvent...but that is a few years away. Very difficult to see...but probably some up interludes of decent upticks. Too much cash vs. market cap to be a SS dream going forward.
The definition of bankruptcy is the inability to service debt as it comes due. Since the company has NO debt, bankruptcy is inherently impossible. If the insiders continue to gorge on the UTSI, the "milk" will eventually run out but that's not bankruptcy - it's insolvency.