Historically, UTSI always trades at a significant discount to peer valuations due to its reliance on the highly volatile market of China, where written promises are worth the paper they are written on. The pending 3G license to their biggest 2 customers is also a hige risk. Now a new risk is quickly approaching, lower handset growth. Make no mistake about it, handsets are a large part of revenue and growth for UTSI, and the days of 75% share and better than 25% gross margin is over. It is logical to assume that handset competition will only intensify and the environment will become even more difficult for UTSI. I have been folowing this stock since it became public almost 5 years ago --- and like their press releases love to say they have met or exceeded guidance in every single quarter. Now for the first time, the company just barely made their numbers (probably needing some cost cutting and large tax refunds. It seems like operations were at their peak in 2003 and are now starting to weaken. Sure, the valuation is dirt cheap, but it always was, even in better times. JMHO.