UTStarcom announces strategic initiatives

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UTStarcom Holdings announced strategic initiatives that together advance its efforts to transition into higher growth, more profitable areas and enhance the value of the business. Specifically, these strategic initiatives include: The acceleration of the growth of the company's media operational support services business. The divestiture of the company's IPTV equipment business which will become a privately-held, standalone company. The IPTV business currently accounts for approximately one-third of revenue and is expected to negatively contribute to the overall Company results. This strategic initiative will significantly reduce UTStarcom's expenses by $17M per year. The appointment of former Board member and technology industry veteran William Wong as COO, effective immediately. Wong will transition into the CEO role at UTStarcom upon close of the divestiture transaction. Jack Lu will leave UTStarcom to lead the IPTV equipment business once the divestiture transaction closes. After evaluating several potential strategic options, the Strategy Committee determined the best way to achieve these goals is to concentrate capital and resources on building out value-added services, divest non-profitable parts of the business, and move into high-growth areas, such as media operational support services.

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