BEIJING, Nov. 15, 2012 /PRNewswire/ -- UTStarcom Holdings Corp. ("UTStarcom" or the "Company") (Nasdaq: UTSI), a leading provider of media operational support services and broadband equipment products and services, today announced a strategic plan to transform UTStarcom into a higher growth, more profitable business focused on providing next generation media services. The strategy builds on recently announced initiatives, such as the divestiture of the IPTV equipment business, acceleration of the media operational support services business, and appointment of new executive leadership. The new plan is expected to result in significant overall improvement in UTStarcom's business performance and the Company anticipates it will lead to accelerated rates of growth and profit margins.
In a separate press release issued today, the Company also announced unaudited results for the third quarter ended September 30, 2012.
New Strategic Plan
UTStarcom's new strategic plan will build on the Company's past transition initiatives and transform it into a higher growth, more profitable business focused on media operational support services and broadband equipment products and services. UTStarcom aims to become a next generation media company and participate in new and higher-margin business areas where it has the potential to become the top one or two service providers.William Wong, UTStarcom's Chief Executive Officer, stated, "The strategic plan we are announcing today stems from the new management team's close collaboration with the Board of Directors to identify the most appropriate ways to accelerate revenue growth, bolster profit margins, improve operational cash flow, generate a more predictable, subscriber-based recurring revenue stream and increase shareholder value." "Further, this is the next major initiative for us in a series of steps we are taking to truly transform the Company, including divesting the underperforming IPTV equipment business, investing in aioTV, hiring a new Chief Financial Officer, and adding new independent directors to our Board. Our overarching intention is to leverage our extensive experience, technical expertise, and customer relationships while repositioning the Company for long-term growth by tapping into major shifts in behavior and technologies that will change the way people consume entertainment for generations to come."