UTStarcom ( UTSI) says it will miss its deadline for filing its annual report as auditors continue to investigate the timing of some revenue bookings.

Last month, the company warned of a steep revenue shortfall and said it had initiated an accounting investigation with the help of independent counsel. The company is looking into revenue recognized from an unnamed customer in India and other related issues.

UTStarcom says it is focused on about $22 million in revenue that was booked on the contract between 2003 and 2005.

"Significant progress has been made in connection with the investigation and the assessment of internal controls," CFO Fran Barton said in a press release Thursday.

On Feb. 9, the Alameda, Calif., wireless tech company posted preliminary fourth-quarter numbers calling for a net loss of $20.6 million, or 17 cents a share, on sales of $685.5 million. The sales included a $40 million payment the company had expected in the third quarter.

Based on that fourth-quarter performance, the company says it expects to report total revenue for the year of $2.95 billion, compared to $2.70 billion in 2004. UTStarcom also expects to report a net loss for the year of $462 million, compared to net income of $73.4 million in 2004.

The company says it faces penalties if it does not file its annual report in 60 days after creditors inform the company that it is in default of credit agreements.

UTStarcom shares fell 64 cents, or 10%, to $5.60 in after-hours trading Thursday.