UTStarcom Announces Company Repurchase Program of Up to $40 Million
HONG KONG, Nov. 14, 2014 (GLOBE NEWSWIRE) -- UTStarcom (Nasdaq:UTSI), a global telecommunications infrastructure provider, announced that its Board of Directors has approved a share repurchase program of up to $40 million of its outstanding shares over the next 24 months. The share repurchase program was approved by UTStarcom's Board of Directors and became effective on November 12, 2014.
During the repurchase program period, the Company will also maintain the flexibility to turn the program to an accelerated repurchase program and/or a cash tender offer. UTStarcom expects to implement this share repurchase program in a manner consistent with market conditions and the interests of the shareholders. The repurchase program does not obligate UTStarcom to make repurchases at any specific time or situation. UTStarcom's Board of Directors will review the share repurchase program periodically and may authorize adjustment of its terms and size accordingly. In addition, UTStarcom plans to fund any share repurchases made under this program from the Company's available cash balance. As of September 30, 2014, UTStarcom's cash and cash equivalents totaled $90.5 million.
Mr. Himanshu Shah, Chairman of UTStarcom's Board of Directors, stated, "Our commitment to an aggressive share repurchase program reflects the Board's confidence in the Company and our determination to deliver enhanced value for UTStarcom's shareholders. We believe that this buy back also represents an effective use of the Company's cash and we look forward to delivering enhanced value to our shareholders."
About UTStarcom Holdings Corp.
UTStarcom (Nasdaq:UTSI) is a global telecom infrastructure provider dedicated to developing technology that will serve the rapidly growing demand for bandwidth from cloud-based services, mobile, streaming, and other applications. We work with carriers globally, from Asia to the Americas, to meet this demand through a range of innovative broadband packet optical transport and wireless/fixed-line access products and solutions. The Company's end-to-end broadband product portfolio, enhanced through in-house Software Defined Networking (SDN)-based orchestration, enables mobile and fixed-line network operators and enterprises worldwide to build highly efficient and resilient future-proof networks for a range of applications, including mobile backhaul, metro aggregation, broadband access and Wi-Fi data offload. Our strategic investments in media operational support service providers expand UTStarcom's capabilities in the field of next generation video platforms. UTStarcom was founded in 1991, started trading on NASDAQ in 2000, and has operating entities in Hong Kong; Tokyo, Japan; San Jose, USA; Delhi and Bangalore, India; Hangzhou, China. For more information about UTStarcom, please visit http://www.utstar.com.
This press release includes forward-looking statements, including statements regarding the Company's share repurchase program. These statements are forward-looking in nature and subject to risks and uncertainties that may cause actual results to differ materially and adversely from the Company's current expectations. These include risks and uncertainties related to, among other things, changes in the financial condition and cash position of the Company, changes in the composition of the Company's management and their effect on the Company, the Company's ability to realize anticipated results of operational improvements and benefits of the divestiture transaction, the ability to successfully identify and acquire appropriate technologies and businesses for inorganic growth and to integrate such acquisitions, the ability to internally innovate and develop new products, assumptions the Company makes regarding the growth of the market and the success of the Company's offerings in the market, and the Company's ability to execute its business plan and manage regulatory matters. The risks and uncertainties also include the risk factors identified in the Company's latest annual report on Form 20-F and current reports on Form 6-K as filed with the Securities and Exchange Commission. The Company is in a period of strategic transition and the conduct of its business is exposed to additional risks as a result. All forward-looking statements included in this press release are based upon information available to the Company as of the date of this press release, which may change, and the Company assumes no obligation to update any such forward-looking statements.
CONTACT: For investor and media inquiries, please contact: Jane Zuo UTStarcom Holdings Corp. Tel: +852-3750-7632 Email: firstname.lastname@example.org Daniel DelRe (Hong Kong) Tel: +852-3768-4547 Email: Daniel.DelRe@fticonsulting.com Simona Kormanikova (New York) +1-212-850-5685 Email: Simona.Kormanikova@fticonsulting.com May Shen (Beijing) Tel: +86-10-8591-1951 Email: May.Shen@fticonsulting.com