Message Font: Serif | Sans-Serif
No. of Recommendations: 1

UTStarcom (UTSI ): Maintains 3 STARS (hold)
Analyst: Ari Bensinger

At its analyst day yesterday, UTStarcom highlighted its wireless and broadband product diversity. But with a rapid decline in its core fixed-mobility segment in China, due to a spending shift toward 3G networks, we think UTStarcom needs to quickly transition to new growth products. The November 2004 acquisition of the Audiovox handset business also continues to hurt gross margins. To improve profitability, UTStarcom aims to leverage its low-cost manufacturing expertise in China. We see many challenges ahead, but at 14 times our 2006 earnings per share estimate of 50 cents, well below peers, we view UTStarcom as worth holding.
Print the post  


When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.