Total Revenues
Total revenues for the first half of 2022 were $7.5 million, compared to $8.7 million in the corresponding period in 2021.
- Net equipment sales were $1.4 million, an increase of 65.0% from $0.9 million in the corresponding period in 2021, driven by greater sales to major customers in India.
- Net services sales were $6.1 million, a decrease of 22.4% from $7.8 million in the corresponding period in 2021. The decrease was mainly due to the completion of current projects and no new major projects in India.
Gross Profit
Gross profit was $1.3 million, or 17.7% of net sales, for the first half of 2022, compared to $2.2 million, or 25.0% of net sales, in the corresponding period in 2021.
- Gross loss on equipment sales was $0.2 million, compared to $1.0 million in the corresponding period in 2021. Equipment gross margin for the first half of 2022 was (15.8%), compared to (119.1%) for the corresponding period in 2021. The increase in gross margin was attributed to favorable product mix.
- Service gross margin was $1.6 million, compared to $3.2 million in the corresponding period in 2021. Service gross margin was 25.5%, compared to 40.8% for the corresponding period in 2021, due to decreased activity with the major customer in India.
Operating Expenses
Operating expenses for the first half of 2022 were $4.1 million, compared to $1.3 million in the corresponding period in 2021.
- Selling, general and administrative (“SG&A”) expenses were $1.5 million, compared to ($2.0) million in the corresponding period in 2021. The higher SG&A in the first half of 2022 was mainly attributable to the reversal of $1.8 million of credit loss reserves as the Company collected amounts due from BSNL. The prior year period had $5.0 million credit loss reversals.
- Research and development (“R&D”) expenses was $2.6 million, compared to $3.3 million in the corresponding period in 2021, lower due to decreased personnel cost resulting from cost reduction initiatives.
Operating Income (Loss)
Operating loss for the first half of 2022 was $2.8 million, compared to operating income of $0.9 million in the corresponding period in 2021.
Interest Income, Net
Net interest income for the first half of 2022 was $0.8 million, compared to $0.5 million in the corresponding period in 2021.
Other Income (Expenses), Net
Net other income for the first half of 2022 was $1.6 million, compared to $1.1 million in the corresponding period in 2021. Other income mainly reflects a foreign exchange gain resulting from the appreciation of the U.S. dollar against the Japanese Yen, which was partially offset by the devaluation of Indian Rupee against the U.S. dollar.
Net Income (Loss)
Net loss attributable to shareholders for the first half of 2022 was $1.7 million, compared to net income of $0.3 million in the corresponding period in 2021. Basic net loss per share for the first half of 2022 was $0.19, compared to basic net income per share of $0.01 for the corresponding period in 2021.
Cash Flow
Cash generated from operating activities in the first half of 2022 was $3.8 million, cash generated from investing activities was ($0.1) million, and cash used in financing activities was nil. As of June 30, 2022, UTStarcom had cash, cash equivalents and restricted cash of $64.5 million.
