UTSI

HANGZHOU, China, Aug. 14, 2026 (GLOBE NEWSWIRE) -- UTStarcom (“UT,” “UTStarcom” or the “Company”) (NASDAQ: UTSI), a global telecommunications infrastructure provider, today reported its unaudited financial results and a business update for the six months ended June 30, 2026 (“the first half”). Business Highlights: Optical Circuit Switching (OCS) product development for AI DC networking infrastructure. UTStarcom continues the development of its comprehensive Optical Circuit Switching (OCS) solution designed for scale-up and scale-out AI Data Center (DC) architectures. Development remains on schedule, and the Company expects to showcase the OCS product concept prototype at the 27th China International Optoelectronic Exposition (CIOE 2026) in September 2026. Maintenance and support services to customers globally. While focusing on the development of its AI networking solutions, UTStarcom continues to provide ongoing support to its global customer base in accordance with existing support and maintenance contracts. In 1H 2026, the Company secured a substantial maintenance service renewal order alongside a series of smaller support orders across major product lines, including NetRing PTN, SyncRing, and IMS. Network expansion for a European Mobile Network Operator: In 1H 2026, UTStarcom fulfilled an order to ship a batch of NetRing TN704ES platforms in support of a key customer's ongoing 5G transport network expansion in Europe. UTStarcom’s Chief Executive Officer Mr. Hua Li commented, “As artificial intelligence continues to transform industries worldwide, the Company believes Optical Circuit Switching (OCS) represents a promising technology with significant potential to support next-generation AI infrastructure and high-performance computing applications. Accordingly, the Company is exploring OCS as a strategic growth direction to capitalize on the expanding opportunities created by the AI ecosystem. At the same time, the Company remains committed to its existing products and services and will continue to support its current customers while prudently pursuing new opportunities that enhance long-term shareholder value.” First Half 2026 Financial Results * Dollar comparisons are used where percentage comparisons are not meaningful. * All amounts are in U.S. Dollars millions except for Earnings Per Share (EPS). Total Revenues Total revenues for the first half of 2026 were $3.4 million, compared to $4.6 million in the corresponding period in 2025. Net equipment sales were $0.2 million, a decrease of 55.2% from $0.5 million in the corresponding period in 2025. The decrease was primarily due to decreased revenue from customers in India and China due to decrease in volume. Net services sales were $3.1 million, a decrease of 23.6% from $4.1 million in the corresponding period in 2025. The decrease was mainly due to the completion of projects in late 2025, and no new major projects in India and China. Gross Profit (Loss) Gross loss was $0.5 million, or negative 13.6% of net sales, for the first half of 2026, compared to gross profit of $0.8 million, or 16.2% of net sales, in the corresponding period in 2025. Gross loss on equipment sales was $0.7 million, compared to $0.2 million in the corresponding period in 2025. Equipment gross margin for the first half of 2026 was negative 291.0%, compared to negative 30.4% for the corresponding period in 2025. The decrease in gross margin was due to lower equipment revenue and higher inventory reserves. Service gross margin was $0.2 million, compared to $0.9 million in the corresponding period in 2025. Service gross margin was 8.0%, compared to 22.4% for the corresponding period in 2025, due to high fixed cost with lower service revenue. Operating Expenses Operating expenses for the first half of 2026 were $5.6 million, compared to $4.9 million in the corresponding period in 2025. Selling, general and administrative (“SG&A”) expenses for the first half of 2026 were $2.7 million, compared to $2.6 million in the corresponding period in 2025. Research and development (“R&D”) expenses were $2.8 million, compared to $2.3 million in the corresponding period in 2025. The increase was mainly due to workforce reduction related severance costs. Operating Loss Operating loss for the first half of 2026 was $6.0 million, compared to $4.2 million in the corresponding period in 2025. Interest Income, Net Net interest income for the first half of 2026 was $0.6 million, compared to $1.2 million in the corresponding period in 2025. The decrease was mainly attributable to lower fixed‑term deposits in India and China, and the impact of Indian rupee exchange rate movements. Other Income (Expenses), Net Net other income for the first half of 2026 was $0.7 million, compared to net other expense of $0.2 million for the corresponding period in 2025. Other income mainly reflects a foreign exchange gain resulting from the appreciation of the U.S. dollar against the Indian rupee, and a gain in fair value changes. Net Loss Net loss attributable to shareholders for the first half of 2026 was $5.1 million, compared to $3.7 million in the corresponding period in 2025. Basic net loss per share for the first half of 2026 was $0.55, compared to $0.41 for the corresponding period in 2025. Cash Flow Cash used in operating activities in the first half of 2026 was $4.9 million, cash used in investing activities was $0.9 million, and cash provided by financing activities was nil. As of June 30, 2026, UTStarcom had cash, cash equivalents and restricted cash of $35.8 million. About UTStarcom Holdings Corp. UTStarcom is committed to helping network operators offer their customers the most innovative, reliable and cost-effective communication services. UTStarcom offers high performance advanced equipment optimized for the most rapidly growing network functions, such as mobile backhaul, metro aggregation and broadband access. UTStarcom has operations and customers around the world, with a special focus on Japan, India and China. UTStarcom was founded in 1991 and listed its shares on the Nasdaq Market in 2000 (symbol: UTSI). For more information about UTStarcom, please visit http://www.utstar.com. Forward-Looking Statements This press release includes forward-looking statements, including statements regarding the Company’s strategic initiatives and the Company’s business outlook. 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. For investor and media inquiries, please contact: UTStarcom Holdings Corp. Tel: +86 (571) 8192 8888 Ms. Shelley Jiang, Investor Relations Email: [email protected]/ [email protected] /

HANGZHOU, China, March 24, 2026 (GLOBE NEWSWIRE) -- UTStarcom (the Company) (NASDAQ: UTSI), a global telecommunications infrastructure provider, today reported its unaudited financial results for the six months and full year ended December 31, 2025, and provided a business update. Business Update Strategic Pivot to AI Networking. UTStarcom recognizes AI Networking as a major market opportunity and is shifting its primary innovation and development efforts toward this sector, leveraging its deep heritage in cutting-edge optical networking technologies and intelligent network automation to address the infrastructure demands of the AI era. Amid the explosive growth of AI processing requirements, the need for highly efficient, low-latency backend networking has become a critical bottleneck. UTStarcom is addressing this challenge by focusing on the development of a comprehensive Optical Circuit Switching (OCS) solution designed for both scale-up and scale-out AI Data Center (AI DC) architectures. By utilizing a purely optical path and eliminating optical-electrical-optical (O-E-O) conversions in suitable AI DC network applications, UTStarcom’s OCS technology is engineered to deliver massive bandwidth, lower latency, deterministic network behavior, reduced power consumption and cooling requirements, and optimized AI network cost. The Company initiated the development work in 2H 2025, with a functional prototype expected to debut in 2H 2026. Carrier-grade disaggregated routers hardware supply. Following the award of the China Telecom Research Institute RFP for the manufacturing of 5G transport network routers for China Telecom’s STN network and the execution of the associated frame agreements in early 2025, the Company received its initial purchase order under this framework and successfully delivered the products to the customer in 2H 2025. Network expansion for a Mobile Network Operator in Europe. In 2H 2025, UTStarcom received a purchase order for a batch of NetRing TN704ES, the product that was developed earlier specifically to meet the customer's network expansion requirements. Post-sale support services to customers globally. In 2H 2025, the Company continued to provide support to its customers around the world in accordance with existing support and maintenance contracts for products such as NetRing PTN, SyncRing, IMS, SSTP. UTStarcom’s Chief Executive Officer Mr. Hua Li commented, “We have made great efforts in our current products, including research and development, manufacturing, and marketing. However, the results have not met our expectations due to intense market competition. Looking ahead, we aim to explore new directions and products related to AI networking. Artificial intelligence has tremendous potential and is expected to impact nearly every aspect of business and daily life. With our long-term expertise and experience in communication system development, we believe we are well positioned to expand into this new area and expect to achieve meaningful progress and results.” Second Half and Full Year 2025 Financial Results (Unaudited) * Dollar comparisons are used where percentage comparisons are not meaningful. * All amounts are in U.S. Dollars millions except for Earnings Per Share (EPS) Total Revenues Six months ended December 31, 2025 Total revenues for the second half of 2025 were $4.3 million, compared to $5.2 million in the corresponding period in 2024. Net equipment sales for the second half of 2025 were $0.2 million, a decrease of 65.9% from $0.6 million in the corresponding period in 2024. The decrease was mainly due to decreased revenue from customers in India. Net services sales for the second half of 2025 were $4.1 million, a decrease of 9.0% from $4.6 million in the corresponding period in 2024. The decrease was mainly due to the completion of current projects and no new major projects in India. Twelve months ended December 31, 2025 2025 total revenues were $9.0 million, a decrease of 17.5% from $10.9 million in 2024. 2025 net equipment sales were $0.8 million, a decrease of 46.6% from $1.4 million in the corresponding period in 2024. The decrease was mainly due to decreased revenue from customers in India. 2025 net services sales were $8.2 million, a decrease of 13.1% from $9.5 million in 2024. The decrease was mainly due to the completion of current projects and no new major projects in India. Gross Profit Six months ended December 31, 2025 Gross profit was $0.3 million, or 6.9% of net sales, for the second half of 2025, compared to $1.2 million, or 23.1% of net sales, in the corresponding period in 2024. Equipment gross loss for the second half of 2025 was $0.5 million, compared to gross profit of $0.1 million in the corresponding period in 2024. Equipment gross margin for the second half of 2025 was (232%), compared to 16.2% for the corresponding period in 2024. The decrease in gross margin was due to lower equipment revenue, an increase in inventory reserves, and a change in expected recovery of cost from suppliers. Service gross profit for the second half of 2025 was $0.8 million, compared to $1.1 million in the corresponding period in 2024. Service gross margin for the second half of 2025 was 19.0%, compared to 24.0% for the corresponding period in 2024, due to fixed labor cost with lower service revenue. Twelve months ended December 31, 2025 2025 gross profit was $1.1 million, or 11.7% of net sales, compared to $2.9 million, or 26.7% of net sales, in 2024. 2025 equipment gross loss was $0.7 million, compared to gross profit $0.2 million in 2024. 2025 equipment gross margin was (86.6%), compared to 13.0% in 2024. The decrease in gross margin was due to lower equipment revenue, an increase in inventory reserves, and a change in expected recovery of cost from suppliers. 2025 service gross profit was $1.7 million, compared to $2.7 million in 2024. 2025 service gross margin was 20.7%, compared to 28.7% in 2024, due to fixed labor cost with lower service revenue. Operating Expenses Six months ended December 31, 2025 Operating expenses for the second half of 2025 were $4.7 million, compared to $4.9 million in the corresponding period in 2024. Selling, general and administrative (“SG&A”) expenses for the second half of 2025 were $2.4 million, compared to $2.4 million in the corresponding period in 2024. Research and development (“R&D”) expenses for the second half of 2025 were $2.3 million, compared to $2.5 million in the corresponding period in 2024, lower due to decreased personnel cost resulting from cost reduction initiatives. Twelve months ended December 31, 2025 2025 operating expenses were $9.6 million, compared to $10.2 million in 2024. 2025 SG&A expenses were $4.9 million, compared to $5.1 million in 2024. The decrease was mainly due to continued tight cost controls. 2025 R&D expenses were $4.6 million, compared to $5.1 million in 2024, lower due to decreased personnel cost resulting from cost reduction. Operating Loss Operating loss for the second half of 2025 was $4.4 million, compared to $3.7 million in the corresponding period in 2024. Full year 2025 operating loss was $8.6 million, compared to $7.3 million in 2024. Interest Income, Net Net interest income for the second half of 2025 was $1.1 million, compared to $1.5 million in the corresponding period in 2024. Full year 2025 net interest income was $2.2 million, compared to $2.8 million in 2024. The decrease was mainly due to lower interest income in China and the United States. Other Income (Expenses), Net Net other income for the second half of 2025 was $0.1 million, compared to net other income of $0.1 million in the corresponding period in 2024. Full year 2025 net other expense was $0.01 million, compared to net other income of $0.9 million in 2024. Net Loss Net loss attributable to shareholders for the second half of 2025 was $4.2 million, compared to $2.4 million in the corresponding period in 2024. Basic net loss per share for the second half of 2025 was $0.46, compared to $0.26 for the corresponding period in 2024. Full year 2025 net loss attributable to shareholders was $8.0 million, compared to $4.4 million in 2024. 2025 basic net loss per share was $0.87, compared to $0.48 in 2024. Cash Flow Cash used in operating activities in the second half of 2025 was $4.3 million, cash used in investing activities was $1.0 million, and cash provided by financing activities was nil. As of December 31, 2025, UTStarcom had cash, cash equivalents and restricted cash of $42.4 million. About UTStarcom Holdings Corp. UTStarcom is committed to helping network operators offer their customers the most innovative, reliable and cost-effective communication services. UTStarcom offers high performance advanced equipment optimized for the most rapidly growing network functions, such as mobile backhaul, metro aggregation and broadband access. UTStarcom has operations and customers around the world, with a special focus on Japan, India and China. UTStarcom was founded in 1991 and listed its shares on the Nasdaq Market in 2000 (symbol: UTSI). For more information about UTStarcom, please visit http://www.utstar.com. Forward-Looking Statements This press release includes forward-looking statements, including statements regarding the Company’s strategic initiatives and the Company’s business outlook. 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, the effect of the COVID-19 pandemic on the Company’s business, 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. For investor and media inquiries, please contact: UTStarcom Holdings Corp. Tel: +86 571 8192 8888 Ms. Shelley Jiang, Investor Relations Email: [email protected]/ [email protected] /

HANGZHOU, China, Aug. 29, 2025 (GLOBE NEWSWIRE) -- UTStarcom (“UT,” “UTStarcom” or the “Company”) (NASDAQ: UTSI), a global telecommunications infrastructure provider, today reported its unaudited financial results and a business update for the six months ended June 30, 2025 (“the first half”). Business Highlights: Multi-million dollar China Telecom Research Institute RFP win. UTStarcom has been selected as a major winner of the RFP “Self-developed STN-A Equipment Hardware Production and OEM Procurement Project” from Guangdong Research Institute of China Telecom Co., Ltd (“China Telecom Research Institute”) for manufacturing of a large number of disaggregated router hardware platforms intended for use on China Telecom’s STN network – China Telecom’s metropolitan area network, which is crucial for supporting its 5G mobile network services, as well as enterprise, broadband, cloud, and other services. Maintenance and support services orders. In 1H 2025, UTStarcom received multiple maintenance and warranty support orders from our customers. The ordered services are related to the deployed UT’s solutions such as PTN, NMS, SyncRing, and IMS. Expansion orders. In 1H 2025, UTStarcom continued receiving expansion orders, including the NetRing PTN network expansion for the mobile transport network of a Mobile Operator in Europe, and the features expansion order for the IMS Broadband Core solution deployed by one of our key Indian customers. UTStarcom’s Chief Executive Officer, Mr. Hua Li, commented, “We have been working hard to develop and market our products to new clients, while continuing to support our existing customers. We are pleased with the progress we have made so far, and we will continue to explore additional opportunities for growth.” First Half 2025 Financial Results Summary of 1H 2025 Key Financials * Dollar comparisons are used where percentage comparisons are not meaningful. * All amounts are in U.S. Dollars millions except for Earnings Per Share (EPS) Total Revenues Total revenues for the first half of 2025 were $4.6 million, compared to $5.7 million in the corresponding period in 2024. Net equipment sales were $0.5 million, a decrease of 31.6% from $0.8 million in the corresponding period in 2024, driven by lower sales to major customers in India. Net services sales were $4.1 million, a decrease of 16.9% from $4.9 million in the corresponding period in 2024. The decrease was mainly due to the completion of current projects and no new major projects in India. Gross Profit Gross profit was $0.8 million, or 16.2% of net sales, for the first half of 2025, compared to $1.7 million, or 30.0% of net sales, in the corresponding period in 2024. Gross loss on equipment sales was $0.2 million, compared to gross profit of $0.1 million in the corresponding period in 2024. Equipment gross margin for the first half of 2025 was negative 30.4%, compared to 10.6% for the corresponding period in 2024. The decrease in gross margin was due to a lower equipment revenue and higher inventory reserves. Service gross margin was $1.0 million, compared to $1.6 million in the corresponding period in 2024. Service gross margin was 22.4%, compared to 33.1% for the corresponding period in 2024, due to decreased activity with the major customer in India. Operating Expenses Operating expenses for the first half of 2025 were $4.9 million, compared to $5.3 million in the corresponding period in 2024. Selling, general and administrative (“SG&A”) expenses for the first half of 2025 were $2.6 million, compared to $2.7 million in the corresponding period in 2024. The decrease was mainly due to continued tight cost controls. Research and development (“R&D”) expenses were $2.3 million, compared to $2.6 million in the corresponding period in 2024. The decrease was mainly attributable to the completion of current projects and continued tight cost controls. Operating Loss Operating loss for the first half of 2025 was $4.2 million, compared to $3.6 million in the corresponding period in 2024. Interest Income, Net Net interest income for the first half of 2025 was $1.2 million, compared to $1.3 million in the corresponding period in 2024. Other Income (Expenses), Net Net other expense for the first half of 2025 was $0.2 million, compared to net other income of $0.8 million for the corresponding period in 2024. Other expense mainly reflects a foreign exchange loss resulting from the depreciation of the U.S. dollar against the Renminbi, and a loss in fair value changes. Net Loss Net loss attributable to shareholders for the first half of 2025 was $3.7 million, compared to $2.0 million in the corresponding period in 2024. Basic net loss per share for the first half of 2025 was $0.41, compared to $0.22 for the corresponding period in 2024. Cash Flow Cash used in operating activities in the first half of 2025 was $4.5 million, cash used in investing activities was $0.05 million, and cash provided by financing activities was nil. As of June 30, 2025, UTStarcom had cash, cash equivalents and restricted cash of $49.2 million. About UTStarcom Holdings Corp. UTStarcom is committed to helping network operators offer their customers the most innovative, reliable and cost-effective communication services. UTStarcom offers high performance advanced equipment optimized for the most rapidly growing network functions, such as mobile backhaul, metro aggregation and broadband access. UTStarcom has operations and customers around the world, with a special focus on Japan, India and China. UTStarcom was founded in 1991 and listed its shares on the Nasdaq Market in 2000 (symbol: UTSI). For more information about UTStarcom, please visit http://www.utstar.com. Forward-Looking Statements This press release includes forward-looking statements, including statements regarding the Company’s strategic initiatives and the Company’s business outlook. 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. For investor and media inquiries, please contact: UTStarcom Holdings Corp. Tel: +86 (571) 8192 8888 Ms. Shelley Jiang, Investor Relations Email: [email protected]/ [email protected] /

HANGZHOU, China, March 24, 2025 (GLOBE NEWSWIRE) -- UTStarcom (the Company) (NASDAQ: UTSI), a global telecommunications infrastructure provider, today reported its unaudited financial results for the six months and full year ended December 31, 2024, and provided a business update. Business Update China Telecom Research Institute RFP win. The second half of 2024 marked a major milestone for UTStarcom's 5G transport network portfolio. The Company’s commitment to the development of a next generation disaggregated 5G transport network solution and our cooperation with some of the major mobile operators in China, culminated in a significant win of a multi-million dollar China Telecom Research Institute RFP for manufacturing 5G transport network routers. The equipment is intended for use on China Telecom’s STN network – China Telecom’s metropolitan area network, which is crucial for supporting its 5G mobile network services, as well as enterprise, broadband, cloud and other services. The RFP covers the manufacturing of a substantial quantity of carrier-grade disaggregated routers hardware. The related frame agreements were signed in early 2025. Specific product quantities will be defined in purchase orders expected throughout 2025. Cooperation with a Mobile Network Operator customer in Europe. UTStarcom completed the development of a customized version of the NG-PTN product, NetRing TN704ES, specifically tailored to better support the customer's future network expansion plans. Samples of the product have been provided to the customer for testing. We anticipate receiving orders for this product in 2025. Post-sale support services to customers globally. The Company continued to provide support to its customers around the world in accordance with existing support and maintenance contracts for products such as NetRing PTN, SyncRing, IMS, SSTP, etc. Furthermore, in 2H 2024, the Company also received renewal orders for post-sale support pertaining to NG-PTN and MSAN products. UTStarcom’s Chief Executive Officer Mr. Hua Li commented, “We have made important progresses by winning RFP from one of the major telecom operators in China; and we are also enhancing our co-operations with other business partners to expand the deployment of our products. We expect these progresses will bring improvements to our business.” Second Half and Full Year 2024 Financial Results (Unaudited) Summary of 2H 2024 Key Financials (Unaudited) Summary of Full Year 2024 Key Financials (Unaudited) * Dollar comparisons are used where percentage comparisons are not meaningful. * All amounts are in U.S. Dollars millions except for Earnings Per Share (EPS) Total Revenues Six months ended December 31, 2024 Total revenues for the second half of 2024 were $5.2 million, compared to $9.2 million in the corresponding period in 2023. Net equipment sales for the second half of 2024 were $0.6 million, a decrease of 82.9% from $3.6 million in the corresponding period in 2023. The decrease was mainly due to decreased revenue from customers in India. Net services sales for the second half of 2024 were $4.6 million, a decrease of 19.4% from $5.6 million in the corresponding period in 2023. The decrease was mainly due to the completion of current projects and no new major projects in India. Twelve months ended December 31, 2024 2024 total revenues were $10.9 million, a decrease of 31.0% from $15.8 million in 2023. 2024 net equipment sales were $1.4 million, a decrease of 69.4% from $4.6 million in the corresponding period in 2023. The decrease was mainly due to decreased revenue from customers in India. 2024 net services sales were $9.5 million, a decrease of 15.1% from $11.2 million in 2023. The decrease was mainly due to the completion of current projects and no new major projects in India. Gross Profit Six months ended December 31, 2024 Gross profit was $1.2 million, or 23.1% of net sales, for the second half of 2024, compared to $2.6 million, or 27.8% of net sales, in the corresponding period in 2023. Equipment gross profit for the second half of 2024 was $0.1 million, compared to $0.8 million in the corresponding period in 2023. Equipment gross margin for the second half of 2024 was 16.2%, compared to 21.0% for the corresponding period in 2023. The decrease in gross margin was attributed to a lower equipment revenue in 2024. Service gross profit for the second half of 2024 was $1.1 million, compared to $1.8 million in the corresponding period in 2023. Service gross margin for the second half of 2024 was 24.0%, compared to 32.2% for the corresponding period in 2023, due to decreased activity with the major customers in India and China. Twelve months ended December 31, 2024 2024 gross profit was $2.9 million, or 26.7% of net sales, compared to $4.4 million, or 27.9% of net sales, in 2023. 2024 equipment gross profit was $0.2 million, compared to $0.9 million in 2023. 2024 equipment gross margin was 13.0%, compared to 20.2% in 2023. The decrease in gross margin was attributed to a lower equipment revenue in 2024. 2024 service gross profit was $2.7 million, compared to $3.5 million in 2023. 2024 service gross margin was 28.7%, compared to 31.0% in 2023, due to decreased activity with the major customers in India and China. Operating Expenses Six months ended December 31, 2024 Operating expenses for the second half of 2024 were $4.9 million, compared to $5.4 million in the corresponding period in 2023. Selling, general and administrative (“SG&A”) expenses for the second half of 2024 were $2.4 million, compared to $2.4 million in the corresponding period in 2023. Research and development (“R&D”) expenses for the second half of 2024 were $2.5 million, compared to $3.0 million in the corresponding period in 2023. The decrease reflected the different stages of 5G product development. Twelve months ended December 31, 2024 2024 operating expenses were $10.2 million, compared to $11.2 million in 2023. 2024 SG&A expenses were $5.1 million, compared to $5.3 million in 2023. The decrease was mainly attributable to decreased personnel cost as a result of the reduction of personnel. 2024 R&D expenses were $5.1 million, compared to $5.9 million in 2023. The decrease reflected the different stages of 5G product development. Operating Loss Operating loss for the second half of 2024 was $3.7 million, compared to $2.8 million in the corresponding period in 2023. Full year 2024 operating loss was $7.3 million, compared to $6.8 million in 2023. Interest Income, Net Net interest income for the second half of 2024 was $1.5 million, compared to $1.3 million in the corresponding period in 2023. Full year 2024 net interest income was $2.8 million, compared to $2.2 million in 2023. The increase was mainly due to higher interest income in China. Other Income (Expenses), Net Net other income for the second half of 2024 was $0.1 million, compared to net other income of $0.1 million in the corresponding period in 2023. Full year 2024 net other income was $0.9 million, compared to net other income of $2.0 million in 2023. Other income for 2024 was mainly a foreign exchange gain resulting from appreciation of the U.S. dollar against the Renminbi. Net Loss Net loss attributable to shareholders for the second half of 2024 was $2.4 million, compared to $1.8 million in the corresponding period in 2023. Basic net loss per share for the second half of 2024 was $0.26, compared to $0.20 for the corresponding period in 2023. Full year 2024 net loss attributable to shareholders was $4.4 million, compared to $3.9 million in 2023. 2024 basic net loss per share was $0.48, compared to $0.42 in 2023. Cash Flow Cash used in operating activities in the second half of 2024 was $2.0 million, cash used in investing activities was $0.1 million, and cash provided by financing activities was nil. As of December 31, 2024, UTStarcom had cash, cash equivalents and restricted cash of $53.1 million. About UTStarcom Holdings Corp. UTStarcom is committed to helping network operators offer their customers the most innovative, reliable and cost-effective communication services. UTStarcom offers high performance advanced equipment optimized for the most rapidly growing network functions, such as mobile backhaul, metro aggregation and broadband access. UTStarcom has operations and customers around the world, with a special focus on Japan, India and China. UTStarcom was founded in 1991 and listed its shares on the Nasdaq Market in 2000 (symbol: UTSI). For more information about UTStarcom, please visit http://www.utstar.com. Forward-Looking Statements This press release includes forward-looking statements, including statements regarding the Company’s strategic initiatives and the Company’s business outlook. 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, the effect of the COVID-19 pandemic on the Company’s business, 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. For investor and media inquiries, please contact: UTStarcom Holdings Corp. Tel: +86 571 8192 8888 Ms. Shelley Jiang, Investor Relations Email: [email protected]/ [email protected] /