UTSI — what changed in the latest 10-Q

Text added vs the prior filing · source: 10-Q · 2011-05-09

• In October 2010, we announced several critical shifts in our business strategy, including an increased focus on the Chinese and Asian markets, the pursuit of telecom and cable network customers in parallel and using our expertise in building and operating technology and service platforms for IPTV an…

• We are developing an Internet TV service offering, iTV.cn, through which we expect to eventually distribute content to audiences on a global basis. The convergence of networks, including fixed, mobile, cable and Internet, and the convergence of Internet-enabled devices through technological evolutio…

• · Net sales decreased by $19.5 million to $61.3 million during the first quarter of 2011 compared to the same period in 2010. The decrease was primarily driven by the wind-down of our handset business which resulted in a decrease of $3.9 million in revenue, as well as the decrease in sales of all ot…

• · Gross profit was $19.1 million, or 31% of net sales, in the first quarter of 2011, compared to $27.2 million, or 34% of net sales, in the corresponding period of 2010. The overall gross profit decrease both in absolute dollars and percentage of net sales was primarily due to decreased sales in equ…

• · Selling, general and administrative and research and development operating expenses decreased by $13.4 million during the three months ended March 31, 2011 compared to the same period of 2010. The decrease was primarily a result of cost reduction initiatives.

Text removed vs the prior filing · source: 10-Q · 2010-11-08

• In October 2010, we announced several critical shifts in our business strategy, including an increased focus on the Chinese and Asian markets, the pursuit of telecom and cable network customers in parallel and using our expertise in building and operating technology and service platforms for IPTV an…

• · On February 1, 2010, we entered into agreements for a strategic relationship with Beijing E-town International Investment and Development Co., Ltd (“BEIID”) which included a proposed investment in the Company’s common stock by BEIID, and two unrelated investment funds, Elite Noble Limited and Shah…

• · In the third quarter of 2010, we continued to execute on our strategy to focus on our IP-based product and services offerings by divesting our China PDSN Assets and transferring our EMEA operations. We also received $0.7 million of contingent consideration related to our second quarter 2010 divest…

• · Net sales decreased by $9.1 million to $61.4 million during the three months ended September 30, 2010 compared to the same period in 2009. The decrease was primarily due to the wind-down of our handset business which resulted in a decrease of $14.8 million in revenue. This decrease was partially o…

• · Gross profit was $12.1 million, or 20% of net sales in the third quarter of 2010 compared to $24.2 million, or 34% of net sales in the corresponding period of 2009. The gross margin from Broadband segment was reduced $9.6 million primarily due to an $8.5 million inventory reserve for MSAN and MSTP…

Text added vs the prior filing · source: 10-Q · 2011-05-09

• believes that the consolidated financial statements included in this Form 10-Q fairly present in all material respects the Company’s financial condition, results of operations and cash flows for the periods presented and that this Form 10-Q does not contain any untrue statement of a material fact or…

• As discussed in the Item 9A in the 2010 Annual Report, the Company’s management has been engaged in, and continues to engage in making necessary changes and improvements to the overall design of its control environment to address the material weaknesses in internal control over financial reporting a…

• In particular, the Company has implemented the specific remediation initiatives described below in the year 2010 and during the first quarter of 2011.

• 1. To remediate the material weakness described above over “period-end financial reporting process” that was disclosed in connection with our reporting for fiscal 2009 and prior years, the Company has designed and implemented an adequate global financial close process and hired key individuals in th…

• 2. To remediate the material weakness described above over “Treasury Process” the Company has designed and implemented controls to separate closely related functions in the cash management function and reduce the risk of misappropriation of assets. The Company also reviewed and revised approval requ…

Text removed vs the prior filing · source: 10-Q · 2010-11-08

• Management’s Planned Remediation Initiatives and Interim Measures

• The Company plans to make necessary changes and improvements to the overall design of its control environment to address the material weaknesses in internal control over financial reporting noted above. In particular, the Company implemented during 2009 and the first three quarters of 2010, and plan…

• 1. To remediate the material weakness described in Item 9A in the 2009 Annual Report over “The recording of reserves for losses on customer contracts,” the Company transitioned the responsibility for calculating the loss contract reserves to its local project office in India in the third and fourth …

• 2. To remediate the material weakness described in Item 9A in the 2009 Annual Report over “Period-end financial reporting process” the Company added technical resources to the finance team in China in the third and fourth quarters of 2009 as well as in the first three quarters of 2010. In the remain…

• 3. To remediate the material weakness described in Item 9A in the 2009 Annual Report over “internal control over financial reporting related to revenue recognition,” the Company will continue to enhance its contracts review process in order to ensure that appropriate members of management have revie…