Change In Board of Directors Lifts UTStarcom Holdings Shares

11:18 11/27/2017

Today’s spike in shares of UTStarcom Holdings Corp. UTSI  sent the stock rallying to new 52 week highs and intraday highs of $4.93. A glance at the weekly chart is a bullish investor’s dream that screams profits, profits and more profits. 13 weeks of an uptrend is not a common phenomenon in the markets today despite the Dow consistently breaking records. Today’s close up 29 percent and 5 percent higher after hours can be attributed to the announcement of a change to its board of directors and the remarkable chart that is a magnet to momentum traders and investors alike.

The Hong Kong based company, announced that Mr. Xiaoping Li resigned from his position as a member of the Board of Directors of UTStarcom. His resignation also vacates positions on the Audit Committee, the Compensation Committee, and Chairman of the Nominating and Corporate Governance Committee. His resignation is effective as of November 21, 2017.

The telecom infrastructure company also posted positive unaudited third quarter financials about a week ago where its CEO Tim Ti stated they were encouraged by their solid third quarter results and the momentum they have been building throughout 2017. And significant strategic investments in their business over the past 24 months as they strive to build a state-of-the-art technology company in their targeted business segments.

UTStarcom Holdings total revenues for the third quarter of 2017 were $26.0 million, an increase of 58.9 % from $16.4 million for the corresponding period of 2016. Gross profit was $10.6 million, or 40.5% of net sales, for the third quarter of 2017, compared to $4.0 million, or 24.3% of net sales, for the corresponding period in 2016.

The company’s operating expenses for the third quarter of 2017 were $7.5 million, compared to $5.4 million for the corresponding period in 2016, with income for the third quarter of 2017 being $3.1 million, compared to operating loss of $1.4 million for the corresponding period of 2016.

This article has been provided by a Chasing Markets contributor. All content submitted by this author represent their personal opinions, and should be considered as such for entertainment purpose only. All opinions expressed are those of the writer, and may not necessarily represent fact, opinions, or bias of Chasing Markets.
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