UTStarcom announced preliminary results for its fiscal first quarter ended March 31, 2008 which exceed its previously announced guidance. The company now expects Q1revenues to be in the range of $580 million to $590 million, compared with the initial guidance of $500 million to $520 million.
UTStarcom attributed the stronger than expected results to its Personal Communications Division as well as to its core business units. Revenue in the first quarter of 2007 was $475.9 million. Gross margins are now expected to be in the range of 15% to 16% compared to the initial guidance of approximately 13%. The first quarter operating expenses are now expected to be in the range of $120 million to $125 million, compared to the initial guidance of $115 million to $120 million. The higher than expected operating expenses are in part due to unanticipated professional services expenses. Operating expenses in the first quarter of 2007 were $127.5 million.
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