Following an extensive review of its strategic alternatives, the board of directors of UTStarcom concluded that the company’s best course of action is to move forward with the company as it exists today.
“Our stated goal when we commenced the strategic alternatives process in October 2006 was to explore potential options to maximize the company’s value for UTStarcom’s shareholders. In exploring those alternatives, we concluded that the optimal means of enhancing shareholder value is to focus our efforts on returning the company to profitability by building on the opportunities we have developed in key markets around the world,” said Thomas Toy, chairman of UTStarcom’s board of directors.
In addition, the company today announced the departure of Ying Wu, executive vice president and chief executive officer of UTStarcom China. UTStarcom’s Chief Executive Officer Hong Lu will serve as head of the company’s China operations on an interim basis and will continue in his current role as chief executive officer and president of UTStarcom, Inc.
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- UTStarcom announced that it is exploring a variety of strategic alternatives to enhance stockholder value and had engaged Merrill Lynch as an advisor. In conjunction with this initiative, the Board has asked Ying Wu, CEO of UTStarcom China to oversee this effort, under the direction of the special committee. Given this priority, Wu will not assume the title of Global CEO on January 1, 2007, as was previously announced.
