UTStarcom wins $multi-million China Telecom Research Institute RFP.

• UTStarcom reports 1H 2025 financial results • Won multi-million dollar RFP from China Telecom Research Institute • Selected for disaggregated router hardware production • Order for maintenance and support services • Focus on digital data and telecommunications infrastructure provider • Key client is China Telecom Co., Ltd.

UTStarcom (NASDAQ: UTSI), a global telecommunications infrastructure provider, has reported its unaudited financial results for the first half of 2025. The company posted revenue of $4.6 million, down 19.3% year-over-year, with a net loss of $3.7 million ($0.41 per share) [1].

Despite the financial headwinds, UTStarcom secured notable business wins, including a major RFP from China Telecom Research Institute for manufacturing disaggregated router hardware platforms [2]. The company also received multiple maintenance and support service orders for PTN, NMS, SyncRing, and IMS solutions, along with expansion orders from European and Indian customers.

Financial metrics showed broad deterioration with gross profit declining 52.9% to $0.8 million, while operating loss widened to $4.2 million. The company maintained a solid cash position of $49.2 million as of June 30, 2025.

UTStarcom's H1 2025 results reveal concerning financial deterioration despite securing new contracts. Revenue declined by 19.3% to $4.6 million, with both equipment sales (-31.6%) and services revenue (-16.9%) showing significant contraction. Most troubling is the negative equipment gross margin of -30.4%, a stark reversal from the positive 10.6% margin in H1 2024 [1].

The company's net loss widened substantially to $3.7 million (vs. $2.0 million in H1 2024), resulting in EPS declining to -$0.41 from -$0.22. While management has maintained tight cost control with operating expenses down 7.5%, this hasn't offset the revenue decline. The cash burn rate remains problematic, with $4.5 million used in operations during H1 2025, contributing to the 12.1% decrease in cash reserves to $49.2 million [1].

The China Telecom Research Institute RFP win for disaggregated router hardware manufacturing represents a potential bright spot, though no revenue figures were disclosed. This contract could help diversify revenue away from the declining Indian market, where both equipment and service sales have fallen significantly. However, given the company's execution challenges and deteriorating margins, it remains uncertain whether this new contract can meaningfully reverse UTStarcom's negative financial trajectory. The remaining cash cushion of $49.2 million provides some runway, but with accelerating losses, management needs to quickly translate contract wins into profitable revenue [1].

References:
[1] https://www.stocktitan.net/news/UTSI/ut-starcom-reports-unaudited-financial-results-for-first-half-of-9zdxyw5xjx6h.html
[2] https://www.globenewswire.com/news-release/2025/08/29/3141397/31115/en/UTStarcom-Reports-Unaudited-Financial-Results-for-First-Half-of-2025.html