UTStarcom Inc. reported unaudited consolidated financial results for the third quarter and nine months ended September 30, 2009. Net sales for the third quarter of 2009 were $70.5 million as compared to $180.6 million in the third quarter of 2008. The decline in sales primarily reflects the China market's continued wind down of the PAS infrastructure and handset businesses. The net loss attributable to the company for the third quarter of 2009 was $34.6 million, or $0.27 per diluted share, and includes $8.9 million in charges primarily related to the restructuring actions announced in June. The third quarter of 2008 net loss attributable to the company was $55.9 million, or $0.45 per diluted share. The third quarter 2009 pro forma non-GAAP revenue was $63 million. This compares to non-GAAP revenue of $146 million in the third quarter of 2008. The decrease in pro forma non-GAAP revenues primarily reflects the expected ongoing decline in its PAS businesses. The third quarter 2009 pro forma non-GAAP operating loss was $35 million compared to $31 million a year ago. Operating loss was $33.8 million and loss before income taxes was $34.9 million against operating loss of $34.8 million and loss before income taxes of $48.2 million for the same period a year ago. For the nine months, the company reported operating loss of $178.1 million, loss before income taxes of $180.2 million and net loss attributable to the company of $186.3 million or $1.47 per diluted share on net sales of $270.0 million against operating loss of $96.9 million, loss before income taxes was $62.5 million and net loss attributable to the company of $69.4 million or $0.56 per diluted share on net sales of $1,399.3 million for the same period a year ago. Net cash used in operating activities was $89.2 million $31.9 million for the same period a year ago. Additions to property, plant and equipment was $1.6 million $12.7 million for the same period a year ago.

UTStarcom, Inc. expects annualized revenues to be greater than $350 million in 2010. These 2010 revenues will be driven by bookings in 2009 and early 2010.

UTStarcom, Inc. announced a new customer deployment with the Bureau of Radio and Television of Santai County, Sichuan Province, a subsidiary of Beijing-based government agency SARFT, to resume their radio and television network capability following last year's traumatic earthquake. The Bureau of Radio and Television of Santai County, Sichuan province is the project contractor. UTStarcom will help resume radio and television networks in earthquake-stricken areas in Sichuan province via its end-to-end RollingStream� IPTV platform. Phase one of the deployment will cover 20,000 users, providing them with access to delivery channels, such as television and radio for critical information. Upon completion, users will have access to ongoing rich and colorful TV programs, as well as a broad platform for communication. The IPTV RollingStream� platform will improve the technology and operation levels of Sichuan's radio and television sector by transitioning from a simple, one-way network to a dual high-speed network. According to the contract, the deployment is scheduled to start in November 2009. The project will be carried out in every earthquake-hit area in the Sichuan province, though the applied technologies will vary. Some areas will apply the traditional one-way digital TV model, while others will use interactive streaming media technology. Specifically, UTStarcom's integrated solution will include five sets of Resilient Packet Ring (RPR) TN715 in an urban trunk network to constitute a 10G RPR, satisfying all data services of users. Additionally, five sets of BBS4,000 Ethernet passive optical networks (EPON) and local area networks (LAN) will be deployed at the end user side with 1,200 sets of optical network units (ONU) at the first phase.