UT new Bets

UT Starkon (NASDAQ: UTSI), which has repeatedly been selling news, chose to "return" in another way.　　On the evening of February 1, UT Kangda unveiled a new strategic plan involving the introduction of strategic investors, changes in management and relocation of its headquarters, in an attempt to get itself out of the doldrums.　　UT was founded in 1995, although its headquarters in the United States, California, but the market focus in China, due to seize the opportunities of China PHS development, was once a "heavy", and in 2000 landed Nasdaq, the world's few Chinese-led communications listed companies. However, Chengye, Xiao, with the weakness of the PHS market, operators began to reduce the investment in PHS, making UT Kangda lost its main business pillar.　　In the past year, UT has been mired in a recession and has been more of a bribery scandal after founder Lu Hongliang left. It is noteworthy that according to the latest adjustment plan of UT, the government-owned "Beijing also Zhuang International development Investment Limited" and "the State Administration of Radio, film and Television, the former deputy chief engineer Du Baixuan" respectively as new shareholders and new directors stationed.　　Industry insiders believe that this means that in the "triple-Net convergence" accelerated the background of the rapid advance, has been gambling on the small well-informed UT, and now the stakes in the IPTV and its hidden behind the three network convergence huge market.　　Take refuge in Beijing according to UT's company, the company's recent strategic reorganization involves three issues: the introduction of strategic investors, the restructuring of the Board and Management and the relocation of corporate headquarters. Beijing also Zhuang International Development Investment Co., Ltd., which is led by the Beijing municipal government, will inject $25 million into the UT Kangda. The other two investment agencies Ram Max Group 2¥Q Co., Ltd. and Shah Capital Management, respectively, invested 12.5 million U.S. dollars and 11 million dollars to UT. UT will issue about 22 million common shares at a price of $2.2 a share in return for the 48.5 million dollar total investment.　　Yellowstone Capital (Yellowstone) will be responsible for providing advisory services to tripartite investors.　　The reporter learned that once the transaction was completed, the former deputy chief engineer of the State Administration of Radio, film and television, Du Baixuan, deputy general manager of Beijing also Zhuang International Development Investment Co., Lee and the managing director of Huangshi Capital, Huangshao will enter UT's board of directors.　　UT, in a written interview to reporters, said: "Through this form of cooperation, three investors have seen the opportunity to gain." In addition, UT's senior management will change. Loux, who will be the CEO and CEO of the company, three months after the transaction is completed (or June 30, 2010), is the Co chief operating officer and general manager of the Photonics China region. After adding sourcePrior to photonics, he worked as a CEO, chief operating officer and vice president of marketing and sales at Fiberxon.　　Peter Blackmore, the current company's chief executive, will retire formally after Loux's arrival. As one of the conditions of international investment UT KANGDA, UT Kangda will relocate the company headquarters to Beijing. UT Kangda can apply for tax concessions, financial support and other support to Beijing development zone.　　UT, however, says it retains all its business in Hangzhou and Shenzhen. UT Starkon said the deal would need to be approved by China's regulatory authorities and approved by the US Overseas Investment Commission (CFIUS).　　The company expects the investment to be completed by March 31, 2010. "Triple net Convergence" new betting data show that UT's sales from 2.5 billion U.S. dollars in 2007 plunged to 1.6 billion U.S. dollars in 2008, the downward trend is obvious. Earlier, UT has carried out a series of cost-cutting efforts to save the company's continued decline in performance, including the global job cuts of 2300 people, layoffs more than 50%; streamline the product line and turn off the stripping of lower-margin product lines.　　In addition, the company sold its China headquarters in Hangzhou at the end of 2009 at a price of 950 million yuan (about 140 million US dollars) to the south-central group. On the other hand, UT Kangda also decided to outsource the original manufacturing business. According to the information provided by UT company, the future UT Kangda will outsource the manufacturing business of--ut Communications Limited, a wholly-owned subsidiary, to the new US-Asia electronic Manufacturing service company.　　These products are currently manufactured by its factory in Hangzhou. "Under these plans, the company's resources are expected to focus on areas that are likely to boost revenue growth and that the company has a strong competitive edge," he said.　　"The plans will keep their annual operating expenses below $100 million trillion, down more than 50% per cent from current levels," said UT's internal sources.　　Can you copy the myth of PHS? UT Starkon said that the investment plan's strategy is to focus on China's IPTV industry, "using a specific service model" to gain market share.　　Industry people interviewed generally believe that the future UT will focus on the strategic focus on the IPTV field, but the problem is that UT can borrow three network integration opportunities, the success of the IPTV business replication of its previous PHS myth. "UT's success is in catching up with PHS, the emerging market. After the gradual decline of PHS, it has been in transition.　　"Wang Liusheng Consulting Telecom industry analyst said," triple-Net fusion "has a clear signal of propulsion, I believe that UT Starkon that IPTV, mobile internet, etc. will become a new opportunity. In fact, as early as the "Ying Era", UT Tatsu Kang has been IPTV, PHS and mobile phones as the focus of business. In addition to PHS, UT Kangda also provides operators with aBased on CDMA, TD-SCDMA standard mobile phones, but also to the market launched self-developed GSM mobile phone. However, due to the fierce competition in the mobile phone market, UT Kangda has not been a significant breakthrough in this area.　　UT has stripped off the Low-margin handset terminal business, but in the IPTV set-top box market, with ZTE, Huawei and Shanghai Bell Several communications equipment manufacturers in the same race.　　UT in a written reply to reporters, said IPTV into the field of radio and television has a huge market opportunity, UT in the new market has successfully won six contracts. "Compared with the other operators, UT Tatsu Kang's biggest advantage lies in the background and network of radio and television, it knows more about radio and television." Wang Liusheng said, but the challenge is also obvious, triple network integration for simple device manufacturers is a challenge, the biggest problem is how to more effectively provide based on "integration" products and services.