Monthly Archives: May 2013

UTStarcom Announces aioTV Receives Recognition as a Leader in Digital Media Business

BEIJING, May 29, 2013 /PRNewswire/ — UTStarcom Holdings Corp. (“UTStarcom” or the “Company”) (NASDAQ: UTSI), a leading provider of media operational support services and broadband equipment products and services, today announced that its partner, aioTV Inc. (pronounced “A-O TV”), a leading international OTT and IP video platform, was selected as one of four vendors essential for all digital media businesses in the 2013 Cool Vendors Report published by Gartner, the world’s leading information technology research and advisory company.

The Gartner 2013 Cool Vendors in Media Report identifies key solutions providers that Gartner predicts are essential to the success and monetization of a digital media business. Gartner specifically recognized aioTV as a solution that quickly enables service providers, broadcasters and cable networks to deliver both live and on demand video content through a portal that consumers can customize and access on various connected devices.

“We are very pleased to receive this prestigious recognition from Gartner,” said Mr. Mike Earle, CEO of aioTV. “Most importantly, this underscores how the market for media consumption is changing and also validates our customers’ decision to select aioTV’s products and solutions. aioTV has created a platform that combines conditional access and content management tools for operators to aggregate multiple sources of content into a consistent TV-like experience across connected devices. Going forward, we expect to work with UTStarcom, our largest shareholder, to accelerate our ability to deploy our recognized technology in emerging markets in Asia.”

UTStarcom acquired a 44% stake in aioTV in November 2012 as part of its strategy to expand into media operational support services and is the single largest shareholder of aioTV. This investment gives UTStarcom access to technology that will bolster its rollout of subscription-based value added media services.

“This is an important milestone in aioTV’s growth,” said Mr. William Wong, UTStarcom’s Chief Executive Officer. “This critical recognition also demonstrates our ability to find the right partner in the industry with technology to deliver the value-added media services that consumers increasingly demand. We view aioTV as a key strategic partner and expect that it will help UTStarcom realize our vision of becoming a leader in providing next generation media services. In the long-term, UTStarcom will also look for opportunities to jointly develop new service offerings with aioTV, and as aioTV’s single largest shareholder we will continue to aggressively support aioTV by working closely with its management team to find opportunities to continue to grow.”

About the Gartner Report

To access the full report*, contact the Gartner reprints team at reprints@gartner.com.

*Gartner “Cool Vendors in Media, 2013” by Allen Weiner, Mike McGuire, Andrew Frank, 30 April 2013.

Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings. Gartner research publications consist of the opinions of Gartner’s research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

About UTStarcom Holdings Corp.

UTStarcom is focused on providing next generation media operational support services in the rapidly growing markets for TV over IP services and broadband equipment products and services. UTStarcom is committed to meeting the evolving needs of cable and broadband service providers to enable a more personalized entertainment experience. The Company sells its media operational support services and broadband equipment products and services to operators in both emerging and established broadband and cable markets around the world.

UTStarcom was founded in 1991 and listed on the NASDAQ in 2000. It has operational headquarters in Beijing, China and research and development operations in China and India. In year 2011, the Company deployed a revamped growth strategy that concentrates on providing media operation support services. For more information about UTStarcom, visit the Company’s Web site at www.utstar.com.

About aioTV Inc.

aioTV is a white label video platform for licensed and unlicensed content targeted at service providers worldwide to allow them to integrate multiple sources of live, on-demand and freely available video content into a unified TV experience across connected devices. The company’s flagship products and cloud based management platform leverages existing infrastructure, billing platforms and DRM for a quick, seamless implementation.

Read this news on PR Newswire Asia website: UTStarcom Announces aioTV Receives Recognition as a Leader in Digital Media Business

Advertisements

Xilinx and TSMC Team to Enable Fastest Time-to-Market and Highest Performance FPGAs on TSMC’s 16-nanometer FinFET

Xilinx FinFast program to deliver test chips in 2013 and first product in 2014

SAN JOSE, Calif. and HSINCHU, May 29, 2013 /PRNewswire/ — Xilinx Inc. (NASDAQ: XLNX) and TSMC (TWSE: 2330, NYSE: TSM) announced that they are teaming together to create the fastest time-to-market and highest performance FPGAs to be built on TSMC’s 16-nanometer FinFET (16FinFET) process, a program Xilinx calls ‘FinFast.’ The two companies are providing dedicated resources as part of a ‘one-team’ approach, and will work together to co-optimize the FinFET process with Xilinx’s UltraScale™ architecture.  The program will deliver 16FinFET test chips later in 2013 and its first product in 2014.

The companies are also engaged in leveraging TSMC’s CoWoS 3D IC manufacturing flow for the highest levels of 3D IC systems integration and system-level performance. Products from this collaboration will be announced at a later date.

“I am extremely confident that our ‘FinFast’ collaboration with TSMC on 16nm will bring the same leadership results that we enjoyed at previous advanced technologies,” said Moshe Gavrielov, President and CEO of Xilinx. “We are committed to TSMC as the clear foundry leader in every dimension, from process technology to design enablement, service, support, quality, and delivery.”

“We are committed to working with Xilinx to bring the industry’s highest performance and highest integration programmable devices quickly to market,” said Morris Chang, TSMC Chairman and  CEO.  “Together we will deliver world-class products on TSMC’s 20SoC technology in 2013 and on 16FinFET technology in 2014.”

TSMC recently announced that it is accelerating the production schedule of its 16FinFET process to 2013. The Xilinx/TSMC collaboration will take full advantage of this accelerated schedule and the aggressive performance and power savings of TSMC’s 16FinFET technology.

Xilinx has worked with TSMC to infuse high-end FPGA requirements into the FinFET development process, just as it did in the development of 28HPL and 20SoC processes. To gain optimal results, further co-optimizations will be done across TSMC’s process technology and Xilinx’s UltraScale architecture and next-generation tools. UltraScale is Xilinx’s new ASIC-class architecture, developed to scale from 20-nanometer planar, through 16-nanometer and beyond FinFET technologies, and from monolithic through 3D ICs.

About Xilinx

Xilinx is the world’s leading provider of All Programmable FPGAs, SoCs and 3D ICs. These industry-leading devices are coupled with a next-generation design environment and IP to serve a broad range of customer needs, from programmable logic to programmable systems integration. For more information, visit www.xilinx.com.

About TSMC

TSMC is the world’s largest dedicated semiconductor foundry, providing the industry’s leading process technology and the foundry segment’s largest portfolio of process-proven libraries, IPs, design tools and reference flows. The Company’s owned capacity in 2013 is expected to be about 16.5 million (8-inch equivalent) wafers, including capacity from three advanced 12-inch GIGAFAB™ facilities, four eight-inch fabs, one six-inch fab, as well as TSMC’s wholly owned subsidiaries, WaferTech and TSMC China.. TSMC is the first foundry to provide 28nm production capabilities. TSMC’s corporate headquarters are in Hsinchu, Taiwan. For more information about TSMC please visit http://www.tsmc.com.

Xilinx, the Xilinx logo, Artix, ISE, Kintex, Spartan, Virtex, Vivado, Zynq, and other designated brands included herein are trademarks of Xilinx in the United States and other countries. All other trademarks are the property of their respective owners.

Read this news on PR Newswire Asia website: Xilinx and TSMC Team to Enable Fastest Time-to-Market and Highest Performance FPGAs on TSMC’s 16-nanometer FinFET

Bell Canada Technology Leader Joins WiMacTel

CALGARY, Alberta, May 28, 2013 /PRNewswire/ — Damani Best, a Bell Canada technology leader, is joining WiMacTel as their Director of Business Development.

WiMacTel, a leading independent telecommunications provider, announced that Bell Canada technology leader Damani Best is joining them as their Director of Business Development.

WiMacTel, a provider of operator services, directory assistance, long distance, calling cards, wireless/VoIP services, inmate telephone systems, and payphones across the USA and Canada, announced that Bell Canada technology leader Damani Best is joining them as their Director of Business Development.

Mr. Best is joining WiMacTel at a pivotal point of their business evolution. The company has experienced staggering growth over the last two years following their shift from supplier of hardware to provider of telecommunications services. WiMacTel is now defining their next phase of growth, identifying new channels, new products, and strategic acquisitions. Mr. Best’s initial mandate will be to reinvent the telephone operator enhancing the value to callers at home, from a payphone, airport travelers, hotel patrons, hospital patients, and visitors, essentially anyone that can reach a WiMacTel operator.

Mr. James MacKenzie, CEO of WiMacTel commented that, “We are excited that Damani is joining WiMacTel at the beginning of our next stage of growth and business expansion. We are approaching 2 million telephones supported on our platform all with access to our operators. Damani’s knowledge of the market, technology, and consumer trends and behaviors make him ideally suited to lead our quest to re-establish the value of the operator and enhance the value to callers and to those that provide the edge device.”

“I am excited to be joining WiMacTel at this stage of my career. They are such a creative organization and I have watched WiMacTel reinvent themselves and grow at such an incredible pace. To be a key player to drive their next stage of reinvention, the telephone operator, is a true honor. I am anxious to commit myself to WiMacTel and help create their future,” stated Mr. Best.

About WiMacTel

WiMacTel is a certified operator service provider, long distance carrier, VoIP reseller, wireless reseller, and payphone service provider nationwide in the USA and Canada. The company has nationwide LEC / CLEC billing agreements and is a PCI DSS compliant credit card merchant. Customers include LEC’s / CLEC’s, airports, hotels, universities, hospitals, convenience stores, fuel retailers, small/medium business, correctional institutions, and consumers.

For more information, please visit our website at www.wimactel.com, email us at info@wimactel.com, or call us on 1-800-820-4680.

We also encourage you to follow us on Facebook: www.facebook.com/wimactel.

Contact:

WiMacTel
Unit N 7003 5th Street SE Calgary, AB T2H 2G2
1 800 820 4680

Read this news on PR Newswire Asia website: Bell Canada Technology Leader Joins WiMacTel

Mobile Chat App Maaii Hits #1 in iTunes Malaysia, Launches Payments with MOL

HONG KONG, May 27, 2013 /PRNewswire/ — Maaii, the #1 free social networking app in iTunes Malaysia, has today launched Credit payments with MOL AccessPortal Sdn. Bhd. (MOL). Maaii users in Malaysia can now buy Maaii Credit through the MOLPoints online payment system. Maaii Credit is used to buy products such as “MaaiiOut”, which allows users to make super low cost calls to mobile and landline numbers globally.

“Free High-Definition voice calls between Maaii users is one of the key features driving our considerable growth,” said Chris Lewis Vice President at Maaii. He continued, “However there are a significant and growing number of Malaysian users that like to make inexpensive calls with MaaiiOut to friends and family not yet using Maaii. For this service they can now obtain Maaii Credit in local currency with MOLPoints from any MOL supported outlet.”

The Maaii applications for iOS and Android platforms are becoming increasingly popular in Malaysia, Singapore, Taiwan and other markets. Craig White, MOL Global’s President of Global Operations added, “We are always looking at expanding our offerings to MOL users with quality products like Maaii. We believe that this partnership will create a great synergy in helping both of our businesses grow across the region.”

With several million users worldwide, Maaii is fortifying its user base in South East Asia and the Middle-East. The demand for mobile HD voice, social chat functions and inexpensive international calling is accelerating. “By enabling local currency payments, Maaii can now compete head-to-head with the likes of Skype, Rebtel and other VoIP brands. If current App Store rankings are anything to go by it would seem that Maaii is definitely a strong new contender in the space,” said Lewis.

About Maaii Ltd

Maaii is a free mobile communications app for iOS and Android devices that combines voice calls, chat functions & social network integration. Maaii users can register with their mobile number and make free calls to other Maaii users, chat with each other, or call mobile and landline numbers worldwide with MaaiiOut™. Maaii focuses on three areas of business: iOS and Android applications marketed to consumers worldwide; hosted and co-branded applications offered from the cloud as a platform-as-a-service (PaaS) and an open platform that empowers third party developers to build HD voice-enabled applications that run atop the global Maaii network.

About MOL AccessPortal Sdn Bhd (MOL)

MOL AccessPortal Sdn Bhd (MOL) is one of Asia‘s leading payment service providers. MOL is an MSC Malaysia Status Company that operates and develops payment system. MOL handles over 60 million transactions with an annual payment volume of more than US$300 million. MOL leverages on a network of more than 680,000 physical payment collection points across more than 80 countries. It is also linked online to more than 88 banks in 10 countries worldwide. MOL is recognized as one of the Asia Pacific‘s fastest growing technology companies in the Deloitte Technology Fast 500 Asia Pacific Awards 2011. MOL is headquartered in Malaysia with offices across Asia Pacific. For more information, visit www.mol.com.

To learn more about Maaii visit http://www.maaii.com or contact: Harvey Mok, Media Manager, Email: harveymok@maaii.com, Tel: +852-3472-0953

Read this news on PR Newswire Asia website: Mobile Chat App Maaii Hits #1 in iTunes Malaysia, Launches Payments with MOL

UTStarcom Reports Unaudited First Quarter 2013 Financial Results

BEIJING, May 24, 2013 /PRNewswire/ — UTStarcom Holdings Corp. (“UTStarcom” or “the Company”) (NASDAQ: UTSI), a leading provider of media operational support services and broadband equipment products and services, today reported its unaudited financial results for the first quarter ended March 31, 2013.

As previously announced, the Company closed the divestiture of its IPTV business in August 2012, but has not yet met the requirements for reporting those results as discontinued operations because of the Company’s continuing involvement. Therefore, to enable a comparison of results excluding the IPTV business and the amortization of PHS deferred revenue the Company is including non-GAAP comparisons throughout this press release.

Mr. William Wong, UTStarcom’s President and Chief Executive Officer, stated, “Overall, we are pleased with our performance in the first quarter of 2013. We continued and advanced many of the strategic initiatives that we launched in late 2012 and made a concerted effort to accelerate the Company’s transition to a higher growth and more profitable business. Furthermore, during the first quarter we concluded several important initiatives to enhance shareholder value as part of our longstanding commitment to our shareholders, including a $30 million cash tender offer and a one-for-three reverse share split. All of our efforts are geared towards better positioning the Company for the long term and ensuring that we are delivering value to our business partners and our shareholders. While there is certainly more to do, we are pleased with the progress we are making and the improvements that have been made in a short time.”

First Quarter 2013 Highlights

  • On January 3, 2013, completed a $30 million tender offer to improve shareholder value.
  • On March 21, 2013, effected a one-for-three reverse share split of its ordinary shares. As a result, the Company’s authorized share capital was amended by the consolidation of 750,000,000 ordinary shares of US$0.00125 par value each prior to the reverse share split into 250,000,000 ordinary shares of US$0.00375 par value each after the reverse share split. Unless otherwise specified, all share and per share information in this press release has been retroactively adjusted to reflect this reverse share split.
  • GAAP revenues in the first quarter of 2013 were $37.2 million, a 20.3% decrease from the first quarter of 2012.
  • Non-GAAP revenues in the first quarter of 2013 were $36.7 million, a 6.9% decrease from the first quarter of 2012.
  • GAAP gross margin for the first quarter of 2013 was 31.4%, compared to 39.5% for the first quarter of 2012.
  • Non-GAAP gross margin for the first quarter of 2013 was 31.8%, compared to 38.3% for the first quarter of 2012.
  • GAAP net loss attributable to UTStarcom shareholders was $5.0 million and GAAP basic loss per share was $0.13 for the first quarter of 2013, compared to GAAP net loss attributable to UTStarcom shareholders of $4.2 million and GAAP basic loss per share of $0.08 for the first quarter of 2012.
  • Non-GAAP net loss attributable to UTStarcom shareholders was $5.0 million and non-GAAP basic loss per share was $0.13 for the first quarter of 2013, compared to non-GAAP net loss attributable to UTStarcom shareholders of $2.1 million and non-GAAP basic loss per share of $0.04 for the first quarter of 2012.
  • As of March 31, 2013, cash, cash equivalents and short-term investments were $136.0 million.

Mr. Robert Pu, UTStarcom’s Chief Financial Officer, commented, “The Company delivered reasonably sound financial performance in the first quarter of 2013. Our non-GAAP revenues were within our expectations, we made significant progress in lowering operating expenses as planned, and we worked hard to hold our overall gross margin relatively stable during a time of transition. In addition, our balance sheet remains strong with a cash position of approximately $136 million as of March 31, 2013. This enabled our shareholder value enhancements, including the tender offer and an additional investment in our strategic partner, iTV Media. We will continue to manage our cash wisely, with a view to balancing growth, profitability and shareholder return.”

First Quarter 2013 Financial Results

As part of a plan to transition the Company into higher-growth, more profitable areas, UTStarcom successfully closed the divestiture of its IPTV business on August 31, 2012. As of March 31, 2013, the Company did not meet the requirements to report results from the IPTV division separately as discontinued operations. To enable a comparison of the financial results in year-to-date and future periods, the Company has prepared non-GAAP results. Included below are quarterly and year-to-date non-GAAP comparisons that exclude financial results from the IPTV business and amortization of PHS deferred revenue. The Company’s GAAP financial results and reconciliation with the non-GAAP numbers discussed in this release are at the end of this press release.

Total Revenues

Total revenues for the first quarter of 2013 were $37.2 million, a decrease of 20.3% from $46.7 million for the corresponding period in 2012.

Non-GAAP total revenues for the first quarter of 2013 were $36.7 million, a decrease of 6.9% from $39.4 million for the corresponding period in 2012.

  • Non-GAAP net sales from equipment for the first quarter of 2013 were $30.3 million, a decrease of 9.4% year-over-year. The decrease was mainly caused by decreased sales of Multi-Service Access Network (“MSAN”) products in Japan and Multi-Service Optical Transport (“MSTP”) products in Taiwan which was partially offset by increased sales of Packet Transport Network (“PTN”) products in Japan.
  • Non-GAAP net sales from equipment-based services for the first quarter of 2013 were $6.4 million, an increase of 10.6% year-over-year.

Gross Profit

Gross profit was $11.7 million and gross margin was 31.4% for the first quarter of 2013, compared to $18.4 million and 39.5%, respectively, for the corresponding period in 2012.

Non-GAAP gross profit was $11.7 million and non-GAAP gross margin was 31.8% for the first quarter of 2013, compared to $15.1 million and 38.3%, respectively, for the corresponding period in 2012.

  • Non-GAAP gross profit for equipment sales for the first quarter of 2013 was $11.5 million, a decrease of 21.7% year-over-year. Non-GAAP gross margin for equipment sales for the first quarter of 2013 was 37.8%, compared to 43.8% for the corresponding period in 2012. The decrease in gross margin was primarily due to decreased gross margins in MSAN and PTN products in the first quarter of 2013.
  • Non-GAAP gross profit for equipment-based services for the first quarter of 2013 was $0.2 million, compared to gross profit of $0.5 million for the corresponding period in 2012. Gross margin for equipment-based services for the first quarter of 2013 was 3.4%, compared to 8.0% for the corresponding period in 2012. The decrease in gross margin was primarily due to lower margins in MSAN product-related services provided in the first quarter of 2013.

Operating Expenses

Operating expenses for the first quarter of 2013 were $15.4 million, a decrease of 30.6% from $22.2 million for the corresponding period in 2012.

Non-GAAP operating expenses for the first quarter of 2013 were $15.4 million, a decrease of 8.6% from $16.8 million for the corresponding period in 2012.

  • Non-GAAP selling, general and administrative expenses in the first quarter of 2013 were $9.2 million, a decrease of 23.0% year-over-year. The decrease was primarily due to a decrease in personnel costs as a result of the Company’s restructuring efforts and the bad debt provision reversal due to collection of a previously reserved receivable, partially offset by the accelerated depreciation of the leasehold improvement in the Hangzhou office building due to early termination of the lease.
  • Non-GAAP research and development expenses in the first quarter of 2013 were $3.0 million, a decrease of 28.2% year-over-year. The decrease was primarily due to a decrease in research and development personnel costs as a result of the Company’s restructuring efforts.
  • Non-GAAP impairment of long-term investment in the first quarter of 2013 was $0.1 million.
  • Non-GAAP net loss on the divestiture in the first quarter of 2013 was $3.0 million, compared to non-GAAP net gain of $0.2 million in the corresponding period in 2012. The net loss on the divestiture in the first quarter of 2013 was due to the disposal of the Company’s Next Generation Network related assets, specifically the mSwitch product related assets, which included $2.7 million payment to the buyer and $0.5 million of severance for the transferred employees, signing bonus, and retention bonus to incentivize certain key employees to sign employment contracts with the buyer. As of March 31, 2013, the payments had not been made.

Operating Loss

Operating loss for the first quarter of 2013 was $3.7 million, compared to operating loss of $3.8 million for the corresponding period in 2012.

Non-GAAP operating loss for the first quarter of 2013 was $3.7 million, compared to non-GAAP operating loss of $1.8 million for the corresponding period in 2012.

Other Income (Expense), Net

Net other income for the first quarter of 2013 was $1.5 million, compared to net other income of $0.6 million for the corresponding period of 2012. Net other income in the first quarter of 2013 primarily consisted of income of $1.3 million from the release of the remaining reserve related to tax liabilities provided to the buyers of our subsidiary in Korea due to expiration of the statute of limitation.

Equity Pick Up of Losses of an Associate

Equity pick up of losses of an associate for the first quarter of 2013 was $2.0 million due to 49% loss pick up from the Company’s equity investment in iTV Media.

The Company consolidated iTV Media since Oct 2010 due to our investment of 75% controlling interest in it. Upon the exercising of shares repurchase right in June 2012, our ownership in iTV Media decreased from 75% to below approximately 49%. At that point, the Company deconsolidated iTV Media and presented it by using the cost method after the first quarter of 2012 as the remaining Series A preference shares of iTV owned by the Company did not qualify as in-substance common stock due to their substantive liquidation preference and the existence of other substantive common shareholders.

In January 2013, the Company invested an additional $5.0 million convertible bond into iTV Media which triggered a reassessment of the Company’s accounting for its investment in the Series A preference shares. Management concluded the remaining Series A preference shares of iTV owned by the Company now substantively participated in the risks and rewards of iTV, irrespective of the liquidation preferences, and as such qualified as in-substance common stock. Therefore, the equity method criteria had been met and the equity accounting commenced in Q1 2013.

The Company consolidated a net loss of $1.5 million from iTV Media in the first quarter of 2012.

Net Income (Loss)

Net loss attributable to UTStarcom’s shareholders for the first quarter of 2013 was $5.0 million, compared to net loss attributable to UTStarcom’s shareholders of $4.2 million for the corresponding period in 2012. Basic loss per share for the first quarter of 2013 was $0.13, compared to basic loss per share of $0.08 for the first quarter of 2012.

Non-GAAP net loss attributable to UTStarcom’s shareholders for the first quarter of 2013 was $5.0 million, compared to non-GAAP net loss attributable to UTStarcom’s shareholders of $2.1 million for the corresponding period in 2012. Non-GAAP basic loss per share for the first quarter of 2013 was $0.13, compared to non-GAAP basic loss per share of $0.04 for the first quarter of 2012.

Cash Flow

  • Cash used by operating activities for the first quarter of 2013 was $4.7 million.
  • Cash used by investing activities for the first quarter of 2013 was $5.8 million, primarily driven by $5.0 million in investments in iTV Media.
  • Cash used in financing activities for the first quarter of 2013 was $30.7 million, primarily driven by $30.0 million for the tender offer transaction.

As of March 31, 2013, UTStarcom had cash, cash equivalents and short-term investments of $136.0 million.

Overview of Recent Key Events

Returning Cash to Shareholders

The Company completed a $30 million cash tender offer in the first quarter of 2013 for 25,000,000 of the Company’s outstanding ordinary shares at a purchase price of $1.20 per share (number of shares and price per share have not been adjusted to reflect the reverse stock split). In addition, at an extraordinary meeting of shareholders held on March 21, 2013, the Company’s shareholders approved a one-for-three reverse share split of the Company’s ordinary shares. Following the purchase of the tendered shares and the effectiveness of the reverse share split, the Company had approximately 39,400,398 ordinary shares outstanding as of March 31, 2013. Both of these actions are expected to help enhance shareholder value in the short and long term.

Further, the Company’s continued commitment to its share repurchase program reflects management’s long-term confidence in the Company’s prospects.

To date, the Company has repurchased approximately 12.5 million shares (number of shares has not been adjusted to reflect the reverse stock split) for a total of $15 million, out of the total authorized repurchase amount of $20 million in the share repurchase program.

Regains NASDAQ Listing Compliance

On March 15, 2013, the Company received formal notice from NASDAQ that it was not in compliance with listing requirements relating to the price per share at which the Company’s shares trade and was given 180 days to regain compliance with the listing standards. On April 11, 2013, the Company received formal notice from NASDAQ that it had regained compliance with Listing Rule 5450(a)(1) as a result of the closing bid price of the Company’s ordinary shares being at $1.00 per share or greater for the previous 11 consecutive business days.

Receipt of “Going-Private” Proposal

The Company’s board of directors received a preliminary non-binding proposal letter dated March 27, 2013 from a consortium consisting of one of the Company’s directors, Mr. Hong Liang Lu, and entities affiliated with him, and Shah Capital Opportunity Fund LP and Himanshu H. Shah to acquire all of the outstanding shares of the Company in a going private transaction for $3.20 per ordinary share in cash, subject to certain conditions. The board of directors has formed a special committee of independent directors (the “Special Committee”) to consider this proposal. In addition, the Special Committee has appointed legal counsel and retained a financial advisor to assist it in its work. No decisions have been made by the Special Committee with respect to the Company’s response to the proposal.

Business Outlook

The Company views 2013 as a year of investment and continued transition. At the same time, the Company reiterates its expectation that for 2013 it will achieve a degree of incremental improvement in overall financial performance versus 2012. Unprofitable revenues that were removed with the IPTV divestiture will need to be replaced, and as a result total revenues for 2013 are expected to decrease from 2012 while this process is ongoing and revenue sources are in transition. At the same time, with respect to operating performance, the Company will focus on holding margins relatively stable by maintaining a similar product mix to 2012, as well as continuing to lower operating expenses.

Additionally, the Company’s current outlook is based on constant currency exchange rates compared to 2012. The depreciation of the Japanese Yen against the U.S. dollar may have a negative impact on the Company’s gross profit and gross margin, as sales generated in Japan has accounted for an increasing portion of the Company’s total revenues.

From a long-term perspective, the Company’s new strategic initiatives is expected to in time result in a more predictable, recurring revenue stream and higher rates of growth beginning in 2014. More specifically, the Company anticipates profit from the new TV over IP services to become the major contributor for UTStarcom by 2015, as the new TV over IP business is expected to have gross margin exceeding 50%.

Mr. Wong concluded, “Looking ahead, we currently remain comfortable with our operating expectations for full year 2013 and we are confident that our new strategy positions us very well in the evolving media environment. We expect our actions will enable us to capture the long-term opportunities that will translate into significant overall improvement in the Company’s business performance and enable us to deliver enhanced shareholder value over the long-term.”

About Non-GAAP Financial Measures

To supplement the Company’s consolidated financial results presented in accordance with United States Generally Accepted Accounting Principles (“GAAP”), the Company uses certain non-GAAP financial measures, which are adjusted from results based on GAAP to exclude the effects of the results of its divested IPTV business and PHS-related deferred revenue amortization from the results of each reported period. For more information on these non-GAAP financial measures, please see the table captioned “Reconciliation of GAAP and non-GAAP Financial Data” set forth at the end of this press release.

The Company believes that these non-GAAP financial measures provide meaningful supplemental information regarding its operating performance by excluding amortization of PHS net sales and results from IPTV-related business that may not be indicative of the Company’s operating performance. The Company believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing its operating performance and when planning for and forecasting future periods. These non-GAAP financial measures also facilitate management’s internal comparisons of the Company’s current performance to its historical performance. The Company computes its non-GAAP financial measures on a consistent basis from quarter to quarter. The Company believes these non-GAAP financial measures are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision-making. The presentation of this additional information is not meant to be considered in isolation or as a substitute for financial information prepared in accordance with GAAP.

First Quarter 2013 Conference Call Details

The Company’s management will host an earnings conference call at 7:00 a.m. U.S. Eastern Time on May 24, 2013 (7:00 p.m. Beijing/Hong Kong Time on May 24, 2013).

The conference call dial-in numbers are as follows:

United States:

+ 1-800-860-2442

International:

+ 1-412-858-4600

China:

10-800-712-2304

Hong Kong:

800-962475

The conference ID number is 10029246.

A replay of the call will be available one hour after the end of the conference until 9:00 a.m. U.S. Eastern Time on May 31, 2013.

The conference call replay numbers are as follows:

United States:

+ 1-877-344-7529

International:

+ 1-412-317-0088

The conference ID number for accessing the recording is 10029246.

Investors will also have the opportunity to listen to the live conference call and the replay over the Internet through the investor relations section of UTStarcom’s web site at: http://www.utstar.com.

About UTStarcom Holdings Corp.

UTStarcom is focused on providing next generation media operational support services in the rapidly growing markets for TV over IP services and broadband equipment products and services. UTStarcom is committed to meeting the evolving needs of cable and broadband service providers to enable a more personalized entertainment experience. The Company sells its media operational support services and broadband equipment products and services to operators in both emerging and established broadband and cable markets around the world.

UTStarcom was founded in 1991 and listed on the NASDAQ in 2000. It has operational headquarters in Beijing, China and research and development operations in China and India. In 2011, the Company deployed a revamped growth strategy that concentrates on providing media operation support services. For more information about UTStarcom, visit the Company’s website at http://www.utstar.com.

Forward-Looking Statements

This press release includes forward-looking statements, including statements regarding the Company’s strategic initiatives, the effects of the tender offer and reverse share split, and the Company’s business outlook. These statements are forward-looking in nature and subject to risks and uncertainties that may cause actual results to differ materially and adversely from the Company’s current expectations. These include risks and uncertainties related to, among other things, changes in the financial condition and cash position of the Company, changes in the composition of the Company’s management and their effect on the Company, the Company’s ability to realize anticipated results of operational improvements and benefits of the divestiture transaction, the ability to successfully identify and acquire appropriate technologies and businesses for inorganic growth and to integrate such acquisitions, the ability to internally innovate and develop new products, assumptions the Company makes regarding the growth of the market and the success of the Company’s offerings in the market, and the Company’s ability to execute its business plan and manage regulatory matters. The risks and uncertainties also include the risk factors identified in the Company’s latest annual report on Form 20-F and current reports on Form 6-K as filed with the Securities and Exchange Commission. The Company is in a period of strategic transition and the conduct of its business is exposed to additional risks as a result. All forward-looking statements included in this press release are based upon information available to the Company as of the date of this press release, which may change, and the Company assumes no obligation to update any such forward-looking statements.

UTStarcom Holdings Corp.

Unaudited Condensed Consolidated Balance Sheets

March 31,

December 31,

2013

2012

ASSETS

(In thousands, except par value)

Current assets:

Cash, cash equivalents and short-term investments

$

136,010

$

179,880

Accounts and notes receivable, net

11,182

15,000

Inventories and deferred costs

151,589

151,500

Prepaids and other current assets

36,428

40,960

Total current assets

335,209

387,340

Long-term assets:

Property, plant and equipment, net

8,470

8,866

Long-term deferred costs

18,266

20,556

Other long-term assets

73,354

71,329

Total assets

$

435,299

$

488,091

LIABILITIES AND EQUITY

Current liabilities:

Accounts payable

$

17,424

$

24,991

Customer advances

92,262

89,362

Deferred revenue

38,049

41,461

Other current liabilities

35,099

35,154

Total current liabilities

182,834

190,968

Long-term liabilities:

Long-term deferred revenue and other liabilities

74,065

80,467

Total liabilities

256,899

271,435

Total equity

178,400

216,656

Total liabilities and equity

$

435,299

$

488,091

UTStarcom Holdings Corp.

Unaudited Condensed Consolidated Statements of Operations

Three months ended March 31,

2013

2012

(in thousands, except per share data)

Net sales

$

37,178

$

46,658

Cost of net sales

25,495

28,233

Gross profit

11,683

18,425

31.4%

39.5%

Operating expenses:

Selling, general and administrative

9,216

14,405

Research and development

3,028

7,127

Amortization of intangible assets

310

Impairment of long-term investment

134

Restructuring

(22)

544

Net loss (gain) on divestiture

3,047

(198)

Total operating expenses

15,403

22,188

Operating income (loss)

(3,720)

(3,763)

Interest income, net

121

428

Other income (expense), net

1,497

555

Equity pick up of losses of an associate

(2,015)

Income (loss) before income taxes

(4,117)

(2,780)

Income taxes benefit(expense)

(880)

(1,943)

Net income (loss)

(4,997)

(4,723)

Net loss attributable to noncontrolling interest

1

565

Net income (loss) attributable to UTStarcom Holdings Corp.

$

(4,996)

$

(4,158)

Net income (loss) per share attributable to UTStarcom

Holdings Corp.————Basic

$

(0.13)

$

(0.08)

Weighted average shares outstanding————Basic

39,497

50,443

UTStarcom Holdings Corp

Unaudited Condensed Consolidated Statements of Cash Flows

Three months ended March 31,

2013

2012

(In thousands)

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income (loss)

$

(4,997)

$

(4,723)

Adjustments to reconcile net loss to net cash provided by

(used in) operating activities:

Depreciation and amortization

886

1,219

Amortization of deferred gain on sale-leaseback

Provision for (recovery of) doubtful accounts

(140)

215

Stock-based compensation expense

232

736

Net loss (gain) on divestitures

3,047

(198)

Loss on accelerated amortization of terminated lease

1,043

Gain on release of tax liability due to expiration of the

statute of limitation

(1,240)

Deferred income taxes

(87)

(127)

Loss from equity investments, net

2,015

Other-than-temporary impairment of equity investments

134

Other

(113)

Changes in operating assets and liabilities:

(5,573)

(11,727)

Accounts receivable

3,844

(913)

Inventories and deferred costs

2,961

(2,846)

Other assets

2,361

(1,362)

Accounts payable

(5,204)

3,956

Income taxes payable

(1,339)

967

Customer advances

2,669

2,347

Deferred revenue

(9,069)

(4,877)

Other liabilities

(1,796)

(8,999)

Net cash used in operating activities

(4,680)

(14,718)

CASH FLOWS FROM INVESTING ACTIVITIES:

Additions to property, plant and equipment

(1,837)

(2,446)

Net proceeds from divestitures

65

Change in restricted cash

1,899

1,176

Purchase of investment interest

(6,592)

Proceeds from disposition of an investment interest

190

Purchase of short-term investments

(1,357)

Proceeds from sale of short-term investments

293

1,848

Other

172

116

Net cash used in investing activities

(5,810)

(663)

CASH FLOWS FROM FINANCING ACTIVITIES:

Repurchase of ordinary share

(30,680)

(378)

Net cash provided by (used in) financing activities

(30,680)

(378)

Effect of exchange rate changes on cash and cash equivalents

(2,404)

(2,381)

Net increase (decrease) in cash and cash equivalents

(43,574)

(18,140)

Cash and cash equivalents at beginning of period

179,584

301,626

Cash and cash equivalents at end of period

$

136,010

$

283,486

UTSTARCOM HOLDINGS CORP.

May 24, 2013 Conference Call

RECONCILIATION OF GAAP AND NON-GAAP FINANCIAL DATA

(In thousands)

(Unaudited)

To supplement our condensed consolidated financial statements presented on a GAAP basis, UTStarcom uses certain non-GAAP measures which are adjusted to present those metrics as if PHS-related deferred revenue amortization and IPTV related business had been excluded in the current year and prior years’ comparatives. We believe this enables year over year comparisons to our recent financial results. These adjustments to our GAAP results are made with the intent of providing both management and investors a more complete understanding of UTStarcom’s underlying results and trends. In addition, these adjusted non-GAAP results are among the information management uses as a basis for our planning and forecasting of future periods. The presentation of this additional information is not meant to be considered in isolation or as a substitute for results prepared in accordance with generally accepted accounting principles in the United States.

Qtr ended

Qtr ended

31-Mar-13

31-Mar-12

Non-GAAP Revenue

$36,696

$39,411

Non-GAAP Gross Profit

$11,683

$15,092

Non-GAAP Gross Margin %

31.8%

38.3%

Non-GAAP Operating Income (Loss)

($3,720)

($1,754)

Non-GAAP Net Income (Loss) attributable to UTStarcom

($4,996)

($2,149)

Non-GAAP Net Income (Loss) per Share Attributable to UTStarcom

Holdings Corp.————Basic

($0.13)

($0.04)

Please refer to the preceding reconciliation tables for the adjustments to GAAP Revenue, Gross Profit,

Operating Income (Loss), Net Income (Loss) and EPS.

UTSTARCOM HOLDINGS CORP.

May 24, 2013 Conference Call

RECONCILIATION OF GAAP AND NON-GAAP FINANCIAL DATA

($ in thousand)

(Unaudited)

To supplement our condensed consolidated financial statements presented on a GAAP basis, UTStarcom uses certain non-GAAP measures which are adjusted to present those metrics as if PHS-related deferred revenue amortization and IPTV related business had been excluded in the current year and prior years’ comparatives. We believe this enables year over year comparisons to our recent financial results. These adjustments to our GAAP results are made with the intent of providing both management and investors a more complete understanding of UTStarcom’s underlying results and trends. In addition, these adjusted non-GAAP results are among the information management uses as a basis for our planning and forecasting of future periods. The presentation of this additional information is not meant to be considered in isolation or as a substitute for results prepared in accordance with generally accepted accounting principles in the United States.

Qtr ended

Qtr ended

31-Mar-13

31-Mar-12

GAAP Revenue (a)

$37,178

$46,658

Less: Amortization of PHS Revenue

$0

$0

Less: IPTV Revenue

$482

$7,247

Non-GAAP Revenue

$36,696

$39,411

(a) GAAP Revenue for each period is the consolidated revenue as reported on Form 10-Q or Form 6-K, as

applicable, for such period.

UTSTARCOM HOLDINGS CORP.

May 24, 2013 Conference Call

RECONCILIATION OF GAAP AND NON-GAAP FINANCIAL DATA

($ in thousand)

(Unaudited)

To supplement our condensed consolidated financial statements presented on a GAAP basis, UTStarcom uses certain non-GAAP measures which are adjusted to present those metrics as if PHS-related deferred revenue amortization and IPTV related business had been excluded in the current year and prior years’ comparatives. We believe this enables year over year comparisons to our recent financial results. These adjustments to our GAAP results are made with the intent of providing both management and investors a more complete understanding of UTStarcom’s underlying results and trends. In addition, these adjusted non-GAAP results are among the information management uses as a basis for our planning and forecasting of future periods. The presentation of this additional information is not meant to be considered in isolation or as a substitute for results prepared in accordance with generally accepted accounting principles in the United States.

Qtr ended

Qtr ended

31-Mar-13

31-Mar-12

GAAP Gross Profit (a)

$11,683

$18,425

GAAP Gross Margin %

31.4%

39.5%

Less: Gross Profit from Amortization of PHS Revenue

$0

$0

Less: Gross Profit from IPTV Revenue

$0

$3,333

Non-GAAP Gross Profit

$11,683

$15,092

Non-GAAP Gross Margin %

31.8%

38.3%

(a) GAAP Gross Profit and GAAP Gross Margin % for each period is the consolidated gross profit and

gross margin % as reported on Form 10-Q or Form 6-K, as applicable, for such period.

UTSTARCOM HOLDINGS CORP.

May 24, 2013 Conference Call

RECONCILIATION OF GAAP AND NON-GAAP FINANCIAL DATA

($ in thousand)

(Unaudited)

To supplement our condensed consolidated financial statements presented on a GAAP basis, UTStarcom uses certain non-GAAP measures which are adjusted to present those metrics as if PHS-related deferred revenue amortization and IPTV related business had been excluded in the current year and prior years’ comparatives. We believe this enables year over year comparisons to our recent financial results. These adjustments to our GAAP results are made with the intent of providing both management and investors a more complete understanding of UTStarcom’s underlying results and trends. In addition, these adjusted non-GAAP results are among the information management uses as a basis for our planning and forecasting of future periods. The presentation of this additional information is not meant to be considered in isolation or as a substitute for results prepared in accordance with generally accepted accounting principles in the United States.

Qtr ended

Qtr ended

31-Mar-13

31-Mar-12

GAAP Operating Expenses(a)

$15,403

$22,188

Less: Operating Expenses directly related to IPTV

$0

$5,342

Non-GAAP Operating Expenses

$15,403

$16,846

(a) GAAP Operating Expenses for each period is the consolidated Operating Expenses as reported on Form 6-K,

as applicable, for such period.

UTSTARCOM HOLDINGS CORP.

May 24, 2013 Conference Call

RECONCILIATION OF GAAP AND NON-GAAP FINANCIAL DATA

($ in thousand)

(Unaudited)

To supplement our condensed consolidated financial statements presented on a GAAP basis, UTStarcom uses certain non-GAAP measures which are adjusted to present those metrics as if PHS-related deferred revenue amortization and IPTV related business had been excluded in the current year and prior years’ comparatives. We believe this enables year over year comparisons to our recent financial results. These adjustments to our GAAP results are made with the intent of providing both management and investors a more complete understanding of UTStarcom’s underlying results and trends. In addition, these adjusted non-GAAP results are among the information management uses as a basis for our planning and forecasting of future periods. The presentation of this additional information is not meant to be considered in isolation or as a substitute for results prepared in accordance with generally accepted accounting principles in the United States.

Qtr ended

Qtr ended

31-Mar-13

31-Mar-12

GAAP Operating Income (Loss) (a)

($3,720)

($3,763)

Less: Profit from Amortization of PHS Revenue

$0

$0

Less: Profit from IPTV Revenue

$0

$3,333

Less: Operating Expenses directly related to IPTV

$0

$5,342

Non-GAAP Operating Income (Loss)

($3,720)

($1,754)

(a) GAAP Operating Income (Loss) for each period is the consolidated operating loss as reported on Form 6-K,

as applicable, for such period.

UTSTARCOM HOLDINGS CORP.

May 24, 2013 Conference Call

RECONCILIATION OF GAAP AND NON-GAAP FINANCIAL DATA

($ in thousand)

(Unaudited)

To supplement our condensed consolidated financial statements presented on a GAAP basis, UTStarcom uses certain non-GAAP measures which are adjusted to present those metrics as if PHS-related deferred revenue amortization and IPTV related business had been excluded in the current year and prior years’ comparatives. We believe this enables year over year comparisons to our recent financial results. These adjustments to our GAAP results are made with the intent of providing both management and investors a more complete understanding of UTStarcom’s underlying results and trends. In addition, these adjusted non-GAAP results are among the information management uses as a basis for our planning and forecasting of future periods. The presentation of this additional information is not meant to be considered in isolation or as a substitute for results prepared in accordance with generally accepted accounting principles in the United States.

Qtr ended

Qtr ended

31-Mar-13

31-Mar-12

GAAP Income taxes benefit (expense)(a)

($880)

($1,943)

Less: Income tax expenses directly related to IPTV

$0

$0

Non-GAAP Income taxes benefit (expense)

($880)

($1,943)

(a) GAAP Income taxes benefit (expense) for each period is the consolidated Operating Expenses as reported on

Form 6-K, as applicable, for such period.

UTSTARCOM HOLDINGS CORP.

May 24, 2013 Conference Call

RECONCILIATION OF GAAP AND NON-GAAP FINANCIAL DATA

($ in thousand)

(Unaudited)

To supplement our condensed consolidated financial statements presented on a GAAP basis, UTStarcom uses certain non-GAAP measures which are adjusted to present those metrics as if PHS-related deferred revenue amortization and IPTV related business had been excluded in the current year and prior years’ comparatives. We believe this enables year over year comparisons to our recent financial results. These adjustments to our GAAP results are made with the intent of providing both management and investors a more complete understanding of UTStarcom’s underlying results and trends. In addition, these adjusted non-GAAP results are among the information management uses as a basis for our planning and forecasting of future periods. The presentation of this additional information is not meant to be considered in isolation or as a substitute for results prepared in accordance with generally accepted accounting principles in the United States.

Qtr ended

Qtr ended

31-Mar-13

31-Mar-12

GAAP Net Income (Loss) attributable to UTStarcom(a)

($4,996)

($4,158)

Less: Profit from Amortization of PHS Revenue

$0

$0

Less: Profit from IPTV Revenue

$0

$3,333

Less: Operating Expenses directly related to IPTV

$0

$5,342

Less: Income tax benefit (expense) directly related to IPTV

$0

$0

Non-GAAP Net Income (Loss) attributable to UTStarcom

($4,996)

($2,149)

(a) GAAP Net Income (Loss) for each period is the consolidated net loss as reported on Form 6-K, as applicable, for

such period.

UTSTARCOM HOLDINGS CORP.

May 24, 2013 Conference Call

RECONCILIATION OF GAAP AND NON-GAAP FINANCIAL DATA

(In thousands)

(Unaudited)

To supplement our condensed consolidated financial statements presented on a GAAP basis, UTStarcom uses certain non-GAAP measures which are adjusted to present those metrics as if PHS-related deferred revenue amortization and IPTV related business had been excluded in the current year and prior years’ comparatives. We believe this enables year over year comparisons to our recent financial results. These adjustments to our GAAP results are made with the intent of providing both management and investors a more complete understanding of UTStarcom’s underlying results and trends. In addition, these adjusted non-GAAP results are among the information management uses as a basis for our planning and forecasting of future periods. The presentation of this additional information is not meant to be considered in isolation or as a substitute for results prepared in accordance with generally accepted accounting principles in the United States.

Qtr ended

Qtr ended

31-Mar-13

31-Mar-12

GAAP Net Income (Loss) attributable to UTStarcom(a)

($4,996)

($4,158)

Less: Profit from Amortization of PHS Revenue

$0

$0

Less: Profit from IPTV Revenue

$0

$3,333

Less: Operating Expenses from IPTV Related

$0

$5,342

Less: Income tax benefit (expense) directly related to IPTV

$0

$0

Non-GAAP Net Income (Loss) attributable to UTStarcom

($4,996)

($2,149)

Weighted Average Shares Outstanding————Basic

39,497

50,443

GAAP Net Income (Loss) per Share Attributable to UTStarcom

Holdings Corp.————Basic

($0.13)

($0.08)

Non-GAAP Net Income (Loss) per share attributable to UTStarcom Holdings Corp.————Basic

($0.13)

($0.04)

(a) GAAP Net Income (Loss) per share for each period is the consolidated net income (loss) as reported on

Form 6-K, as applicable, for such period.

UTStarcom Holdings Corp.

Unaudited Condensed Consolidated Statements of Cash Flows

Three months ended March 31,

2013

2012

(In thousands)

CASH FLOWS FROM OPERATING ACTIVITIES:

GAAP Net cash used in operating activities

($4,680)

($14,718)

Less: Net cash provided by (used in) IPTV operating

activities

$0

($3,903)

Non-GAAP Net cash used in operating activities

($4,680)

($10,815)

CASH FLOWS FROM INVESTING ACTIVITIES:

GAAP Net cash provided by (used in) investing activities

($5,810)

($663)

Less: Net cash provided by (used in) IPTV investing

activities

$0

($140)

Non-GAAP Net cash used in investing activities

($5,810)

($523)

CASH FLOWS FROM FINANCING ACTIVITIES:

GAAP Net cash used in financing activities

($30,680)

($378)

Less: Net cash provided by (used in) IPTV financing

activities

$0

$0

Non-GAAP Net cash provided by (used in) financing

activities

($30,680)

($378)

Effect of exchange rate changes on cash and cash equivalents

($2,404)

($2,381)

Non-GAAP Net decrease in cash and cash equivalents

in continuing operations

($43,574)

($14,097)

Non-GAAP Net increase (decrease) in cash and cash equivalents in IPTV disposed operation

$0

($4,043)

Cash and cash equivalents at beginning of period

$179,584

$301,626

Cash and cash equivalents at end of period

$ 136,010

$ 283,486

Read this news on PR Newswire Asia website: UTStarcom Reports Unaudited First Quarter 2013 Financial Results

AsiaInfo-Linkage Inc. Sells Interests in Two Contractually Controlled Entities

BEIJING and SANTA CLARA, Calif., May 24, 2013 /PRNewswire-FirstCall/ — AsiaInfo-Linkage, Inc. (NASDAQ: ASIA) (“AsiaInfo-Linkage” or the “Company”), a leading provider of telecommunication software solutions and services in China, and the largest Business Support System (“BSS”) supplier to the telecommunications industry in Asia, today announced that it has sold interests in two contractually controlled entities.

As previously announced, on May 12, 2013, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Skipper Limited, a Cayman Islands exempted company with limited liability (“Parent”) and Skipper Acquisition Corporation, a Delaware corporation and a wholly owned subsidiary of Parent (“Merger Sub”), pursuant to which Merger Sub will merge with and into the Company, with the Company continuing as the surviving corporation (the “Merger”). In connection with the Merger, certain subsidiaries and employees of the Company entered into a number of agreements with two unaffiliated individuals pursuant to which such individuals purchased the Company’s interests in Beijing Zhongxinjia Sci-Tech Development Co., Ltd. (“ZXJ”) and Beijing Star VATS Technologies Co., Inc. (“Star VATS”). ZXJ and Star VATS were previously controlled by the Company through a series of contractual arrangements. The transfer of the Company’s interests in ZXJ and Star VATS has been completed and the Company no longer has any legal right to control ZXJ and Star VATS. The consideration payable to the Company for its interests in ZXJ and Star VATS is the fair market value of such interests as determined on the basis of an appraisal undertaken by an independent asset appraisal firm.

About AsiaInfo-Linkage, Inc.

AsiaInfo-Linkage, Inc. (NASDAQ: ASIA) is a leading provider of high-quality software solutions and IT services to the telecommunications industry. Headquartered in Beijing, AsiaInfo-Linkage employs more than 11,000 professionals worldwide. AsiaInfo-Linkage provides a full suite of business and operational support solutions (BSS/OSS) and associated professional services. AsiaInfo-Linkage’s core Veris product line includes billing and customer care systems that serve nearly a billion subscribers globally – almost one seventh of the world’s population – plus business intelligence, network management, and security solutions.

AsiaInfo-Linkage’s customers work with it to converge large scale pre- and post-paid mobile operations; improve time to market for new products and services; and develop cost-effective new business models. AsiaInfo-Linkage aims to be the leading IT solutions provider to the global telecommunications industry, enabling the Connected Digital Lifestyle, and helping its customers build, maintain, operate and constantly improve their network infrastructure and IT environment.

For more information about AsiaInfo-Linkage, please visit www.asiainfo-linkage.com.

Additional Information about the Merger

The Company will file a proxy statement with the SEC in connection with the Merger. In addition, certain participants in the Merger will prepare and mail to the Company’s stockholders a Schedule 13E-3 transaction statement. These documents will be filed with or furnished to the SEC as soon as practicable. Investors and stockholders are urged to read carefully and in their entirety these materials and other materials filed with or furnished to the SEC when they become available, as they will contain important information about the company, the merger, the persons soliciting proxies in connection with the merger on behalf of the company, and the interests of those persons in the merger and related matters. In addition to receiving the proxy statement and Schedule 13E-3 transaction statement by mail, stockholders also will be able to obtain these documents, as well as other filings containing information about the Company, the Merger and related matters, without charge, from the SEC’s website (http://www.sec.gov) or at the SEC’s public reference room at 100 F Street, NE, Room 1580, Washington, D.C. 20549. In addition, these documents can be obtained, without charge, by contacting the Company at 4th Floor, Zhongdian Information Tower, 6 Zhongguancun South Street, Haidian District, Beijing 100086, China, telephone: +86-10-8216-6688.

The Company and certain of its directors, executive officers and other members of management and employees may, under the SEC rules, be deemed to be “participants” in the solicitation of proxies from the Company’s stockholders with respect to the Merger. Information regarding the persons who may be considered “participants” in the solicitation of proxies will be set forth in the proxy statement and Schedule 13E-3 transaction statement relating to the Merger when it is filed with the SEC. Additional information regarding the interests of such potential participants will be included in the proxy statement and Schedule 13E-3 transaction statement and the other relevant documents filed with the SEC when they become available.

This announcement is not a solicitation of a proxy, an offer to purchase or a solicitation of an offer to sell any securities and it is not a substitute for any proxy statement or other filings that may be made with the SEC should the Merger go forward.

Cautionary Note Regarding Forward-Looking Statements

This press release contains “forward-looking” statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These statements can be identified by the use of forward-looking terminology such as “believe,” “expect,” “may,” “will,” “should,” “project,” “plan,” “seek,” “intend,” or “anticipate” or the negative thereof or comparable terminology. Such forward-looking statements involve inherent risks, uncertainties and assumptions. Further information regarding these and other risks is included in the Company’s filings with the SEC. These forward-looking statements reflect the Company’s expectations as of the date of this press release. The Company does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

For investor and media inquiries, please contact:

In China:

Mr. Jimmy Xia
AsiaInfo-Linkage, Inc.
Tel: +86-10-8216-6039
Email: ir@asiainfo-linkage.com

Mr. Justin Knapp
Ogilvy Financial, Beijing
Tel: +86-10-8520-6556
Email: asia@ogilvy.com

In the United States:

Ms. Jessica Barist Cohen
Ogilvy Financial, New York
Tel: +1-646-460-9989
Email: asia@ogilvy.com

Read this news on PR Newswire Asia website: AsiaInfo-Linkage Inc. Sells Interests in Two Contractually Controlled Entities

HGC Establishes Point-of-Presence (PoP) in Myanmar

Strategic step strengthens HGC’s presence in Greater Mekong Subregion

HONG KONG, May 23, 2013 /PRNewswire/ — Hutchison Global Communications Limited (HGC), the fixed-line division of Hutchison Telecommunications Hong Kong Holdings Limited (Stock code: 215), today unveiled its first Point-of-Presence (PoP) in Myanmar, established in co-operation with Myanma Posts and Telecommunications (MPT) and its representative.

The strategic move is part of HGC’s niche market strategy to boost data and voice connectivity between Hong Kong and Myanmar, enabling international carriers and content providers from across Asia and rest of the world to interconnect with Myanmar and other member nations of the Greater Mekong Subregion (GMS).

Developing Myanmar as a GMS telecoms hub

Andrew Kwok, HGC President of International and Carrier Business, said: “Establishment of a Myanmar PoP reinforces HGC’s presence in the GMS. We were an IP-VPN pioneer in Myanmar back in 2008, and the first foreign telecoms operator to be granted permission to provide data and voice services following liberalisation of the local telecoms market last year. Expansion of data and voice connectivity between Hong Kong and Myanmar underlines our important role in transforming Myanmar into a telecoms hub and meeting demand for international connectivity between the GMS and other locations around the world.”

Enhanced network availability, diversity and reliability for data and voice connectivity

HGC is the first international carrier to collaborate with the MPT and its representative in setting up a PoP in Myanmar and provision of a fully-redundant network comprising diverse terrestrial and submarine cable systems for data and voice connectivity between Myanmar and rest of the world. Extending an Internet backbone to Myanmar enables HGC to provide a short and direct path for connections in and out of the country with low latency.

The Myanmar PoP means HGC will provide international private leased circuits (IPLC), IP-VPN services and voice services, characterised by higher network availability, reliability and network diversity. As one of four preferred MPT co-operators establishing official and direct voice interconnection in Myanmar, HGC is able to deliver high-quality call origination and termination services to satisfy rising volumes of voice traffic in the region.

HGC data services come with stringent service level agreements covering round-the-clock technical support, service coverage, network backbone latency and service availability.

About Hutchison Global Communications Limited

Hutchison Global Communications Limited (HGC) owns one of the largest fibre-to-the-building telecommunications networks in Hong Kong. Since establishment in 1995, it has been fully committed to building its own 100% optical-fibre network infrastructure and introducing the most advanced facilities. Coupled with its four cross-border routes integrated with all three of mainland China’s tier-one telecommunications operators and world-class international network, HGC provides a comprehensive range of fixed-line telecommunications services locally and overseas. HGC is a subsidiary of Hutchison Telecommunications Hong Kong Holdings Limited (HTHKH, Stock Code: 215). HTHKH is a leading integrated telecommunications service operator, offering mobile and fixed-line services to local and international customers.

For more information on HGC, please visit www.hgc.com.hk.

For more information on HTHKH, please visit www.hthkh.com.

Read this news on PR Newswire Asia website: HGC Establishes Point-of-Presence (PoP) in Myanmar