UTStarcom shares plummet after warning

9 May 2005

Shares in US-based equipment maker UTStarcom fell by almost 31% after the company warned of falling demand from China for its low cost range of wireless equipment. The company’s Nasdaq stock price closed at USD7.24 on Friday, down from USD10.55 at the start of the day, after it forecast second quarter revenues of USD740 million, down from USD902 million in the first three months of the year. UTStarcom recently announced plans to cut its global workforce by 1,400 and outsource a number of IT operations.

China, United States