UTStarcom wraps up divestiture of IPTV division
Editor | 31-08-2012
Broadband equipment and solutions UTStarcom Holdings has announced that it has successfully closed the previously announced divestiture of its IPTV business.
As the deal closed, the company announced a number new appointments in its senior management team with William Wong assuming the positions of UTStarcom's Chief Executive Officer and director on the Board of Directors and Xiaoping Li, Lead Independent Director, has been elected as Chairman of the Board by the Directors of the Company.
UTStarcom decided to quit supplying IPTV equipment business on 27 July 2012 as part of a strategy to transition into what it believes are higher growth, more profitable areas. The IPTV equipment business has become a privately-held, standalone company and upon meeting the requirements for discontinued operations, UTStarcom will report results from the IPTV division separately as discontinued operations in the third quarter of 2012 and for all comparable periods.
"The completion of this transaction is a significant milestone for UTStarcom," said Xiaoping Li, Chairman of the Board. "It is an important step in streamlining the Company's product portfolio in favour of a dynamic set of businesses. We are pleased to complete it according to the timeline we originally envisioned, and to move on to the next phase of the Company's transformation."
"I am honoured and excited to lead UTStarcom through its business transformation and build a more growth oriented business, added Wong for his part. We have taken an important step in closing the IPTV divestiture, but it is only the first step. I look forward to working with the Board and management team to find new ways of providing value to our customers and generating returns for our shareholders."