UTStarcom (News - Alert), a provider of Broadband equipment and solutions for cable and telecom operators, has successfully concluded divestiture of its IPTV (News - Alert) business. On 27th July, 2012, the company announced its intention to divest its IPTV equipment business as part of a Board plan to transition the company into higher growth and more profitable areas.
With this, the IPTV equipment business has become a privately-held, standalone company. UTStarcom will report results from the IPTV division separately as discontinued operations in Q3 2012 and for all comparable periods.
As planned, Jack Lu has left UTStarcom to lead the IPTV equipment business. Thus, William Wong has assumed the positions of UTStarcom’s CEO and director on the Board of Directors. William Wong assumed the CEO position in line with a previously announced management transition that temporarily named him as Chief Operating Officer.
In addition, Xiaoping Li, Lead Independent Director, has been elected as Chairman of the Board by the Directors of the Company. Li said, “The completion of this transaction is a significant milestone for UTStarcom. It is an important step in streamlining the company's product portfolio in favor of a dynamic set of businesses.”
He added, “We welcome Mr. Wong as UTStarcom's new CEO. He has been instrumental in developing the strategic initiatives we have taken to date, and has demonstrated long-term thinking that will be invaluable in leading UTStarcom to new levels of success. Also, we thank Mr. Lu for his leadership and wish him every success in developing the IPTV business into a market leading technology and service provider."
Wong stated, "I am honored and excited to lead UTStarcom through its business transformation and build a more growth oriented business. 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."
Recently, UTStarcom was in news for repurchasing an additional $2.2 million of its ordinary shares, bringing the cumulative total under the current program to $11.8 million, which represents more than half of the amount authorized by the board.
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