Why UTStarcom Is a Telecom Star

CFO Michael Sophie credits its strong sales to a focus on technologies that are fast-growing and allow carriers to make money

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March 2, 2004 at 5:00 AM UTC

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UTStarcom (UTSI ) isn't your typical telecom-equipment outfit. In the four years since its initial public offering, its sales have increased ten-fold, to $2 billion in 2003. Over the same period, during one of the industry's worst downturns, revenues of rival Lucent Technologies (LU ) shrank 78%, to $8.5 billion.

What's UTStarcom's secret? It focuses on the world's highest-growth markets -- and on selling the most in-demand telecom gear. Last year, it reaped 80% of its revenue from China, where telecom is growing at double the pace of the overall economy, says Lawrence Harris, an analyst with Oppenheimer & Co. in New York.