UTStarcom, Inc. (NASDAQ: UTSI) makes managerial changes

UTStarcom, Inc. (NASDAQ: UTSI) had a 3% increase in their share price after the company announced managerial changes on August 28, 2008. UTStarcom said their Chief Financial Officer and executive vice president Francis P. Barton will be retiring as of August 31, 2008. Mr. Barton currently is also on the board of directors and will be vacating the seat as of the same day. The position of CFO will be temporarily taken by Viraj Patel , the vice president, corporate controller and Chief Accounting Officer of UTStarcom.

The company also said David King, senior vice president, international sales and marketing has resigned from his position in the company affective August 29, 2008. UTStracom hasn't yet appointed anyone as a replacement for Mr. King.

The resignations are offset by a new officer joining the company. Craig Samuel has been appointed to a position of senior vice president, business strategy and innovation.

Such news brings about a small hope for the company's future financial improvement. Right now the situation looks pretty much terrible. UTStarcom's losses, although seemingly decreasing on a quarterly basis, remain rather devastating. Such a situation tightly correlates with the company's stock performance, which is also currently not in the best state.

A change in management might prove to be a cure for the company's poor performance. However, only time will show if UTStarcom will be able to get competent specialists that could make a difference. Also, considering the time they will need to familiarize themselves with the situation and plan ahead, it sounds logical to currently stay away from the company's stock.

References:

http://www.utstar.com/

Hotstocked.com articles, 29 August 2008, 11:25