Thank you for standing by for UTStarcom’s first quarter 2012 earnings conference call. At this time all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. As a reminder, this conference is being recorded. If you have any objections, you may disconnect at this time. It is now my pleasure to introduce your host, Ms. Jing Ou Yang, Investor Relations Director for UTStarcom. You may begin.

Hello everyone and welcome to UTStarcom’s first quarter 2012 earnings conference call. We distributed our earnings press release earlier today and you can find a copy on Newswire Services or on our website at www.utstar.com. In addition, we have posted a slide show presentation on our website, which you can download and use to follow along with today’s call. On today’s call, we have Mr. Jack Lu, our President and CEO; and Ms. Jin Jiang, our CFO. Before we get started, I will read the company’s advisory on forward-looking statements. This call will include forward-looking statements on topics that include, but may not be limited to the company’s, IPTV revenues progressed in the video service cloud platform, profit margins and business model. Forward-looking statements are generally indicated by such words as will, expects, estimate, goals, plans or similar words. These statements are forward-looking in nature and subject to risk and uncertainties that may cause actual result to differ materially. This include risk and uncertainties regarding the ability of the company to realize anticipated result of operational improvements, and the company’s ability to successfully launch its Internet TV platform, continue to integrate recent acquisition, successfully operate its new Service business, execute on its business plan and manage regulatory matters, as well as risk factors identified in the company’s latest Annual Report on Form 20-F, previous annual report on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K and 6-K as filed with the Security and Exchange Commission. The company assumes no obligation to update any forward-looking statements. I will now turn the call over to our President and CEO, Mr. Jack Lu. Ying (Jack) Lu: Thank you, Jing, and hello to everyone on the call. As Jing mentioned, you can follow along with today’s call by downloading…

Thank you, Jack and hello everyone. Please turn to slide 12 and I will discuss our first quarter 2012 financial results in more detail. I would like to remind everyone again that there was $23.6 million of PHS related amortization of deferred revenue with 34.8% gross margin included in the first quarter, 2011 GAAP financial results. In our comparison analysis below, we will exclude amortization of PHS deferred revenue from first quarter 2011. In the first quarter 2012, we recorded $46.7 million in revenues, this was a 23.8% increase compared to the corresponding period of 2011, if we exclude amortization of PHS deferred revenue. The increase was primarily the result of increased sale of our MSTP products in Taiwan and MSAN products in Japan. Our quarter one book-to-bill ratio was 0.81. On slide 13, you can see the gross profit margin was 39.5% for the first quarter, 2012 compared to 28.8% in the first quarter of 2011 if we exclude $23.6 million of PHS deferred revenue amortization, with a 34.8% gross margin in the first quarter 2011. The improvement in gross profit margin was driven by increased sales of higher gross margin MSTP and MSAN products in the first quarter 2012. Gross margin for the equipment sales in China, also improved in the first quarter 2012 compared to the corresponding period of 2011 as a result of our efforts to focus on gross margin, rather than pure revenue growth. In the first quarter 2012, we also have reversals of third party commission reserve and purchase order liability accrual and sale of previously reserved inventory totaling $1.3 million these items positively impacted our gross margin in the first quarter 2012. For the full year 2012, we anticipate our overall gross margin to remain in the mid 30% range. Moving to slide…

Thank you. Ladies and gentlemen we will be conducting a question-and-answer session. (Operator Instructions). One moment please while we poll for questions. The first question comes from Lilly Wu of TGRA Capital. Please go ahead. Lily Wu – TGRA Capital Management LLC: Yes hi. Thanks for taking my call. I was wondering the equipment sales $38.7 million, what proportion of that was related to the cable business versus telecom?

Hi Lily, thank you for your question. Now if we look at the equipment sales about approximately 20% of that is generated from our network application products. So the cable and telecom segments will fall into the IPTV segment. So if we look at the revenue contribution from the cable market, it is more, can be more easily seen from the bookings side, because at the end of the year we saw cable markets to have to consists about 40% of our total bookings. So I think in the next few quarters we will see increases in the cable operator’s contribution to our revenue. Lily Wu – TGRA Capital Management LLC: Okay. Ying (Jack) Lu: This is Jack, also commentary to Jin’s answer. So most ever since the last year was geographically increased the booking from the cable market in China that due to engineering and the contact in limitation cycle most of the were start to turn into revenue from this year. Lily Wu – TGRA Capital Management LLC: Okay, from subsequent quarters. Ying (Jack) Lu: Yes, yes. Lily Wu – TGRA Capital Management LLC: Okay. And so just to be clear in first quarter itself, the revenue contribution from cable related. Could you repeat that, I didn’t quite get it in the first quarter itself.

Combining both telecom and cable, they’ve contributed around, they consist about 20%. Lily Wu – TGRA Capital Management LLC: I see. Okay, okay. And there was a reference on the call that the book-to-bill ratio in the first quarter were 0.81 was that the ratio entering the quarter or exiting the quarter.

This is exiting the quarter. Lily Wu – TGRA Capital Management LLC: Okay, and that just on the Equipment Sales side.

Correct. It’s all my traditional Equipment Sales. Lily Wu – TGRA Capital Management LLC: Okay.

Because our new, yeah, our New Service Business, it’s the booking and the revenue will be recognized in the same quarter. Lily Wu – TGRA Capital Management LLC: Okay. All right, and on the operating cash flow, could you go over again, looking at the press release, other liabilities was a negative $9 million, what exactly was that?

Our other liabilities normally consist of other growth that we have on our books which our liabilities to our vendors or they are for example, salary payables or bonus payables that have been accrued on our books. So our other liabilities lines consistent of changes in those balances in Q1 which we have paid down those liabilities. Lily Wu – TGRA Capital Management LLC: Okay. And so you’re still giving guidance of cash flow breakeven for the year, you think that’s realistic.

We are. Our outlook is that we will be operational cash flow breakeven in 2012. Lily Wu – TGRA Capital Management LLC: Okay. All right, thank you very much.

Thank you so much Lilly.

(Operator Instructions). The next question comes from Louis Lubrano of BMI Capital. Please go ahead. Louis Lubrano – BMI Capital LLC:

Thank you so much for your question, and thank you for your words of encouragement. So as we take a look at what we have mentioned in terms of our revenue growth, we are expecting a healthy revenue growth and we’ve also mentioned that, we expect our total operating expenses to be less than 2011 annual operating expenses. And we also are expecting our margins to be in the mid 30s, so given those metrics, if you model it out in the financial model, even though, we’re not giving exact financial guidance. But if you use those outlook and if you model it out, we are looking at overall P&L break-even. Louis Lubrano – BMI Capital LLC: That’s very good. Thank you very much. Ying (Jack) Lu: Thank you. Louis Lubrano – BMI Capital LLC: We shy to say it. Ying (Jack) Lu: Say it again, please?

Sorry, could you please repeat that? Louis Lubrano – BMI Capital LLC: You shouldn’t be shy to say that in your new release. Thank you very much. Ying (Jack) Lu: This year, so we just want to emphasize our strategic initiatives to develop service, especially media, operational supporting service business such as our VSC business. So all the surprise will be lead our company to totally new directional while maintain sales growth of traditional business. So this is the way we want to exercise more to our matters how we pay more attention to the new directions. Louis Lubrano – BMI Capital LLC: Thank you, sir. Ying (Jack) Lu: Thank you.

The next question comes from Himanshu Shah of Shah Capital. Please go ahead. Himanshu Harshad Shah – Shah Capital Management, Inc.: Hello, everyone, two questions. Jack, can you talk about the legal funding that has been done and also the strategies that you’re pursuing to monetize your carry forward type losses, which I assume is around a $1 billion, but you can also give me the exact amount, as of March 31? And the second question is on iTV.cn, what is existing sub both in the U.S. and also in the other markets in Asia that you are pursuing? Thank you. Ying (Jack) Lu: Okay. So, could you please clarify a little bit about your first question? Himanshu Harshad Shah – Shah Capital Management, Inc.: I just wanted to find out because you have a lot of carry forward losses and so what have you done in terms of separating subsidiaries and what not? And what kind of thought process that you have to monetize those carry forward losses, which could be quite material to shareholders?

So, thank you for your question. So this is Jin. If we’re looking at our total loss carry forward, we do have a significant amount on our book. However, once we start to utilize these losses, we will have to do a detail 382 study to analyze to make sure that these losses will not be limited in the utilization. So, the company is currently in the process of performing such of a 382 study to analyze our losses. Himanshu Harshad Shah – Shah Capital Management, Inc.: And what is the exact amount of losses that you’ve had as of March 31?

Sorry, Himanshu I don’t have the exact amount for the end of the year and I will need time to, may be I can get back to you as to what we have as the balance at the end of 12/31, so I don’t have the balance as of 3/31. Himanshu Harshad Shah – Shah Capital Management, Inc.: Okay. What is your balance at the end of December 31st, say?

If you give me a few minutes, let me look that up for you. Himanshu Harshad Shah – Shah Capital Management, Inc.: Sure, as you can get back to me on that, that’s fine. What about iTV.cn, Jack on both the existing subscribers in U.S. and also some of the markets that you have talked about in the past that you’re pursuing in Asia? Ying (Jack) Lu: Okay. So our iTV.cn subsidiary is focused on providing China-related TV contents to overseas of Chinese through Internet TV or iDTV solution. We launched our service in October last year in the U.S and the later on, we start working on the joint effort to provide a similar services, plus TV program from U.S. and other countries in Thailand. Now, currently our strategies, given the limited resources and we are also extremely high subscriber acquisition cost in the U.S. So iTV.cn focus more on the strategy and the resources on Asian Pacific market now. So in the U.S. market, we’re still running at a low profile backing approach, while we just focus on Asia Pacific market. So currently up to now the number of subscribers in U.S. own a lot, iTV.cn service is not very significant. So according to our current plan, we are about to have commercial launch in Asia Pacific, in Asia Pacific country very soon. Himanshu Harshad Shah – Shah Capital Management, Inc.: Thank you.

(Operator Instructions). Thank you. There are no further questions at this time. I will turn the conference back to management for closing comments.

Thank you for joining us on our first quarter 2012 earnings conference call. We look forward to updating you on our second quarter results in a few months time. Feel free to get in touch with us anytime if you have further questions, concerns or comments. Thank you everyone.

Thank you. The conference has concluded. You may disconnect your line. Thank you once again.