UTStarcom given until June 2 to file 2005 10-K, avoid default on 7/8% convertibles

By Caroline Salls

Pittsburgh, April 20 - UTStarcom, Inc. was given until June 2 to file its 2005 10-K annual report with the Securities and Exchange Commission to avoid an event of default under its 7/8% convertible subordinated notes due 2008, according to an 8-K filing with the SEC.

If an event of default does occur, the indenture trustee or the holders of at least 25% of the notes would have the right to declare all unpaid principal and accrued interest immediately due and payable.

On March 16, the company said it would delay the filing of its 10-K report to enable the audit committee of its board of directors to complete an investigation of the circumstances surrounding the premature recognition of revenue on some transactions and to allow management to complete the preparation of its 2005 consolidated financial statements and its assessment as of Dec. 31 of the company's internal control over financial reporting under Section 404 of the Sarbanes-Oxley Act of 2002.

The Alameda, Calif.-based company manufactures IP-based products for telecommunications service providers.

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