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<SEC-DOCUMENT>0001104659-07-006554.txt : 20070202
<SEC-HEADER>0001104659-07-006554.hdr.sgml : 20070202
<ACCEPTANCE-DATETIME>20070201182140
ACCESSION NUMBER:		0001104659-07-006554
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20070201
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Non-Reliance on Previously Issued Financial Statements or a Related Audit Report or Completed Interim Review
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20070202
DATE AS OF CHANGE:		20070201

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			UTSTARCOM INC
		CENTRAL INDEX KEY:			0001030471
		STANDARD INDUSTRIAL CLASSIFICATION:	COMMUNICATIONS EQUIPMENT, NEC [3669]
		IRS NUMBER:				521782500
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-29661
		FILM NUMBER:		07573080

	BUSINESS ADDRESS:	
		STREET 1:		1275 HARBOR BAY PARKWAY
		STREET 2:		STE 100
		CITY:			ALAMEDA
		STATE:			CA
		ZIP:			94502
		BUSINESS PHONE:		5108648800

	MAIL ADDRESS:	
		STREET 1:		1275 HARBOR BAY PARKWAY
		STREET 2:		STE 100
		CITY:			ALAMEDA
		STATE:			CA
		ZIP:			94502
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>a07-3222_18k.htm
<DESCRIPTION>8-K
<TEXT>
<html>

<head>







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<body lang="EN-US">

<div style="font-family:Times New Roman;">
 <div style="border:none;border-top:double windowtext 6.0pt;padding:0pt 0pt 0pt 0pt;"> <p style="border:none;margin:0pt 0pt .0001pt;padding:0pt;"><a name="scotch"></a><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p> </div>

<p style="font-weight:bold;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;">UNITED STATES<br>
SECURITIES AND EXCHANGE COMMISSION</font></b></p>

<p style="font-weight:bold;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Washington,
D.C. 20549</font></b></p>

<p style="font-weight:bold;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-align:center;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;">FORM 8-K</font></b></p>

<p style="font-weight:bold;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;">CURRENT REPORT</font></b></p>

<p align="center" style="font-weight:bold;margin:0pt 0pt 12.0pt 56.15pt;text-align:center;text-indent:-36.0pt;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;">Pursuant to Section 13 or
15(d) of the Securities Exchange Act of 1934</font></b></p>

<p style="font-size:10.0pt;font-weight:bold;margin:0pt 0pt 12.0pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:normal;">Date of Report
(Date of earliest event reported): </font></b>February 1, 2007</p>

<p style="font-weight:bold;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;">UTSTARCOM, INC.</font></b></p>

<p align="center" style="margin:0pt 0pt 12.0pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Exact name of registrant
as specified in its charter)</font></p>

<div align="center">

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="31%" valign="top" style="padding:0pt .7pt 0pt .7pt;width:31.74%;">
  <p align="center" style="font-size:10.0pt;margin:0pt 0pt .0001pt;text-align:center;"><!-- SET mrlNoTableShading --><b>Delaware</b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt .7pt;width:2.38%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="31%" valign="top" style="padding:0pt .7pt 0pt .7pt;width:31.74%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">000-29661</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt .7pt;width:2.38%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="31%" valign="top" style="padding:0pt .7pt 0pt .7pt;width:31.74%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">52-1782500</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="31%" valign="top" style="padding:0pt .7pt 0pt .7pt;width:31.74%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(State or other
  jurisdiction of</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt .7pt;width:2.38%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="31%" valign="top" style="padding:0pt .7pt 0pt .7pt;width:31.74%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Commission File
  Number)</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt .7pt;width:2.38%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="31%" valign="top" style="padding:0pt .7pt 0pt .7pt;width:31.74%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(I.R.S. Employer
  Identification No.)</font></p>
  </td>
 </tr>
 <tr>
  <td width="31%" valign="top" style="padding:0pt .7pt 0pt .7pt;width:31.74%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">incorporation)</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt .7pt;width:2.38%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="31%" valign="top" style="padding:0pt .7pt 0pt .7pt;width:31.74%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt .7pt;width:2.38%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="31%" valign="top" style="padding:0pt .7pt 0pt .7pt;width:31.74%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
</table>

</div>

<p align="center" style="margin:24.0pt 0pt .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">1275
Harbor Bay Parkway</font></b></p>

<p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Alameda, California 94502</font></b></p>

<p align="center" style="margin:0pt 0pt 12.0pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Address of principal
executive offices)&#160;&#160;&#160; (Zip code)</font></p>

<p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">(510) 864-8800</font></b></p>

<p align="center" style="margin:0pt 0pt 12.0pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Registrant&#146;s telephone
number, including area code)</font></p>

<p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">N/A</font></b></p>

<p align="center" style="margin:0pt 0pt 12.0pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Former name or former
address, if changed since last report.)</font></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Check the appropriate box below if the Form 8-K filing
is intended to simultaneously satisfy the filing obligation of the registrant
under any of the following provisions (see General Instruction A.2. below):</font></p>

<p style="font-size:10.0pt;margin:0pt 0pt 12.0pt;"><font size="2" face="Wingdings" style="font-size:10.0pt;">o</font>&nbsp;&nbsp;Written
communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</p>

<p style="font-size:10.0pt;margin:0pt 0pt 12.0pt;"><font size="2" face="Wingdings" style="font-size:10.0pt;">o</font>&nbsp;&nbsp;Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</p>

<p style="font-size:10.0pt;margin:0pt 0pt 12.0pt;"><font size="2" face="Wingdings" style="font-size:10.0pt;">o</font>&nbsp;&nbsp;Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))</p>

<p style="font-size:10.0pt;margin:0pt 0pt 12.0pt;"><font size="2" face="Wingdings" style="font-size:10.0pt;">o</font>&nbsp;&nbsp;Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))</p>

<p style="margin:0pt 0pt .0001pt 288.0pt;text-indent:-36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>


 <div style="border:none;border-bottom:double windowtext 6.0pt;padding:0pt 0pt 0pt 0pt;"> <p style="border:none;margin:0pt 0pt .0001pt;padding:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p> </div>
</div><br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Item
2.02&#160;&#160;&#160; </font></b><b>Results of Operations and
Financial Condition.</b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">On February 1, 2007, UTStarcom, Inc. (the &#147;Company&#148;) issued a press
release entitled &#147;UTStarcom Provides Update on Equity Grant Review, and
Announces Expected Restatement of Previously Issued Financial Statements.&#148;&#160; A copy of the press release is furnished as
Exhibit 99.1 to this report.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Item
4.02&#160;&#160;&#160; Non-Reliance on Previously Issued
Financial Statements or a Related Audit Report or Completed Interim Review.</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">As previously disclosed in its current report on Form 8-K filed with
the Securities and Exchange Commission on November 8, 2006, the Company is
undertaking a voluntary review of its historical equity award grant practices
under the direction of the Nominating and Corporate Governance Committee of the
Board of Directors (the &#147;Governance Committee&#148;) and with the assistance of
independent legal counsel and independent accounting consultants.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Although the review is ongoing, the Governance Committee has reached a
determination that incorrect measurement dates for certain stock option grants
were used for financial accounting and disclosure purposes based on the
requirements of Accounting Principles Board Opinion No. 25, Accounting for
Stock Issued to Employees. Following the Governance Committee&#146;s determination,
on February 1, 2007, the Audit Committee of the Board of Directors (the &#147;Audit
Committee&#148;) has determined, in consultation with and upon the recommendation of
the Company&#146;s management, that the effect of using incorrect measurement dates
will result in the need to record additional stock-based compensation charges
in the previously issued financial statements, and that the amount of those
charges is expected to be material.&#160; Any
such charges would have the effect of decreasing net income or increasing net
loss and increasing accumulated deficit as reported in the Company&#146;s historical
financial statements.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Accordingly, on February 1, 2007, the Audit Committee, after
consultation with management, determined that the Company&#146;s previously issued
financial statements for each of the three fiscal years in the period ended
December 31, 2005, which are included in the Company&#146;s Annual Report on Form
10-K/A for the year ended December 31, 2005, the financial statements for the
interim periods contained in the Quarterly Reports on Form 10-Q filed with
respect to each of these years, and the financial statements included in the
Company&#146;s Quarterly Report on Form 10-Q for the first two quarters of 2006,
should no longer be relied upon. In addition, the restatement is currently
expected to affect financial statements for the fiscal years prior to fiscal
2003 and, therefore, financial statements for the fiscal years prior to fiscal
2003 also should no longer be relied upon.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Because the Governance Committee&#146;s investigation is on-going, it has
not yet determined the final aggregate amount of additional stock-based
compensation charges that may need to be recorded in any specific prior periods
or in any future periods. Although the Company is not yet able to determine
with finality the amount of additional non-cash stock-based compensation
charges to be recognized, based on preliminary information the Company expects
to record additional compensation charges of approximately $50 million. The
Company has not yet determined the tax consequences that may result from these
matters or whether such tax consequences will give rise to monetary liabilities
that may have to be satisfied in future periods. The Company does not expect
the restatements to impact previously reported revenues or cash balances.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Governance Committee has not completed its work nor reached final
conclusions and is continuing its review of the circumstances that led to using
incorrect dates in measuring compensation charges from stock option grants.
There can be no assurances that other matters will not come to the </font></p>


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<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">attention
of the Governance Committee during the course of its investigation that will
require additional adjustments to the Company&#146;s financial statements.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company expects to use the Governance Committee&#146;s findings in
evaluating Management&#146;s Report on Internal Control Over Financial Reporting
contained in the Company&#146;s Annual Report on Form 10-K/A for the year ended
December&nbsp;31, 2005 and is considering the impact of this situation on the
Company&#146;s internal control over financial reporting.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The matters discussed in this Current Report on Form 8-K herein have
been discussed with PricewaterhouseCoopers LLP, the Company&#146;s independent
registered public accounting firm, but such firm has not performed review or
auditing procedures on any financial information in on this Form 8-K or the
exhibit hereto.&#160; Any such financial
information is preliminary and is subject to changes that might result from completion
of the Governance Committee&#146;s investigation, management&#146;s review of the
findings of the Governance Committee, and audit by the Company&#146;s independent
registered public accounting firm, but it provides management&#146;s best estimates
based on available information.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Governance Committee is making every effort to complete its
investigation, and the Company will make every effort to file its restated
financial statements as soon as practicable after the completion of the review.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Forward
Looking Statements </font></u></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Information in this Form 8-K regarding the status and determinations
resulting from the Governance Committee&#146;s independent review, the Audit
Committee&#146;s assessment of the results of that review, and Company management&#146;s
estimate of the total amount of additional non-cash stock-based compensation
charges that may be recognized, as well as other expectations and beliefs, are
forward-looking statements that involve risks and uncertainties. All
forward-looking statements included in this Form 8-K are based upon information
available to the Company as of the date of this Form 8-K, which may change, and
we assume no obligation to update any such forward-looking statement. These
statements are not guarantees of future performance and actual results could
differ materially from our current expectations. Factors that could cause or
contribute to such differences include the final conclusions of the Governance
Committee (and the timing of such conclusions) concerning matters relating to
stock option grants and other risks detailed from time to time in UTStarcom&#146;s
SEC reports and filings, including our Annual Report on Form 10-K, Quarterly
Reports on Form 10-Q and Current Reports on Form 8-K.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The independent investigation of the Governance Committee regarding
timing of past stock option grants and other potentially related issues is
ongoing, and the determinations of the Governance Committee, the Audit
Committee and the Company&#146;s management discussed in this Form 8-K are
preliminary. In addition, the investigation and possible conclusions have had
and may in the future have an impact on the amount and timing of previously
awarded stock-based compensation and other additional charges to be recorded;
accounting adjustments to our financial statements for the periods in question;
our ability to file required reports with the SEC on a timely basis; our
ability to meet the requirements of the NASDAQ Global Select Market for
continued listing of our shares; potential claims and proceedings relating to
such matters, including shareholder or employee litigation and action by the
SEC and/or other governmental agencies; and negative tax or other implications
for the Company resulting from any accounting adjustments or other factors.</font></p>


 <p style="margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 74.1pt;page-break-after:avoid;text-indent:-74.1pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Item 9.01</font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></b><b>Financial Statements and
Exhibits.</b></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;font-family:Times New Roman;width:100.0%;">
 <tr style="page-break-inside:avoid;">
  <td width="6%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.98%;">
  <p style="font-size:10.0pt;margin:0pt 0pt .0001pt;"><!-- SET mrlNoTableShading -->(d)</p>
  </td>
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.02%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Exhibits</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="6%" valign="top" style="padding:0pt .7pt 0pt 0pt 0pt .7pt 0pt 0pt;width:6.98%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt 0pt .7pt 0pt 0pt;width:93.02%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="6%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.98%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">99.1</font></p>
  </td>
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.02%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Press release
  entitled &#147;UTStarcom Provides Update on Equity Grant Review, and Announces
  Expected Restatement of Previously Issued Financial Statements.&#148;</font></p>
  </td>
 </tr>
</table>

<p style="margin:0pt 0pt 12.0pt 288.0pt;text-indent:-36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>


 <p style="margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4</font></p>
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<p align="center" style="margin:0pt 0pt 12.0pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">SIGNATURES</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;font-family:Times New Roman;width:100.0%;">
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  <p style="font-size:10.0pt;margin:0pt 0pt .0001pt;"><!-- SET mrlNoTableShading --></p>
  </td>
  <td width="48%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:48.48%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">UTSTARCOM, INC.</font></b></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="51%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:51.52%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="48%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:48.48%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="51%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:51.52%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="48%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:48.48%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="51%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:51.52%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Date: February 1, 2007</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.94%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="41%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:41.54%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ Francis P. Barton</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="51%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:51.52%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.94%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name:</font></p>
  </td>
  <td width="41%" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:41.54%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Francis P. Barton</font></p>
  </td>
 </tr>
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  <td width="51%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:51.52%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.94%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title:</font></p>
  </td>
  <td width="41%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:41.54%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Executive Vice President and Chief <br>
  Financial Officer</font></p>
  </td>
 </tr>
</table>

<p style="margin:0pt 0pt 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>


 <p style="margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p align="center" style="margin:0pt 0pt 12.0pt;text-align:center;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">INDEX TO EXHIBITS</font></u></b></p>

<p align="center" style="margin:0pt 0pt 12.0pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;font-family:Times New Roman;width:100.0%;">
 <tr style="page-break-inside:avoid;">
  <td width="13%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:13.64%;">
  <p align="left" style="font-size:8.0pt;font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;text-align:left;"><!-- SET mrlNoTableShading -->Exhibit Number</p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
  <td width="83%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:83.98%;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;">Exhibit Title</font></b></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="13%" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:13.64%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">99.1</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="83%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:83.98%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Press Release entitled &#147;UTStarcom Provides Update on
  Equity Grant Review, and Announces Expected Restatement of Previously Issued
  Financial Statements.&#148;</font></p>
  </td>
 </tr>
</table>

<p style="margin:0pt 0pt 12.0pt 288.0pt;text-indent:-36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>


 <p style="margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6</font></p>
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<p align="right" style="margin:0pt 0pt 12.0pt;text-align:right;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Exhibit
99.1</font></b></p>

<p align="center" style="margin:0pt 0pt 12.0pt;text-align:center;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">UTSTARCOM PROVIDES UPDATE ON EQUITY GRANT REVIEW,<br>
AND ANNOUNCES EXPECTED RESTATEMENT OF PREVIOUSLY<br>
ISSUED FINANCIAL STATEMENTS</font></b></p>

<p style="margin:6.0pt 0pt 12.0pt;text-autospace:none;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">ALAMEDA, Calif., February 1, 2007 &#151; UTStarcom, Inc.
(Nasdaq: UTSI), a global leader in IP-based, end-to-end networking solutions
and services, today announced an update on the on-going voluntary review of the
Company&#146;s equity grant award practices and related accounting issues.</font></p>

<p style="margin:6.0pt 0pt 12.0pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">As
previously announced on November 7, 2006, the review is being conducted under
the direction of the Board of Directors&#146; Nominating and Corporate Governance
Committee (Governance Committee), comprised solely of independent directors,
with the assistance of its independent legal counsel, Latham &amp; Watkins LLP,
and forensic accounting experts, LECG Corporation. The scope of the Governance
Committee&#146;s review encompasses stock option grants made in the period 2000
through 2006.</font></p>

<p style="margin:6.0pt 0pt 12.0pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Although
the review is ongoing, the Governance Committee has reached a determination
that incorrect measurement dates for certain stock option grants were used for
financial accounting and disclosure purposes based on the requirements of
Accounting Principles Board Opinion No. 25, Accounting for Stock Issued to
Employees. Following the Governance Committee&#146;s determination, on February 1,
2007, the Audit Committee of the Board of Directors (Audit Committee) has
determined, in consultation with and upon the recommendation of the Company&#146;s
management, that the effect of using incorrect measurement dates will result in
the need to record additional stock-based compensation charges in the
previously issued financial statements, and that the amount of those charges
are expected to be material. Any such charges would have the effect of
decreasing net income or increasing net loss and increasing accumulated deficit
as reported in the Company&#146;s historical financial statements.</font></p>

<p style="margin:6.0pt 0pt 12.0pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Accordingly,
on February 1, 2007, the Company&#146;s Audit Committee after consultation with
management, determined that the Company&#146;s previously issued financial statements
for each of the three fiscal years in the period ended December 31, 2005, which
are included in the Company&#146;s Annual Report on Form 10-K/A for the year ended
December 31, 2005, the financial statements for the interim periods contained
in the Quarterly Reports on Form 10-Q filed with respect to each of these
years, and the financial statements included in the Company&#146;s Quarterly Report
on Form 10-Q for the first two quarters of 2006, should no longer be relied
upon. In addition, the restatement is currently expected to affect financial
statements for fiscal years prior to fiscal 2003 and, therefore, financial
statements for fiscal years prior to fiscal 2003 also should no longer be
relied upon.</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:6.0pt 0pt 12.0pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Because
the Governance Committee&#146;s investigation is on-going, it has not yet determined
the final aggregate amount of additional stock-based compensation charges that
may need to be recorded in any specific prior periods or in any future periods.
Although the Company is not yet able to determine with finality the amount of
additional non-cash stock-based compensation charges to be recognized, based on
preliminary information the Company expects to record additional compensation
charges of </font>approximately
$50 million. The Company has not yet determined the tax consequences
that may result from these matters or whether such tax consequences will give
rise to monetary liabilities that may have to be satisfied in future periods.
The Company does not expect the restatements to impact previously reported
revenues or cash balances.</p>

<p style="margin:6.0pt 0pt 12.0pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The
Governance Committee has not completed its work nor reached final conclusions
and is continuing its review of the circumstances that led to using incorrect
dates in measuring compensation charges from stock option grants. There can be
no assurances that other matters will not come to the attention of the
Governance Committee during the course of its investigation that will require
additional adjustments to the Company&#146;s financial statements.</font></p>

<p style="margin:6.0pt 0pt 12.0pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The
Company expects to use the Governance Committee&#146;s findings in evaluating
Management&#146;s Report on Internal Control Over Financial Reporting contained in
the Company&#146;s Annual Report on Form 10-K/A </font></p>


 <p style="margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p style="margin:6.0pt 0pt 12.0pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">for
the year ended December&nbsp;31, 2005 and is considering the impact of this
situation on the Company&#146;s internal control over financial reporting.</font></p>

<p style="margin:6.0pt 0pt 12.0pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The
matters discussed herein have been discussed with PricewaterhouseCoopers LLP,
the Company&#146;s independent registered public accounting firm, but such firm has
not performed review or auditing procedures on any financial information in
this release. Such financial information is preliminary and is subject to
changes that might result from completion of the Governance Committee&#146;s
investigation, management&#146;s review of the findings of the Governance Committee,
and audit by the Company&#146;s independent registered public accounting firm, but
it provides management&#146;s best estimates based on available information.</font></p>

<p style="margin:6.0pt 0pt 12.0pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The
Governance Committee is making every effort to complete its investigation, and
the Company will make every effort to file its restated financial statements as
soon as practicable after the completion of the review.</font></p>

<p style="margin:12.0pt 0pt;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">About
UTStarcom, Inc.</font></b></p>

<p style="margin:.05pt 0pt 12.0pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">UTStarcom
is a global leader in IP-based, end-to-end networking solutions and
international service and support. The company sells its broadband, wireless,
and handset solutions to operators in both emerging and established
telecommunications markets around the world. UTStarcom enables its customers to
rapidly deploy revenue-generating access services using their existing infrastructure,
while providing a migration path to cost-efficient, end-to-end IP networks.
Founded in 1991 and headquartered in Alameda, California, the company has
research and design operations in the United States, Canada, China, Korea and
India. UTStarcom is a FORTUNE 1000 company.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Forward Looking Statements</font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Information in
this release regarding the status and determinations resulting from the
Governance Committee&#146;s independent review, the Audit Committee&#146;s assessment of
the results of that review, and Company management&#146;s estimate of the total
amount of additional non-cash stock-based compensation charges that may be
recognized, as well as other expectations and beliefs, are forward-looking
statements that involve risks and uncertainties. All forward-looking statements
included in this release are based upon information available to the Company as
of the date of this release, which may change, and we assume no obligation to
update any such forward-looking statement. These statements are not guarantees
of future performance and actual results could differ materially from our
current expectations. Factors that could cause or contribute to such
differences include the final conclusions of the Governance Committee (and the
timing of such conclusions) concerning matters relating to stock option grants
and other risks detailed from time to time in UTStarcom&#146;s SEC reports and
filings, including our Annual Report on Form 10-K, Quarterly Reports on Form
10-Q and Current Reports on Form 8-K.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The independent
investigation of the Governance Committee regarding timing of past stock option
grants and other potentially related issues is ongoing, and the determinations
of the Governance Committee, the Audit Committee and the Company&#146;s management
discussed in this release are preliminary. In addition, the investigation and
possible conclusions have had and may in the future have an impact on the
amount and timing of previously awarded stock-based compensation and other
additional charges to be recorded; accounting adjustments to our financial
statements for the periods in question; our ability to file required reports
with the SEC on a timely basis; our ability to meet the requirements of the
NASDAQ Global Select Market for continued listing of our shares; potential
claims and proceedings relating to such matters, including shareholder or
employee litigation and action by the SEC and/or other governmental agencies;
and negative tax or other implications for the Company resulting from any
accounting adjustments or other factors.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>


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