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<SEC-DOCUMENT>0001104659-07-070879.txt : 20071126
<SEC-HEADER>0001104659-07-070879.hdr.sgml : 20071126
<ACCEPTANCE-DATETIME>20070924163934
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0001104659-07-070879
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20070924

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:		CORRESP

	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
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<p align="center" style="margin:0pt 0pt 12.0pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">September 24, 2007</font></p>

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

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Mr.
Robert S. Littlepage<br>
Accountant Branch Chief<br>
Mail Stop 3720<br>
United States Securities and Exchange Commission<br>
100 F Street, N.E.<br>
Washington, D.C. 20549</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt .0001pt;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Re:</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></b><b>UTStarcom, Inc.</b></p>

<p style="margin:0pt 0pt 12.0pt 72.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Item 4.02 Form 8-K<br>
Filed September 18, 2007<br>
File No. 000-29661</font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Dear
Mr. Littlepage:</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;">This letter responds to the comment of the staff (the &#147;Staff&#148;) of the
Securities and Exchange Commission (the &#147;Commission&#148; or the &#147;SEC&#148;) in its
letter dated September 18, 2007 related to the Item 4.02 Current Report on Form
8-K filed by UTStarcom, Inc. (the &#147;Company&#148;) on September 18, 2007 (the &#147;Form
8-K&#148;).&#160; The following responses are
provided to your inquiries.&#160; For ease of
reference, we have repeated the Staff&#146;s comment in the comment letter in bold
type and followed the comment with the Company&#146;s response.</font></p>

<h1 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">1.</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>We
note that you intend to file restated financial statements.&#160; Please tell us how, and when, you will file
them.</b></h1>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Response:</font></b>&#160; The
Company intends to file restated financial statements in its Annual Report on
10-K for the year ended December 31, 2006 (the &#147;Form 10-K&#148;) as soon as
reasonably practicable following completion of the examination of these matters
by the Company and completion of the audit of those statements by its independent
registered public accounting firm. &#160;The
Company is currently targeting the filing date for the Form 10-K to be on or
about October 15, 2007.</p>

<p style="margin:0pt 0pt 12.0pt 36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The restatements will include giving
recognition to adjustments arising from the findings of an independent investigation
of our historic stock option granting practices (which have been reported on the
Company&#146;s Current Report on Form 8-K dated July 24, 2007), as well as more
recent findings from an ongoing independent investigation by the Company&#146;s
Audit Committee of historic sales contracts with some of the Company&#146;s
customers in China. &#160;The investigative
phase of the China sales investigation has just concluded as reported in the
Form 8-K cited in your letter. &#160;The investigative
phase identified matters relating to revenue recognized in the period from 2000
through 2006. &#160;As a result, the Company
has determined that a portion of its revenue previously recorded in one of the
Company&#146;s regions in China was recognized earlier than it should have been and
that the financial statements for the affected periods should be restated to
defer that revenue until the Company can demonstrate that it has met all of its
obligations under the contracts.&#160; The
Company is now working to verify and quantify the findings of the independent
counsel and forensic accountants engaged by the Company&#146;s Audit Committee in
connection with its independent investigation.&#160;
However, at this time the Company has not yet been able to conclude this
process and ascertain the effects on its previously issued financial </font></p>

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<p style="margin:0pt 0pt 12.0pt 36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">statements. &#160;Additionally, once this information is available,
the results of this work will be subject to audit.</font></p>

<p style="margin:0pt 0pt 12.0pt 36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Similarly, the precise manner in which the
Company will meet its filing obligations under the Securities and Exchange Act
of 1934 is currently under discussion with the Company&#146;s legal counsel, and no
decisions have yet been made. &#160;The
Company is aware, of course, of the guidance issued by the Staff in a letter
issued by the Chief Accountant of the Division of Corporation Finance in
January 2007 concerning presenting information about the effects of restating
previously issued financial statements for errors in prior stock option
accounting, and is taking this guidance into account in these discussions.</font></p>

<h1 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">2.</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Your
disclosures provide little quantitative and qualitative insight into the
significance of your misstatements.&#160;
Please amend your filing to disclose, in greater detail, including a
brief description of the facts behind the restatements.&#160; Also, disclose at least, an estimated range
of the value of the errors you have discovered to date that resulted in your
determination that your financial statements filed for the referenced periods
should no longer be relied upon.&#160; Refer
to Instructions to Item 4.02 (a)(2) of Form 8 K.</b></h1>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Response:</font></b>&#160; The
Form 8-K was filed to disclose the conclusion reached by the Audit Committee of
the Board of Directors, after consultation with management, that certain
previously issued financial statements should not be relied upon as the low end
of the range of the estimated error could be quantitatively significant.&#160; In accordance with Item 4.02(a) (2) of Form
8-K, the Company provided a brief description of the facts underlying the
conclusion to the extent known to the Company at the time of filing. &#160;However, the Company believes the aggregate
amount and financial statement effects of the issues discovered in the China
sales investigation is not yet reasonably estimable because, as mentioned
above, the analysis of the data by the Company is still ongoing. &#160;The Company believes that the current estimated
range of the potential adjustment is so wide that it is not meaningful.&#160; As a result, the Company believes disclosure
of such a wide range in the Form 8-K would be too speculative and, as such,
would not be helpful to investors and may in fact be misleading. &#160;Therefore, the Company respectfully submits
that the Form 8-K should not be amended to include such information at this
time.</p>

<p style="margin:0pt 0pt 12.0pt 36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">As noted in the response to Comment 1 above
and discussed with Mr. Andrew Mew of the Staff on September 19, 2007, the
Company intends to file restated financial statements and additional
information concerning the restatements in its 2006 Form 10-K as soon as
reasonably practicable following completion of the review of these matters by
the Company and the audit by its independent registered public accounting firm.&#160; The Company is currently targeting the filing
date for the Form 10-K to be on or about October 15, 2007.&#160; The Company respectfully submits that because
the Form 10-K containing restated financial statements will be filed soon after
completion of the restatement process which we expect to be in the near-term,
no amendment to the Form 8-K is warranted.&#160;
However, if, after the completion of the review of the restatements,
there should be unforeseen delays in the filing of the Form 10-K, the Company
would revisit the need to file an amendment to the Form 8-K at such time.</font></p>

<p align="center" style="margin:12.0pt 0pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">*&#160;&#160; *&#160;&#160;
*&#160;&#160; *</font></p>

<p style="margin:12.0pt 0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In connection with this
letter, the Company hereby acknowledges that:</font></p>

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<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 54.0pt;text-indent:-18.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the
Company is responsible for the adequacy and accuracy of the disclosure in the
filing;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:12.0pt 0pt 12.0pt 54.0pt;text-indent:-18.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Staff comments or changes to
disclosure in response to staff comments do not foreclose the Commission from
taking any action with respect to the filing; and</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:12.0pt 0pt 12.0pt 54.0pt;text-indent:-18.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the Company may not assert Staff
comments as a defense in any proceeding initiated by the Commission or any
person under the federal securities laws of the United States.</p>

<p style="margin:12.0pt 0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Please
acknowledge receipt of this letter by file-stamping the additional copy of this
letter with the date of receipt and returning it to the undersigned in the
envelope provided for your convenience.</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;">Please call the undersigned at (510) 769-2890 if you should have any
further comments or questions concerning this matter.</font></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="64%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:64.2%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="35%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:35.8%;">
  <p style="font-size:10.0pt;margin:0pt 0pt .0001pt;"><!-- SET mrlNoTableShading -->Sincerely,</p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="64%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:64.2%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="35%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:35.8%;">
  <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="64%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:64.2%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="35%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:35.8%;">
  <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="64%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:64.2%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="27%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:27.52%;">
  <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>
  <td width="8%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:8.28%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="64%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:64.2%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="35%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:35.8%;">
  <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>
 <tr style="page-break-inside:avoid;">
  <td width="64%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:64.2%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="35%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:35.8%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Executive Vice
  President</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="64%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:64.2%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="35%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:35.8%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">and Chief
  Financial Officer</font></p>
  </td>
 </tr>
</table>

<p style="line-height:1.0pt;margin:0pt 0pt 12.0pt;"><font size="1" face="Times New Roman">&nbsp;</font></p>

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