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CASH, CASH EQUIVALENTS AND INVESTMENTS (Tables)

12 Months Ended

Dec. 31, 2013

CASH, CASH EQUIVALENTS AND INVESTMENTS

Schedule showing break-down of the Company's total long-term investments

		Accounting Method		December 31, 2013			December 31, 2012
				(in thousands)
Cortina		Cost Method		$	3,348		$	3,348
GCT SemiConductor, Inc.		Cost Method			811			811
Xalted Networks		Cost Method			22			279
SBI		Cost Method			1,900			2,306
iTV Media Inc.(1)		Cost Method			—			14,894
​	​	​	​	​	​	​	​	​	​
Investment using Cost Method Total					6,081			21,638
​	​	​	​	​	​	​	​	​	​
ACELAND		Equity Method			2,109			2,109
Beijing Bodashutong Technology		Equity Method			—			577
iTV Media Inc.(1)		Equity Method			5,308			—
Shareholder Loan to ACELAND		Equity Method			7,119			7,119
​	​	​	​	​	​	​	​	​	​
Investment using Equity Method Total					14,536			9,805
​	​	​	​	​	​	​	​	​	​
iTV Media Inc.		Available for sale			25,971			3,000
AioTV		Available for sale			8,000			8,000
UTStarcom Hong Kong Holdings Ltd		Available for sale			20,000			20,000
​	​	​	​	​	​	​	​	​	​
Investments Classified as available-for-sale Total					53,971			31,000
​	​	​	​	​	​	​	​	​	​
Total Investment				$	74,588		$	62,443
​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​

(1)

On January 2, 2013, iTV issued another convertible bond to the Company for cash in the principal amount of $5.0 million with a maturity date of December 31, 2013 (extended to December 31, 2015), which triggered a reassessment of the Company's previous cost method accounting for its investment in the preference shares. Due to the additional convertible bond investment, the preference shares of iTV Media owned by the Company now substantively participated in the risks and rewards of iTV Media, irrespective of the liquidation preferences, and were considered as in-substance common stock. Therefore, the Company concluded the equity method criteria had been met and the equity accounting commenced in the first quarter of 2013.

CASH, CASH EQUIVALENTS AND INVESTMENTS

Summary of condensed financial information of iTV Media

		(Unaudited) Condensed Year Ended December 31, 2011			(Unaudited) Condensed Year Ended December 31, 2012			Condensed Year Ended December 31, 2013
		(In thousands)			(In thousands)			(In thousands)
Operating data:
Revenue		$	159		$	165		$	1,984
Gross profit		$	(243	)	$	(1,835	)	$	(3,164	)
Loss from operations		$	(5,795	)	$	(13,210	)	$	(16,354	)
Net loss		$	(5,953	)	$	(13,460	)	$	(18,170	)
Net loss attributable to non-controlling interest		$	(36	)	$	(663	)	$	(2,228	)

		(Unaudited) Year Ended December 31, 2011			(Unaudited) Year Ended December 31, 2012			Year Ended December 31, 2013
		(In thousands)			(In thousands)			(In thousands)
Balance sheet data:
Current assets		$	13,693		$	4,849		$	8,712
Long-term assets		$	28,133		$	30,151		$	37,538
Current liabilities		$	(1,867	)	$	(5,325	)	$	(1,384	)
Long-term liabilities		$	(20,341	)	$	(23,371	)	$	(56,047	)
Non-controlling interests		$	(16	)	$	584		$	2,822

Summary of available-for-sales investments:

		Amortized cost			Realized Losses for More Than 12 months			Estimated fair value
		(in thousands)
Convertible bonds of privately-held company		$	55,113		$	9,142		$	45,971
Preferred convertible shares of privately-held company			8,000			—			8,000
​	​	​	​	​	​	​	​	​	​	​
Total available-for-sales Investments		$	63,113		$	9,142		$	53,971
​	​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​	​

Schedule of financial assets measured and recognized at fair value on a recurring basis and classified under the appropriate level of the fair value hierarchy

		Level 1			Level 2			Level 3			Total
		(in thousands)
As of December 31, 2013
Short-term investment		$	—		$	—		$	—		$	—
​	​	​	​	​	​	​	​	​	​	​	​	​	​
Long-term investment		$	—		$	—		$	53,971		$	53,971
​	​	​	​	​	​	​	​	​	​	​	​	​	​
As of December 31, 2012
Short-term investment		$	296		$	—		$	—		$	296
​	​	​	​	​	​	​	​	​	​	​	​	​	​
Long-term investment		$	—		$	—		$	31,000		$	31,000
​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​

Schedule of roll-forward of financial assets using unobservable inputs (Level 3)

		Amount In thousands
As of December 31, 2011		$	—
​	​	​	​	​
Invested in Preferred Shares			8,000
Invested in Convertible bond			23,000
Less: Impairment Charge			—
​	​	​	​	​
As of December 31, 2012			31,000
​	​	​	​	​
Invested in Convertible bond			32,113
Less: Impairment Charge			(9,142	)
​	​	​	​	​
As of December 31, 2013		$	53,971
​	​	​	​	​
​	​	​	​	​

UTStarcom Hong Kong Holdings Ltd.

CASH, CASH EQUIVALENTS AND INVESTMENTS

Schedule of significant inputs for the valuation model used to estimate fair value of investments

		Years Ended December 31
Total fair value of Invested capital as at valuation date			38,000
Risk free rate of interest			1.99%
Dividend Yield			3%
Maturity Date			2017/8/30
Volatility			62%

iTV

CASH, CASH EQUIVALENTS AND INVESTMENTS

Schedule of significant inputs for the valuation model used to estimate fair value of investments

		Years Ended December 31
Total fair value of Invested capital as at valuation date			$32,000
Risk free rate of interest			1.0%
Dividend Yield			0%
Maturity Date			2015/12/31
Volatility			64.3%

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