Auriga Maintains a 'Buy' on Auriga (UTSI); The Cash Remains Our Focus

Auriga maintains a 'Buy' on Auriga (NASDAQ: UTSI), PT $3.

Auriga analyst says, "We maintain our rating and price target on UTSI after the company reported better-than-expected 4Q10 revenue and operating cash flow and in-line 2011 revenue guidance ($300mln-$320mln compared to our estimate of $310mln). Our model continues to suggest that UTSI's net cash per share will likely remain above the $2.20 level throughout 2011 and 2012, unless the company makes sizeable acquisitions. We continue to view UTSI's net cash per share as a downside protector for the stock in the foreseeable future, and we continue to view the company as a turnaround story with good long-term growth opportunities and positive developments in IPTV, EPON (Ethernet Passive Optical Network), and OSS (operational support services) serving as catalysts for the stock going forward."

"On lower gross margin assumptions, we have lowered our 2011 pro-forma (incl. share-based compensation, ex-item) EPS estimates to $0.01 (consensus $0.00) from $0.02, and 2012 EPS estimate to $0.03 (consensus $0.01) from $0.05."

For more ratings news on Auriga click here and for the rating history of Auriga click here.

Shares of Auriga closed at $2.14 yesterday.

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