Telecommunication company UTStarcom Inc. said Thursday its loss narrowed in the fourth quarter, as it continued restructuring to focus on IP-based technology.

For the three months ending Dec. 31, the company lost $39 million, or 31 cents per share. That compared to a loss of $81 million, or 65 per share in the year-ago period.

Quarterly sales were $116 million, down from $241 million the same time last year. However, the cost of sales also came down to $81.4 million, down from $211.2 million.

Operating expenses totaled $75.6 million, compared to $109.2 million in the fourth quarter of 2008. Expenses for the latest quarter included a $33 million impairment charge related to the sale and lease-back agreement of the company's Hangzhou facility in China.

Gross margins for the fourth quarter 2009 were 30 percent, compared to 12 percent in the fourth quarter of 2008.

For the full year, the company lost $226 million, or $1.77 per share, as compared to a loss of $150 million, or $1.22 per share in 2008.

Shares of UTStarcom rose 3 cents, or 1.4 percent, to $2.18.

 source:businessweek