JANUARY 2, 2007 -- It's steady as she goes at UTStarcom Inc. (search for UTStarcom). The company announced it is still examining its options but that nothing has changed for now -- including the man running the company.
"We continue to move forward on the strategic alternatives process we announced on October 11 as we explore options that will increase the company's value for UTStarcom shareholders," said Thomas Toy, lead director of the company's board of directors. "Until this process is complete, the board of directors has asked Hong Lu to continue as the company's president and chief executive officer and remain a member of the board of directors."
On December 18, 2006, Lu, president and CEO of UTStarcom Inc., received a "Wells Notice" from the staff of the U.S. Securities and Exchange Commission in connection with an ongoing investigation into trading activities by third parties.
The Wells notice states that the staff intends to recommend to the commission that it file a civil injunctive action alleging that Lu violated Section 10(b) of the Securities Exchange Act of 1934. Under the commission's procedures, the recipient of a Wells notice has the opportunity to respond to the staff before the staff makes its formal recommendation to the commission.