exporting from the exporter perspective

1

Exporting from the Exporting from the Exporter PerspectiveExporter Perspective

Long Island ImportExport Association

May 15th, 2008

2

OverviewOverview

• Who is UTStarcom? • Customer Base• Sales vs. Operations • Corporate Responsibility• Examples • When is it worth it?

3

Who is UTStarcom?Who is UTStarcom?

UTStarcom is a global leader in the manufacture, integration and support of IP-based, end-to-end networking and telecommunications solutions.

UTStarcom Personal Communications Division- Importer and distributor of Wireless Products and Accessories

4

Our Domestic CustomersOur Domestic Customers

5

While Importing is the Focus..While Importing is the Focus..

Sales Diversification is key to our businessSales Diversification is key to our business

66

Export Customer BaseExport Customer Base

7

SALES vs. OPERATIONS

Now the Battle BeginsNow the Battle Begins

What is our Responsibility?What is our Responsibility?• Know our Customer (Denied Party?)• Where are they from? Where are the products going?• Address / Headquarters• How Long in Business?• Website - If they are a carrier, who else supplies products for them?• How are they planning on promoting our products?• Sales Team is vouching for them, but I always ask questions!• Keep educating the sales teams

Greater Focus on Each RegionGreater Focus on Each Region• What is going on in each Country we ship to?

•War•Political Unrest •Elections•Strikes / Labor Strife•Customs Delays•Cargo Back Logs•Currency Fluctuations / Changes•Weather / Natural Disasters

•This will help structure your deal (Incoterms)•Are you going to get paid?

10

Movilnet / VenezuelaMovilnet / Venezuela• Life with Hugo Chavez has not been easy• But Movilnet is a strong customer• 2 years ago…no cargo landings for 3 days in Caracas (American Aircraft Only)• Changed Venezuela’s Currency• Free Time in Caracas from 6 to 10 days• Combat Theft / Pilferage• Forwarder / Airline / Broker Approved document

11

Bolivia / The New ChallengeBolivia / The New Challenge

• Land locked country (Ocean Cargo a problem)• Un-chartered Territory for UT • Received plenty of “RED-TAPE” info already• Government Control of National Airline• No lift Capacity until June 1st, 2008• Time to check out the scales of business sense

12

Scales of Business SenseScales of Business Sense

• Total Employee Hours• Payments• Risk Factors• Relationship Potential• This could be the big one• How many headaches?

• Fits overall budget• Prepaid? / Letter Credit• Incoterms / Region Fit• Quarterly Buyer • 20% Profit Margin• Headaches are Manageable

13

Conclusion:Conclusion:• Exporting is a key component of the UT Model• Do your research because it is your responsibility

• Respect your sales team, they need you as much as you need them (I’ll never let them know)

• Figure out what the Cost vs. Benefit is doing business in different regions

• Keep Educating your teams and stay on top of current events.

14

Contact Info:

PJ Moffett

International Logistics Manager / Customs Compliance

555 Wireless Boulevard Hauppauge NY 11788

Tel# 631-233-3396

pj@utstar.com