Recruiting in China

COLORADO SPRINGS, Colo. — After completing a strategic-alternatives review launched in October, network equipment vendor UTStarcom Inc. has rejected proposals for selling the company or splitting it apart. But the company has replaced the chief executive of its China operations, Ying Wu, over what the board considered "differing opinions regarding the company's strategy to enhance shareholder value," according to a statement.

Hong Lu, CEO of UTStarcom, will oversee China operations until a new chief is found for that business.

UTStarcom is headquartered in Alameda, Calif., but was founded in China and has continued to realize most of its network equipment sales there. The company has developed a broad range of network infrastructure equipment for both wireline and wireless networks, ranging from cellular basestation controllers to optical transport and Internet Protocol switching systems. It made a concerted effort to break into the North American market following the telecom crash of 2001 but gained only moderate success, even as sales stagnated in China. Layoffs in 2005 and 2006 led to October's strategic review.

In a prepared statement, UTStarcom chairman Thomas Toy said the best method of maximizing shareholder value was to "move forward with the company as it exists today."