It converts the texture maps and creates either a material or pose file (I forget which).   The software does not create a new figure.

I, too, with the Universal Texture Converter software maker would update his product.  It was easier to use.  This new one requires making a figure with the texture map and saving the .CR2 to import for coverting the texture.  Universal Texture Converter loaded from the pose files.  You could also load the texture maps independently so you could change out the eyes, makeup, etc. maps to convert without having to go back to the pose file.  You could also opt to only convert only some of the maps--particularly helpful when converting eyes--which makes for faster converting.

At least Dawn can share V4's texture with the new product.