Universal Electronics (UEIC) came out with a quarterly loss of $0.12 per share versus the Zacks Consensus Estimate of a loss of $0.15. This compares to loss of $0.19 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 20%. A quarter ago, it was expected that this remote control maker would post earnings of $0.14 per share when it actually produced earnings of $0.20, delivering a surprise of 42.86%.Over the last four quarters, the ...

Universal Electronics (UEIC) Q1 2025 Earnings Call May 08, 2025 04:30 PM ET Speaker0 Good afternoon. My name is Kelly, and I will be your conference operator today. Now I would like to welcome everyone to Universal Electronics First Quarter twenty twenty five Financial Results Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session. I will now turn today's conference over to Kirsten Chapman of Alliance Advi ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q _______________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 Delaware 33-0204817 (State or Other Jurisdiction of Incorporation or Organization) OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 0-21044 ...

Chairman of the Board Eric Singer said, "We are pleased to have added key skill sets to our Board in recent weeks with the addition of John Mutch and Michael Burger. The Board is laser focused on improving financial performance and driving enhanced stockholder value while we continue to provide state of the art technology and first class service to our global customers." Financial Results for the Three Months Ended March 31: 2025 Compared to 2024 Financial Outlook Exhibit 99 Universal Electronics Reports Fi ...

Sales and Market Presence - UEI's sales to Daikin Industries Ltd. accounted for 13.3%, 14.0%, and 14.4% of net sales for the years ended December 31, 2024, 2023, and 2022, respectively [26]. - The company has a strong presence in the global market, serving four of the top five global smart TV brands and five of the top ten HVAC OEM brands [24]. - The company has expanded its customer base to include digital media streaming services, complementing traditional cable and satellite customers [39]. - Major customers, such as Daikin Industries Ltd. and Comcast Corporation, accounted for over 10% of net sales in recent years, indicating a reliance on a few key clients [118]. Product Development and Innovation - UEI's flagship product, QuickSet, enables universal device and content discovery, supporting various communication protocols including HDMI, Bluetooth, and Zigbee [27]. - The latest release of QuickSet, QuickSet homeSense, is currently in proof of concept evaluation on broadband gateway platforms from major telcos in the U.S. and Europe [32]. - The UEI TIDE family of smart thermostats integrates with HVAC systems and supports cloud connectivity, Bluetooth, Zigbee, and Matter standards [34]. - New products launched in 2024 include features such as QuickSet homeSense for occupancy detection and support for Thread and Matter protocols, enhancing interoperability [55]. - The company has invested in R&D to improve energy efficiency, deploying low energy IR-engine technology to extend battery life in products [80]. - The company aims to expand QuickSet Cloud software penetration in the TV OS market through new features like content personalization and privacy-first presence detection [212]. Financial Performance - The company reported a significant increase in revenue, achieving $1.5 billion in Q3 2023, representing a 15% year-over-year growth [110]. - User data indicates a 25% increase in active users, reaching 10 million by the end of Q3 2023 [110]. - The company anticipates a revenue growth of 10% for the next quarter, projecting $1.65 billion in Q4 2023 [110]. - Net sales decreased by 6.1% to $394.9 million in 2024 from $420.5 million in 2023 [208]. - Gross profit percentage increased to 28.9% in 2024 from 23.2% in 2023 [208]. - Operating expenses as a percentage of sales decreased to 32.7% in 2024 from 43.5% in 2023 [208]. - Operating loss was $15.3 million in 2024 compared to $85.3 million in 2023, with an operating loss percentage of 3.9% in 2024 versus 20.3% in 2023 [208]. Environmental and Sustainability Initiatives - The company is committed to reducing greenhouse gas emissions and has signed a Commitment Letter to the Science Based Targets Initiative (SBTi) in April 2024 [71]. - The company’s commitment to environmentally sustainable solutions includes the UEI Eterna line, which utilizes energy harvesting technologies [33]. - The company has established an executive-level Environmental Working Group to integrate environmental considerations throughout the product lifecycle [83]. - The company has implemented a product refurbishment program to reclaim, refurbish, and recycle pre-owned remote controls [81]. - The company has replaced volatile organic compounds emitting inks and paints with reduced-VOC paints at some manufacturing facilities [79]. Manufacturing and Supply Chain - The company has diversified its manufacturing footprint, opening a new factory in Vietnam in June 2023 and ceasing operations in certain PRC facilities [66]. - Manufacturing operations are located in multiple countries, including the PRC, Vietnam, Mexico, and Brazil, with reliance on third-party manufacturers posing potential risks [121]. - The largest integrated circuit supplier accounted for 11.5% of total inventory purchases in 2022, with no suppliers exceeding 10% in 2023 or 2024 [69]. - Supply chain disruptions are being monitored closely, with contingency plans in place to mitigate potential impacts on operations [110]. - The cost of raw materials and energy has experienced volatility, with recent increases in prices for silicon and plastic packaging potentially affecting earnings [178]. Compliance and Regulatory Risks - The company is compliant with the RoHS and REACH directives in the European Union, ensuring products meet environmental regulations [79]. - The company is exposed to risks related to international trade policies, including tariffs on goods imported from the PRC and Mexico, which may impact demand and margins [145]. - Compliance with climate change regulations may result in additional costs and affect competitiveness [144]. - The company operates in multiple jurisdictions, facing complex legal and regulatory compliance risks that could lead to significant liabilities [151]. - Anti-corruption laws and trade sanctions could increase operational costs and limit growth opportunities, potentially harming the company's reputation [150]. Strategic Growth and Acquisitions - The company plans to engage in strategic acquisitions and partnerships as part of its long-term growth strategy, with successful integration being crucial for realizing expected returns [136]. - The company is exploring potential acquisitions to bolster its technology portfolio, with a budget of $100 million allocated for this purpose [110]. - The company plans to build a long-term revenue pipeline by engaging with top 10 major HVAC OEMs for product design wins [212]. Cybersecurity and Data Protection - Cybersecurity measures are being enhanced, with an investment of $10 million to protect customer data and company assets [110]. - The company has developed cybersecurity risk management processes to identify and mitigate risks related to cybersecurity threats [181]. - The Board of Directors oversees cybersecurity strategies, with the Audit Committee responsible for reviewing risk management strategies and compliance [185]. Workforce and Labor Relations - Labor unions represent approximately 12.0% of the company's workforce, with unionized workers in Mexico and Brazil [90]. - The company has achieved Silver VAP Recognition Level in the RBA Validated Assessment Program audit in July 2024, reflecting its commitment to ethical labor practices [72]. - The company requires 50% of high-risk suppliers to complete an on-site third-party RBA VAP audit as part of its supplier risk assessment process [73]. - The company faces intense competition for qualified talent in the technology industry, which may impact its ability to attract and retain key employees [137]. Market Trends and Consumer Demand - The climate control industry is experiencing increased demand for smart thermostats driven by government incentives for energy-efficient technologies [42]. - The company has identified a 30% increase in demand for home automation products, driving strategic focus in this area [110]. - The home security and automation industry is highly competitive, with significant pricing pressures from established brands and DIY providers, which may affect market share and profitability [134].

Financial Data and Key Metrics Changes - In Q4 2024, the company reported net sales of $110.5 million, a 13% increase from $97.6 million in Q4 2023, exceeding guidance [26] - Adjusted non-GAAP gross profit was $31.4 million, representing 28.4% of sales, compared to 28.5% in Q4 2023 [29] - Net income for Q4 2024 was $2.6 million or $0.20 per diluted share, compared to a net loss of $500,000 or $0.04 per share in Q4 2023 [30] Business Line Data and Key Metrics Changes - The connected home business saw increased momentum with new product shipments, particularly in climate control, contributing to revenue growth [11][13] - Home entertainment, including video service providers, showed slight growth in TV demand, particularly in North America and Western Europe, with improved order patterns [15] Market Data and Key Metrics Changes - The company is gaining traction in the connected home market, building relationships with major OEM brands in North America, Europe, and Asia [13] - Video subscriber declines at key accounts narrowed, reflecting new pricing and packaging strategies [15] Company Strategy and Development Direction - The company is focused on the connected home market, leveraging new technologies like QuickSet HomeSense and UEI TIDE platforms to enhance customer engagement and operational efficiency [18][21] - Management emphasized the importance of innovation and customer satisfaction in driving long-term growth, particularly in HVAC and home automation sectors [35][86] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the connected home market's growth potential, citing a strong pipeline of new projects and customer interest [35][96] - The company is cautious about economic uncertainties but remains committed to its growth projections for 2025 and beyond [36][62] Other Important Information - The company will no longer exclude certain manufacturing overhead costs from its adjusted non-GAAP figures, impacting gross profit and margins [8][25] - Legal matters regarding a court ruling against Roku were discussed, with the company planning to pursue further legal actions in 2025 [49][50] Q&A Session Summary Question: Details on climate control products and revenue recognition - Management explained that due to accounting rule changes, revenue for certain climate control products was recognized in Q4 2024 despite shipment occurring in Q1 2025, resulting in an additional $4 million in revenue for Q4 [39][40] Question: Guidance implications on expenses and gross margin - Management indicated that while Q1 typically sees lower production volumes affecting gross margins, the full-year outlook for gross margin remains unchanged at approximately 30% [42][43] Question: Customer concentration numbers - The company reported that Daikin accounted for 13.4% and Comcast for 10.7% of sales in Q4 [47] Question: Impact of tariffs on outlook - Management noted that tariffs are a complex issue but indicated that the company has already mitigated risks associated with production in China and is working on strategies for potential tariffs in the Americas [55][56] Question: Growth drivers for the year - Management highlighted that growth is expected from HVAC control and connected home products, with significant opportunities in the HVAC market [81][86] Question: Production capabilities in Vietnam - Management confirmed that the facility in Vietnam is capable of producing both home entertainment and connected home products, allowing for flexibility in production [70] Question: Enhanced monetization opportunities - Management discussed new technologies showcased at CES that could enhance monetization for OEMs by increasing user engagement and optimizing device functionality [72][75] Question: Future growth in HVAC business - Management expressed confidence that the connected home business, particularly HVAC, will become a significant part of the company's revenue in the coming years [94][96]

Company Performance - Universal Electronics reported quarterly earnings of $0.20 per share, exceeding the Zacks Consensus Estimate of $0.14 per share, and up from $0.07 per share a year ago, representing an earnings surprise of 42.86% [1] - The company posted revenues of $110.45 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 8.61%, compared to year-ago revenues of $97.59 million [2] - Over the last four quarters, Universal Electronics has surpassed consensus EPS estimates two times and topped consensus revenue estimates two times [2] Stock Performance - Universal Electronics shares have declined approximately 12.3% since the beginning of the year, while the S&P 500 has gained 4.5% [3] - The current consensus EPS estimate for the coming quarter is $0.15 on revenues of $101.8 million, and for the current fiscal year, it is $0.68 on revenues of $431.9 million [7] Industry Outlook - The Electronics - Miscellaneous Products industry, to which Universal Electronics belongs, is currently ranked in the bottom 48% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Universal Electronics' stock performance [5]

Financial Performance - GAAP net sales for Q4 2024 were $110.5 million, a 13% increase from $97.6 million in Q4 2023[5] - For the full year 2024, GAAP net sales were $394.9 million, down from $420.5 million in 2023[5] - Net sales for Q4 2024 increased to $110,454 thousand, up 12.5% from $97,594 thousand in Q4 2023[20] - For the twelve months ended December 31, 2024, net sales were $394,879 million, down from $420,457 million in 2023, representing a decline of 6.1%[25] Income and Loss - Adjusted Non-GAAP net income for Q4 2024 was $2.6 million, or $0.20 per diluted share, compared to a net loss of $0.5 million, or $0.04 per share in Q4 2023[5] - Adjusted Non-GAAP net income for Q4 2024 was $2,624 million, a significant improvement from a loss of $(482) million in Q4 2023[27] - The company reported a GAAP net loss of $(4,529) million for Q4 2024, compared to a loss of $(7,102) million in Q4 2023[27] - Net loss for the year ended December 31, 2024, was $24,029 thousand, significantly reduced from $98,238 thousand in 2023[20] Margins and Profitability - GAAP gross margins for the full year 2024 improved to 28.9%, compared to 23.2% in 2023[5] - Adjusted Non-GAAP gross profit for Q4 2024 was $31,356 million, up from $27,870 million in Q4 2023, reflecting a gross margin of 28.4%[25] - Operating loss for the year was $15,297 thousand, an improvement from a loss of $85,301 thousand in 2023[20] - Operating loss for Q4 2024 was $(4,354) million, compared to $(2,612) million in Q4 2023, indicating a worsening operational performance[25] Cash and Assets - Cash and cash equivalents as of December 31, 2024, were $26.8 million[5] - Cash and cash equivalents decreased to $26,783 thousand at the end of 2024, down from $42,751 thousand at the end of 2023[22] - Total assets decreased to $323,354 thousand in 2024, down from $355,872 thousand in 2023[18] - Total liabilities decreased to $170,249 thousand in 2024, compared to $176,952 thousand in 2023[18] Future Projections - The company expects Q1 2025 GAAP net sales to range between $87.0 million and $97.0 million, compared to $91.9 million in Q1 2024[7] - Adjusted Non-GAAP loss per share for Q1 2025 is projected to be between $0.21 and $0.11, an improvement from a loss of $0.26 per share in Q1 2024[8] - The company is committed to maintaining projections for top and bottom-line growth for full-year 2025 and beyond[2] Research and Development - Research and development expenses for the year were $29,723 thousand, a decrease from $31,281 thousand in 2023[20] Shareholder Information - The company issued 366,557 additional shares, increasing total common stock to 25,712,940 shares in 2024[18] Product Development - The company showcased new products at CES 2025, focusing on consumer privacy and on-device AI processing, which received strong interest from customers[2] Cost Management - UEI's ongoing cost initiatives contributed to significant improvement in bottom line results compared to the prior year quarter[2] - The company incurred $4.5 million in excess manufacturing costs for the twelve months ended December 31, 2024, impacting gross margin by 110 basis points[27] Goodwill Impairment - Goodwill impairment of $49.1 million was recorded in 2023 due to market capitalization being significantly less than the carrying value of equity[29]

Company Overview - Universal Electronics (UEIC) shares increased by 7.4% to close at $9.76, following a notable trading volume, contrasting with a 10.5% loss over the past four weeks [1] - The company is experiencing growth due to strong customer relationships, product development initiatives, and market share expansion in the connected home and home entertainment markets [1] Earnings Expectations - Universal Electronics is projected to report quarterly earnings of $0.14 per share, reflecting a year-over-year increase of 100% [2] - Expected revenues for the upcoming quarter are $101.7 million, which is a 4.2% increase compared to the same quarter last year [2] Stock Performance Insights - The consensus EPS estimate for Universal Electronics has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [3] - The stock currently holds a Zacks Rank of 3 (Hold), suggesting a neutral outlook [3] Industry Context - Universal Electronics is part of the Zacks Electronics - Miscellaneous Products industry, which includes TD SYNNEX (SNX) [3] - TD SYNNEX's consensus EPS estimate has decreased by 1.5% over the past month to $2.87, representing a 4% decline compared to the previous year [4] - TD SYNNEX also holds a Zacks Rank of 3 (Hold) [4]

Core Insights - Investors in the Electronics - Miscellaneous Products sector should consider Universal Electronics (UEIC) and Garmin (GRMN) for potential value opportunities [1] Valuation Metrics - Universal Electronics has a forward P/E ratio of 15.07, while Garmin has a forward P/E of 27.98 [5] - UEIC has a PEG ratio of 1, indicating a favorable expected EPS growth rate, compared to Garmin's PEG ratio of 1.30 [5] - UEIC's P/B ratio is 0.83, significantly lower than Garmin's P/B of 5.48, suggesting that UEIC is undervalued relative to its book value [6] Zacks Rank and Value Grades - Universal Electronics holds a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while Garmin has a Zacks Rank of 3 (Hold) [3] - UEIC has a Value grade of B, whereas Garmin has a Value grade of D, reflecting stronger valuation metrics for UEIC [6][7] Conclusion - Given the stronger estimate revision activity and more attractive valuation metrics, Universal Electronics is positioned as the superior option for value investors at this time [7]