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Universal Electronics(UEIC) - 2024 Q2 - Quarterly Results
UEICUniversal Electronics(UEIC)2024-08-08 20:04

Financial Performance - GAAP net sales for Q2 2024 were 90.5million,downfrom90.5 million, down from 107.4 million in Q2 2023, representing a decrease of approximately 15.9%[3] - For the first half of 2024, GAAP net sales were 182.4million,downfrom182.4 million, down from 215.8 million in the same period of 2023, a decrease of approximately 15.4%[4] - Net sales for Q2 2024 were 90,452thousand,adecreaseof1690,452 thousand, a decrease of 16% compared to 107,391 thousand in Q2 2023[16] - The company expects Q3 2024 GAAP net sales to range from 98.0millionto98.0 million to 108.0 million, compared to 107.1millioninQ32023[5]−ThecompanyexpectsGAAPnetsalesforthethreemonthsendingSeptember30,2024,torangebetween107.1 million in Q3 2023[5] - The company expects GAAP net sales for the three months ending September 30, 2024, to range between 98,000 thousand and 108,000thousand,comparedto108,000 thousand, compared to 107,095 thousand for the same period in 2023[22] Profitability and Loss - GAAP net loss for Q2 2024 was 8.2million,or8.2 million, or 0.63 per share, compared to a net loss of 10.4million,or10.4 million, or 0.81 per share in Q2 2023, showing an improvement of 21.2%[3] - Operating loss for Q2 2024 was (4,453)thousand,animprovementfrom(4,453) thousand, an improvement from (9,132) thousand in Q2 2023[16][19] - Net loss for Q2 2024 was (8,193)thousand,comparedtoanetlossof(8,193) thousand, compared to a net loss of (10,411) thousand in Q2 2023[16] - The company anticipates being profitable in the second half of 2024 and expects consistent sales and earnings growth into 2025 and beyond[2] - Diluted earnings per share (GAAP) for the three months ending September 30, 2024, are projected to be between (0.33)and(0.33) and (0.23), an improvement from (1.50)inthesameperiodof2023[22]GrossMarginandProfitabilityMetrics−GAAPgrossmarginincreasedto28.7(1.50) in the same period of 2023[22] Gross Margin and Profitability Metrics - GAAP gross margin increased to 28.7% in Q2 2024, up 580 basis points from 22.9% in Q2 2023[3] - The gross margin for the first half of 2024 was 28.5%, an increase from 22.9% in the first half of 2023[4] - Gross profit increased to 25,952 thousand in Q2 2024, up from 24,617thousandinQ22023,resultinginagrossmarginof28.724,617 thousand in Q2 2023, resulting in a gross margin of 28.7%[16][19] - GAAP gross margin for the three months ended June 30, 2024, included 1.4 million of excess manufacturing overhead costs, impacting gross margin by 160 basis points[20] - The company incurred 2.6millioninexcessmanufacturingcostsforthesixmonthsendedJune30,2024,whichaffectedgrossmarginby140basispoints[20]CashandCashEquivalents−CashandcashequivalentsasofJune30,2024,were2.6 million in excess manufacturing costs for the six months ended June 30, 2024, which affected gross margin by 140 basis points[20] Cash and Cash Equivalents - Cash and cash equivalents as of June 30, 2024, were 23.1 million, down from 42.8millionattheendof2023[15]−CashandcashequivalentsattheendofQ22024were42.8 million at the end of 2023[15] - Cash and cash equivalents at the end of Q2 2024 were 23,128 thousand, a decrease from 55,823thousandattheendofQ22023[17]−Netcashprovidedbyoperatingactivitiesforthefirstsixmonthsof2024was55,823 thousand at the end of Q2 2023[17] - Net cash provided by operating activities for the first six months of 2024 was 2,675 thousand, compared to 13,255thousandinthesameperiodof2023[17]OperatingExpenses−TotaloperatingexpensesforQ22024were13,255 thousand in the same period of 2023[17] Operating Expenses - Total operating expenses for Q2 2024 were 30,405 thousand, down from 33,749thousandinQ22023[19]−ResearchanddevelopmentexpensesforQ22024were33,749 thousand in Q2 2023[19] - Research and development expenses for Q2 2024 were 7,520 thousand, down from 8,484thousandinQ22023[16]−AdjustedNon−GAAPoperatinglossforQ22024was8,484 thousand in Q2 2023[16] - Adjusted Non-GAAP operating loss for Q2 2024 was (1,147) thousand, an improvement from (4,534)thousandinQ22023[19]ShareRepurchaseandRestructuring−Thecompanyrepurchasedapproximately27,000sharesfor(4,534) thousand in Q2 2023[19] Share Repurchase and Restructuring - The company repurchased approximately 27,000 shares for 0.3 million during Q2 2024[3] - The company is undergoing factory restructuring, with costs of 1.6millionassociatedwiththeclosureofitssouthwesternChinafactoryanddownsizingofitsMexicofactory[20]−Thecompanyincurredfactoryrestructuringchargesof1.6 million associated with the closure of its southwestern China factory and downsizing of its Mexico factory[20] - The company incurred factory restructuring charges of 1,555 thousand in Q2 2024, with no such charges reported in Q2 2023[19] Adjusted Non-GAAP Metrics - Adjusted Non-GAAP earnings per diluted share for Q3 2024 are expected to range from 0.01to0.01 to 0.11, compared to 0.06inQ32023[5]−AdjustedNon−GAAPnetincomeforthesixmonthsendedJune30,2024,was0.06 in Q3 2023[5] - Adjusted Non-GAAP net income for the six months ended June 30, 2024, was (4,610) thousand, a decrease from (8,839)thousandinthesameperiodof2023,reflectinga47.9(8,839) thousand in the same period of 2023, reflecting a 47.9% improvement[20] - Total adjustments for diluted earnings per share (GAAP) for the three months ended September 30, 2024, are expected to be 0.34, consistent with the previous year[22]