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Universal Electronics(UEIC) - 2024 Q3 - Quarterly Results
UEICUniversal Electronics(UEIC)2024-11-07 21:05

Financial Performance - Third quarter 2024 GAAP net sales were 102.1million,adecreasefrom102.1 million, a decrease from 107.1 million in the same quarter of 2023[3] - GAAP gross margins improved to 30.1%, up from 19.1% year-over-year[3] - GAAP operating income was 0.4million,comparedtoalossof0.4 million, compared to a loss of 14.0 million in Q3 2023[3] - GAAP net loss for Q3 2024 was 2.7million,or2.7 million, or 0.20 per share, significantly improved from a loss of 19.4million,or19.4 million, or 1.50 per share, in Q3 2023[3] - For the nine months ended September 30, 2024, GAAP net sales were 284.4million,downfrom284.4 million, down from 322.9 million in the same period of 2023[4] - GAAP gross margins for the nine months increased to 29.1%, compared to 21.6% in 2023[4] - The company expects fourth quarter 2024 GAAP net sales to range from 99.0millionto99.0 million to 109.0 million, compared to 97.6millioninQ42023[5]−AdjustedNon−GAAPearningsperdilutedshareforQ42024areexpectedtorangefrom97.6 million in Q4 2023[5] - Adjusted Non-GAAP earnings per diluted share for Q4 2024 are expected to range from 0.10 to 0.20,comparedtoalossof0.20, compared to a loss of 0.04 in Q4 2023[6] - The company anticipates year-over-year growth in both top and bottom lines for Q4 2024 and full year 2025[2] Cash and Assets - Cash and cash equivalents as of September 30, 2024, were 26.3million[3]−Totalcurrentassetsdecreasedto26.3 million[3] - Total current assets decreased to 237,265,000 as of September 30, 2024, down from 258,851,000asofDecember31,2023,adeclineof8.3258,851,000 as of December 31, 2023, a decline of 8.3%[17] - Total liabilities decreased to 160,069,000 as of September 30, 2024, down from 176,952,000asofDecember31,2023,areductionof9.5176,952,000 as of December 31, 2023, a reduction of 9.5%[17] - Cash and cash equivalents at the end of the period were 26,287,000, down from 42,751,000atthebeginningoftheperiod,adecreaseof38.542,751,000 at the beginning of the period, a decrease of 38.5%[20] Operating Activities - Net cash provided by operating activities for the nine months ended September 30, 2024, was 8,339,000, compared to 20,076,000forthesameperiodin2023,adecreaseof58.620,076,000 for the same period in 2023, a decrease of 58.6%[20] - Research and development expenses for the three months ended September 30, 2024, were 7,338,000, slightly down from 7,658,000forthesameperiodin2023[18]−Thecompanyincurredfactoryrestructuringchargesof7,658,000 for the same period in 2023[18] - The company incurred factory restructuring charges of 104,000 in the three months ended September 30, 2024, compared to 3,690,000inthesameperiodin2023[18]LossandEarnings−Thecompanyreportedanetlossof3,690,000 in the same period in 2023[18] Loss and Earnings - The company reported a net loss of 19,500,000 for the nine months ended September 30, 2024, compared to a net loss of 91,136,000forthesameperiodin2023,indicatinganimprovement[20]−BasicearningspersharefortheninemonthsendedSeptember30,2024,were91,136,000 for the same period in 2023, indicating an improvement[20] - Basic earnings per share for the nine months ended September 30, 2024, were (1.51), compared to (7.10)forthesameperiodin2023[19]−AdjustedNon−GAAPnetincomeforQ32024was(7.10) for the same period in 2023[19] - Adjusted Non-GAAP net income for Q3 2024 was 1,361,000, compared to a loss of 658,000inQ32023[23]FutureExpectations−ThecompanyexpectsQ42024netsalestorangebetween658,000 in Q3 2023[23] Future Expectations - The company expects Q4 2024 net sales to range between 99,000,000 and 109,000,000,comparedto109,000,000, compared to 97,594,000 in Q4 2023[26] - Diluted earnings per share (GAAP) for Q4 2024 are projected to be between (0.27)and(0.27) and (0.17)[26] - Adjusted Non-GAAP diluted earnings per share for Q4 2024 are expected to be between 0.10and0.10 and 0.20[26] Impairments and Adjustments - The company incurred a goodwill impairment charge of $49.1 million in 2023 due to market capitalization issues[25] - The three months ended December 31, 2024 and 2023 included adjustments for stock-based compensation expense and amortization of acquired intangibles[2] - Costs associated with certain litigation efforts and factory restructuring were also accounted for in the financial results[2] - Foreign currency gains and losses impacted the financial performance during the three months ended December 31, 2024 and 2023[2] - The three months ended December 31, 2023 included adjustments for severance costs[2]