Universal Electronics Inc (UEIC, Financial) released its financial results for the third quarter of 2023 on November 2, 2023. The company reported a decrease in GAAP net sales and gross margins compared to the same period in 2022. Despite the decrease, UEIC's Board of Directors authorized a stock repurchase program for up to one million shares, indicating confidence in the company's future performance.
Financial Performance
UEIC's GAAP net sales for Q3 2023 were $107.1 million, a significant decrease from $148.5 million in Q3 2022. The company's GAAP gross margins also decreased to 19.1% in Q3 2023, compared to 29.9% in the same period last year. The GAAP operating loss was $14.0 million, compared to a GAAP operating income of $11.5 million in Q3 2022.
Stock Repurchase Program
Despite the decrease in net sales and gross margins, UEIC's Board of Directors authorized a stock repurchase program for up to one million shares. This move demonstrates the company's confidence in its future performance and its commitment to delivering shareholder value.
Operational Efficiency
UEIC's CFO Bryan Hackworth stated that the company is executing its plan to control costs and optimize its manufacturing footprint. The new facility in Vietnam is meeting its production efficiency targets, which enabled the closure of the southwestern China factory in September, approximately one quarter earlier than expected. These initiatives have positioned UEIC to achieve improved operating efficiencies in the fourth quarter of 2023 and 2024.
Financial Tables
The financial tables provided in the earnings report detail UEIC's income statement, balance sheet, and cash flow statement. As of September 30, 2023, the company had cash and cash equivalents of $60.1 million. For the first nine months of 2023, cash flows provided by operating activities were $20.1 million, which was used to reduce the net debt position to only $15 million by quarter end and to strengthen the balance sheet to support growth.
Outlook
For the fourth quarter of 2023, UEIC expects GAAP net sales to range between $95.0 million and $105.0 million, compared to $122.8 million in the fourth quarter of 2022. GAAP loss per share for the fourth quarter of 2023 is expected to range from $0.51 to $0.41, compared to a GAAP loss per share of $0.54 in the fourth quarter of 2022.
Explore the complete 8-K earnings release (here) from Universal Electronics Inc for further details.
