On August 8, 2024, Universal Electronics Inc (UEIC, Financial) released its 8-K filing detailing the financial results for the second quarter of 2024. Universal Electronics Inc is a United States-based company that principally designs, develops, manufactures, ships, and supports control and sensor technology solutions and a broad line of universal control systems, audio-video (AV) accessories, wireless security, and smart home products.
Performance Overview
For the second quarter of 2024, Universal Electronics Inc (UEIC, Financial) reported GAAP net sales of $90.5 million, a decrease from $107.4 million in the same period last year. The company also reported a GAAP net loss of $8.2 million, or $0.63 per share, compared to a net loss of $10.4 million, or $0.81 per share, in the second quarter of 2023. These results fell short of analyst estimates, which had projected earnings per share of -$0.30 and revenue of $95.10 million.
Key Financial Metrics
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| GAAP Net Sales | $90.5 million | $107.4 million |
| GAAP Gross Margin | 28.7% | 22.9% |
| GAAP Operating Loss | $4.5 million | $9.1 million |
| GAAP Net Loss | $8.2 million | $10.4 million |
| Cash and Cash Equivalents | $23.1 million | $42.8 million |
Challenges and Achievements
Universal Electronics Inc (UEIC, Financial) faced several challenges during the quarter, including a decline in net sales and continued excess manufacturing overhead costs due to the transition of its global manufacturing footprint. Despite these hurdles, the company achieved a significant improvement in its gross margin, which increased by 580 basis points to 28.7% compared to the prior year quarter.
"Our innovative wireless control solutions and patented technologies continue to capture design wins from major global household brands across all areas of the business," said UEI Chairman and CEO Paul Arling. "We have nearly completed our two-year plan to optimize our global manufacturing footprint, which has yielded significantly higher margins."
Income Statement Highlights
For the three months ended June 30, 2024, Universal Electronics Inc (UEIC, Financial) reported a GAAP operating loss of $4.5 million, compared to $9.1 million in the same period last year. The GAAP net loss for the quarter was $8.2 million, or $0.63 per share, compared to $10.4 million, or $0.81 per share, in the second quarter of 2023.
Balance Sheet and Cash Flow
As of June 30, 2024, the company had cash and cash equivalents of $23.1 million, down from $42.8 million at the end of December 2023. During the second quarter, Universal Electronics Inc (UEIC, Financial) repurchased approximately 27,000 shares in the open market for $0.3 million.
Financial Outlook
Looking ahead, Universal Electronics Inc (UEIC, Financial) expects GAAP net sales for the third quarter of 2024 to range from $98.0 million to $108.0 million, compared to $107.1 million in the third quarter of 2023. The company also anticipates a GAAP loss per share between $0.33 and $0.23, compared to a GAAP loss per share of $1.50 in the third quarter of 2023.
For more detailed information, please refer to the 8-K filing.
Explore the complete 8-K earnings release (here) from Universal Electronics Inc for further details.
