Contacts: Paul Arling (UEI) 714.820.1000
Becky Herrick (IR Agency) 415.433.3777
CYPRESS, CA – August 2, 2012 – Universal Electronics Inc. (UEI), (NASDAQ: UEIC) reported financial results for the three and six months ended June 30, 2012.
“Our second quarter 2012 results were solid and in-line with our expectations for both the Business and Consumer Categories,” stated Paul Arling, UEI’s Chairman and CEO. “We remain committed to pursuing our core philosophy of winning new customers and deepening existing relationships as well as introducing innovative, yet simple solutions to the ever-changing home entertainment environment.”
“We have established UEI as a leader in control technology, currently supplying approximately one-third of all remote controls shipped annually on the planet. Today, there are several new applications for our pervasive control technology, including smartphones and tablets. In addition, UEI is developing an integrated solution that recognizes all the various components in the audio video stack; automatically knows how they operate and how they are connected, and gives consumers the power to control all these devices using a traditional remote control or a more interactive control app on their tablet or smartphone. This solution exemplifies UEI’s commitment to innovation. We will continue to provide the products and technology that address our customers’ future needs–a strategy that has proven successful for years.”
Financial Results for the Three Months Ended June 30: 2012 Compared to 2011
- Net sales were $116.7 million, compared to $121.7 million.
- Business Category revenue was $103.9 million, compared to $111.1 million. The Business Category contributed 89% of total net sales, compared to 91%.
- Consumer Category revenue was $12.8 million, compared to $10.6 million. The Consumer Category contributed 11% of total net sales, compared to 9%.
- Adjusted pro forma gross margins were 28.5%, compared to gross margins of 28.9%.
- Adjusted pro forma operating expenses were $25.5 million, compared to operating expenses of $25.6 million.
- Adjusted pro forma operating income was $7.7 million, compared to operating income of $9.6 million.
- Adjusted pro forma net income was $6.2 million, or $0.41 per diluted share, compared to net income of $7.1 million, or $0.46 per diluted share.
- At June 30, 2012, cash and cash equivalents was $30.7 million.
Financial Results for the Six Months Ended June 30: 2012 Compared to 2011
- Net sales were $220.4 million, compared to $227.5 million.
- Adjusted pro forma gross margins were 28.1%, compared to gross margins of 27.7%.
- Adjusted pro forma operating expenses were $50.3 million, compared to operating expenses of $50.0 million.
- Adjusted pro forma operating income was $11.5 million, compared to operating income of $13.1 million.
- Adjusted pro forma net income was $9.0 million, or $0.60 per diluted share, compared to net income of $9.7 million, or $0.63 per diluted share.
Financial Outlook For the third quarter of 2012, the company expects net sales to range between $122.0 million and $128.0 million, compared to $123.5 million in the third quarter of 2011. Adjusted pro forma earnings per diluted share for the third quarter of 2012 are expected to range from $0.47 to $0.57, compared to earnings per diluted share of $0.53 in the third quarter of 2011.
For the full 2012 year, the company continues to expect net sales to range between $465.0 million and $485.0 million, compared to $468.6 million in 2011. Adjusted pro forma earnings per diluted share for 2012 are expected to range from $1.55 to $1.75, compared to adjusted pro forma earnings per diluted share of $1.55 in 2011.
Conference Call Information UEI’s management team will hold a conference call today, Thursday, August 2, 2012 at 4:30 p.m. ET / 1:30 p.m. PT, to discuss its second quarter 2012 earnings results, review recent activity and answer questions. To access the call in the U.S. please dial 877-655-6895 and for international calls dial 706-758-0299 approximately 10 minutes prior to the start of the conference. The conference ID is 12768924. The conference call will also be broadcast live over the Internet and available for replay for one year atwww.uei.com. In addition, a replay of the call will be available via telephone for two business days, beginning two hours after the call. To listen to the replay, in the U.S., please dial 855-859-2056 and internationally, 404-537-3406. Enter access code 12768924.
Use of Non-GAAP Financial Metrics Non-GAAP gross margins, Non-GAAP operating expenses, and Non-GAAP net income and earnings per share are supplemental measures of the company’s performance that are not required by, and are not presented in accordance with GAAP. The non-GAAP information does not substitute for any performance measure derived in accordance with GAAP. Non-GAAP gross profit is defined as gross profit excluding charges related to the write-up of inventory and depreciation related to the acquisition. Non-GAAP operating expenses is defined as cash operating expenses excluding acquisition costs, amortization of intangibles and other employee related restructuring costs. Non-GAAP net income is net income from operations excluding the aforementioned items. A reconciliation of Non-GAAP financial results to GAAP results is included at the end of this press release.
About Universal Electronics Inc. Founded in 1986, Universal Electronics Inc. (UEI) is the global leader in wireless control technology for the connected home. UEI designs, develops, and delivers innovative solutions that enable consumers to control entertainment devices, digital media, and home systems. The company’s broad portfolio of patented technologies and database of infrared control software have been adopted by many Fortune 500 companies in the consumer electronics, subscription broadcast, and computing industries. UEI sells and licenses wireless control products through distributors and retailers under the One For All® brand name. For additional information, please visit our website at www.uei.com.
Safe Harbor Statement This press release contains forward-looking statements that are made pursuant to the Safe-Harbor provisions of the Private Securities Litigation Reform Act of 1995. Words and expressions reflecting something other than historical fact are intended to identify forward-looking statements. These forward-looking statements involve a number of risks and uncertainties, including the benefits anticipated by the Company due to the Company’s ability to gain market share; the Company’s ability to attract new customers and retain and expand our relationships with its existing customers; acceptance by consumers of the Company’s innovative tablet and smartphone applications; general economic conditions; the strength and growth prospects of the consumer electronics and broader retail industries; and other factors described in the Company’s filings with the U.S. Securities and Exchange Commission. The actual results that the Company achieves may differ materially from any forward looking statement due to such risks and uncertainties. The Company undertakes no obligations to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release.