Financial Performance - Third quarter 2024 GAAP net sales were $102.1 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 $0.4 million, compared to a loss of $14.0 million in Q3 2023[3] - GAAP net loss for Q3 2024 was $2.7 million, or $0.20 per share, significantly improved from a loss of $19.4 million, or $1.50 per share, in Q3 2023[3] - For the nine months ended September 30, 2024, GAAP net sales were $284.4 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 $99.0 million to $109.0 million, compared to $97.6 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, 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 $26.3 million[3] - Total current assets decreased to $237,265,000 as of September 30, 2024, down from $258,851,000 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 $176,952,000 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 $42,751,000 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 $20,076,000 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 $7,658,000 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 $3,690,000 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 $91,136,000 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) for the same period in 2023[19] - Adjusted Non-GAAP net income for Q3 2024 was $1,361,000, compared to a loss of $658,000 in Q3 2023[23] Future Expectations - The company expects Q4 2024 net sales to range between $99,000,000 and $109,000,000, 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 $(0.17)[26] - Adjusted Non-GAAP diluted earnings per share for Q4 2024 are expected to be between $0.10 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]

Company Overview - Universal Electronics (UEIC) shares increased by 8.5% to $9.29 in the last trading session, following a period of 6.5% loss over the past four weeks, indicating a significant recovery in stock performance [1] - The company is experiencing growth due to expanding customer relationships and increasing design wins in the connected home and home entertainment markets [1] Earnings Expectations - The upcoming quarterly earnings report for Universal Electronics is expected to show earnings of $0.15 per share, reflecting a year-over-year increase of 87.5% [2] - Revenue is projected to be $102.57 million, which is a decrease of 4.2% compared to the same quarter last year [2] Earnings Estimate Revisions - The consensus EPS estimate for Universal Electronics has been revised down by 123.1% over the last 30 days, which typically does not correlate with price appreciation [3] - The stock currently holds a Zacks Rank of 3 (Hold), indicating a neutral outlook [3] Industry Comparison - Universal Electronics is part of the Zacks Electronics - Miscellaneous Products industry, where another company, Hayward Holdings, Inc. (HAYW), has a Zacks Rank of 2 (Buy) and reported an unchanged EPS estimate of $0.10, representing an 11.1% increase year-over-year [4]

Universal Electronics Inc. (NASDAQ:UEIC) Q2 2024 Earnings Conference Call August 8, 2024 4:30 PM ET Company Participants Kirsten Chapman - LHA Investor Relations Paul Arling - Chairman & Chief Executive Officer Bryan Hackworth - Chief Financial Officer Conference Call Participants Steven Frankel - Rosenblatt Securities Greg Burns - Sidoti Operator Good day, and thank you for standing by. Welcome to the Universal Electronics Second Quarter 2024 Financial Results Conference Call. At this time, all participant ...

Universal Electronics Inc. Q2 2024 Results as of June 30, 2024 reported on August 8, 2024 SAFE HARBOR STATEMENT This presentation contains "forward-looking statements" within the meaning of federal securities laws, including net sales, profit margin and earnings trends, estimates and assumptions; our expectations about new product introductions; and similar statements concerning anticipated future events and expectations that are not historical facts. We caution you that these statements are not guarantees ...

Universal Electronics (UEIC) came out with a quarterly loss of $0.09 per share versus the Zacks Consensus Estimate of a loss of $0.04. This compares to loss of $0.06 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -125%. A quarter ago, it was expected that this remote control maker would post a loss of $0.24 per share when it actually produced a loss of $0.19, delivering a surprise of 20.83%. Over the last four quarters, the ...

Financial Performance - Net sales for the three months ended June 30, 2024, were $90,452,000, down 16.0% from $107,391,000 for the same period in 2023[32] - Total net sales for the six months ended June 30, 2024, were $182,352,000, down 15.5% from $215,768,000 for the same period in 2023[32] - For the three months ended June 30, 2024, the net loss was $8.19 million, compared to a net loss of $10.41 million for the same period in 2023, representing a 21% improvement[99] - The basic earnings (loss) per share for the three months ended June 30, 2024, was $(0.63), an improvement from $(0.81) in the same period of 2023[99] - The net loss for the six months ended June 30, 2024, was $16.8 million, an improvement from a net loss of $71.8 million in the same period of 2023, which included a goodwill impairment of $49.1 million[134] Cash and Liquidity - Total cash and cash equivalents decreased from $42,751,000 on December 31, 2023, to $23,128,000 on June 30, 2024, representing a decline of approximately 46.1%[31] - The company had a revolving line of credit with a maximum availability of $100 million, with total availability of $53.1 million as of June 30, 2024, based on the accounts receivable coverage ratio[56] - Net cash provided by operating activities was $2.7 million for the six months ended June 30, 2024, compared to $13.3 million for the same period in 2023, a decrease of 80%[134] - Cash used for financing activities totaled $15.8 million for the six months ended June 30, 2024, compared to $13.9 million in the same period of 2023[136] - The company had an outstanding balance of $41.0 million on its Credit Line as of June 30, 2024, with $12.1 million available for borrowing[133] Assets and Liabilities - Accounts receivable, net, decreased from $112,596,000 on December 31, 2023, to $98,800,000 on June 30, 2024, a decline of approximately 12.3%[36] - Inventories totaled $87,491,000 as of June 30, 2024, slightly down from $88,273,000 on December 31, 2023, indicating a decrease of 0.9%[39] - Total long-lived tangible assets decreased from $63.3 million at December 31, 2023, to $55.2 million at June 30, 2024, representing a decline of approximately 12.9%[42] - Total lease liabilities decreased from $17.4 million at December 31, 2023, to $14.8 million at June 30, 2024, a reduction of approximately 15%[50] - The allowance for credit losses decreased from $815,000 on December 31, 2023, to $799,000 on June 30, 2024, reflecting a reduction of 2.0%[37] Expenses and Costs - Depreciation expense for the three months ended June 30, 2024, was $3.3 million, down from $4.8 million for the same period in 2023, indicating a reduction of 31.3%[43] - Selling, general and administrative expenses decreased to $21.3 million for the three months ended June 30, 2024, compared to $25.3 million for the same period in 2023[121] - Research and development expenses decreased to $7.5 million for the three months ended June 30, 2024, down from $8.5 million for the same period in 2023[120] - The company recognized a total of $4.2 million in factory restructuring charges since September 2023, with no further expenses expected from this plan[69] - Universal Electronics incurred $0.9 million in severance and $0.6 million in other exit costs during the three months ended June 30, 2024, related to downsizing its factory in Mexico[70] Shareholder Actions - As of June 30, 2024, the company has repurchased a total of 195,000 shares, costing $1.841 million, compared to 58,000 shares repurchased in the same period in 2023[87] - The company has 778,362 shares available for repurchase under the October 2023 Program, which allows for the repurchase of up to 1,000,000 shares[86] - The company expects to recognize $6.9 million of total unrecognized pre-tax stock-based compensation expense related to non-vested restricted stock awards over a weighted-average life of 2.0 years[90] - For the six months ended June 30, 2024, the total employee and director stock-based compensation expense was $3.364 million, a decrease from $4.698 million in the same period of 2023[89] - The company granted 322,000 non-vested restricted stock awards with a weighted-average grant date fair value of $10.38 during the six months ended June 30, 2024[90] Legal and Regulatory Matters - The company is involved in ongoing litigation against Roku, with a significant ruling from the ITC affirming that Roku infringes its patents, leading to a Limited Exclusion Order effective January 9, 2022[73] - Roku has filed multiple Inter Partes Review requests, with the PTAB granting twelve and denying fourteen requests to date, resulting in mixed outcomes regarding the validity of the company's patent claims[76] - The CIT issued a preliminary injunction in July 2021 suspending liquidation of all unliquidated entries subject to Lists 3 and 4A duties, with ongoing proceedings regarding the USTR's authority to impose these tariffs[81] - The company filed a complaint against the U.S. government regarding Section 301 Tariffs on imports from China, alleging violations of the Trade Act and the Administrative Procedures Act[79] - The company deposited RMB 35 million (approximately $4.8 million) with the court in response to a lawsuit filed by Tongshun Company, which is included in prepaid expenses[83] Market and Economic Conditions - The company expects to continue to be negatively impacted by adverse macroeconomic conditions, including reduced consumer spending and inflationary pressures[113] - The company anticipates continued challenges related to supply chain issues and economic conditions, which may impact future performance[105] - The company plans to broaden its home control and home automation product offerings to acquire new customers and expand its market share[111] - Significant customer Daikin Industries Ltd. accounted for 14.3% of net sales in the three months ended June 30, 2024, up from 12.6% in the same period of 2023[34] - Days sales outstanding increased to 91 days as of June 30, 2024, compared to 83 days in the same period of 2023[134]

Financial Performance - GAAP net sales for Q2 2024 were $90.5 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 $182.4 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 $90,452 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 $98.0 million to $108.0 million, compared to $107.1 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 $108,000 thousand, compared to $107,095 thousand for the same period in 2023[22] Profitability and Loss - GAAP net loss for Q2 2024 was $8.2 million, or $0.63 per share, compared to a net loss of $10.4 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, an improvement from $(9,132) thousand in Q2 2023[16][19] - Net loss for Q2 2024 was $(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 $(0.23), an improvement from $(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 $24,617 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 $2.6 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 $42.8 million at the end of 2023[15] - Cash and cash equivalents at the end of Q2 2024 were $23,128 thousand, a decrease from $55,823 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 $13,255 thousand in the same period of 2023[17] Operating Expenses - Total operating expenses for Q2 2024 were $30,405 thousand, down from $33,749 thousand in Q2 2023[19] - Research and development expenses for Q2 2024 were $7,520 thousand, down from $8,484 thousand in Q2 2023[16] - Adjusted Non-GAAP operating loss for Q2 2024 was $(1,147) thousand, an improvement from $(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 $1.6 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 $0.01 to $0.11, compared to $0.06 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) 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]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q _______________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 0-21044 _______________________________________ UNIVERSAL ELECTRONICS INC. (Exact Name of R ...

Universal Electronics Inc. (NASDAQ:UEIC) Q1 2024 Earnings Conference Call May 2, 2024 4:30 PM ET Company Participants Kirsten Chapman - LHA Investor Relations Paul Arling - Chief Executive Officer Bryan Hackworth - Chief Financial Officer Conference Call Participants Gregory Burns - Sidoti & Company, LLC Bill Dezellem - Tieton Capital Management Benjamin Alexander - Alexander Capital Management, LLC Operator Good day, and thank you for standing by. Welcome to the Universal Electronics First Quarter 2024 Fin ...

```markdown [Management Commentary and Strategic Focus](index=1&type=section&id=Management%20Commentary%20and%20Strategic%20Focus) The CEO highlighted the company's strategic shift towards the climate control and home automation markets, evidenced by securing projects with six of the top ten global HVAC manufacturers - The company is strategically shifting its sales and product development resources to focus on climate control and home automation channels[2](index=2&type=chunk) - UEI has secured projects with six of the top ten HVAC equipment manufacturers worldwide, indicating strong traction in its new focus area[2](index=2&type=chunk) - The company is executing cost-savings initiatives and optimizing its manufacturing footprint while continuing to invest in resources for the connected home markets[2](index=2&type=chunk) - Management expects to grow the bottom-line and deliver full-year profitability, driven by project wins and operational improvements[2](index=2&type=chunk) [First Quarter 2024 Financial Highlights](index=1&type=section&id=Financial%20Results%20for%20the%20Three%20Months%20Ended%20March%2031%3A%202024%20Compared%20to%202023) For the first quarter of 2024, Universal Electronics reported net sales of **$91.9 million**, a decrease from **$108.4 million** in the prior-year period Q1 2024 vs. Q1 2023 Financial Comparison | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | **Net Sales (GAAP & Non-GAAP)** | **$91.9M** | **$108.4M** | | **GAAP Gross Margin** | **28.3%** | **22.8%** | | **Adjusted Non-GAAP Gross Margin** | **29.6%** | **25.4%** | | **GAAP Operating Loss** | **$(6.9)M** | **$(59.5)M*** | | **Adjusted Non-GAAP Operating Loss** | **$(2.2)M** | **$(3.6)M** | | **GAAP Net Loss** | **$(8.6)M** | **$(61.4)M*** | | **GAAP EPS** | **$(0.67)** | **$(4.81)*** | | **Adjusted Non-GAAP Net Loss** | **$(2.5)M** | **$(3.5)M** | | **Adjusted Non-GAAP EPS** | **$(0.19)** | **$(0.28)** | *Includes a **$49.1 million** non-cash charge for goodwill impairment in Q1 2023 - As of March 31, 2024, cash and cash equivalents were **$26.9 million**[7](index=7&type=chunk) - During the first quarter of 2024, the company repurchased approximately 95,000 shares for **$0.8 million**[7](index=7&type=chunk) [Second Quarter 2024 Financial Outlook](index=1&type=section&id=Financial%20Outlook) For the second quarter of 2024, UEI anticipates net sales to be between **$90.0 million** and **$100.0 million**, with an expected **GAAP** loss per share in the range of **$0.53** to **$0.43** Q2 2024 Financial Outlook | Metric | Q2 2024 Outlook | Q2 2023 Actual | | :--- | :--- | :--- | | **GAAP Net Sales** | **$90.0M** - **$100.0M** | **$107.4M** | | **GAAP Loss Per Share** | **$(0.53)** - **$(0.43)** | **$(0.81)** | | **Adjusted Non-GAAP Net Sales** | **$90.0M** - **$100.0M** | **$107.4M** | | **Adjusted Non-GAAP Loss Per Share** | **$(0.10)** - **$0.00** | **$(0.06)** | - The Q2 2024 Adjusted **Non-GAAP** loss per share estimate excludes **$0.43** per share for items such as excess manufacturing overhead, stock-based compensation, amortization, and litigation costs[5](index=5&type=chunk) [Financial Statements](index=5&type=section&id=Financial%20Statements) This section presents Universal Electronics Inc.'s consolidated financial statements, including balance sheets, statements of operations, and cash flows [Consolidated Balance Sheets](index=5&type=section&id=CONSOLIDATED%20BALANCE%20SHEETS) As of March 31, 2024, UEI's total assets were **$322.9 million**, down from **$355.9 million** at year-end 2023, primarily due to reductions in cash and accounts receivable Balance Sheet Highlights (in thousands) | Account | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | **$26,914** | **$42,751** | | Total current assets | **$230,230** | **$258,851** | | Total assets | **$322,941** | **$355,872** | | Line of credit | **$46,000** | **$55,000** | | Total current liabilities | **$138,666** | **$161,148** | | Total liabilities | **$153,286** | **$176,952** | | Total stockholders' equity | **$169,655** | **$178,920** | [Consolidated Statements of Operations](index=6&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) For the first quarter of 2024, UEI reported net sales of **$91.9 million**, a **15.2%** decrease from **$108.4 million** in Q1 2023, with a net loss of **$8.6 million** Q1 Statement of Operations (in thousands, except per share data) | Metric | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--- | :--- | :--- | | Net sales | **$91,900** | **$108,377** | | Gross profit | **$25,988** | **$24,693** | | Operating income (loss) | **$(6,908)** | **$(59,524)** | | Net income (loss) | **$(8,649)** | **$(61,363)** | | Diluted loss per share | **$(0.67)** | **$(4.81)** | [Consolidated Statements of Cash Flows](index=7&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) In the first three months of 2024, UEI experienced a net cash outflow of **$15.8 million**, driven by operating, investing, and financing activities, ending the period with **$26.9 million** in cash Q1 Cash Flow Summary (in thousands) | Activity | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--- | :--- | :--- | | Net cash used for operating activities | **$(2,775)** | **$(2,025)** | | Net cash used for investing activities | **$(2,366)** | **$(4,831)** | | Net cash used for financing activities | **$(10,230)** | **$(3,812)** | | **Net decrease in cash** | **$(15,837)** | **$(9,834)** | | **Cash at end of period** | **$26,914** | **$56,906** | [Reconciliation of GAAP to Non-GAAP Measures](index=8&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measures) This section provides a reconciliation of **GAAP** financial measures to **Non-GAAP** measures for Q1 and Q2 2024, highlighting adjustments for various non-recurring or non-cash items [Q1 2024 Reconciliation](index=8&type=section&id=Q1%202024%20Reconciliation) For Q1 2024, UEI's **GAAP** net loss of **$8.6 million** was adjusted to a **Non-GAAP** net loss of **$2.5 million**, reflecting adjustments for stock-based compensation, overhead, restructuring, and litigation costs Q1 2024 GAAP to Non-GAAP Net Loss Reconciliation (in thousands) | Description | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | **Net loss - GAAP** | **$(8,649)** | **$(61,363)** | | Excess mfg. overhead & factory transition costs | **$1,150** | **$2,785** | | Stock-based compensation expense | **$1,904** | **$2,540** | | Factory restructuring costs | **$1,063** | **$—** | | Litigation costs | **$286** | **$1,158** | | Goodwill impairment | **$—** | **$49,075** | | Other adjustments | **$1,789** | **$2,298** | | **Adjusted Non-GAAP net loss** | **$(2,457)** | **$(3,507)** | Q1 2024 GAAP to Non-GAAP Gross Margin Reconciliation | Description | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | **Gross margin - GAAP** | **28.3%** | **22.8%** | | Excess mfg. overhead & factory transition costs | **1.2%** | **2.6%** | | Other adjustments | **0.1%** | **0.0%** | | **Adjusted Non-GAAP gross margin** | **29.6%** | **25.4%** | - Adjustments for Q1 2024 include severance and exit costs from closing a factory in China and downsizing a factory in Mexico[24](index=24&type=chunk) [Q2 2024 Outlook Reconciliation](index=10&type=section&id=Q2%202024%20Outlook%20Reconciliation) The company's financial outlook for Q2 2024 includes a reconciliation from **GAAP** to Adjusted **Non-GAAP** diluted loss per share, with a projected adjustment of **$0.43** per share Q2 2024 Diluted EPS Outlook Reconciliation | Metric | Low Range | High Range | | :--- | :--- | :--- | | Diluted loss per share - GAAP | **$(0.53)** | **$(0.43)** | | Total adjustments | **$0.43** | **$0.43** | | **Adjusted Non-GAAP diluted loss per share** | **$(0.10)** | **$0.00** | [Other Information](index=3&type=section&id=Other%20Information) This section details the company's use of **Non-GAAP** financial metrics and provides important disclosures regarding forward-looking statements [Use of Non-GAAP Financial Metrics](index=3&type=section&id=Use%20of%20Non-GAAP%20Financial%20Metrics) UEI utilizes Adjusted **Non-GAAP** financial measures as a supplement to **GAAP** results to aid investors in evaluating the company's core operational and financial performance - Management uses **Non-GAAP** measures for budget planning and making operational and financial decisions[8](index=8&type=chunk) - **Non-GAAP** measures are provided to help investors evaluate UEI's core operating performance and business trends[8](index=8&type=chunk) - Key exclusions from **GAAP** results to arrive at **Non-GAAP** measures include stock-based compensation, amortization of intangibles, certain litigation costs, goodwill impairment, and factory restructuring costs[9](index=9&type=chunk) [Forward-Looking Statements](index=4&type=section&id=Forward-looking%20Statements) The press release contains forward-looking statements concerning future performance, sales, and earnings trends, which are subject to numerous risks and uncertainties - Statements regarding net sales, profit margins, earnings trends, and new product introductions are forward-looking and subject to risk[12](index=12&type=chunk) - Identified risks include attracting new customers in home automation and climate control, managing inflationary pressures, and the outcome of litigation with Roku[12](index=12&type=chunk) ```