Universal Electronics(US:UEIC)2024-11-07 21:05Financial 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]