Universal Electronics(US:UEIC)2025-11-06 21:06Financial Performance - GAAP net sales for Q3 2025 were $90.6 million, a decrease of 11.5% from $102.1 million in Q3 2024[7] - GAAP net sales in connected home increased to $29.8 million, up 12.9% from $26.4 million in Q3 2024[7] - GAAP net sales in home entertainment decreased to $60.8 million, down 19.7% from $75.7 million in Q3 2024[7] - Net sales for Q3 2025 were $90,552 thousand, a decrease of 11.8% from $102,073 thousand in Q3 2024[21] - Gross profit for Q3 2025 was $25,122 thousand, down 18.4% from $30,732 thousand in Q3 2024[21] - Operating loss for Q3 2025 was $(4,512) thousand compared to an operating income of $418 thousand in Q3 2024[21] - For the three months ended September 30, 2025, the GAAP net loss was $8.329 million, compared to a net loss of $2.658 million for the same period in 2024[29] - Adjusted non-GAAP net income for the three months ended September 30, 2025, was $1.110 million, a decrease from $1.361 million in 2024[29] - The diluted earnings per share (GAAP) for the three months ended September 30, 2025, was $(0.62), compared to $(0.20) in 2024[29] Future Projections - The company expects Q4 2025 GAAP net sales to range from $82.0 million to $92.0 million, down from $110.5 million in Q4 2024[6] - The company expects net sales for the fourth quarter of 2025 to range from $82 million to $92 million, with connected home sales projected between $26 million and $30 million[32] - GAAP loss per share for Q4 2025 is expected to range from $0.30 to $0.20, an improvement from a loss of $0.35 in Q4 2024[7] - The adjusted non-GAAP diluted earnings per share for the fourth quarter of 2025 is projected to be between $0.01 and $0.11[32] Cash Flow and Liquidity - Operating cash flows generated in Q3 2025 were $10.1 million, compared to $5.7 million in Q3 2024[7] - Cash and cash equivalents as of September 30, 2025, were $31.5 million, up from $26.8 million at the end of 2024[19] - Cash flows from operating activities for the nine months ended September 30, 2025, were $27,837 thousand, significantly higher than $8,339 thousand in the same period of 2024[23] - Cash and cash equivalents at the end of the period were $31,506 thousand, an increase from $26,287 thousand at the end of the same period in 2024[23] Expenses and Charges - Research and development expenses for Q3 2025 were $6,687 thousand, a decrease of 8.9% from $7,338 thousand in Q3 2024[21] - The company incurred impairment charges of $1.187 million related to machinery and equipment due to the shutdown of its Mexico manufacturing facility, expected to be completed by the end of 2025[29] - Severance costs associated with a global reduction in force amounted to $1.705 million for the three months ended September 30, 2025[29] Shareholder Actions - The board authorized a share repurchase of up to $3.5 million or approximately 778,000 shares[3] Segment Performance - The connected home segment generated $29,793 thousand in sales for Q3 2025, up 12.8% from $26,368 thousand in Q3 2024[25] - The home entertainment segment saw sales decline to $60,759 thousand in Q3 2025 from $75,705 thousand in Q3 2024, a decrease of 19.8%[25] Adjusted Metrics - Adjusted non-GAAP operating income for Q3 2025 was $1,570 thousand, compared to $2,567 thousand in Q3 2024[27] - Total adjustments for the diluted earnings per share in the fourth quarter of 2025 are estimated at $0.31[32] - The company reported a foreign currency gain of $1.109 million for the three months ended September 30, 2025[29] - The total diluted shares used in computing earnings per share (GAAP) for the three months ended September 30, 2025, was 13,340 thousand shares[29]