In This Article:
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Revenue: $110.5 million, a 13% increase over Q4 2023's $97.6 million.
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Gross Margin: 28.4% in Q4 2024 compared to 28.5% in Q4 2023.
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Operating Income: $4.2 million compared to $200,000 in Q4 2023.
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Net Income: $2.6 million or $0.20 per diluted share, compared to a net loss of $500,000 or $0.04 per share in Q4 2023.
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Operating Expenses: $27.2 million in Q4 2024 compared to $27.6 million in Q4 2023.
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SG&A Expenses: Reduced to $20.3 million from $21.1 million in the prior year quarter.
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R&D Expenses: Increased to $6.9 million from $6.5 million in Q4 2023.
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Cash and Cash Equivalents: $26.8 million as of December 30, 2024, compared to $42.8 million at December 31, 2023.
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Net Cash Provided by Operating Activities: $14.8 million for the year ending December 30, 2024.
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Net Debt Position: Approximately $10 million at year-end 2024.
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Guidance for Q1 2025: Expected sales range from $87 to $97 million, with a net loss ranging from $0.21 to $0.11 per share.
Release Date: February 20, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Universal Electronics Inc (NASDAQ:UEIC) reported a 13% increase in sales for Q4 2024 compared to the same quarter in 2023, exceeding their own projections and consensus.
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The company has successfully managed costs and optimized its manufacturing footprint, leading to improved profitability.
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UEIC's connected home business is gaining momentum with new products and increased orders, particularly in the climate control market.
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The company showcased innovative technologies at the International Consumer Electronics Show, receiving strong interest from new and existing customers.
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UEIC has reduced its outstanding line of credit by over $18 million in 2024, resulting in a net debt position of approximately $10 million at year-end.
Negative Points
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The company faces continued economic uncertainty affecting consumer confidence and spending, which could impact future financial results.
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Rising energy and freight costs, along with potential governmental actions such as increasing tariffs, pose risks to UEIC's business operations.
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Despite growth in the connected home market, the home entertainment channel still faces headwinds and ordering patterns are only stabilizing.
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The company's cash and cash equivalents decreased from $42.8 million at the end of 2023 to $26.8 million at the end of 2024.
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UEIC expects a net loss ranging from $0.21 to $0.11 per share for Q1 2025, indicating potential challenges in maintaining profitability in the short term.