Cypress, CA
Leading wireless technology provider Universal Electronics Inc. (UEI)(Nasdaq:UEIC) today announced financial results for the quarter ended March 31, 2002.
For the first quarter of fiscal 2002, UEI reported net sales of $23.4 million compared to $31.0 million during the first quarter of 2001. UEI's net income for the first quarter of 2002 was $675,000 or $0.05 per diluted share compared to $2.5 million or $0.17 per diluted share for the same quarter last year.
Paul Arling, UEI's chairman and chief executive officer, stated, "While we have been influenced by the same macro-economic forces that impacted the performance of technology companies worldwide, we are encouraged that we have executed on plan through our fiscal first quarter. Equally important, we continue to deepen relationships in our core business lines as well as extend our reach into new markets. Industry leaders continue to recognize that our wireless interface technology and experience can bring significant value to their products and services by simplifying the consumer experience."
Arling continued, "We are now expanding our reach into the global home control and automation market with the introduction of innovative new products, such as the recent introduction of Nevo(TM). During the quarter, we also made our first inroads into the computing industry, a targeted growth market. We remain focused on the promising long-term opportunities in the consumer electronics and subscription broadcasting industries, and are confident in our ability to continue to innovate and build market share in all areas."
Mark Belzowski, UEI's chief financial officer added, "During the challenging first quarter of 2002, we continued to execute on our cost control and tax planning strategies and were able to grow our cash balance to $37.3 million, from $34.3 million at year end 2001. We continue to follow a course of prudent financial and operational management to build on our strong base, which includes our healthy balance sheet, for successful long-term growth and results."
Customer Highlights:
-- In late January, UEI announced a purchase agreement with Comcast Cable to deliver two wireless remote controls, Navigator(TM) and Millennium 4(TM), for the cable operator's digital set-top boxes. Continuing an existing relationship between the two companies, this agreement extends UEI's reach in the rapidly growing digital cable market.
-- On April 16, UEI announced that Cox Communications selected UEI as a preferred provider of digital wireless controls for Cox's digital set-top box deployments. Building upon UEI's existing relationship with Cox, this agreement includes delivery of a custom remote control and wireless keyboard, easy-to-use video-on-demand functionality, as well as other development initiatives.
-- On April 17, UEI announced that Microsoft licensed UEI's home connectivity technology, which enables comprehensive wireless control of set-top boxes and televisions for Microsoft's forthcoming Freestyle project in its eHome division.
UEI's management team will hold a conference call today, Tuesday, April 23, 2002 at 10:00 a.m. Eastern Time to review results and hold a question and answer session for callers. To participate call 800/309-0508 ten minutes prior to start time. International dialers call 706/645-0366. The live call can also be accessed via the Internet through Universal's Web site at http://www.uei.com. If you are unable to participate, a replay will be available beginning at 9:00 a.m. Pacific Time on April 23, 2002 for 48 hours. To access, please dial 800/642-1687 reservation number 3757697 and international dial-in 706/645-9291. The replay can also be heard at http://www.uei.com for 90 days.
Except for the historical information contained herein, the matters discussed in this press release are forward-looking statements that involve a number of risks and uncertainties. Among the factors that could cause actual results to differ materially from those expressed herein are the following: the failure of the Company's business lines to continue growing and expanding in the manner anticipated by the Company's management; the failure of the Company's customers to grow and expand as anticipated by the Company's management; the effects of natural or other events beyond the Company's control; the economic environment's effect on the Company and our customers; the growth of, acceptance of and the demand for the Company's products and technologies in various markets and geographical regions, including cable, satellite, consumer electronics, retail and interactive TV and home automation, not materializing as believed by the Company's management; the Company's inability to add profitable complementary products which are accepted by the marketplace; the inability by the Company to continue to maintain its operating costs at acceptable levels through its cost containment efforts; the continued strength of the Company's balance sheet including the ability to obtain payments from our customers on a timely basis; the inability of the Company to continue selling its products or licensing its technologies at higher or profitable margins throughout the remainder of 2002 and beyond; the failure of the various markets and industries to grow or emerge as rapidly or as successfully as believed by the Company's management; the continued growth of the digital cable market; the inability of the Company to obtain orders or maintain its order volume with its new and existing customers; the possible dilutive effect the Company's stock option and stock warrant programs may have on the Company's EPS and stock price; the inability of the Company to continue to obtain adequate quantities of component parts or secure adequate factory production capacity on a timely basis; and other factors listed from time to time in the Company's press releases and filings with the Securities and Exchange Commission. The Company undertakes no obligation to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release.
About Universal Electronics
Universal Electronics Inc., based in Southern California, develops software, and builds and markets pre-programmed, easy-to-use wireless control devices and chips principally for home entertainment equipment and the subscription broadcasting market. The Company's product lines include such wireless interface technologies as combination keyboard/remotes and touch-screen remotes. UEI licenses its patented technologies and database of infrared codes to companies selling into the cable and satellite industries, and to original equipment manufacturers. The Company also sells its universal wireless control products to distributors and retailers in Europe, Asia, Latin America and Australia under the One For All(R) brand name. Call Center support services are also offered to Universal Electronics' customers. Additional information about UEI may be found on the Internet by visiting http://www.uei.com.
-- Tables Follow --
UNIVERSAL ELECTRONICS INC.
CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
March 31, Dec. 31,
2002 2001
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ASSETS
Current assets:
Cash and cash equivalents $37,311 $34,270
Accounts receivable, net 23,165 28,209
Inventories 17,483 16,700
Prepaid expenses and other
current assets 1,199 829
Deferred income taxes 1,925 1,925
Income tax receivable 387 387
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Total current assets 81,470 82,320
Equipment, furniture and
fixtures, net 3,875 3,828
Goodwill and other
intangible assets, net 6,272 6,094
Other assets 765 713
Deferred income taxes 1,750 1,750
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Total assets $94,132 $94,705
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LIABILITIES AND
STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable 9,375 9,383
Accrued income taxes 129 842
Accrued compensation 1,170 861
Other accrued expenses 3,571 3,812
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Total current liabilities 14,245 14,898
Notes payable 86 104
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Total liabilities 14,331 15,002
Commitments and
contingencies
Stockholders' equity:
Common stock 158 157
Paid-in capital 68,872 68,657
Accumulated other
comprehensive income
(loss) (2,624) (1,804)
Retained earnings 24,648 23,973
Deferred stock-based
compensation (281) (308)
Common stock held in
treasury (10,972) (10,972)
------- -------
Total stockholders' equity 79,801 79,703
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Total liabilities and
stockholders' equity $94,132 $94,705
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UNIVERSAL ELECTRONICS INC.
CONSOLIDATED INCOME STATEMENTS
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended December 31,
------------------------------
2002 2001
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Net sales $23,411 $31,023
Cost of sales 13,995 17,713
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Gross profit 9,416 13,310
Selling, general and
administrative expenses 8,525 9,307
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Operating income 891 4,003
Interest income, net (117) (274)
Other expense (income), net (31) 42
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Income before income taxes 1,039 4,235
Provision for income taxes (364) (1,694)
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Net income $675 $2,541
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Net income per share:
Basic $0.05 $0.18
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Diluted $0.05 $0.17
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Weighted average common
stock outstanding:
Basic 13,800 13,818
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Diluted 14,370 14,588
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