Universal Electronics Inc (UEIC) has reported a 65.35 percent plunge in profit for the quarter ended Dec. 31, 2016. The company has earned $3.24 million, or $0.22 a share in the quarter, compared with $9.34 million, or $0.64 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $10.43 million, or $0.70 a share compared with $13.37 million or $0.91 a share, a year ago. Revenue during the quarter went down marginally by 0.97 percent to $160.54 million from $162.11 million in the previous year period. Gross margin for the quarter contracted 285 basis points over the previous year period to 25.69 percent. Total expenses were 96.10 percent of quarterly revenues, up from 93.60 percent for the same period last year. That has resulted in a contraction of 250 basis points in operating margin to 3.90 percent.
Operating income for the quarter was $6.27 million, compared with $10.38 million in the previous year period.
However, the adjusted operating income for the quarter stood at $13.90 million compared to $15.24 million in the prior year period. At the same time, adjusted operating margin contracted 74 basis points in the quarter to 8.66 percent from 9.40 percent in the last year period.
"Over the past 30 years, UEI has established itself as the supplier of choice to the world’s leading names in home entertainment worldwide," Paul Arling, UEI's chairman and chief executive officer, stated, "We are in the early stages of a major evolution in our industry that presents a significant long-term opportunity for us. Our subscription broadcasting and OEM customers are introducing next-generation home entertainment platforms around the world that converge home entertainment devices with intelligent home sensing solutions. Our intelligent sensing technologies combine with our home entertainment control innovations to provide customers a more complete smart home solution that enables their consumers to connect and control virtually any device in the home. We believe we are better positioned than ever to expand our share of this growing market."
For the first-quarter 2017, Universal Electronics Inc projects revenue to be in the range of $154 million to $162 million and adjusted revenue to be in the range of $155 million to $163 million. The company forecasts diluted loss per share to be in the range of $0.16 to $0.06. On an adjusted basis, the company forecasts diluted earnings per share to be in the range of $0.57 to $0.67.
Operating cash flow improves significantly
Universal Electronics Inc has generated cash of $49.10 million from operating activities during the year, up 88.17 percent or $23.01 million, when compared with the last year. The company has spent $42.52 million cash to meet investing activities during the year as against cash outgo of $47.65 million in the last year.
The company has spent $4 million cash to carry out financing activities during the year as against cash outgo of $35.14 million in the last year period.
Cash and cash equivalents stood at $50.61 million as on Dec. 31, 2016, down 4.45 percent or $2.36 million from $52.97 million on Dec. 31, 2015.
Working capital increases
Universal Electronics Inc has recorded an increase in the working capital over the last year. It stood at $108.29 million as at Dec. 31, 2016, up 8.07 percent or $8.09 million from $100.20 million on Dec. 31, 2015. Current ratio was at 1.50 as on Dec. 31, 2016, up from 1.47 on Dec. 31, 2015.
Debt remains almost stable
Total debt of Universal Electronics Inc remained almost stable for the quarter at $49.99 million, when compared with the last year period. Short-term debt of Universal Electronics remained almost stable for the quarter at $49.99 million, when compared with the last year period. Total debt was 9.61 percent of total assets as on Dec. 31, 2016, compared with 10.10 percent on Dec. 31, 2015. Debt to equity ratio was at 0.18 as on Dec. 31, 2016, down from 0.19 as on Dec. 31, 2015. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
