Universal Electronics Inc. (UEIC, Financial) filed Quarterly Report for the period ended 2009-03-31.
Universal Electronics Inc. develops software and builds and markets pre-programmed easy-to-use wireless control devices and chips principally for home entertainment equipment and the subscription broadcast market. The company's product lines under development include wireless interface technologies such as combination keyboard/remotes and touch-screen remotes. The company licenses its patented technologies and database of infrared codes to companies selling into the cable and satellite industries and to original equipment manufacturers. (PRESS RELEASE) Universal Electronics Inc. has a market cap of $302.9 million; its shares were traded at around $22.26 with a P/E ratio of 20 and P/S ratio of 1. Universal Electronics Inc. had an annual average earning growth of 27.5% over the past 5 years.
Net sales in our Consumer lines (One For All® retail, private label, custom installers and direct import) were approximately 14% of net sales for the first quarter of 2009 compared to approximately 21% for the first quarter of 2008. Net sales in our Consumer lines decreased by 21% to $10.2 million for the first quarter of 2009, from $12.9 million in the first quarter of 2008. European retail sales decreased by $3.0 million compared to the first quarter of 2008. Europe retail sales were unfavorably impacted by the weakening of both the Euro and the British Pound compared to the U.S. Dollar, which resulted in a decrease in net sales of approximately $2.0 million. Net of this currency effect, European retail sales decreased $1.0 million, primarily due to the downturn of the economy in the United Kingdom. Private label sales in the U.S. decreased $0.5 million, to $0.1 million in the first quarter of 2009 from $0.6 million in the first quarter of 2008. This was driven by a decline in the volume of remote control sales to our private label partners. Partially offsetting these decreases were the North American retail sales, which increased by $0.4 million compared to the first quarter of 2008, as a result of a new partnership agreement with a distributor in the U.S market. CEDIA sales increased by $0.4 million compared to the first quarter of 2008, primarily due to the launch of a new product that occurred in the second quarter of 2008.
Selling, general and administrative expenses increased 6% from $16.9 million in the first quarter of 2008 to $17.8 million in the first quarter of 2009. The weakening of the Euro compared to the U.S. Dollar resulted in a decrease of $1.0 million. Net of this favorable currency effect, expenses increased by $1.9 million. Legal, accounting, and advisory professional service expense increased by $1.1 million, due to the acquisition of assets from Zilog, Inc, which was completed during the first quarter. Payroll and fringe expense increased by $0.6 million. Employee bonus expense increased $0.2 million, and long-term incentive compensation expense increased $0.2 million. These increases were partially offset by lower freight expense, which decreased by $0.2 million, and commission expense, which decreased by $0.1 million.
Net cash provided by operating activities decreased by $2.2 million from $5.6 million in the first quarter 2008 to $3.4 million in the first quarter of 2009. The decrease in cash provided by operating activities was primarily driven by the decrease in net income from approximately $2.5 million for the three months ended March 31, 2008 to approximately $0.8 million for the three months ended March 31, 2009. Total working capital requirements were relatively consistent for the three months ended March 31, 2009 and 2008.
Net cash used for financing activities for the first three months of 2009 was $1.4 million as compared to $11.2 million in the first three months of 2008. We repurchased fewer shares of our common stock during the first quarter of 2009 compared to the first quarter of 2008. During the first quarter of 2009 we repurchased 105,311 shares of our common stock for $1.6 million compared to our repurchase of 500,000 shares of our common stock for $11.5
Our cash and cash equivalent balances are held in the United States, Europe and Asia. At March 31, 2009, we had approximately $5.9 million, $8.7 million, and $2.8 million of cash and cash equivalents in the United States, Europe and Asia, respectively. In addition, we had a term deposit of $48.9 million in Asia. We maintain our cash, cash equivalents, and term deposits with various financial institutions located in many different geographic regions. We attempt to mitigate our exposure to interest rate, liquidity, credit and other relevant risks by placing our cash and cash equivalents with financial institutions we believe are high quality.
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Universal Electronics Inc. develops software and builds and markets pre-programmed easy-to-use wireless control devices and chips principally for home entertainment equipment and the subscription broadcast market. The company's product lines under development include wireless interface technologies such as combination keyboard/remotes and touch-screen remotes. The company licenses its patented technologies and database of infrared codes to companies selling into the cable and satellite industries and to original equipment manufacturers. (PRESS RELEASE) Universal Electronics Inc. has a market cap of $302.9 million; its shares were traded at around $22.26 with a P/E ratio of 20 and P/S ratio of 1. Universal Electronics Inc. had an annual average earning growth of 27.5% over the past 5 years.
Highlight of Business Operations:
Net sales for the first quarter of 2009 were $71.1 million, an increase of 16% compared to $61.2 million for the first quarter of 2008. Net income for the first quarter of 2009 was $0.8 million or $0.06 per diluted share compared to $2.5 million or $0.17 per diluted share for the first quarter of 2008.Net sales in our Consumer lines (One For All® retail, private label, custom installers and direct import) were approximately 14% of net sales for the first quarter of 2009 compared to approximately 21% for the first quarter of 2008. Net sales in our Consumer lines decreased by 21% to $10.2 million for the first quarter of 2009, from $12.9 million in the first quarter of 2008. European retail sales decreased by $3.0 million compared to the first quarter of 2008. Europe retail sales were unfavorably impacted by the weakening of both the Euro and the British Pound compared to the U.S. Dollar, which resulted in a decrease in net sales of approximately $2.0 million. Net of this currency effect, European retail sales decreased $1.0 million, primarily due to the downturn of the economy in the United Kingdom. Private label sales in the U.S. decreased $0.5 million, to $0.1 million in the first quarter of 2009 from $0.6 million in the first quarter of 2008. This was driven by a decline in the volume of remote control sales to our private label partners. Partially offsetting these decreases were the North American retail sales, which increased by $0.4 million compared to the first quarter of 2008, as a result of a new partnership agreement with a distributor in the U.S market. CEDIA sales increased by $0.4 million compared to the first quarter of 2008, primarily due to the launch of a new product that occurred in the second quarter of 2008.
Selling, general and administrative expenses increased 6% from $16.9 million in the first quarter of 2008 to $17.8 million in the first quarter of 2009. The weakening of the Euro compared to the U.S. Dollar resulted in a decrease of $1.0 million. Net of this favorable currency effect, expenses increased by $1.9 million. Legal, accounting, and advisory professional service expense increased by $1.1 million, due to the acquisition of assets from Zilog, Inc, which was completed during the first quarter. Payroll and fringe expense increased by $0.6 million. Employee bonus expense increased $0.2 million, and long-term incentive compensation expense increased $0.2 million. These increases were partially offset by lower freight expense, which decreased by $0.2 million, and commission expense, which decreased by $0.1 million.
Net cash provided by operating activities decreased by $2.2 million from $5.6 million in the first quarter 2008 to $3.4 million in the first quarter of 2009. The decrease in cash provided by operating activities was primarily driven by the decrease in net income from approximately $2.5 million for the three months ended March 31, 2008 to approximately $0.8 million for the three months ended March 31, 2009. Total working capital requirements were relatively consistent for the three months ended March 31, 2009 and 2008.
Net cash used for financing activities for the first three months of 2009 was $1.4 million as compared to $11.2 million in the first three months of 2008. We repurchased fewer shares of our common stock during the first quarter of 2009 compared to the first quarter of 2008. During the first quarter of 2009 we repurchased 105,311 shares of our common stock for $1.6 million compared to our repurchase of 500,000 shares of our common stock for $11.5
Our cash and cash equivalent balances are held in the United States, Europe and Asia. At March 31, 2009, we had approximately $5.9 million, $8.7 million, and $2.8 million of cash and cash equivalents in the United States, Europe and Asia, respectively. In addition, we had a term deposit of $48.9 million in Asia. We maintain our cash, cash equivalents, and term deposits with various financial institutions located in many different geographic regions. We attempt to mitigate our exposure to interest rate, liquidity, credit and other relevant risks by placing our cash and cash equivalents with financial institutions we believe are high quality.
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