SCOTTSDALE, Ariz. — (BUSINESS WIRE) — February 20, 2025 — Universal Electronics Inc. (UEI), (NASDAQ: UEIC) reported financial results for the three and twelve months ended December 31, 2024.

“UEI closed 2024 with strong performance, with sales above and earnings at the top end of our guidance range,” stated UEI Chairman and CEO Paul Arling. “Customer acquisition initiatives and long-lead design wins are coming to fruition. Our perseverance and commitment to the connected home channel is providing meaningful contribution and drove revenue growth of 13% for the fourth quarter of 2024. Combined with our ongoing cost initiatives, bottom line results improved significantly compared to the prior year quarter.”

“CES 2025 was a major success. We showcased new products and technologies that ensure consumer privacy; introduce innovative features; support on-device AI processing; and offer more OEM monetization opportunities through enhanced services and personalization leading to increased user engagement, to name a few advancements. We received strong interest in our new products and technologies from many new accounts and existing customers eager to use our innovative features and functionality in their platforms. Based on our orders and pleased with our progress, we are reiterating our projections for top and bottom-line growth for full-year 2025 and beyond.”

Financial Results for the Three Months Ended December 31: 2024 Compared to 2023

• GAAP net sales were $110.5 million, compared to $97.6 million; Adjusted Non-GAAP net sales were $110.5 million, compared to $97.6 million.
• GAAP gross margins were 28.4%, compared to 28.5%; Adjusted Non-GAAP gross margins were 28.4%, compared to 28.5%.
• GAAP operating loss was $4.4 million, compared to $2.6 million; Adjusted Non-GAAP operating income was $4.2 million, compared to $0.2 million.
• GAAP net loss was $4.5 million, or $0.35 per share, compared to $7.1 million, or $0.55 per share; Adjusted Non-GAAP net income was $2.6 million, or $0.20 per diluted share, compared to Adjusted Non-GAAP net loss $0.5 million, or $0.04 per share.
• GAAP gross margin, operating loss and net loss for the three months ended December 31, 2024 include $0.7 million, equivalent to 70 basis points of gross margin or $0.04 per share (net of tax), of excess manufacturing overhead costs resulting from the continued transition of our global manufacturing footprint, specifically in Mexico and Vietnam, and depreciation related to the mark-up from cost to fair value of fixed assets acquired in business combinations ("excess manufacturing costs"). GAAP gross margin, operating loss and net loss for the three months ended December 31, 2023 include $1.6 million, equivalent to 160 basis points of gross margin or $0.11 per share (net of tax), of excess manufacturing costs.
• At December 31, 2024, cash and cash equivalents were $26.8 million.

Financial Results for the Twelve Months Ended December 31: 2024 Compared to 2023

• GAAP net sales were $394.9 million, compared to $420.5 million; Adjusted Non-GAAP net sales were $394.9 million, compared to $420.5 million.
• GAAP gross margins were 28.9%, compared to 23.2%; Adjusted Non-GAAP gross margins were 28.9%, compared to 25.0%.
• GAAP operating loss was $15.3 million, compared to $85.3 million, including a $49.1 million non-cash charge for goodwill impairment, which resulted from a decline in the company’s market capitalization; Adjusted Non-GAAP operating income was $2.2 million, compared to Adjusted Non-GAAP operating loss of $10.1 million.
• GAAP net loss was $24.0 million, or $1.85 per share, compared to $98.2 million, including the aforementioned non-cash charge, or $7.64 per share; Adjusted Non-GAAP net loss was $0.6 million, or $0.05 per share, compared to $10.0 million, or $0.78 per share.
• GAAP gross margin, operating loss and net loss for the twelve months ended December 31, 2024 include $4.5 million, equivalent to 110 basis points of gross margin or $0.27 per share (net of tax), of excess manufacturing costs. GAAP gross margin, operating loss and net loss for the twelve months ended December 31, 2023 include $9.4 million, equivalent to 220 basis points of gross margin or $0.60 per share (net of tax), of excess manufacturing costs.

Financial Outlook

For the first quarter of 2025, the company expects GAAP net sales to range between $87.0 million and $97.0 million, compared to $91.9 million in the first quarter of 2024. GAAP loss per share for the first quarter of 2025 is expected to range from $0.52 to $0.42, compared to a GAAP loss per share of $0.67 in the first quarter of 2024.

For the first quarter of 2025, the company expects Adjusted Non-GAAP net sales to range between $87.0 million and $97.0 million, compared to $91.9 million in the first quarter of 2024. Adjusted Non-GAAP loss per share is expected to range from $0.21 to $0.11 compared to Adjusted Non-GAAP loss of $0.26 per share in the first quarter of 2024. The first quarter 2025 Adjusted Non-GAAP loss per share estimate excludes $0.31 per share related to, among other things, stock-based compensation, amortization of acquired intangibles, litigation costs, foreign currency gains and losses and the related tax impact of these adjustments. For a more detailed explanation of Non-GAAP measures, please see the Use of Non-GAAP Financial Metrics discussion, the Reconciliation of Adjusted Non-GAAP Financial Results and the Reconciliation of Adjusted Non-GAAP Financial Outlook and Financial Results, each located elsewhere in this press release.

Conference Call Information

UEI’s management team will hold a conference call today, Thursday, February 20, 2025 at 4:30 p.m. ET / 1:30 p.m. PT, to discuss its fourth quarter and full year 2024 earnings results, review recent activity and answer questions. To attend the call please register at https://register.vevent.com/register/BId24421a0a551416d87a8c8bc2d789ceb to receive a computer-generated dial-in number and a unique pin number. The conference call will also be broadcast live on the investor section of the UEI website where it will be available for replay for 90 days.

Use of Non-GAAP Financial Metrics

In addition to reporting financial results in accordance with generally accepted accounting principles, or GAAP, UEI provides Adjusted Non-GAAP information as additional information for its operating results. References to Adjusted Non-GAAP information are to non-GAAP financial measures. These measures are not required by, in accordance with, or an alternative for, GAAP and may be different from non-GAAP financial measures used by other companies. UEI’s management uses these measures for reviewing the financial results of UEI for budget planning purposes and for making operational and financial decisions. Management believes that providing these non-GAAP financial measures to investors, as a supplement to GAAP financial measures, help investors evaluate UEI’s core operating and financial performance and business trends consistent with how management evaluates such performance and trends. Additionally, management believes these measures facilitate comparisons with the core operating and financial results and business trends of competitors and other companies.

Adjusted Non-GAAP net sales are defined as net sales. Adjusted Non-GAAP gross profit is defined as gross profit excluding impairment of long-lived assets and stock-based compensation expense. Adjusted Non-GAAP operating expenses are defined as operating expenses excluding impairment of long-lived assets, stock-based compensation expense, amortization of intangibles acquired, costs associated with certain litigation efforts, factory restructuring costs, legal judgment, severance, lease termination costs and goodwill impairment. Adjusted Non-GAAP net income (loss) is defined as net loss excluding the aforementioned items, foreign currency gains and losses, the related tax effects of all adjustments, as well as valuation allowances on certain deferred tax assets and certain net deferred tax adjustments. Adjusted Non-GAAP earnings (loss) per diluted share is calculated using Adjusted Non-GAAP net income (loss). A reconciliation of these financial measures to the most directly comparable GAAP financial measures is included at the end of this press release.