UEIC 8-K

Universal Electronics Inc (UEIC)

8-K 2025-11-06 For: 2025-11-06

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Added on April 06, 2026


Securities registered pursuant to Section 12(b) of the Act:
Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.01 per share	UEIC	The Nasdaq Stock Market LLC


	September 30, 2025		December 31, 2024
ASSETS
Current assets:
Cash and cash equivalents	$	31,506	$	26,783

Accounts receivable, net	83,800		114,182
Contract assets	5,739		10,346
Inventories	80,605		79,355
Prepaid expenses and other current assets	6,081		9,478
Income tax receivable	849		2,350
Total current assets	208,580		242,494
Property, plant and equipment, net	29,331		34,207

Intangible assets, net	22,583		24,038
Operating lease right-of-use assets	11,003		14,322
Deferred income taxes	5,937		6,425
Other assets	3,263		1,868
Total assets	$	280,697	$	323,354
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	59,200	$	72,031
Lines of credit	18,256		36,960
Accrued compensation	19,136		20,927
Accrued sales discounts, rebates and royalties	5,234		5,204
Accrued income taxes	4,025		2,161
Other accrued liabilities	18,867		21,008
Total current liabilities	124,718		158,291
Long-term liabilities:
Operating lease obligations	6,889		9,232

Deferred income taxes	2,144		1,931
Income tax payable	72		72
Other long-term liabilities	729		723
Total liabilities	134,552		170,249
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.01 par value, 5,000,000 shares authorized; none issued or outstanding	—		—
Common stock, $0.01 par value, 50,000,000 shares authorized; 26,137,645 and 25,712,940 shares issued on September 30, 2025 and December 31, 2024, respectively	261		257
Paid-in capital	349,399		344,697
Treasury stock, at cost, 12,772,743 and 12,666,443 shares on September 30, 2025 and December 31, 2024, respectively	(372,710)		(371,930)
Accumulated other comprehensive income (loss)	(21,721)		(28,350)
Retained earnings	190,916		208,431
Total stockholders’ equity	146,145		153,105
Total liabilities and stockholders’ equity	$	280,697	$	323,354


	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
Net sales	$	90,552	$	102,073	$	280,543	$	284,425
Cost of sales	65,430		71,341		200,142		201,753
Gross profit	25,122		30,732		80,401		82,672
Research and development expenses	6,687		7,338		20,877		22,679
Selling, general and administrative expenses	22,106		22,872		65,941		68,213
Factory restructuring charges	841		104		841		2,723

Operating income (loss)	(4,512)		418		(7,258)		(10,943)
Interest income (expense), net	(244)		(891)		(955)		(2,656)
Other income (expense), net	(1,002)		274		(2,701)		105
Income (loss) before provision for income taxes	(5,758)		(199)		(10,914)		(13,494)
Provision for income taxes	2,571		2,459		6,601		6,006
Net income (loss)	$	(8,329)	$	(2,658)	$	(17,515)	$	(19,500)

Earnings (loss) per share:
Basic	$	(0.62)	$	(0.20)	$	(1.33)	$	(1.51)
Diluted	$	(0.62)	$	(0.20)	$	(1.33)	$	(1.51)
Shares used in computing earnings (loss) per share:
Basic	13,340		12,985		13,207		12,935
Diluted	13,340		12,985		13,207		12,935


	Nine Months Ended September 30,
	2025		2024
Cash flows from operating activities:
Net income (loss)	$	(17,515)	$	(19,500)
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities:
Depreciation and amortization	11,080		13,528
Provision for credit losses	161		17
Deferred income taxes	961		1,056
Shares issued for employee benefit plan	431		940
Employee and director stock-based compensation	4,274		5,015

Impairment of long-lived assets	1,291		148
Changes in operating assets and liabilities:
Accounts receivable and contract assets	38,895		5,367
Inventories	1,403		(453)
Prepaid expenses and other assets	5,666		826
Accounts payable and accrued liabilities	(22,166)		(102)
Accrued income taxes	3,356		1,497
Net cash provided by (used for) operating activities	27,837		8,339
Cash flows from investing activities:
Purchase of Blue Chip Swap securities	(2,544)		—
Sale of Blue Chip Swap securities	2,314		—

Acquisitions of property, plant and equipment	(3,143)		(3,541)
Acquisitions of intangible assets	(2,331)		(3,150)
Net cash provided by (used for) investing activities	(5,704)		(6,691)
Cash flows from financing activities:
Borrowings under lines of credit	70,660		57,794
Repayments on lines of credit	(89,714)		(73,000)

Treasury stock purchased	(780)		(1,896)

Net cash provided by (used for) financing activities	(19,834)		(17,102)
Effect of foreign currency exchange rates on cash and cash equivalents	2,424		(1,010)
Net increase (decrease) in cash and cash equivalents	4,723		(16,464)
Cash and cash equivalents at beginning of period	26,783		42,751
Cash and cash equivalents at end of period	$	31,506	$	26,287

Supplemental cash flow information:
Income taxes paid	$	2,673	$	2,922
Interest paid	$	1,708	$	3,900


	Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands)	2025		2024		2025		2024
Connected home (1)	$	29,793	$	26,368	$	95,621	$	73,830
Home entertainment (2)	60,759		75,705		184,922		210,595
Net sales	$	90,552	$	102,073	$	280,543	$	284,425


	Three Months Ended December 31,
	2025				2024
	Low Range		High Range		Actual
Net sales:
Connected home	$	26,000	$	30,000	$	34,428
Home entertainment	56,000		62,000		76,026
Net sales - GAAP	$	82,000	$	92,000	$	110,454

Diluted earnings (loss) per share:
Diluted earnings (loss) per share - GAAP	$	(0.30)	$	(0.20)	$	(0.35)
Total adjustments (1)	$	0.31	$	0.31	$	0.54
Adjusted non-GAAP diluted earnings (loss) per share	$	0.01	$	0.11	$	0.20


	Three Months Ended September 30,						Nine Months Ended September 30,
	2025			2024			2025			2024
Cost of sales:
Cost of sales - GAAP	$	65,430		$	71,341		$	200,142		$	201,753
Impairment of long-lived assets (1)	(1,187)			—			(1,187)			—
Stock-based compensation expense	(13)			(25)			(41)			(72)
Adjusted non-GAAP cost of sales	64,230			71,316			198,914			201,681
Adjusted non-GAAP gross profit	$	26,322		$	30,757		$	81,629		$	82,744

Gross margin:
Gross margin - GAAP	27.7		%	30.1		%	28.7		%	29.1		%
Impairment of long-lived assets (1)	1.4		%	—		%	0.4		%	—		%
Stock-based compensation expense	0.0		%	0.0		%	0.0		%	0.0		%
Adjusted non-GAAP gross margin	29.1		%	30.1		%	29.1		%	29.1		%

Operating expenses:
Operating expenses - GAAP	$	29,634		$	30,314		$	87,659		$	93,615
Stock-based compensation expense	(828)			(1,626)			(4,233)			(4,944)
Amortization of acquired intangible assets	(206)			(219)			(632)			(686)
Severance (2)	(1,705)			—			(1,980)			—
Factory restructuring charges (3)	(841)			(104)			(841)			(2,722)
Lease abandonment (4)	(1,302)			—			(1,302)			—
Litigation costs (5)	—			(175)			—			(532)

Adjusted non-GAAP operating expenses	$	24,752		$	28,190		$	78,671		$	84,731

Operating income (loss):
Operating income (loss) - GAAP	$	(4,512)		$	418		$	(7,258)		$	(10,943)
Impairment of long-lived assets (1)	1,187			—			1,187			—
Stock-based compensation expense	841			1,651			4,274			5,016
Amortization of acquired intangible assets	206			219			632			686
Severance (2)	1,705			—			1,980			—
Factory restructuring costs (3)	841			104			841			2,722
Lease abandonment (4)	1,302			—			1,302			—
Litigation costs (5)	—			175			—			532
Adjusted non-GAAP operating income (loss)	$	1,570		$	2,567		$	2,958		$	(1,987)

Adjusted pro forma operating income (loss) as a percentage of net sales	1.7		%	2.5		%	1.1		%	(0.7)		%