Universal Reports 22% Profit Drop
By John Laposky -- TWICE, 8/18/2008
CYPRESS, CALIF. — Remote-control supplier Universal Electronics reported profit was down 22.2 percent in the fiscal second quarter compared with the same period last year, to $3.5 million from $4.5 million.
Net sales were down slightly, to $70.7 million, compared with $71.5 million.
Gains were made in the consumer category, with revenue up 26.4 percent to $13.9 million, up from $11.0 million. The consumer category contributed 20 percent of total net sales, compared to 15 percent in last year's second quarter.
Revenue in the business segment dropped 6.1 percent to $56.8 million, compared with $60.5 million. Universal said the second quarter of 2007 was exceptionally strong due to the ramp in purchases prior to the midyear OpenCable Applications Platform (OCAP) deadline. The business segment contributed 80 percent of total net sales, compared to 85 percent.
Gross margins were 34.3 percent, compared with 34.5 percent.
Bryan Hackworth, chief financial officer, commented, "During the second quarter, we generated cash flow from operations of $11.8 million, repurchased approximately 254,000 shares of our common stock for $6 million, and increased cash and cash equivalents by $4.8 million from March 31. Overall, we executed as planned in the second quarter and we continue to be confident about the second half of the year due to several customer wins, increased market share with existing customers, and new product launches."
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