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Universal Electronics Acquires Enson Assets

11/04/2010 05:06:06 PM Eastern

Cypress, Calif. - Universal
Electronics (UEI) has acquired China-based Enson Assets Limited. Enson is a
China-based manufacturer of remote controls for OEMs. 

The company was
acquired from CG International Holdings Limited for a net purchase value of
approximately $110 million, according to a statement by the companies.  

"This acquisition
further strengthens UEI's leadership position in wireless control technology as
it positions us to benefit from very promising international growth
opportunities and significantly increases our market share in OEMs," said Paul
Arling, UEI's chairman and CEO, in a statement. "We have a six-year history
working with the C.G. companies, and we are excited to welcome their employee
base, including experienced management and engineering groups, to UEI."

Arling said the
acquisition is expected to increase its growth in Asia. "This acquisition will
also strengthen our customer list with key industry-leading consumer
electronics companies including Sony, Panasonic and Toshiba," he added.  

Bryan Hackworth,
UEI chief financial officer, said the acquisition will add at least $140
million to its sales total and at least $20 million in operating income.

UEI also reported
its financial results for the third quarter, ended Sept. 30. Net sales were $79
million, compared with $83.2 million in the prior-year period.  

Its business category
revenue was $66.2 million, compared with $67 million, with the category
contributing 84 percent.

The consumer category
revenue was $12.8 million, compared with the prior year's $16.2 million. Gross
margins were 32.6 percent, compared with 31.3 percent.

Total operating
expenses were $19.2 million, compared with $19.4 million, and operating income
was $6.6 million, compared with $6.6 million.

Net income was
$4.7 million, or 34 cents per diluted share, compared with $4.2 million, or 30 cents
per diluted share, the company said.

Hackworth said:
"While third-quarter 2010 sales were down slightly relative to the third
quarter of 2009, we improved gross margins to 32.6 percent of sales and lowered
our operating expenses. As a result, we delivered operating margin improvement,
increasing from 8 percent in the third quarter of 2009 to 8.3 percent in the
third quarter of 2010."