Universal Electronics Inc. (UEIC) Q2 2010 Earnings Call August 05, 04.30 pm ET Executives Kirsten Chapman - IR, Lippert/Heilshorn & Associates Paul Arling - Chairman and CEO Bryan Hackworth - SVP an CFO Analysts John Bright - Avondale Partners Jonathan Goldberg - Deutsche Bank Ian Corydon - B. Riley & Company Steven Frankel - Brigantine Advisors Andy Hargreaves - Pacific Crest Jason Ursaner - CJS Securities Neal Goldman - Goldman Capital Management Presentation Operator
Previous Statements by UEIC
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During the course of this conference call, management may make projections or other forward-looking statements regarding future events and future financial performance of the company, including; the benefits the company anticipates as a result of its continued new and innovative products and technologies that are accepted by meet the needs of our customers and consumers, the company's ability to successfully anticipate the needs and demands of the consumer with respect to new and more advanced products and technologies, the continued strong relationships with the company’s existing customers; the company’s ability to attract and obtain new customers, particularly in Asia and in Central and South America; the strength of the company’s financial position and the effects that the company may experience due to the current global economic environment.Management wishes to caution you that these statements are just projections and actual results or events may differ materially. For further detail on risk, management refers you to the press release mentioned at the onset of this call and the documents that company files from time to time with the SEC; including the Annual Report on Forms 10-K for the year ended December 31, 2009, and the periodic reports, the company has filed since that time. These documents contain and identify various factors that could cause actual results to differ materially from those contained in management’s projections of forward-looking statements. On the call today are Chief Executive Officer and Chairman, Paul Arling, who will deliver an overview. And Chief Financial Officer, Bryan Hackworth, who will summarize the financials. Then Paul will return to provide a vision of 2010. It is now my pleasure to turn the call over to Paul Arling. Please go ahead, Paul. Bryan Hackworth Thank you, Kirsten and welcome everyone. In the second quarter of 2010, we reported solid revenue of $78.9 million. While year-over-year revenue was relatively flat, we improved gross margins to 34.8%, kept expenses relatively flat while increasing our investment in R&D, thus producing strong than expected earnings per share for $0.34.
In total, operating income improved 38%, since the start of the year, for the year 2010. Within the consumer electronic industry, UEI is positioned to address multiple markets with the solutions and technologies stemming from our core wireless connection expertise.Our deep knowledge of infrared and radio frequency protocols, including Bluetooth, R4CE and Wi-Fi, enable us to provide the connection control in interaction solutions to a multitude of devices. Our global database of codes enables us to control virtually every home entertainment device. We also have a strong track record of innovation. In the recent past, we have introduced several key solutions all aimed at simplifying the complex home entertainment experience. Last year, we announced, Onkyo was the first company to include our QuickSet application and XMP-2 technology and the universal remote shipping with its AV receivers. Since then DIRECTV became a first television service provider to include QuickSet in its new suite of remote controls and HD set-top boxes. XMP-2 is a two-way protocol designed for interactive applications and services and enables our QuickSet automated remote control setup solution. Another successful innovation introduced by UEI this year is our SMARTCONTROL product. SMARTCONTROL is our one-for-all retail remote control, which offers consumers an intuitive modeless home theater system control experience at an affordable price. SMARTCONTROL includes UEI's SIMPLESET, a simple three-step universal device setup that does not require a manual or a computer and can literally be set up in less than a minute. The SMARTCONTROL began shipping in Europe earlier this year and began limited distribution in North America in the second quarter. Read the rest of this transcript for free on seekingalpha.com