Universal Electronics Inc. (UEIC) Q3 2010 Earnings Call November 4, 2010 4:30 PM ET Executives Becky Herrick – Lippert/Heilshorn & Associates, IR Paul Arling – Chairman and Chief Executive Officer Bryan Hackworth – Chief Financial Officer Analysts Ian Corydon – B. Riley Jason Ursaner – CJS Securities Jonathan Goldberg – Deutsche Bank Corey Barrett – Pacific Crest Securities Presentation Operator
Previous Statements by UEIC
» Universal Electronics Inc. Q2 2010 Earnings Call Transcript
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During the course of this conference call, management may make projections or other forward-looking statements regarding future events and the future financial performance of the company, including the benefits the company anticipates as a result of its continued development of new and innovative products and technologies that are accepted by and 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 failure of our markets or customers to continue growing and expanding in the manner we anticipated, the company’s ability to attract and obtain new customers, particularly in Asia and in Central and South America, the failure to successfully integrate the operations of the recently acquired C.G. companies into our operations, the failure of the C.G. companies to perform in accordance with our expectations, the strength of the company’s financial position and the effects 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 the company files from time to time with the SEC, including the annual report on Form 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 projection or 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, and then Paul will return to provide closing remarks.
It’s now my pleasure to turn the call over to Paul Arling. Please go ahead, Paul.Paul Arling Thank you, Becky, and welcome everyone. The third quarter 2010 revenue of $79 million and EPS of $0.34, our third quarter came in generally as we expected it to. Despite a continuing difficult economic environment over the past two years, our year-to-date performance has been quite good with earnings growth of 28%. Our strategy of building great technologies and products for the home entertainment markets and partnering with industry leaders to deploy these technologies and products has led us to great success over the years in both good and difficult times. Our focus on building and keeping strong relationships with customers has helped us to expand our industry reach and more recently expand our global footprint into the higher growth regions of the world. Today, we are taking a major step forward to enhance our position as the leader in wireless control technology while significantly expanding both our geographic reach and market share. Today, we are very excited to announce our acquisition of Hong Kong based Enson Assets Limited and its subsidiaries including China based C.G. Development and C.G. Technology for a net purchase value of $110 million. The C.G. companies are leading remote control companies that develop, manufacture and sell remote control units to many industry leaders, including such names as Sony, Panasonic and Toshiba. The strategic benefits of the transaction are many. UEI and C.G. together account for approximately 30% of all remotes sold on planet earth annually. Market leadership in both share and technology provides many benefits including increased purchasing leverage, market diversity and a broad product portfolio that can service a customer’s complete set of needs. This scale also increases our ability to invest in industry-leading technologies. Read the rest of this transcript for free on seekingalpha.com