Universal Electronics Inc. reported its financial results for the third quarter and nine months ended September 30, 2024, showing a decline in revenue but improvements in profitability metrics compared to the same period in 2023.

For the three months ended September 30, 2024, net sales were $102.1 million, a decrease of 4.7% from $107.1 million in the prior year. For the nine-month period, net sales totaled $284.4 million, down from $322.9 million. Despite the revenue decline, the company achieved a gross profit of $30.7 million for the third quarter, representing a gross margin of 30.1%, up from 19.1% in the same quarter of 2023. The nine-month gross profit also improved to $82.7 million, or 29.1% of sales, compared to 21.6% in the previous year.

Operating income for the third quarter was $418,000, a significant turnaround from an operating loss of $14.0 million in the same quarter of 2023. However, for the nine months, the company reported an operating loss of $10.9 million, an improvement from a loss of $82.7 million in the prior year. The net loss for the third quarter narrowed to $2.7 million, compared to a loss of $19.4 million in the same period last year. For the nine months, the net loss was $19.5 million, significantly reduced from $91.1 million in 2023, which included substantial goodwill impairment charges.

The company’s cash and cash equivalents decreased to $26.3 million as of September 30, 2024, down from $42.8 million at the end of 2023. Total current assets also fell to $237.3 million from $258.9 million, while total liabilities decreased to $160.1 million from $177.0 million. Stockholders' equity was reported at $161.2 million, down from $178.9 million at the end of 2023.

Strategically, Universal Electronics has focused on cost-saving measures in response to macroeconomic challenges, including reduced consumer spending and inflation. The company has streamlined operations, resulting in lower operating expenses, which were 29.7% of net sales in the third quarter, down from 32.2% in the prior year. Research and development expenses also decreased, reflecting a reduction in third-party product development costs and headcount.

In terms of financing, the company amended its credit agreement with U.S. Bank, establishing a revolving line of credit with a maximum availability of $100 million. As of September 30, 2024, $37 million was outstanding under this line, down from $55 million at the end of 2023.

Overall, while Universal Electronics faced revenue challenges, it demonstrated improved profitability and strategic adjustments to navigate the current market conditions.