Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2023 | Nov. 03, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 0-21044 | |
Entity Registrant Name | UNIVERSAL ELECTRONICS INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 33-0204817 | |
Entity Address, Address Line One | 15147 N. Scottsdale Road, Suite H300 | |
Entity Address, City or Town | Scottsdale | |
Entity Address, State or Province | AZ | |
Entity Address, Postal Zip Code | 85254-2494 | |
City Area Code | 480 | |
Local Phone Number | 530-3000 | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | UEIC | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 12,952,143 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
Current Fiscal Year End Date | --12-31 | |
Entity Central Index Key | 0000101984 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 60,079 | $ 66,740 |
Accounts receivable, net | 112,521 | 112,346 |
Contract assets | 8,133 | 7,996 |
Inventories | 93,462 | 140,181 |
Prepaid expenses and other current assets | 5,809 | 6,647 |
Income tax receivable | 2,387 | 4,130 |
Total current assets | 282,391 | 338,040 |
Property, plant and equipment, net | 46,613 | 62,791 |
Goodwill | 0 | 49,085 |
Intangible assets, net | 25,529 | 24,470 |
Operating lease right-of-use assets | 17,777 | 21,599 |
Deferred income taxes | 4,472 | 6,242 |
Other assets | 1,558 | 1,936 |
Total assets | 378,340 | 504,163 |
Current liabilities: | ||
Accounts payable | 54,776 | 71,373 |
Line of credit | 75,000 | 88,000 |
Accrued compensation | 21,707 | 20,904 |
Accrued sales discounts, rebates and royalties | 5,060 | 6,477 |
Accrued income taxes | 4,261 | 5,585 |
Other accrued liabilities | 21,714 | 24,134 |
Total current liabilities | 182,518 | 216,473 |
Long-term liabilities: | ||
Operating lease obligations | 11,553 | 15,027 |
Deferred income taxes | 1,280 | 2,724 |
Income tax payable | 723 | 723 |
Other long-term liabilities | 739 | 810 |
Total liabilities | 196,813 | 235,757 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Preferred stock, $0.01 par value, 5,000,000 shares authorized; none issued or outstanding | 0 | 0 |
Common stock, $0.01 par value, 50,000,000 shares authorized; 25,301,246 and 24,999,951 shares issued on September 30, 2023 and December 31, 2022, respectively | 253 | 250 |
Paid-in capital | 334,683 | 326,839 |
Treasury stock, at cost, 12,356,603 and 12,295,305 shares on September 30, 2023 and December 31, 2022, respectively | (369,082) | (368,194) |
Accumulated other comprehensive income (loss) | (23,889) | (21,187) |
Retained earnings | 239,562 | 330,698 |
Total stockholders' equity | 181,527 | 268,406 |
Total liabilities and stockholders' equity | $ 378,340 | $ 504,163 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2023 | Dec. 31, 2022 |
Stockholders' equity: | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, shares issued (in shares) | 25,301,246 | 24,999,951 |
Treasury stock (in shares) | 12,356,603 | 12,295,305 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Statement [Abstract] | ||||
Net sales | $ 107,095 | $ 148,482 | $ 322,863 | $ 419,993 |
Cost of sales | 86,683 | 104,040 | 253,141 | 299,912 |
Gross profit | 20,412 | 44,442 | 69,722 | 120,081 |
Research and development expenses | 7,658 | 8,017 | 24,502 | 24,460 |
Factory restructuring charges | 3,690 | 0 | 3,690 | 0 |
Selling, general and administrative expenses | 23,097 | 24,928 | 75,144 | 79,188 |
Goodwill impairment | 0 | 0 | 49,075 | 0 |
Operating income (loss) | (14,033) | 11,497 | (82,689) | 16,433 |
Interest income (expense), net | (1,216) | (668) | (3,288) | (1,147) |
Other income (expense), net | (851) | (54) | (1,767) | (388) |
Income (loss) before provision for income taxes | (16,100) | 10,775 | (87,744) | 14,898 |
Provision for income taxes | 3,262 | 3,541 | 3,392 | 7,586 |
Net income (loss) | $ (19,362) | $ 7,234 | $ (91,136) | $ 7,312 |
Earnings (loss) per share: | ||||
Basic (in dollars per share) | $ (1.50) | $ 0.57 | $ (7.10) | $ 0.58 |
Diluted (in dollars per share) | $ (1.50) | $ 0.57 | $ (7.10) | $ 0.57 |
Shares used in computing earnings (loss) per share: | ||||
Basic (in shares) | 12,911 | 12,656 | 12,839 | 12,709 |
Diluted (in shares) | 12,911 | 12,696 | 12,839 | 12,797 |
CONSOLIDATED COMPREHENSIVE INCO
CONSOLIDATED COMPREHENSIVE INCOME (LOSS) STATEMENTS - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ (19,362) | $ 7,234 | $ (91,136) | $ 7,312 |
Other comprehensive income (loss): | ||||
Change in foreign currency translation adjustment | (1,501) | (7,367) | (2,702) | (12,831) |
Comprehensive income (loss) | $ (20,863) | $ (133) | $ (93,838) | $ (5,519) |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($) $ in Thousands | Total | Common Stock Issued | Common Stock in Treasury | Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings |
Beginning balance (in shares) at Dec. 31, 2021 | 24,679,000 | |||||
Beginning balance at Dec. 31, 2021 | $ 275,949 | $ 247 | $ (355,159) | $ 314,094 | $ (13,524) | $ 330,291 |
Beginning balance (in shares) at Dec. 31, 2021 | (11,861,000) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (2,910) | (2,910) | ||||
Currency translation adjustment | 1,849 | 1,849 | ||||
Shares issued for employee benefit plan and compensation (in shares) | 145,000 | |||||
Shares issued for employee benefit plan and compensation | 324 | $ 1 | 323 | |||
Purchase of treasury shares (in shares) | (225,000) | |||||
Purchase of treasury shares | (7,354) | $ (7,354) | ||||
Shares issued to directors (in shares) | 7,000 | |||||
Shares issued to directors | 0 | |||||
Employee and director stock-based compensation | 2,499 | 2,499 | ||||
Ending balance (in shares) at Mar. 31, 2022 | 24,831,000 | |||||
Ending balance at Mar. 31, 2022 | 270,357 | $ 248 | $ (362,513) | 316,916 | (11,675) | 327,381 |
Ending balance (in shares) at Mar. 31, 2022 | (12,086,000) | |||||
Beginning balance (in shares) at Dec. 31, 2021 | 24,679,000 | |||||
Beginning balance at Dec. 31, 2021 | 275,949 | $ 247 | $ (355,159) | 314,094 | (13,524) | 330,291 |
Beginning balance (in shares) at Dec. 31, 2021 | (11,861,000) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | 7,312 | |||||
Currency translation adjustment | $ (12,831) | |||||
Purchase of treasury shares (in shares) | (358,000) | |||||
Purchase of treasury shares | $ (11,297) | |||||
Ending balance (in shares) at Sep. 30, 2022 | 24,893,000 | |||||
Ending balance at Sep. 30, 2022 | 267,660 | $ 249 | $ (366,456) | 322,619 | (26,355) | 337,603 |
Ending balance (in shares) at Sep. 30, 2022 | (12,219,000) | |||||
Beginning balance (in shares) at Mar. 31, 2022 | 24,831,000 | |||||
Beginning balance at Mar. 31, 2022 | 270,357 | $ 248 | $ (362,513) | 316,916 | (11,675) | 327,381 |
Beginning balance (in shares) at Mar. 31, 2022 | (12,086,000) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | 2,988 | 2,988 | ||||
Currency translation adjustment | (7,313) | (7,313) | ||||
Shares issued for employee benefit plan and compensation (in shares) | 23,000 | |||||
Shares issued for employee benefit plan and compensation | 302 | $ 1 | 301 | |||
Purchase of treasury shares (in shares) | (130,000) | |||||
Purchase of treasury shares | (3,857) | $ (3,857) | ||||
Shares issued to directors (in shares) | 8,000 | |||||
Shares issued to directors | 0 | |||||
Employee and director stock-based compensation | 2,637 | 2,637 | ||||
Ending balance (in shares) at Jun. 30, 2022 | 24,862,000 | |||||
Ending balance at Jun. 30, 2022 | 265,114 | $ 249 | $ (366,370) | 319,854 | (18,988) | 330,369 |
Ending balance (in shares) at Jun. 30, 2022 | (12,216,000) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | 7,234 | 7,234 | ||||
Currency translation adjustment | (7,367) | (7,367) | ||||
Shares issued for employee benefit plan and compensation (in shares) | 24,000 | |||||
Shares issued for employee benefit plan and compensation | 326 | 326 | ||||
Purchase of treasury shares (in shares) | (3,000) | |||||
Purchase of treasury shares | (86) | $ (86) | ||||
Shares issued to directors (in shares) | 7,000 | |||||
Shares issued to directors | 0 | |||||
Employee and director stock-based compensation | 2,439 | 2,439 | ||||
Ending balance (in shares) at Sep. 30, 2022 | 24,893,000 | |||||
Ending balance at Sep. 30, 2022 | 267,660 | $ 249 | $ (366,456) | 322,619 | (26,355) | 337,603 |
Ending balance (in shares) at Sep. 30, 2022 | (12,219,000) | |||||
Beginning balance (in shares) at Dec. 31, 2022 | 25,000,000 | |||||
Beginning balance at Dec. 31, 2022 | $ 268,406 | $ 250 | $ (368,194) | 326,839 | (21,187) | 330,698 |
Beginning balance (in shares) at Dec. 31, 2022 | (12,295,305) | (12,295,000) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | $ (61,363) | (61,363) | ||||
Currency translation adjustment | 1,916 | 1,916 | ||||
Shares issued for employee benefit plan and compensation (in shares) | 189,000 | |||||
Shares issued for employee benefit plan and compensation | 352 | $ 2 | 350 | |||
Purchase of treasury shares (in shares) | (53,000) | |||||
Purchase of treasury shares | (812) | $ (812) | ||||
Shares issued to directors (in shares) | 8,000 | |||||
Shares issued to directors | 0 | |||||
Employee and director stock-based compensation | 2,540 | 2,540 | ||||
Ending balance (in shares) at Mar. 31, 2023 | 25,197,000 | |||||
Ending balance at Mar. 31, 2023 | 211,039 | $ 252 | $ (369,006) | 329,729 | (19,271) | 269,335 |
Ending balance (in shares) at Mar. 31, 2023 | (12,348,000) | |||||
Beginning balance (in shares) at Dec. 31, 2022 | 25,000,000 | |||||
Beginning balance at Dec. 31, 2022 | $ 268,406 | $ 250 | $ (368,194) | 326,839 | (21,187) | 330,698 |
Beginning balance (in shares) at Dec. 31, 2022 | (12,295,305) | (12,295,000) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | $ (91,136) | |||||
Currency translation adjustment | $ (2,702) | |||||
Purchase of treasury shares (in shares) | (61,000) | |||||
Purchase of treasury shares | $ (888) | |||||
Ending balance (in shares) at Sep. 30, 2023 | 25,301,000 | |||||
Ending balance at Sep. 30, 2023 | $ 181,527 | $ 253 | $ (369,082) | 334,683 | (23,889) | 239,562 |
Ending balance (in shares) at Sep. 30, 2023 | (12,356,603) | (12,356,000) | ||||
Beginning balance (in shares) at Mar. 31, 2023 | 25,197,000 | |||||
Beginning balance at Mar. 31, 2023 | $ 211,039 | $ 252 | $ (369,006) | 329,729 | (19,271) | 269,335 |
Beginning balance (in shares) at Mar. 31, 2023 | (12,348,000) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (10,411) | (10,411) | ||||
Currency translation adjustment | (3,117) | (3,117) | ||||
Shares issued for employee benefit plan and compensation (in shares) | 50,000 | |||||
Shares issued for employee benefit plan and compensation | 373 | $ 1 | 372 | |||
Purchase of treasury shares (in shares) | (5,000) | |||||
Purchase of treasury shares | (43) | $ (43) | ||||
Shares issued to directors (in shares) | 7,000 | |||||
Shares issued to directors | 0 | |||||
Employee and director stock-based compensation | 2,158 | 2,158 | ||||
Ending balance (in shares) at Jun. 30, 2023 | 25,254,000 | |||||
Ending balance at Jun. 30, 2023 | 199,999 | $ 253 | $ (369,049) | 332,259 | (22,388) | 258,924 |
Ending balance (in shares) at Jun. 30, 2023 | (12,353,000) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (19,362) | (19,362) | ||||
Currency translation adjustment | (1,501) | (1,501) | ||||
Shares issued for employee benefit plan and compensation (in shares) | 40,000 | |||||
Shares issued for employee benefit plan and compensation | 289 | 289 | ||||
Purchase of treasury shares (in shares) | (3,000) | |||||
Purchase of treasury shares | (33) | $ (33) | ||||
Shares issued to directors (in shares) | 7,000 | |||||
Shares issued to directors | 0 | |||||
Employee and director stock-based compensation | 2,135 | 2,135 | ||||
Ending balance (in shares) at Sep. 30, 2023 | 25,301,000 | |||||
Ending balance at Sep. 30, 2023 | $ 181,527 | $ 253 | $ (369,082) | $ 334,683 | $ (23,889) | $ 239,562 |
Ending balance (in shares) at Sep. 30, 2023 | (12,356,603) | (12,356,000) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (91,136) | $ 7,312 |
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities: | ||
Depreciation and amortization | 17,549 | 18,079 |
Provision for credit losses | 69 | (204) |
Deferred income taxes | 259 | 2,063 |
Shares issued for employee benefit plan | 1,014 | 952 |
Employee and director stock-based compensation | 6,833 | 7,575 |
Impairment of goodwill | 49,075 | 0 |
Impairment of long-lived assets | 7,794 | 0 |
Changes in operating assets and liabilities: | ||
Accounts receivable and contract assets | (488) | (11,901) |
Inventories | 44,991 | (8,477) |
Prepaid expenses and other assets | 4,981 | 1,734 |
Accounts payable and accrued liabilities | (21,289) | (17,201) |
Accrued income taxes | 424 | 171 |
Net cash provided by (used for) operating activities | 20,076 | 103 |
Cash flows from investing activities: | ||
Purchase of term deposit | 0 | (7,487) |
Redemption of term deposit | 0 | 7,609 |
Acquisition of net assets of Qterics, Inc. | 0 | (939) |
Acquisitions of property, plant and equipment | (6,840) | (10,117) |
Acquisitions of intangible assets | (4,643) | (4,719) |
Net cash provided by (used for) investing activities | (11,483) | (15,653) |
Cash flows from financing activities: | ||
Borrowings under line of credit | 35,000 | 83,000 |
Repayments on line of credit | (48,000) | (51,000) |
Treasury stock purchased | (888) | (11,297) |
Net cash provided by (used for) financing activities | (13,888) | 20,703 |
Effect of foreign currency exchange rates on cash and cash equivalents | (1,366) | (4,285) |
Net increase (decrease) in cash and cash equivalents | (6,661) | 868 |
Cash and cash equivalents at beginning of period | 66,740 | 60,813 |
Cash and cash equivalents at end of period | 60,079 | 61,681 |
Supplemental cash flow information: | ||
Income taxes paid | 5,327 | 5,034 |
Interest paid | $ 5,431 | $ 1,204 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation In the opinion of management, the accompanying consolidated financial statements of Universal Electronics Inc. and its subsidiaries contain all the adjustments necessary for a fair presentation of financial position, results of operations and cash flows for the periods presented. All such adjustments are of a normal recurring nature, except for the impairment and restructuring charges, as described in notes 5, 6 and 12 to the consolidated financial statements. Information and footnote disclosures normally included in financial statements, which are prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"), have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). As used herein, the terms "Company," "we," "us," and "our" refer to Universal Electronics Inc. and its subsidiaries, unless the context indicates to the contrary. Our results of operations for the three and nine months ended September 30, 2023 are not necessarily indicative of the results to be expected for the full year. These financial statements should be read in conjunction with the "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations," "Quantitative and Qualitative Disclosures About Market Risk," and the "Financial Statements and Supplementary Data" included in Items 1A, 7, 7A, and 8, respectively, of our Annual Report on Form 10-K for the year ended December 31, 2022. Estimates and Assumptions The preparation of financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. On an on-going basis, we evaluate our estimates and assumptions, including those related to revenue recognition; allowance for credit losses; inventory valuation; impairment of long-lived assets, intangible assets and goodwill; business combinations; income taxes and related valuation allowances and stock-based compensation expense. Actual results may differ from these assumptions and estimates, and they may be adjusted as more information becomes available. Any adjustment may be material. Summary of Significant Accounting Policies See Note 2 to the consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2022 for a summary of our significant accounting policies. Recently Adopted Accounting Pronouncements None. Recent Accounting Updates Not Yet Effective None. |
Cash, Cash Equivalents and Term
Cash, Cash Equivalents and Term Deposit | 9 Months Ended |
Sep. 30, 2023 | |
Cash and Cash Equivalents [Abstract] | |
Cash, Cash Equivalents and Term Deposit | Cash, Cash Equivalents and Term Deposit Cash and cash equivalents were held in the following geographic regions: (In thousands) September 30, 2023 December 31, 2022 North America $ 10,603 $ 6,825 People's Republic of China ("PRC") 3,556 15,633 Asia (excluding the PRC) 17,613 18,850 Europe 15,710 13,042 South America 12,597 12,390 Total cash and cash equivalents $ 60,079 $ 66,740 |
Revenue and Accounts Receivable
Revenue and Accounts Receivable, Net | 9 Months Ended |
Sep. 30, 2023 | |
Receivables [Abstract] | |
Revenue and Accounts Receivable, Net | Revenue and Accounts Receivable, Net Revenue Details The pattern of revenue recognition was as follows: Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2023 2022 2023 2022 Goods and services transferred at a point in time $ 83,855 $ 127,672 $ 249,908 $ 355,113 Goods and services transferred over time 23,240 20,810 72,955 64,880 Net sales $ 107,095 $ 148,482 $ 322,863 $ 419,993 Our net sales to external customers by geographic area were as follows: Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2023 2022 2023 2022 United States $ 31,737 $ 46,732 $ 97,892 $ 130,196 Asia (excluding PRC) 20,107 32,614 66,508 100,000 Europe 22,529 27,358 68,598 76,382 People's Republic of China 19,049 26,696 49,082 68,604 Latin America 8,227 7,602 24,408 20,996 Other 5,446 7,480 16,375 23,815 Total net sales $ 107,095 $ 148,482 $ 322,863 $ 419,993 Specific identification of the customer billing location was the basis used for attributing revenues from external customers to geographic areas. Net sales to the following customers totaled more than 10% of our net sales: Three Months Ended September 30, 2023 2022 $ (thousands) % of Net Sales $ (thousands) % of Net Sales Comcast Corporation (1) (1) $ 23,615 15.9 % Daikin Industries Ltd. $ 15,194 14.2 % $ 21,381 14.4 % Sony Corporation $ 11,825 11.0 % (1) (1) (1) Net sales associated with this customer did not total more than 10% of our net sales for the indicated period. Nine Months Ended September 30, 2023 2022 $ (thousands) % of Net Sales $ (thousands) % of Net Sales Comcast Corporation $ 34,436 10.7 % $ 62,222 14.8 % Daikin Industries Ltd. $ 48,401 15.0 % $ 59,397 14.1 % Accounts Receivable, Net Accounts receivable, net were as follows: (In thousands) September 30, 2023 December 31, 2022 Trade receivables, gross $ 107,625 $ 108,030 Allowance for credit losses (819) (957) Allowance for sales returns (487) (618) Trade receivables, net 106,319 106,455 Other (1) 6,202 5,891 Accounts receivable, net $ 112,521 $ 112,346 (1) Other accounts receivable is primarily comprised of value added tax and supplier rebate receivables. Allowance for Credit Losses Changes in the allowance for credit losses were as follows: (In thousands) Nine Months Ended September 30, 2023 2022 Balance at beginning of period $ 957 $ 1,285 Additions (reductions) to costs and expenses 69 (204) Write-offs/Foreign exchange effects (207) (135) Balance at end of period $ 819 $ 946 Trade receivables associated with these significant customers that totaled more than 10% of our accounts receivable, net were as follows: September 30, 2023 December 31, 2022 $ (thousands) % of Accounts Receivable, Net $ (thousands) % of Accounts Receivable, Net Comcast Corporation (1) (1) $ 15,367 13.7 % Sony Corporation $ 12,371 11.0 % (1) (1) (1) Trade receivables associated with this customer did not total more than 10% of our accounts receivable, net for the indicated period. |
Inventories and Significant Sup
Inventories and Significant Supplier | 9 Months Ended |
Sep. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories and Significant Supplier | Inventories and Significant Supplier Inventories were as follows: (In thousands) September 30, 2023 December 31, 2022 Raw materials $ 38,364 $ 58,759 Components 13,119 25,226 Work in process 1,725 2,616 Finished goods 40,254 53,580 Inventories $ 93,462 $ 140,181 Significant Supplier There were no purchases from suppliers that totaled more than 10% of our total inventory purchases for the three months ended September 30, 2023 and 2022. Purchases from the following supplier totaled more than 10% of our total inventory purchases: Nine Months Ended September 30, 2023 2022 $ (thousands) % of Total Inventory Purchases $ (thousands) % of Total Inventory Purchases Qorvo International Pte Ltd. (1) (1) $ 23,185 10.3 % (1) Purchases associated with this supplier did not total more than 10% of our total inventory purchases for the indicated period. There were no trade payable balances from suppliers that totaled more than 10% of our total accounts payable at September 30, 2023 and December 31, 2022. |
Long-lived Tangible Assets
Long-lived Tangible Assets | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Long-lived Tangible Assets | Long-lived Tangible Assets Long-lived tangible assets by geographic area, which include property, plant, and equipment, net and operating lease right-of-use assets, were as follows: (In thousands) September 30, 2023 December 31, 2022 United States $ 14,504 $ 16,427 People's Republic of China 28,268 42,893 Mexico 9,494 14,402 Vietnam 7,902 6,923 All other countries 4,222 3,745 Total long-lived tangible assets $ 64,390 $ 84,390 Property, plant, and equipment are shown net of accumulated depreciation of $170.0 million and $170.5 million at September 30, 2023 and December 31, 2022, respectively. Depreciation expense was $4.6 million and $4.9 million for the three months ended September 30, 2023 and 2022, respectively. Depreciation expense was $13.9 million and $15.1 million for the nine months ended September 30, 2023 and 2022, respectively. During the three months ended September 30, 2023, as part of our manufacturing footprint optimization efforts, we made the decision to close our southwestern China factory and manufacturing operations were stopped in September 2023. We are also working to downsize our factory in Mexico due to decreased demand in our U.S. market. As a result of these decisions, we recorded impairment charges of $7.7 million during the three and nine months ended September 30, 2023, of which $7.6 million and $0.1 million is recorded in cost of sales and selling, general and administrative expenses, respectively, in our consolidated statements of operations. |
Goodwill and Intangible Assets,
Goodwill and Intangible Assets, Net | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets, Net | Goodwill and Intangible Assets, Net Goodwill During the nine months ended September 30, 2023, a decline in our financial performance, overall negative trend in the video service provider channel and an uncertain economic environment, contributed to a significant decline in our market capitalization. We considered this to be an impairment trigger. We, therefore, performed a quantitative valuation analysis under an income approach to estimate our reporting unit's fair value. The income approach used projections of estimated operating results and cash flows that were discounted using a discount rate based on the weighted-average cost of capital. The main assumptions supporting the cash flow projections include, but are not limited to, revenue growth, margins, discount rate, and terminal growth rate. The financial projections reflect our best estimate of economic and market conditions over the projected period, including forecasted revenue growth, margins, capital expenditures, depreciation and amortization. In addition to our valuation analysis under an income approach, we also considered the implied control premium compared to our market capitalization. We determined that the implied control premium over our market capitalization to be substantial; therefore, we recorded an impairment charge of $49.1 million during the nine months ended September 30, 2023. Changes in the carrying amount of goodwill were as follows: (In thousands) Balance at December 31, 2022 $ 49,085 Goodwill impairment (49,075) Foreign exchange effects (10) Balance at September 30, 2023 $ — Intangible Assets, Net The components of intangible assets, net were as follows: September 30, 2023 December 31, 2022 (In thousands) Gross (1) Accumulated Amortization (1) Net Gross (1) Accumulated Amortization (1) Net Capitalized software development costs $ 2,078 $ (281) $ 1,797 $ 1,647 $ (44) $ 1,603 Customer relationships 6,340 (3,622) 2,718 6,340 (3,080) 3,260 Developed and core technology 4,520 (3,966) 554 4,520 (3,693) 827 Distribution rights 304 (299) 5 308 (281) 27 Patents 32,509 (12,165) 20,344 29,388 (10,790) 18,598 Trademarks and trade names 450 (339) 111 450 (295) 155 Total intangible assets, net $ 46,201 $ (20,672) $ 25,529 $ 42,653 $ (18,183) $ 24,470 (1) This table excludes the gross value of fully amortized intangible assets totaling $44.3 million and $43.7 million at September 30, 2023 and December 31, 2022, respectively. Amortization expense is recorded in selling, general and administrative expenses, except amortization expense related to capitalized software development costs, which is recorded in cost of sales. Amortization expense by statement of operations caption was as follows: (In thousands) Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Cost of sales $ 146 $ 13 $ 302 $ 37 Selling, general and administrative expenses 1,119 1,018 3,282 2,928 Total amortization expense $ 1,265 $ 1,031 $ 3,584 $ 2,965 Estimated future annual amortization expense related to our intangible assets at September 30, 2023, was as follows: (In thousands) 2023 (remaining 3 months) $ 1,256 2024 5,103 2025 4,392 2026 3,583 2027 3,035 Thereafter 8,160 Total $ 25,529 |
Leases
Leases | 9 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
Leases | Leases We have entered into various operating lease agreements for automobiles, offices and manufacturing facilities throughout the world. At September 30, 2023, our operating leases had remaining lease terms of up to 37 years, including any reasonably probable extensions. Lease balances within our consolidated balance sheet were as follows: (In thousands) September 30, 2023 December 31, 2022 Assets: Operating lease right-of-use assets $ 17,777 $ 21,599 Liabilities: Other accrued liabilities $ 4,770 $ 5,509 Long-term operating lease obligations 11,553 15,027 Total lease liabilities $ 16,323 $ 20,536 Operating lease expense, including variable and short-term lease costs, which were insignificant to the total operating lease cash flows, and supplemental cash flow information were as follows: (In thousands) Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Cost of sales $ 738 $ 741 $ 2,242 $ 2,138 Selling, general and administrative expenses 1,030 1,128 3,215 3,315 Total operating lease expense $ 1,768 $ 1,869 $ 5,457 $ 5,453 Operating cash outflows from operating leases $ 2,301 $ 1,858 5,878 5,318 Operating lease right-of-use assets obtained in exchange for lease obligations $ 242 $ 1,604 $ 2,202 $ 4,535 We entered into lease amendments for our southwestern China and Mexico factories during the three months ended September 30, 2023 as a part of our manufacturing footprint optimization efforts. As a result of these modifications, our operating lease right-of-use assets decreased by $1.2 million and our total lease liabilities decreased by $1.3 million. The weighted average remaining lease liability term and the weighted average discount rate were as follows: September 30, 2023 December 31, 2022 Weighted average lease liability term (in years) 4.9 5.1 Weighted average discount rate 4.53 % 3.82 % The following table reconciles the undiscounted cash flows for each of the first five years and thereafter to the operating lease liabilities recognized in our consolidated balance sheet at September 30, 2023. The reconciliation excludes short-term leases that are not recorded on the balance sheet. (In thousands) September 30, 2023 2023 (remaining 3 months) $ 1,230 2024 5,144 2025 3,908 2026 2,918 2027 2,158 Thereafter 3,084 Total lease payments 18,442 Less: imputed interest (2,119) Total lease liabilities $ 16,323 At September 30, 2023, we did not have any operating leases that had not yet commenced. |
Line of Credit
Line of Credit | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Line of Credit | Line of Credit On May 3, 2023, we executed an amendment to our Second Amended and Restated Credit Agreement ("Second Amended Credit Agreement") with U.S. Bank National Association ("U.S. Bank"), which provides for a $125.0 million revolving line of credit ("Credit Line"). Among other things, the amendment to the Second Amended Credit Agreement extended the maturity of the revolving line of credit to April 30, 2024. The Credit Line may be used for working capital and other general corporate purposes including acquisitions, share repurchases and capital expenditures. Amounts available for borrowing under the Credit Line are reduced by the balance of any outstanding letters of credit, of which there were none at September 30, 2023 and December 31, 2022. All obligations under the Credit Line are secured by substantially all of our U.S. personal property and tangible and intangible assets, as well as a guaranty of the Credit Line by our wholly-owned subsidiary, Universal Electronics BV. Under the Second Amended Credit Agreement, we may elect to pay interest on the Credit Line based on the Secured Overnight Financing Rate ("SOFR") plus an applicable margin (varying from 2.00% to 2.75%), or base rate (based on the prime rate of U.S. Bank or as otherwise specified in the Second Amended Credit Agreement) plus an applicable margin (varying from 0.00% to 0.75%). The applicable margins are calculated quarterly and vary based on our cash flow leverage ratio as set forth in the Second Amended Credit Agreement. The interest rates in effect at September 30, 2023 and December 31, 2022 were 8.05% and 5.62%, respectively. There are no commitment fees or unused line fees under the Second Amended Credit Agreement. The Second Amended Credit Agreement includes financial covenants requiring a minimum fixed charge coverage ratio and a maximum cash flow leverage ratio. In addition, the Second Amended Credit Agreement contains other customary affirmative and negative covenants and events of default. From May 3, 2023 to March 31, 2024 (unless we elect to terminate earlier), our fixed charge coverage ratio and cash flow leverage ratio-based covenants are temporarily replaced with EBITDA-based covenants. Additionally, from May 3, 2023 to March 31, 2024 (unless we elect to terminate the temporary covenant provision earlier), the applicable margins are fixed at 2.75% and 0.75% for SOFR and base rate borrowing, respectively. At September 30, 2023, we were in compliance with the covenants and conditions of the Second Amended Credit Agreement. At September 30, 2023 and December 31, 2022, we had $75.0 million and $88.0 million outstanding under the Credit Line, respectively. Our total interest expense on borrowings was $1.6 million and $1.0 million during the three months ended September 30, 2023 and 2022, respectively. Our total interest expense on borrowings was $4.5 million and $1.9 million during the nine months ended September 30, 2023 and 2022, respectively. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes We recorded income tax expense of $3.3 million and $3.5 million for the three months ended September 30, 2023 and 2022, respectively. We recorded income tax expense of $3.4 million and $7.6 million for the nine months ended September 30, 2023 and 2022, respectively. The difference in income tax expense recorded for the nine months ended September 30, 2023 and 2022 is primarily due to the mix of pre‐tax income among jurisdictions, including losses not benefited as a result of a valuation allowance. The difference between the Company's effective tax rate and the 21.0% U.S. federal statutory rate for the three months ended September 30, 2023 primarily related to the mix of pre-tax income and loss among jurisdictions and permanent tax items including a tax on global intangible low-taxed income. The permanent tax item related to global intangible low-taxed income also reflects recent legislative changes requiring the capitalization of research and experimentation costs, as well as limitations on the creditability of certain foreign income taxes. At December 31, 2022, we assessed the realizability of the Company's deferred tax assets by considering whether it is more likely than not some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. We considered the scheduled reversal of deferred tax liabilities, tax planning strategies and projected future taxable income in making this assessment. At December 31, 2022, we had a three-year cumulative operating loss for our U.S. operations and, accordingly, have provided a full valuation allowance on our U.S. federal and state deferred tax assets. During the nine months ended September 30, 2023, there was no change to our U.S. valuation allowance position. Additionally, during the nine months ended September 30, 2023, we have recorded a full valuation allowance of $1.4 million against the deferred tax assets related to our southwestern China factory due to the commencement of its shutdown. At September 30, 2023, we had gross unrecognized tax benefits of $3.8 million, including interest and penalties, which, if not for the valuation allowance recorded against the state Research and Experimentation income tax credit, $3.3 million would affect the annual effective tax rate if these tax benefits are realized. Further, we are unaware of any positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly increase within the next twelve months. Based on federal, state and foreign statute expirations in various jurisdictions, we do not anticipate a decrease in unrecognized tax benefits within the next twelve months. We have classified uncertain tax positions as non-current income tax liabilities unless they are expected to be paid within one year. We have elected to classify interest and penalties as a component of tax expense. Accrued interest and penalties are immaterial at September 30, 2023 and December 31, 2022 and are included in the unrecognized tax benefits. |
Accrued Compensation
Accrued Compensation | 9 Months Ended |
Sep. 30, 2023 | |
Payables and Accruals [Abstract] | |
Accrued Compensation | Accrued Compensation The components of accrued compensation were as follows: (In thousands) September 30, 2023 December 31, 2022 Accrued bonus $ 3,042 $ 3,348 Accrued commission 355 609 Accrued salary/wages (1) 4,014 4,433 Accrued social insurance (2) 8,442 7,037 Accrued vacation/holiday 3,396 3,300 Other accrued compensation 2,458 2,177 Total accrued compensation $ 21,707 $ 20,904 (1) At September 30, 2023, accrued severance expenses of $1.7 million related to manufacturing footprint optimization efforts are included in this amount. See Note 12 for further information related to our restructuring activities. (2) PRC employers are required by law to remit the applicable social insurance payments to their local government. Social insurance is comprised of various components such as pension, medical insurance, job injury insurance, unemployment insurance, and a housing assistance fund, and is administered in a manner similar to social security in the United States. This amount represents our estimate of the amounts due to the PRC government for social insurance on September 30, 2023 and December 31, 2022. The components of other accrued liabilities were as follows: (In thousands) September 30, 2023 December 31, 2022 Contract liabilities $ 2,065 $ 1,134 Duties 1,131 470 Expense associated with fulfilled performance obligations 1,344 1,120 Freight and handling fees 2,411 2,497 Interest 517 1,413 Operating lease obligations 4,770 5,509 Product warranty claims costs 522 522 Professional fees 1,569 2,293 Sales and value added taxes 2,908 3,750 Other 4,477 5,426 Total other accrued liabilities $ 21,714 $ 24,134 |
Other Accrued Liabilities
Other Accrued Liabilities | 9 Months Ended |
Sep. 30, 2023 | |
Payables and Accruals [Abstract] | |
Other Accrued Liabilities | Accrued Compensation The components of accrued compensation were as follows: (In thousands) September 30, 2023 December 31, 2022 Accrued bonus $ 3,042 $ 3,348 Accrued commission 355 609 Accrued salary/wages (1) 4,014 4,433 Accrued social insurance (2) 8,442 7,037 Accrued vacation/holiday 3,396 3,300 Other accrued compensation 2,458 2,177 Total accrued compensation $ 21,707 $ 20,904 (1) At September 30, 2023, accrued severance expenses of $1.7 million related to manufacturing footprint optimization efforts are included in this amount. See Note 12 for further information related to our restructuring activities. (2) PRC employers are required by law to remit the applicable social insurance payments to their local government. Social insurance is comprised of various components such as pension, medical insurance, job injury insurance, unemployment insurance, and a housing assistance fund, and is administered in a manner similar to social security in the United States. This amount represents our estimate of the amounts due to the PRC government for social insurance on September 30, 2023 and December 31, 2022. The components of other accrued liabilities were as follows: (In thousands) September 30, 2023 December 31, 2022 Contract liabilities $ 2,065 $ 1,134 Duties 1,131 470 Expense associated with fulfilled performance obligations 1,344 1,120 Freight and handling fees 2,411 2,497 Interest 517 1,413 Operating lease obligations 4,770 5,509 Product warranty claims costs 522 522 Professional fees 1,569 2,293 Sales and value added taxes 2,908 3,750 Other 4,477 5,426 Total other accrued liabilities $ 21,714 $ 24,134 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Product Warranties Changes in the liability for product warranty claims costs were as follows: (In thousands) Nine Months Ended September 30, 2023 2022 Balance at beginning of period $ 522 $ 1,095 Accruals for warranties issued during the period — 249 Settlements (in cash or in kind) during the period — (552) Foreign currency translation gain (loss) — (3) Balance at end of period $ 522 $ 789 Restructuring Activities In September 2023, we began implementing our plan to restructure and optimize our manufacturing footprint while reducing our concentration risk in the PRC. In conjunction with this plan, as of September 30, 2023, we have stopped all production activities and commenced the shutdown of our southwestern China factory. As a result, we incurred severance and equipment moving costs of $3.4 million and $0.3 million, respectively, during the three and nine months ended September 30, 2023, which are included within factory restructuring charges on our consolidated statements of operations. We expect the completion date of this factory restructuring to be in the first quarter of 2024 with total estimated restructuring charges of $3.7 million. The restructuring liabilities are included in accrued compensation and other accrued liabilities on our consolidated balance sheets. Restructuring activities for the nine months ended September 30, 2023 are as follows: Restructuring Costs (In thousands) Total Severance Other Exit Balance at December 31, 2022 $ — $ — $ — Restructuring charges 3,690 3,415 275 Cash payments (1,827) (1,691) (136) Other adjustments — — — Balance at September 30, 2023 $ 1,863 $ 1,724 $ 139 Total costs incurred inception to date $ 3,690 $ 3,415 $ 275 Total expected expense to be incurred as of September 30, 2023 $ — $ — $ — Litigation Roku Matters 2018 Lawsuit On September 5, 2018, we filed a lawsuit against Roku, Inc. ("Roku") in the United States District Court, Central District of California, alleging that Roku is willfully infringing nine of our patents that are in four patent families related to remote control set-up and touchscreen remotes. On December 5, 2018, we amended our complaint to add additional details supporting our infringement and willfulness allegations. We have alleged that this complaint relates to multiple Roku streaming players and components therefor and certain universal control devices, including but not limited to the Roku App, Roku TV, Roku Express, Roku Streaming Stick, Roku Ultra, Roku Premiere, Roku 4, Roku 3, Roku 2, Roku Enhanced Remote and any other Roku product that provides for the remote control of an external device such as a TV, audiovisual receiver, sound bar or Roku TV Wireless Speakers. In October 2019, the Court stayed this lawsuit pending action by the Patent Trial and Appeals Board (the "PTAB") with respect to Roku's requests for Inter Partes Review ("IPR") (see discussion below). This lawsuit continues to be stayed until such time as the IPR's and all appeals with respect to them have concluded. International Trade Commission Investigation of Roku, TCL, Hisense and Funai On April 16, 2020, we filed a complaint with the International Trade Commission (the "ITC") against Roku, TCL Electronics Holding Limited and related entities (collectively, "TCL"), Hisense Co., Ltd. and related entities (collectively, "Hisense"), and Funai Electric Company, Ltd. and related entities (collectively, "Funai") claiming that certain of their televisions, set-top boxes, remote control devices, human interface devices, streaming devices, and sound bars infringe certain of our patents. We asked the ITC to issue a permanent limited exclusion order prohibiting the importation of these infringing products into the United States and a cease and desist order to stop these parties from continuing their infringing activities. On May 18, 2020, the ITC announced that it instituted its investigation as requested by us. Prior to the trial, which ended on April 23, 2021, we dismissed TCL, Hisense and Funai from this investigation as they either removed or limited the amount of our technology from their televisions as compared to our patent claims that we asserted at the time. On July 9, 2021, the Administrative Law Judge (the "ALJ") issued his Initial Determination (the "ID") finding that Roku is infringing our patents and as a result is in violation of §337 of the Tariff Act of 1930, as amended (the "Tariff Act"). On July 23, 2021, Roku and we filed petitions to appeal certain portions of the ID. On November 10, 2021, the full ITC issued its final determination affirming the ID and issuing a Limited Exclusion Order (the "LEO") and Cease and Desist Order (the "CDO") against Roku, which became effective on January 9, 2022, and later this month, Roku filed its appeal of the ITC ruling with the Federal Circuit Court of Appeals. Oral argument for this appeal occurred on September 5, 2023 and we expect a decision in the fourth quarter of 2023. Meanwhile, Roku continues to be subject to the LEO and CDO. 2020 Lawsuit As a companion case to our ITC complaint, on April 9, 2020, we filed separate actions against each of Roku, TCL, Hisense, and Funai in the United States District Court, Central District of California, alleging that Roku is willfully infringing five of our patents and TCL, Hisense, and Funai are willfully infringing six of our patents by incorporating our patented technology into certain of their televisions, set-top boxes, remote control devices, human interface devices, streaming devices and sound bars. These matters have been and continue to be stayed pending the final results of the open IPR matters mentioned below. Inter Partes Reviews Throughout these litigation matters against Roku and the others identified above, Roku has filed multiple IPR requests with the PTAB on all patents at issue in the 2018 Lawsuit, the ITC Action, and the 2020 Lawsuit (see discussion above). To date, the PTAB has denied Roku's request fourteen times, and granted Roku's request twelve times. Roku has since filed two IPRs on two of our patents not yet asserted against it, and we are awaiting the PTAB's institution decision with respect to those new IPR requests. Of the twelve IPR requests granted by the PTAB, the results were mixed, with the PTAB upholding the validity of many of our patent claims and invalidating others. We have appealed all but one PTAB decisi on that resulted i n an invalidation of our patent claims and we will continue to do so. International Trade Commission Investigation Request Made by Roku against UEI and certain UEI Customers On April 8, 2021, Roku made a request to the ITC to initiate an investigation against us and certain of our customers claiming that certain of our and those customers' remote control devices and televisions infringe two of Roku's recently acquired patents, the '511 patent and the '875 patent. On May 10, 2021, the ITC announced its decision to initiate the requested investigation. Immediately prior to trial Roku stipulated to summary determination as to its complaint against us and two of our customers with respect to one of the two patents at issue. This stipulation resulted in the complaint against us and two of our customers with respect to that patent not going to trial. The trial was thus shortened and ended on January 24, 2022. On June 24, 2022, the ALJ, pursuant to Roku's stipulation, found the '511 patent invalid as indefinite. Thereafter, on June 28, 2022, the ALJ issued her ID fully exonerating us and our customers finding the '875 patent invalid and that Roku failed to prove it established the requisite domestic industry and thus no violation of the Tariff Act. In advance of the full Commission's review, Roku and we filed petitions to appeal certain portions of the ID. In addition, the PTAB granted our request for an IPR with respect to the '875 patent. On October 28, 2022, the full ITC issued its final determination affirming the ID, ruling there was no violation of the Tariff Act and terminated the investigation. In December 2022, Roku filed an appeal, which remains pending. In addition, Roku, along with the ITC, filed a joint motion to dismiss the '511 patent as moot as it recently expired. We are opposing this motion. Further, on October 23, 2023, the PTBA issued its Final Written Decision invalidating all of the claims Roku alleges we infringe. As a companion to its ITC request, Roku also filed a lawsuit against us in Federal District Court in the Central District of California alleging that we are infringing the same two patents they alleged being infringed in the ITC investigation explained above. This District Court case has been stayed pending the ITC case, and will likely continue to be stayed pending the conclusion of Roku's appeal of the ITC case. Court of International Trade Action against the United States of America, et. al. On October 9, 2020, we and our subsidiaries, Ecolink Intelligent Technology, Inc. ("Ecolink") and RCS Technology, LLC ("RCS"), filed an amended complaint (20-cv-00670) in the Court of International Trade (the "CIT") against the United States of America; the Office of the United States Trade Representative; Robert E. Lighthizer, U.S. Trade Representative; U.S. Customs & Border Protection; and Mark A. Morgan, U.S. Customs & Border Protection Acting Commissioner, challenging both the substantive and procedural processes followed by the United States Trade Representative ("USTR") when instituting Section 301 Tariffs on imports from China under Lists 3 and 4A. Pursuant to this complaint, Ecolink, RCS and we are alleging that USTR's institution of Lists 3 and 4A tariffs violated the Trade Act of 1974 (the "Trade Act") on the grounds that the USTR failed to make a determination or finding that there was an unfair trade practice that required a remedy and moreover, that Lists 3 and 4A tariffs were instituted beyond the 12-month time limit provided for in the governing statute. Ecolink, RCS and we also allege that the manner in which the Lists 3 and 4A tariff actions were implemented violated the Administrative Procedures Act (the "APA") by failing to provide adequate opportunity for comments, failed to consider relevant factors when making its decision and failed to connect the record facts to the choices it made by not explaining how the comments received by USTR came to shape the final implementation of Lists 3 and 4A. Ecolink, RCS and we are asking the CIT to declare that the defendants' actions resulting in the tariffs on products covered by Lists 3 and 4A are unauthorized by and contrary to the Trade Act and were arbitrarily and unlawfully promulgated in violation of the APA; to vacate the Lists 3 and 4A tariffs; to order a refund (with interest) of any Lists 3 and 4A duties paid by Ecolink, RCS and us; to permanently enjoin the U.S. government from applying Lists 3 and 4A duties against Ecolink, RCS and us; and award Ecolink, RCS and us our costs and reasonable attorney's fees. In July 2021, the CIT issued a preliminary injunction suspending liquidation of all unliquidated entries subject to Lists 3 and 4A duties and has asked the parties to develop a process to keep track of the entries to efficiently and effectively deal with liquidation process and duties to be paid or refunded when finally adjudicated. On February 5, 2022, the CIT heard oral arguments on dispositive motions filed on behalf of plaintiffs and defendants. On April 1, 2022, the CIT issued its opinion on these dispositive motions, ruling that the USTR had the legal authority to promulgate List 3 and List 4A under Section 307(a)(1)(B) of the Trade Act, but that the USTR violated the APA when it promulgated List 3 and List 4A concluding that the USTR failed to adequately explain its decision as required under the APA. The Court ordered that List 3 and List 4A be remanded to the USTR for reconsideration or further explanation regarding its rationale for imposing the tariffs. The Court declined to vacate List 3 and List 4A, which means that they are still in place while on remand. The Court's preliminary injunction regarding liquidation of entries also remains in effect. The Court initially set a deadline of June 30, 2022, for the USTR to complete this process, which was extended to August 1, 2022. On August 1, 2022, the USTR provided the Court with that further explanation and also purported to respond to the significant comments received during the original notice-and-comment process. On September 14, 2022, the lead plaintiff filed its comments to the USTR's August 1, 2022 filing, asserting that the USTR did not adequately respond to the Court's remand order and requested the Court to vacate the List 3 and List 4A tariffs and issue refunds immediately. On March 17, 2023, the CIT sustained the List 3 and List 4 tariffs, concluding that USTR’s rationale in support of the tariffs was not impermissibly post hoc. The court also concluded that USTR adequately explained its reliance on presidential direction and adequately responded to significant comments regarding the harm to the U.S. economy, efficacy of the tariffs, and alternatives to the tariffs. Lead plaintiffs have appealed this decision and on July 17, 2023, the lead plaintiffs filed its opening brief to this appeal. There are no other material pending legal proceedings to which we or any of our subsidiaries is a party or of which our respective property is the subject. However, as is typical in our industry and to the nature and kind of business in which we are engaged, from time to time, various claims, charges and litigation are asserted or commenced by third parties against us or by us against third parties arising from or related to product liability, infringement of patent or other intellectual property rights, breach of warranty, contractual relations, or employee relations. The amounts claimed may be substantial, but may not bear any reasonable relationship to the merits of the claims or the extent of any real risk of court awards assessed against us or in our favor. However, no assurances can be made as to the outcome of any of these matters, nor can we estimate the range of potential losses to us. In our opinion, final judgments, if any, which might be rendered against us in potential or pending litigation would not have a material adverse effect on our consolidated financial condition, results of operations, or cash flows. Moreover, we believe that our products do not infringe any third parties' patents or other intellectual property rights. We maintain directors' and officers' liability insurance which insures our individual directors and officers against certain claims, as well as attorney's fees and related expenses incurred in connection with the defense of such claims. |
Treasury Stock
Treasury Stock | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
Treasury Stock | Treasury Stock From time to time, our Board of Directors authorizes management to repurchase shares of our issued and outstanding common stock. On October 26, 2023, our Board approved a new share repurchase program with an effective date of November 7, 2023 (the "October 2023 Program"). Pursuant to the October 2023 Program, we are authorized to repurchase up to 1,000,000 shares of our common stock. Per the terms of the October 2023 Program, we may utilize various methods to effect the repurchases, including open market repurchases, negotiated block transactions, accelerated share repurchases or open market solicitations for shares, some or all of which could be effected through Rule 10b5-1 plans. We also repurchase shares of our issued and outstanding common stock to satisfy the cost of stock option exercises and/or income tax withholding obligations relating to the stock-based compensation of our employees and directors. Repurchased shares of our common stock were as follows: Nine Months Ended September 30, (In thousands) 2023 2022 Open market shares repurchased — 300 Stock-based compensation related shares repurchased 61 58 Total shares repurchased 61 358 Cost of open market shares repurchased $ — $ 9,438 Cost of stock-based compensation related shares repurchased 888 1,859 Total cost of shares repurchased $ 888 $ 11,297 Repurchased shares are recorded as shares held in treasury at cost. We hold these shares for future use as management and the Board of Directors deem appropriate. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Stock-based compensation expense for each employee and director is presented in the same statement of operations caption as their cash compensation. Stock-based compensation expense by statement of operations caption and the related income tax benefit were as follows: Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2023 2022 2023 2022 Cost of sales $ 32 $ 38 $ 94 $ 117 Research and development expenses 283 326 817 1,004 Selling, general and administrative expenses: Employees 1,726 1,842 5,398 5,421 Outside directors 94 233 524 1,033 Total employee and director stock-based compensation expense $ 2,135 $ 2,439 $ 6,833 $ 7,575 Income tax benefit $ 326 $ 397 $ 1,073 $ 1,265 Stock Options Stock option activity was as follows: Number of Options Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding at December 31, 2022 782 $ 44.16 Granted 236 24.77 Exercised — — $ — Forfeited/canceled/expired (93) 51.39 Outstanding at September 30, 2023 (1) 925 $ 38.49 3.98 $ — Vested and expected to vest at September 30, 2023 (1) 925 $ 38.49 3.98 $ — Exercisable at September 30, 2023 (1) 604 $ 44.06 2.80 $ — (1) The aggregate intrinsic value represents the total pre-tax value (the difference between our closing stock price on the last trading day of the third quarter of 2023 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had they all exercised their options on September 30, 2023. This amount will change based on the fair market value of our stock. The assumptions we utilized in the Black-Scholes option pricing model and the resulting weighted average fair value of stock option grants were the following: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Weighted average fair value of grants $ — $ 12.38 $ 10.83 $ 14.51 Risk-free interest rate — % 2.82 % 3.86 % 1.93 % Expected volatility — % 48.92 % 45.89 % 49.35 % Expected life in years 0.00 5.19 4.70 4.73 As of September 30, 2023, we expect to recognize $3.2 million of total unrecognized pre-tax stock-based compensation expense related to non-vested stock options over a remaining weighted-average life of 1.9 years. Restricted Stock Non-vested restricted stock award activity was as follows: Shares Weighted-Average Grant Date Fair Value Non-vested at December 31, 2022 376 $ 36.82 Granted 340 14.15 Vested (196) 36.86 Forfeited (4) 38.19 Non-vested at September 30, 2023 516 $ 21.83 As of September 30, 2023, we expect to recognize $8.2 million of total unrecognized pre-tax stock-based compensation expense related to non-vested restricted stock awards over a weighted-average life of 1.8 years. |
Performance-Based Common Stock
Performance-Based Common Stock Warrants | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
Performance-Based Common Stock Warrants | Performance-Based Common Stock WarrantsOn March 9, 2016, we issued common stock purchase warrants to Comcast Corporation at a price of $54.55 per share. On January 1, 2023, all 275,000 of the vested and outstanding warrants expired unexercised. |
Other Income (Expense)
Other Income (Expense) | 9 Months Ended |
Sep. 30, 2023 | |
Other Income and Expenses [Abstract] | |
Other Income (Expense) | Other Income (Expense) Other income (expense), net consisted of the following: Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2023 2022 2023 2022 Net gain (loss) on foreign currency exchange contracts (1) $ 19 $ (550) $ (2,788) $ 518 Net gain (loss) on foreign currency exchange transactions (1,085) 476 545 (534) Other income (expense) 215 20 476 (372) Other income (expense), net $ (851) $ (54) $ (1,767) $ (388) (1) This represents the gains (losses) incurred on foreign currency hedging derivatives (see Note 18 for further details). |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share | Earnings (Loss) Per Share Earnings (loss) per share was calculated as follows: Three Months Ended September 30, Nine Months Ended September 30, (In thousands, except per-share amounts) 2023 2022 2023 2022 BASIC Net income (loss) $ (19,362) $ 7,234 $ (91,136) $ 7,312 Weighted-average common shares outstanding 12,911 12,656 12,839 12,709 Basic earnings (loss) per share $ (1.50) $ 0.57 $ (7.10) $ 0.58 DILUTED Net income (loss) $ (19,362) $ 7,234 $ (91,136) $ 7,312 Weighted-average common shares outstanding for basic 12,911 12,656 12,839 12,709 Dilutive effect of stock options, restricted stock and common stock warrants — 40 — 88 Weighted-average common shares outstanding on a diluted basis 12,911 12,696 12,839 12,797 Diluted earnings (loss) per share $ (1.50) $ 0.57 $ (7.10) $ 0.57 The following number of stock options, shares of restricted stock and common stock warrants were excluded from the computation of diluted earnings per common share as their inclusion would have been anti-dilutive: Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2023 2022 2023 2022 Stock options 925 780 892 653 Restricted stock awards 513 315 421 221 Common stock warrants — 275 — 275 |
Derivatives
Derivatives | 9 Months Ended |
Sep. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Derivatives The following table sets forth the total net fair value of derivatives: September 30, 2023 December 31, 2022 Fair Value Measurement Using Total Balance Fair Value Measurement Using Total Balance (In thousands) Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Foreign currency exchange contracts $ — $ 257 $ — $ 257 $ — $ 100 $ — $ 100 We held foreign currency exchange contracts, which resulted in a net pre-tax gain of $19 thousand and pre-tax loss of $0.6 million for the three months ended September 30, 2023 and 2022, respectively. For the nine months ended September 30, 2023 and 2022, we had a net pre-tax loss of $2.8 million and pre-tax gain of $0.5 million, respectively. Details of foreign currency exchange contracts held were as follows: Date Held Currency Position Held Notional Value Forward Rate Unrealized Gain/(Loss) Recorded at Balance Sheet Date (in thousands) (1) Settlement Date September 30, 2023 USD/Chinese Yuan Renminbi CNY $ 33.0 7.2593 $ (162) October 20, 2023 September 30, 2023 USD/Euro USD $ 18.0 1.0826 $ 419 October 6, 2023 December 31, 2022 USD/Euro USD $ 26.0 1.0529 $ (428) January 6, 2023 December 31, 2022 USD/Chinese Yuan Renminbi CNY $ 31.0 7.0358 $ 528 January 6, 2023 (1) Unrealized gains on foreign currency exchange contracts are recorded in prepaid expenses and other current assets. Unrealized losses on foreign currency exchange contracts are recorded in other accrued liabilities. |
Business Combination
Business Combination | 9 Months Ended |
Sep. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Business Combination | Business Combination On February 17, 2022, we acquired substantially all of the net assets of Qterics, a U.S.-based provider of multimedia connectivity solutions and services for internet-enabled consumer products. Under the terms of the Asset Purchase Agreement ("APA"), we paid a cash purchase price of approximately $0.9 million. The acquisition of these assets will allow us to expand our customer base in the OEM market. Our consolidated income statement for the three and nine months ended September 30, 2023 includes net sales of $0.5 million and $1.6 million, respectively, and net income of $28 thousand and $0.1 million, respectively, attributable to Qterics. Our consolidated income statement for the three and nine months ended September 30, 2022 includes net sales of $0.5 million and $1.4 million, respectively, and net loss of $0.1 million and $25 thousand, respectively, attributable to Qterics for the period commencing on February 17, 2022. In accordance with the terms of the APA, the initial purchase price was subject to adjustment for differences between the initial estimated working capital balances and the final adjusted balances. This calculation was completed at March 31, 2022. Purchase Price Allocation Using the acquisition method of accounting, the acquisition date fair value of the consideration transferred was allocated to the net tangible and intangible assets acquired and liabilities assumed based on their fair values on the acquisition date. The excess of the purchase price over the estimated fair value of net assets acquired is recorded as goodwill. The goodwill is expected to be deductible for income tax purposes. Management's purchase price allocation was as follows: (In thousands) Estimated Lives Preliminary Fair Value Accounts receivable $ 787 Property, plant and equipment 5 years 3 Customer relationships 6 years 1,340 Developed technology 6 years 440 Trade names 6 years 50 Goodwill (1) 713 Operating lease ROU assets 3 years 149 Other assets 2 Other accrued liabilities (6) Short-term operating lease obligation (48) Deferred revenue (1,539) Long-term operating lease obligation (101) Long-term deferred revenue (851) Cash paid $ 939 (1) Our consolidated goodwill balance was impaired during the nine months ended September 30, 2023. Please see Note 6 for further information. Management's determination of the fair value of intangible assets acquired are based primarily on significant inputs not observable in an active market and thus represent Level 3 fair value measurements as defined under U.S. GAAP. The fair value assigned to the Qterics developed technology and trade names intangible assets were determined utilizing a relief from royalty method. Under the relief from royalty method, the fair value of the intangible asset is estimated to be the present value of the royalties saved because the company owns the intangible asset. Revenue projections and estimated useful life were significant inputs into estimating the value of the Qterics developed technology and trade names. The fair value assigned to Qterics customer relationships intangible assets were determined utilizing a multi-period excess earnings approach. Under the multi-period excess earnings approach, the fair value of the intangible asset is estimated to be the present value of future earnings attributable to the asset and utilizes revenue and cost projections, including an assumed contributory asset charge. The developed technology, trade names and customer relationships intangible assets are expected to be deductible for income tax purposes. Pro Forma Results (unaudited) The unaudited pro forma financial information of combined results of our operations and the operations of Qterics as if the transaction had occurred on January 1, 2021, is immaterially different from the net sales, net income (loss) and income (loss) per share amounts reported in the Consolidated Statements of Operations for the nine months ended September 30, 2022. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Pay vs Performance Disclosure | ||||||||
Net loss | $ (19,362) | $ (10,411) | $ (61,363) | $ 7,234 | $ 2,988 | $ (2,910) | $ (91,136) | $ 7,312 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Sep. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | In the opinion of management, the accompanying consolidated financial statements of Universal Electronics Inc. and its subsidiaries contain all the adjustments necessary for a fair presentation of financial position, results of operations and cash flows for the periods presented. All such adjustments are of a normal recurring nature, except for the impairment and restructuring charges, as described in notes 5, 6 and 12 to the consolidated financial statements. Information and footnote disclosures normally included in financial statements, which are prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"), have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). As used herein, the terms "Company," "we," "us," and "our" refer to Universal Electronics Inc. and its subsidiaries, unless the context indicates to the contrary. |
Estimates and Assumptions | Estimates and Assumptions The preparation of financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. On an on-going basis, we evaluate our estimates and assumptions, including those related to revenue recognition; allowance for credit losses; inventory valuation; impairment of long-lived assets, intangible assets and goodwill; business combinations; income taxes and related valuation allowances and stock-based compensation expense. Actual results may differ from these assumptions and estimates, and they may be adjusted as more information becomes available. Any adjustment may be material. |
Recently Adopted Accounting Pronouncements and Recent Accounting Updates Not Yet Effective | Recently Adopted Accounting Pronouncements None. Recent Accounting Updates Not Yet Effective None. |
Cash, Cash Equivalents and Te_2
Cash, Cash Equivalents and Term Deposit (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalents by Geographic Region | Cash and cash equivalents were held in the following geographic regions: (In thousands) September 30, 2023 December 31, 2022 North America $ 10,603 $ 6,825 People's Republic of China ("PRC") 3,556 15,633 Asia (excluding the PRC) 17,613 18,850 Europe 15,710 13,042 South America 12,597 12,390 Total cash and cash equivalents $ 60,079 $ 66,740 |
Revenue and Accounts Receivab_2
Revenue and Accounts Receivable, Net (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Receivables [Abstract] | |
Pattern of Revenue Recognition | The pattern of revenue recognition was as follows: Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2023 2022 2023 2022 Goods and services transferred at a point in time $ 83,855 $ 127,672 $ 249,908 $ 355,113 Goods and services transferred over time 23,240 20,810 72,955 64,880 Net sales $ 107,095 $ 148,482 $ 322,863 $ 419,993 |
Revenue from External Customers by Geographic Areas | Our net sales to external customers by geographic area were as follows: Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2023 2022 2023 2022 United States $ 31,737 $ 46,732 $ 97,892 $ 130,196 Asia (excluding PRC) 20,107 32,614 66,508 100,000 Europe 22,529 27,358 68,598 76,382 People's Republic of China 19,049 26,696 49,082 68,604 Latin America 8,227 7,602 24,408 20,996 Other 5,446 7,480 16,375 23,815 Total net sales $ 107,095 $ 148,482 $ 322,863 $ 419,993 |
Net Sales to Significant Customers | Net sales to the following customers totaled more than 10% of our net sales: Three Months Ended September 30, 2023 2022 $ (thousands) % of Net Sales $ (thousands) % of Net Sales Comcast Corporation (1) (1) $ 23,615 15.9 % Daikin Industries Ltd. $ 15,194 14.2 % $ 21,381 14.4 % Sony Corporation $ 11,825 11.0 % (1) (1) (1) Net sales associated with this customer did not total more than 10% of our net sales for the indicated period. Nine Months Ended September 30, 2023 2022 $ (thousands) % of Net Sales $ (thousands) % of Net Sales Comcast Corporation $ 34,436 10.7 % $ 62,222 14.8 % Daikin Industries Ltd. $ 48,401 15.0 % $ 59,397 14.1 % |
Accounts Receivable, Net and Changes in the Allowance for Doubtful Accounts | Accounts receivable, net were as follows: (In thousands) September 30, 2023 December 31, 2022 Trade receivables, gross $ 107,625 $ 108,030 Allowance for credit losses (819) (957) Allowance for sales returns (487) (618) Trade receivables, net 106,319 106,455 Other (1) 6,202 5,891 Accounts receivable, net $ 112,521 $ 112,346 (1) Other accounts receivable is primarily comprised of value added tax and supplier rebate receivables. Changes in the allowance for credit losses were as follows: (In thousands) Nine Months Ended September 30, 2023 2022 Balance at beginning of period $ 957 $ 1,285 Additions (reductions) to costs and expenses 69 (204) Write-offs/Foreign exchange effects (207) (135) Balance at end of period $ 819 $ 946 |
Trade Receivables Associated with Significant Customers | Trade receivables associated with these significant customers that totaled more than 10% of our accounts receivable, net were as follows: September 30, 2023 December 31, 2022 $ (thousands) % of Accounts Receivable, Net $ (thousands) % of Accounts Receivable, Net Comcast Corporation (1) (1) $ 15,367 13.7 % Sony Corporation $ 12,371 11.0 % (1) (1) (1) Trade receivables associated with this customer did not total more than 10% of our accounts receivable, net for the indicated period. |
Inventories and Significant S_2
Inventories and Significant Supplier (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Summary of Inventories | Inventories were as follows: (In thousands) September 30, 2023 December 31, 2022 Raw materials $ 38,364 $ 58,759 Components 13,119 25,226 Work in process 1,725 2,616 Finished goods 40,254 53,580 Inventories $ 93,462 $ 140,181 |
Purchases from Significant Suppliers | Purchases from the following supplier totaled more than 10% of our total inventory purchases: Nine Months Ended September 30, 2023 2022 $ (thousands) % of Total Inventory Purchases $ (thousands) % of Total Inventory Purchases Qorvo International Pte Ltd. (1) (1) $ 23,185 10.3 % (1) Purchases associated with this supplier did not total more than 10% of our total inventory purchases for the indicated period. |
Long-lived Tangible Assets (Tab
Long-lived Tangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Long-lived Tangible Assets by Geographic Area | Long-lived tangible assets by geographic area, which include property, plant, and equipment, net and operating lease right-of-use assets, were as follows: (In thousands) September 30, 2023 December 31, 2022 United States $ 14,504 $ 16,427 People's Republic of China 28,268 42,893 Mexico 9,494 14,402 Vietnam 7,902 6,923 All other countries 4,222 3,745 Total long-lived tangible assets $ 64,390 $ 84,390 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets, Net (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in the Carrying Amount of Goodwill | Changes in the carrying amount of goodwill were as follows: (In thousands) Balance at December 31, 2022 $ 49,085 Goodwill impairment (49,075) Foreign exchange effects (10) Balance at September 30, 2023 $ — |
Components of Intangible Assets, Net | The components of intangible assets, net were as follows: September 30, 2023 December 31, 2022 (In thousands) Gross (1) Accumulated Amortization (1) Net Gross (1) Accumulated Amortization (1) Net Capitalized software development costs $ 2,078 $ (281) $ 1,797 $ 1,647 $ (44) $ 1,603 Customer relationships 6,340 (3,622) 2,718 6,340 (3,080) 3,260 Developed and core technology 4,520 (3,966) 554 4,520 (3,693) 827 Distribution rights 304 (299) 5 308 (281) 27 Patents 32,509 (12,165) 20,344 29,388 (10,790) 18,598 Trademarks and trade names 450 (339) 111 450 (295) 155 Total intangible assets, net $ 46,201 $ (20,672) $ 25,529 $ 42,653 $ (18,183) $ 24,470 (1) This table excludes the gross value of fully amortized intangible assets totaling $44.3 million and $43.7 million at September 30, 2023 and December 31, 2022, respectively. |
Finite-lived Intangible Assets Amortization Expense | Amortization expense by statement of operations caption was as follows: (In thousands) Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Cost of sales $ 146 $ 13 $ 302 $ 37 Selling, general and administrative expenses 1,119 1,018 3,282 2,928 Total amortization expense $ 1,265 $ 1,031 $ 3,584 $ 2,965 |
Estimated Future Amortization Expense Related to Intangible Assets | Estimated future annual amortization expense related to our intangible assets at September 30, 2023, was as follows: (In thousands) 2023 (remaining 3 months) $ 1,256 2024 5,103 2025 4,392 2026 3,583 2027 3,035 Thereafter 8,160 Total $ 25,529 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
Lease Balances within the Consolidated Balance Sheet | Lease balances within our consolidated balance sheet were as follows: (In thousands) September 30, 2023 December 31, 2022 Assets: Operating lease right-of-use assets $ 17,777 $ 21,599 Liabilities: Other accrued liabilities $ 4,770 $ 5,509 Long-term operating lease obligations 11,553 15,027 Total lease liabilities $ 16,323 $ 20,536 |
Operating Lease Expense, Operating Lease Cash Flows and Supplemental Cash Flow Information | Operating lease expense, including variable and short-term lease costs, which were insignificant to the total operating lease cash flows, and supplemental cash flow information were as follows: (In thousands) Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Cost of sales $ 738 $ 741 $ 2,242 $ 2,138 Selling, general and administrative expenses 1,030 1,128 3,215 3,315 Total operating lease expense $ 1,768 $ 1,869 $ 5,457 $ 5,453 Operating cash outflows from operating leases $ 2,301 $ 1,858 5,878 5,318 Operating lease right-of-use assets obtained in exchange for lease obligations $ 242 $ 1,604 $ 2,202 $ 4,535 |
Lease Terms and Discount Rates | The weighted average remaining lease liability term and the weighted average discount rate were as follows: September 30, 2023 December 31, 2022 Weighted average lease liability term (in years) 4.9 5.1 Weighted average discount rate 4.53 % 3.82 % |
Reconciliation of the Undiscounted Cash Flows for Each of the First Five Years and Thereafter to Operating Lease Liabilities | The following table reconciles the undiscounted cash flows for each of the first five years and thereafter to the operating lease liabilities recognized in our consolidated balance sheet at September 30, 2023. The reconciliation excludes short-term leases that are not recorded on the balance sheet. (In thousands) September 30, 2023 2023 (remaining 3 months) $ 1,230 2024 5,144 2025 3,908 2026 2,918 2027 2,158 Thereafter 3,084 Total lease payments 18,442 Less: imputed interest (2,119) Total lease liabilities $ 16,323 |
Accrued Compensation (Tables)
Accrued Compensation (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Payables and Accruals [Abstract] | |
Components of Accrued Compensation | The components of accrued compensation were as follows: (In thousands) September 30, 2023 December 31, 2022 Accrued bonus $ 3,042 $ 3,348 Accrued commission 355 609 Accrued salary/wages (1) 4,014 4,433 Accrued social insurance (2) 8,442 7,037 Accrued vacation/holiday 3,396 3,300 Other accrued compensation 2,458 2,177 Total accrued compensation $ 21,707 $ 20,904 (1) At September 30, 2023, accrued severance expenses of $1.7 million related to manufacturing footprint optimization efforts are included in this amount. See Note 12 for further information related to our restructuring activities. (2) PRC employers are required by law to remit the applicable social insurance payments to their local government. Social insurance is comprised of various components such as pension, medical insurance, job injury insurance, unemployment insurance, and a housing assistance fund, and is administered in a manner similar to social security in the United States. This amount represents our estimate of the amounts due to the PRC government for social insurance on September 30, 2023 and December 31, 2022. The components of other accrued liabilities were as follows: (In thousands) September 30, 2023 December 31, 2022 Contract liabilities $ 2,065 $ 1,134 Duties 1,131 470 Expense associated with fulfilled performance obligations 1,344 1,120 Freight and handling fees 2,411 2,497 Interest 517 1,413 Operating lease obligations 4,770 5,509 Product warranty claims costs 522 522 Professional fees 1,569 2,293 Sales and value added taxes 2,908 3,750 Other 4,477 5,426 Total other accrued liabilities $ 21,714 $ 24,134 |
Other Accrued Liabilities (Tabl
Other Accrued Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Payables and Accruals [Abstract] | |
Components of Other Accrued Liabilities | The components of accrued compensation were as follows: (In thousands) September 30, 2023 December 31, 2022 Accrued bonus $ 3,042 $ 3,348 Accrued commission 355 609 Accrued salary/wages (1) 4,014 4,433 Accrued social insurance (2) 8,442 7,037 Accrued vacation/holiday 3,396 3,300 Other accrued compensation 2,458 2,177 Total accrued compensation $ 21,707 $ 20,904 (1) At September 30, 2023, accrued severance expenses of $1.7 million related to manufacturing footprint optimization efforts are included in this amount. See Note 12 for further information related to our restructuring activities. (2) PRC employers are required by law to remit the applicable social insurance payments to their local government. Social insurance is comprised of various components such as pension, medical insurance, job injury insurance, unemployment insurance, and a housing assistance fund, and is administered in a manner similar to social security in the United States. This amount represents our estimate of the amounts due to the PRC government for social insurance on September 30, 2023 and December 31, 2022. The components of other accrued liabilities were as follows: (In thousands) September 30, 2023 December 31, 2022 Contract liabilities $ 2,065 $ 1,134 Duties 1,131 470 Expense associated with fulfilled performance obligations 1,344 1,120 Freight and handling fees 2,411 2,497 Interest 517 1,413 Operating lease obligations 4,770 5,509 Product warranty claims costs 522 522 Professional fees 1,569 2,293 Sales and value added taxes 2,908 3,750 Other 4,477 5,426 Total other accrued liabilities $ 21,714 $ 24,134 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Changes in the Liability for Product Warranty Claim Costs | Changes in the liability for product warranty claims costs were as follows: (In thousands) Nine Months Ended September 30, 2023 2022 Balance at beginning of period $ 522 $ 1,095 Accruals for warranties issued during the period — 249 Settlements (in cash or in kind) during the period — (552) Foreign currency translation gain (loss) — (3) Balance at end of period $ 522 $ 789 |
Restructuring and Related Costs | Restructuring activities for the nine months ended September 30, 2023 are as follows: Restructuring Costs (In thousands) Total Severance Other Exit Balance at December 31, 2022 $ — $ — $ — Restructuring charges 3,690 3,415 275 Cash payments (1,827) (1,691) (136) Other adjustments — — — Balance at September 30, 2023 $ 1,863 $ 1,724 $ 139 Total costs incurred inception to date $ 3,690 $ 3,415 $ 275 Total expected expense to be incurred as of September 30, 2023 $ — $ — $ — |
Treasury Stock (Tables)
Treasury Stock (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
Repurchased Shares of Common Stock | Repurchased shares of our common stock were as follows: Nine Months Ended September 30, (In thousands) 2023 2022 Open market shares repurchased — 300 Stock-based compensation related shares repurchased 61 58 Total shares repurchased 61 358 Cost of open market shares repurchased $ — $ 9,438 Cost of stock-based compensation related shares repurchased 888 1,859 Total cost of shares repurchased $ 888 $ 11,297 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-based Compensation Expense and Related Income Tax Benefit | Stock-based compensation expense by statement of operations caption and the related income tax benefit were as follows: Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2023 2022 2023 2022 Cost of sales $ 32 $ 38 $ 94 $ 117 Research and development expenses 283 326 817 1,004 Selling, general and administrative expenses: Employees 1,726 1,842 5,398 5,421 Outside directors 94 233 524 1,033 Total employee and director stock-based compensation expense $ 2,135 $ 2,439 $ 6,833 $ 7,575 Income tax benefit $ 326 $ 397 $ 1,073 $ 1,265 |
Stock Option Activity | Stock option activity was as follows: Number of Options Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding at December 31, 2022 782 $ 44.16 Granted 236 24.77 Exercised — — $ — Forfeited/canceled/expired (93) 51.39 Outstanding at September 30, 2023 (1) 925 $ 38.49 3.98 $ — Vested and expected to vest at September 30, 2023 (1) 925 $ 38.49 3.98 $ — Exercisable at September 30, 2023 (1) 604 $ 44.06 2.80 $ — (1) The aggregate intrinsic value represents the total pre-tax value (the difference between our closing stock price on the last trading day of the third quarter of 2023 and the exercise price, multiplied by the number of in-the-money options) |
Assumptions Used in Valuation and Weighted Average Fair Value of Stock Option Grants | The assumptions we utilized in the Black-Scholes option pricing model and the resulting weighted average fair value of stock option grants were the following: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Weighted average fair value of grants $ — $ 12.38 $ 10.83 $ 14.51 Risk-free interest rate — % 2.82 % 3.86 % 1.93 % Expected volatility — % 48.92 % 45.89 % 49.35 % Expected life in years 0.00 5.19 4.70 4.73 |
Non-Vested Restricted Stock Award Activity | Non-vested restricted stock award activity was as follows: Shares Weighted-Average Grant Date Fair Value Non-vested at December 31, 2022 376 $ 36.82 Granted 340 14.15 Vested (196) 36.86 Forfeited (4) 38.19 Non-vested at September 30, 2023 516 $ 21.83 |
Other Income (Expense) (Tables)
Other Income (Expense) (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Other Income and Expenses [Abstract] | |
Other Income (Expense), Net | Other income (expense), net consisted of the following: Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2023 2022 2023 2022 Net gain (loss) on foreign currency exchange contracts (1) $ 19 $ (550) $ (2,788) $ 518 Net gain (loss) on foreign currency exchange transactions (1,085) 476 545 (534) Other income (expense) 215 20 476 (372) Other income (expense), net $ (851) $ (54) $ (1,767) $ (388) (1) This represents the gains (losses) incurred on foreign currency hedging derivatives (see Note 18 for further details). |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Calculation of Earnings Per Share | Earnings (loss) per share was calculated as follows: Three Months Ended September 30, Nine Months Ended September 30, (In thousands, except per-share amounts) 2023 2022 2023 2022 BASIC Net income (loss) $ (19,362) $ 7,234 $ (91,136) $ 7,312 Weighted-average common shares outstanding 12,911 12,656 12,839 12,709 Basic earnings (loss) per share $ (1.50) $ 0.57 $ (7.10) $ 0.58 DILUTED Net income (loss) $ (19,362) $ 7,234 $ (91,136) $ 7,312 Weighted-average common shares outstanding for basic 12,911 12,656 12,839 12,709 Dilutive effect of stock options, restricted stock and common stock warrants — 40 — 88 Weighted-average common shares outstanding on a diluted basis 12,911 12,696 12,839 12,797 Diluted earnings (loss) per share $ (1.50) $ 0.57 $ (7.10) $ 0.57 |
Securities Excluded from the Computation of Diluted Earnings (Loss) Per Common Share | The following number of stock options, shares of restricted stock and common stock warrants were excluded from the computation of diluted earnings per common share as their inclusion would have been anti-dilutive: Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2023 2022 2023 2022 Stock options 925 780 892 653 Restricted stock awards 513 315 421 221 Common stock warrants — 275 — 275 |
Derivatives (Tables)
Derivatives (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Total Net Fair Value of Derivatives | The following table sets forth the total net fair value of derivatives: September 30, 2023 December 31, 2022 Fair Value Measurement Using Total Balance Fair Value Measurement Using Total Balance (In thousands) Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Foreign currency exchange contracts $ — $ 257 $ — $ 257 $ — $ 100 $ — $ 100 |
Foreign Currency Exchange Contracts | Details of foreign currency exchange contracts held were as follows: Date Held Currency Position Held Notional Value Forward Rate Unrealized Gain/(Loss) Recorded at Balance Sheet Date (in thousands) (1) Settlement Date September 30, 2023 USD/Chinese Yuan Renminbi CNY $ 33.0 7.2593 $ (162) October 20, 2023 September 30, 2023 USD/Euro USD $ 18.0 1.0826 $ 419 October 6, 2023 December 31, 2022 USD/Euro USD $ 26.0 1.0529 $ (428) January 6, 2023 December 31, 2022 USD/Chinese Yuan Renminbi CNY $ 31.0 7.0358 $ 528 January 6, 2023 (1) Unrealized gains on foreign currency exchange contracts are recorded in prepaid expenses and other current assets. Unrealized losses on foreign currency exchange contracts are recorded in other accrued liabilities. |
Business Combination (Tables)
Business Combination (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | Management's purchase price allocation was as follows: (In thousands) Estimated Lives Preliminary Fair Value Accounts receivable $ 787 Property, plant and equipment 5 years 3 Customer relationships 6 years 1,340 Developed technology 6 years 440 Trade names 6 years 50 Goodwill (1) 713 Operating lease ROU assets 3 years 149 Other assets 2 Other accrued liabilities (6) Short-term operating lease obligation (48) Deferred revenue (1,539) Long-term operating lease obligation (101) Long-term deferred revenue (851) Cash paid $ 939 (1) Our consolidated goodwill balance was impaired during the nine months ended September 30, 2023. Please see Note 6 for further information. |
Cash, Cash Equivalents and Te_3
Cash, Cash Equivalents and Term Deposit - Summary of Geographic Area (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Cash and Cash Equivalents [Line Items] | ||
Total cash and cash equivalents | $ 60,079 | $ 66,740 |
North America | ||
Cash and Cash Equivalents [Line Items] | ||
Total cash and cash equivalents | 10,603 | 6,825 |
People's Republic of China | ||
Cash and Cash Equivalents [Line Items] | ||
Total cash and cash equivalents | 3,556 | 15,633 |
Asia (excluding PRC) | ||
Cash and Cash Equivalents [Line Items] | ||
Total cash and cash equivalents | 17,613 | 18,850 |
Europe | ||
Cash and Cash Equivalents [Line Items] | ||
Total cash and cash equivalents | 15,710 | 13,042 |
South America | ||
Cash and Cash Equivalents [Line Items] | ||
Total cash and cash equivalents | $ 12,597 | $ 12,390 |
Cash, Cash Equivalents and Te_4
Cash, Cash Equivalents and Term Deposit - Narrative (Details) $ in Millions | Jan. 25, 2022 USD ($) |
Cash and Cash Equivalents [Abstract] | |
Term deposit | $ 8.6 |
Maturity of term deposits | 1 year |
Revenue and Accounts Receivab_3
Revenue and Accounts Receivable, Net - Pattern of Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 107,095 | $ 148,482 | $ 322,863 | $ 419,993 |
Goods and services transferred at a point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 83,855 | 127,672 | 249,908 | 355,113 |
Goods and services transferred over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 23,240 | $ 20,810 | $ 72,955 | $ 64,880 |
Revenue and Accounts Receivab_4
Revenue and Accounts Receivable, Net - Revenue from External Customers by Geographic Areas (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 107,095 | $ 148,482 | $ 322,863 | $ 419,993 |
United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 31,737 | 46,732 | 97,892 | 130,196 |
Asia (excluding PRC) | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 20,107 | 32,614 | 66,508 | 100,000 |
Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 22,529 | 27,358 | 68,598 | 76,382 |
People's Republic of China | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 19,049 | 26,696 | 49,082 | 68,604 |
Latin America | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 8,227 | 7,602 | 24,408 | 20,996 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 5,446 | $ 7,480 | $ 16,375 | $ 23,815 |
Revenue and Accounts Receivab_5
Revenue and Accounts Receivable, Net - Net Sales to Significant Customers (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 107,095 | $ 148,482 | $ 322,863 | $ 419,993 |
Comcast Corporation | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 23,615 | $ 34,436 | $ 62,222 | |
Comcast Corporation | Customer concentration risk | Net sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk, percentage | 15.90% | 10.70% | 14.80% | |
Daikin Industries Ltd. | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 15,194 | $ 21,381 | $ 48,401 | $ 59,397 |
Daikin Industries Ltd. | Customer concentration risk | Net sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk, percentage | 14.20% | 14.40% | 15% | 14.10% |
Sony Corporation | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 11,825 | |||
Sony Corporation | Customer concentration risk | Net sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk, percentage | 11% |
Revenue and Accounts Receivab_6
Revenue and Accounts Receivable, Net - Accounts Receivable, Net (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Dec. 31, 2021 |
Accounts Receivable, after Allowance for Credit Loss, Current [Abstract] | ||||
Trade receivables, gross | $ 107,625 | $ 108,030 | ||
Allowance for credit losses | (819) | (957) | $ (946) | $ (1,285) |
Allowance for sales returns | (487) | (618) | ||
Trade receivables, net | 106,319 | 106,455 | ||
Other | 6,202 | 5,891 | ||
Accounts receivable, net | $ 112,521 | $ 112,346 |
Revenue and Accounts Receivab_7
Revenue and Accounts Receivable, Net - Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Schedule of Allowance for Doubtful Accounts | ||
Balance at beginning of period | $ 957 | $ 1,285 |
Additions (reductions) to costs and expenses | 69 | (204) |
Write-offs/Foreign exchange effects | (207) | (135) |
Balance at end of period | $ 819 | $ 946 |
Revenue and Accounts Receivab_8
Revenue and Accounts Receivable, Net - Trade Receivables Associated with Significant Customers (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Comcast Corporation | ||
Revenue, Major Customer [Line Items] | ||
Accounts receivable, net | $ 15,367 | |
Comcast Corporation | Trade accounts receivable | Customer concentration risk | ||
Revenue, Major Customer [Line Items] | ||
Concentration risk, percentage | 13.70% | |
Sony Corporation | ||
Revenue, Major Customer [Line Items] | ||
Accounts receivable, net | $ 12,371 | |
Sony Corporation | Trade accounts receivable | Customer concentration risk | ||
Revenue, Major Customer [Line Items] | ||
Concentration risk, percentage | 11% |
Inventories and Significant S_3
Inventories and Significant Suppliers - Summary of Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 38,364 | $ 58,759 |
Components | 13,119 | 25,226 |
Work in process | 1,725 | 2,616 |
Finished goods | 40,254 | 53,580 |
Inventories | $ 93,462 | $ 140,181 |
Inventories and Significant S_4
Inventories and Significant Supplier - Purchases from Significant Suppliers (Details) - Qorvo International Pte Ltd. - Supplier concentration risk - Inventory purchases $ in Thousands | 9 Months Ended |
Sep. 30, 2022 USD ($) | |
Concentration Risk [Line Items] | |
Inventory purchases | $ 23,185 |
Concentration risk, percentage | 10.30% |
Long-lived Tangible Assets - Lo
Long-lived Tangible Assets - Long-lived Tangible Assets by Geographic Area (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Long-lived Assets from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived tangible assets | $ 64,390 | $ 84,390 |
United States | ||
Long-lived Assets from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived tangible assets | 14,504 | 16,427 |
People's Republic of China | ||
Long-lived Assets from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived tangible assets | 28,268 | 42,893 |
Mexico | ||
Long-lived Assets from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived tangible assets | 9,494 | 14,402 |
Vietnam | ||
Long-lived Assets from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived tangible assets | 7,902 | 6,923 |
All other countries | ||
Long-lived Assets from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived tangible assets | $ 4,222 | $ 3,745 |
Long-lived Tangible Assets - Na
Long-lived Tangible Assets - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Accumulated depreciation | $ 170 | $ 170 | $ 170.5 | ||
Depreciation | 4.6 | $ 4.9 | 13.9 | $ 15.1 | |
Impairment of Long-Lived Assets to be Disposed of | 7.7 | 7.7 | |||
Cost of sales | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Impairment of Long-Lived Assets to be Disposed of | 7.6 | 7.6 | |||
Selling, general and administrative expenses | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Impairment of Long-Lived Assets to be Disposed of | $ 0.1 | $ 0.1 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets, Net - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Goodwill impairment | $ 0 | $ 0 | $ 49,075 | $ 0 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets, Net - Changes in the Carrying Amount of Goodwill (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Goodwill [Roll Forward] | ||||
Beginning balance | $ 49,085 | |||
Goodwill impairment | $ 0 | $ 0 | (49,075) | $ 0 |
Foreign exchange effects | (10) | |||
Ending balance | $ 0 | $ 0 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets, Net - Amortization Expense by Income Statement Caption (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross | $ 46,201 | $ 42,653 |
Accumulated Amortization | (20,672) | (18,183) |
Total | 25,529 | 24,470 |
Gross value of fully amortized intangible assets | 44,300 | 43,700 |
Capitalized software development costs | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross | 2,078 | 1,647 |
Accumulated Amortization | (281) | (44) |
Total | 1,797 | 1,603 |
Customer relationships | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross | 6,340 | 6,340 |
Accumulated Amortization | (3,622) | (3,080) |
Total | 2,718 | 3,260 |
Developed and core technology | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross | 4,520 | 4,520 |
Accumulated Amortization | (3,966) | (3,693) |
Total | 554 | 827 |
Distribution rights | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross | 304 | 308 |
Accumulated Amortization | (299) | (281) |
Total | 5 | 27 |
Patents | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross | 32,509 | 29,388 |
Accumulated Amortization | (12,165) | (10,790) |
Total | 20,344 | 18,598 |
Trademarks and trade names | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross | 450 | 450 |
Accumulated Amortization | (339) | (295) |
Total | $ 111 | $ 155 |
Goodwill and Intangible Asset_6
Goodwill and Intangible Assets, Net - Amortization Expense by Income Statement Caption (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization expense | $ 1,265 | $ 1,031 | $ 3,584 | $ 2,965 |
Cost of sales | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization expense | 146 | 13 | 302 | 37 |
Selling, general and administrative expenses | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization expense | $ 1,119 | $ 1,018 | $ 3,282 | $ 2,928 |
Goodwill and Intangible Asset_7
Goodwill and Intangible Assets, Net - Estimated Future Annual Amortization Expense Related to Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Schedule of Estimated Future Amortization expense | ||
2023 (remaining 3 months) | $ 1,256 | |
2024 | 5,103 | |
2025 | 4,392 | |
2026 | 3,583 | |
2027 | 3,035 | |
Thereafter | 8,160 | |
Total | $ 25,529 | $ 24,470 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2023 USD ($) | Sep. 30, 2023 USD ($) | |
Lessee, Lease, Description [Line Items] | ||
Increase (decrease) in operating lease right- of-use asset | $ (1.2) | |
Increase (decrease) in lease liabilities | $ (1.3) | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Remaining lease terms (up to) (in years) | 37 years | 37 years |
Leases - Lease Balances within
Leases - Lease Balances within the Consolidated Balance Sheet (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Assets: | ||
Operating lease right-of-use assets | $ 17,777 | $ 21,599 |
Liabilities: | ||
Lease liability location within the Consolidated Balance Sheets | Other Accrued Liabilities, Current | Other Accrued Liabilities, Current |
Other accrued liabilities | $ 4,770 | $ 5,509 |
Long-term operating lease obligations | 11,553 | 15,027 |
Total lease liabilities | $ 16,323 | $ 20,536 |
Leases - Operating Lease Expens
Leases - Operating Lease Expense, Operating Lease Cash Flows and Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Lessee, Lease, Description [Line Items] | ||||
Total operating lease expense | $ 1,768 | $ 1,869 | $ 5,457 | $ 5,453 |
Operating cash outflows from operating leases | 2,301 | 1,858 | 5,878 | 5,318 |
Operating lease right-of-use assets obtained in exchange for lease obligations | 242 | 1,604 | 2,202 | 4,535 |
Cost of sales | ||||
Lessee, Lease, Description [Line Items] | ||||
Total operating lease expense | 738 | 741 | 2,242 | 2,138 |
Selling, general and administrative expenses | ||||
Lessee, Lease, Description [Line Items] | ||||
Total operating lease expense | $ 1,030 | $ 1,128 | $ 3,215 | $ 3,315 |
Leases - Lease Terms and Discou
Leases - Lease Terms and Discount Rates (Details) | Sep. 30, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
Weighted average lease liability term (in years) | 4 years 10 months 24 days | 5 years 1 month 6 days |
Weighted average discount rate | 4.53% | 3.82% |
Leases - Reconciliation of the
Leases - Reconciliation of the Undiscounted Cash Flows for Each of the First Five Years and Thereafter to Operating Lease Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
2023 (remaining 3 months) | $ 1,230 | |
2024 | 5,144 | |
2025 | 3,908 | |
2026 | 2,918 | |
2027 | 2,158 | |
Thereafter | 3,084 | |
Total lease payments | 18,442 | |
Less: imputed interest | (2,119) | |
Total lease liabilities | $ 16,323 | $ 20,536 |
Line of Credit (Details)
Line of Credit (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 11 Months Ended | ||||
May 03, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Mar. 31, 2024 | Dec. 31, 2022 | |
Line of Credit Facility [Line Items] | |||||||
Amount outstanding under line of credit | $ 75,000,000 | $ 75,000,000 | $ 88,000,000 | ||||
Interest expense on borrowings | $ 1,600,000 | $ 1,000,000 | $ 4,500,000 | $ 1,900,000 | |||
Line of credit | US Bank | |||||||
Line of Credit Facility [Line Items] | |||||||
Effective interest rate | 8.05% | 8.05% | 5.62% | ||||
Line of credit | US Bank | Base rate | Forecast | |||||||
Line of Credit Facility [Line Items] | |||||||
Basis spread on variable rate | 0.75% | ||||||
Line of credit | US Bank | Base rate | Minimum | |||||||
Line of Credit Facility [Line Items] | |||||||
Basis spread on variable rate | 0% | ||||||
Line of credit | US Bank | Base rate | Maximum | |||||||
Line of Credit Facility [Line Items] | |||||||
Basis spread on variable rate | 0.75% | ||||||
Line of credit | US Bank | Secured Overnight Financing Rate (SOFR) | Forecast | |||||||
Line of Credit Facility [Line Items] | |||||||
Basis spread on variable rate | 2.75% | ||||||
Line of credit | US Bank | Secured Overnight Financing Rate (SOFR) | Minimum | |||||||
Line of Credit Facility [Line Items] | |||||||
Basis spread on variable rate | 2% | ||||||
Line of credit | US Bank | Secured Overnight Financing Rate (SOFR) | Maximum | |||||||
Line of Credit Facility [Line Items] | |||||||
Basis spread on variable rate | 2.75% | ||||||
Line of credit | Second Amended Credit Agreement | |||||||
Line of Credit Facility [Line Items] | |||||||
Maximum borrowing capacity | $ 125,000,000 | ||||||
Commitment fees | $ 0 | ||||||
Letter of credit | |||||||
Line of Credit Facility [Line Items] | |||||||
Letter of credit outstanding amount | $ 0 | $ 0 | $ 0 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense | $ 3,262 | $ 3,541 | $ 3,392 | $ 7,586 |
Valuation allowance | 1,400 | 1,400 | ||
Unrecognized tax benefits | 3,800 | 3,800 | ||
Unrecognized tax benefits that would impact effective rate | $ 3,300 | $ 3,300 |
Accrued Compensation (Details)
Accrued Compensation (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Payables and Accruals [Abstract] | ||
Accrued bonus | $ 3,042 | $ 3,348 |
Accrued commission | 355 | 609 |
Accrued salary/wages | 4,014 | 4,433 |
Accrued social insurance | 8,442 | 7,037 |
Accrued vacation/holiday | 3,396 | 3,300 |
Other accrued compensation | 2,458 | 2,177 |
Total accrued compensation | 21,707 | $ 20,904 |
Accrued severance | $ 1,700 |
Other Accrued Liabilities (Deta
Other Accrued Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Payables and Accruals [Abstract] | ||
Contract liabilities | $ 2,065 | $ 1,134 |
Duties | 1,131 | 470 |
Expense associated with fulfilled performance obligations | 1,344 | 1,120 |
Freight and handling fees | 2,411 | 2,497 |
Interest | 517 | 1,413 |
Operating lease obligations | 4,770 | 5,509 |
Product warranty claims costs | 522 | 522 |
Professional fees | 1,569 | 2,293 |
Sales and value added taxes | 2,908 | 3,750 |
Other | 4,477 | 5,426 |
Total other accrued liabilities | $ 21,714 | $ 24,134 |
Commitments and Contingencies -
Commitments and Contingencies - Changes in the Liability for Product Warranty Claim Costs (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Schedule of Changes in Reserve for Product Warranty Claim Costs | ||
Balance at beginning of period | $ 522 | $ 1,095 |
Accruals for warranties issued during the period | 0 | 249 |
Settlements (in cash or in kind) during the period | 0 | (552) |
Foreign currency translation gain (loss) | 0 | (3) |
Balance at end of period | $ 522 | $ 789 |
Commitments and Contingencies_2
Commitments and Contingencies - Narrative (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||
May 10, 2021 patent customer | Apr. 08, 2021 patent | Apr. 09, 2020 patent | Sep. 05, 2018 patent | Dec. 31, 2022 patent | Sep. 30, 2023 USD ($) inter_partes_review | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) patent inter_partes_review | Sep. 30, 2022 USD ($) | |
Contingencies [Line Items] | |||||||||
Restructuring charges | $ | $ 3,690 | $ 0 | $ 3,690 | $ 0 | |||||
Expected restructuring costs | $ | $ 3,700 | $ 3,700 | |||||||
Number of IPR requests denied | inter_partes_review | 14 | 14 | |||||||
Number of IPR requests granted | inter_partes_review | 12 | 12 | |||||||
Number of patents subject to inter partes review (IPR) | 2 | ||||||||
Patents allegedly infringed and not appealed, number | 1 | ||||||||
Number of customers with filed complaint | customer | 2 | ||||||||
Severance Expense | |||||||||
Contingencies [Line Items] | |||||||||
Restructuring charges | $ | $ 3,400 | $ 3,415 | |||||||
Equipment Moving Costs | |||||||||
Contingencies [Line Items] | |||||||||
Restructuring charges | $ | $ 300 | 300 | |||||||
Other Exit Expense | |||||||||
Contingencies [Line Items] | |||||||||
Restructuring charges | $ | $ 275 | ||||||||
Roku Lawsuit | |||||||||
Contingencies [Line Items] | |||||||||
Number of patents allegedly infringed upon | inter_partes_review | 2 | ||||||||
Pending litigation | Roku Lawsuit | |||||||||
Contingencies [Line Items] | |||||||||
Number of patents allegedly infringed upon | 9 | ||||||||
Number of patent families | 4 | ||||||||
Pending litigation | Roku, TCL, Hisense, and Funai Patent Infringement - ITC Matter | |||||||||
Contingencies [Line Items] | |||||||||
Number of patents allegedly infringed upon | 5 | ||||||||
Pending litigation | TLC Hisense and Funai - ITC Matter | |||||||||
Contingencies [Line Items] | |||||||||
Number of patents allegedly infringed upon | 6 | ||||||||
Pending litigation | Roku- ITC Matter | |||||||||
Contingencies [Line Items] | |||||||||
Number of patents allegedly infringed upon | 2 | 2 | |||||||
Number of patents not infringed | 1 |
Commitments and Contingencies_3
Commitments and Contingencies - Schedule of Restructuring (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Restructuring Reserve [Roll Forward] | ||||
Beginning Balance | $ 0 | |||
Restructuring charges | $ 3,690 | $ 0 | 3,690 | $ 0 |
Cash payments | (1,827) | |||
Other adjustments | 0 | |||
Ending Balance | 1,863 | 1,863 | ||
Total costs incurred inception to date | 3,690 | 3,690 | ||
Total expected expense to be incurred as of September 30, 2023 | 0 | 0 | ||
Severance Expense | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning Balance | 0 | |||
Restructuring charges | 3,400 | 3,415 | ||
Cash payments | (1,691) | |||
Other adjustments | 0 | |||
Ending Balance | 1,724 | 1,724 | ||
Total costs incurred inception to date | 3,415 | 3,415 | ||
Total expected expense to be incurred as of September 30, 2023 | 0 | 0 | ||
Other Exit Expense | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning Balance | 0 | |||
Restructuring charges | 275 | |||
Cash payments | (136) | |||
Other adjustments | 0 | |||
Ending Balance | 139 | 139 | ||
Total costs incurred inception to date | 275 | 275 | ||
Total expected expense to be incurred as of September 30, 2023 | $ 0 | $ 0 |
Treasury Stock - Narrative (Det
Treasury Stock - Narrative (Details) | Oct. 26, 2023 shares |
October 2023 Program | Subsequent Event | |
Equity, Class of Treasury Stock [Line Items] | |
Authorized repurchase of common stock (in shares) | 1,000,000 |
Treasury Stock - Repurchased Sh
Treasury Stock - Repurchased Shares of Common Stock (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Equity, Class of Treasury Stock [Line Items] | ||||||||
Number of shares repurchased (in shares) | 61 | 358 | ||||||
Total cost of shares repurchased | $ 33 | $ 43 | $ 812 | $ 86 | $ 3,857 | $ 7,354 | $ 888 | $ 11,297 |
Open market shares repurchased | ||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||
Number of shares repurchased (in shares) | 0 | 300 | ||||||
Total cost of shares repurchased | $ 0 | $ 9,438 | ||||||
Stock-based compensation related shares repurchased | ||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||
Number of shares repurchased (in shares) | 61 | 58 | ||||||
Total cost of shares repurchased | $ 888 | $ 1,859 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock-based Compensation Expense and Related Income Tax Benefit (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Employee and director stock-based compensation expense | $ 2,135 | $ 2,439 | $ 6,833 | $ 7,575 |
Income tax benefit | 326 | 397 | 1,073 | 1,265 |
Cost of sales | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Employee and director stock-based compensation expense | 32 | 38 | 94 | 117 |
Research and development expenses | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Employee and director stock-based compensation expense | 283 | 326 | 817 | 1,004 |
Selling, general and administrative expenses: | Employees | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Employee and director stock-based compensation expense | 1,726 | 1,842 | 5,398 | 5,421 |
Selling, general and administrative expenses: | Outside directors | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Employee and director stock-based compensation expense | $ 94 | $ 233 | $ 524 | $ 1,033 |
Stock-Based Compensation - St_2
Stock-Based Compensation - Stock Option Activity (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 9 Months Ended |
Sep. 30, 2023 USD ($) $ / shares shares | |
Number of Options | |
Outstanding at beginning of period (in shares) | shares | 782 |
Granted (in shares) | shares | 236 |
Exercised (in shares) | shares | 0 |
Forfeited/canceled/expired (in shares) | shares | (93) |
Outstanding at end of period (in shares) | shares | 925 |
Vested and expected to vest at end of period (in shares) | shares | 925 |
Exercisable at end of period (in shares) | shares | 604 |
Weighted-Average Exercise Price | |
Outstanding at beginning of period (in dollars per share) | $ / shares | $ 44.16 |
Granted (in dollars per share) | $ / shares | 24.77 |
Exercised (in dollars per share) | $ / shares | 0 |
Forfeited/canceled/expired (in dollars per share) | $ / shares | 51.39 |
Outstanding at end of period (in dollars per share) | $ / shares | 38.49 |
Vested and expected to vest at end of period (in dollars per share) | $ / shares | 38.49 |
Exercisable at end of period (in dollars per share) | $ / shares | $ 44.06 |
Weighted-Average Remaining Contractual Term (in years) | |
Outstanding at end of period | 3 years 11 months 23 days |
Vested and expected to vest at end of period | 3 years 11 months 23 days |
Exercisable at end of period | 2 years 9 months 18 days |
Aggregate Intrinsic Value | |
Exercised | $ | $ 0 |
Outstanding at end of period | $ | 0 |
Vested and expected to vest at end of period | $ | 0 |
Exercisable at end of period | $ | $ 0 |
Stock-Based Compensation - Assu
Stock-Based Compensation - Assumptions Used in Valuation and Weighted Average Fair Value of Stock Option Grants (Details) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | ||||
Weighted average fair value of grants (in dollars per share) | $ 0 | $ 12.38 | $ 10.83 | $ 14.51 |
Risk-free interest rate (in percent) | 0% | 2.82% | 3.86% | 1.93% |
Expected volatility (in percent) | 0% | 48.92% | 45.89% | 49.35% |
Expected life in years | 0 years | 5 years 2 months 8 days | 4 years 8 months 12 days | 4 years 8 months 23 days |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Stock options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized pre-tax stock-based compensation expense | $ 3.2 |
Unrecognized pre-tax stock-based compensation expense, remaining weighted-average life (in years) | 1 year 10 months 24 days |
Restricted stock awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized pre-tax stock-based compensation expense | $ 8.2 |
Unrecognized pre-tax stock-based compensation expense, remaining weighted-average life (in years) | 1 year 9 months 18 days |
Stock-Based Compensation - Non-
Stock-Based Compensation - Non-Vested Restricted Stock Award Activity (Details) shares in Thousands | 9 Months Ended |
Sep. 30, 2023 $ / shares shares | |
Shares | |
Non-vested at beginning of period (in shares) | shares | 376 |
Granted (in shares) | shares | 340 |
Vested (in shares) | shares | (196) |
Forfeited (in shares) | shares | (4) |
Non-vested at end of period (in shares) | shares | 516 |
Weighted-Average Grant Date Fair Value | |
Non-vested at beginning of period (in dollars per share) | $ / shares | $ 36.82 |
Granted (in dollars per share) | $ / shares | 14.15 |
Vested (in dollars per share) | $ / shares | 36.86 |
Forfeited (in dollars per share) | $ / shares | 38.19 |
Non-vested at end of period (in dollars per share) | $ / shares | $ 21.83 |
Performance-Based Common Stoc_2
Performance-Based Common Stock Warrants (Details) - Common stock purchase warrants - $ / shares | Jan. 01, 2023 | Mar. 09, 2016 |
Class of Warrant or Right [Line Items] | ||
Exercise price of warrants (in dollars per share) | $ 54.55 | |
Vested warrants outstanding (in warrants) | 275,000 |
Other Income (Expense) - Schedu
Other Income (Expense) - Schedule of Other Income (Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Other Income and Expenses [Abstract] | ||||
Net gain (loss) on foreign currency exchange contracts | $ 19 | $ (550) | $ (2,788) | $ 518 |
Net gain (loss) on foreign currency exchange transactions | (1,085) | 476 | 545 | (534) |
Other income (expense) | 215 | 20 | 476 | (372) |
Other income (expense), net | $ (851) | $ (54) | $ (1,767) | $ (388) |
Earnings (Loss) Per Share - Cal
Earnings (Loss) Per Share - Calculation of Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
BASIC | ||||||||
Net income (loss) | $ (19,362) | $ (10,411) | $ (61,363) | $ 7,234 | $ 2,988 | $ (2,910) | $ (91,136) | $ 7,312 |
Weighted-average common shares outstanding, basic (in shares) | 12,911 | 12,656 | 12,839 | 12,709 | ||||
Basic earnings (loss) per share (in dollars per share) | $ (1.50) | $ 0.57 | $ (7.10) | $ 0.58 | ||||
DILUTED | ||||||||
Net income (loss) | $ (19,362) | $ (10,411) | $ (61,363) | $ 7,234 | $ 2,988 | $ (2,910) | $ (91,136) | $ 7,312 |
Weighted-average common shares outstanding, basic (in shares) | 12,911 | 12,656 | 12,839 | 12,709 | ||||
Dilutive effect of stock options, restricted stock and common stock warrants (in shares) | 0 | 40 | 0 | 88 | ||||
Weighted-average common shares outstanding on a diluted basis (in shares) | 12,911 | 12,696 | 12,839 | 12,797 | ||||
Diluted earnings (loss) per share (in dollars per share) | $ (1.50) | $ 0.57 | $ (7.10) | $ 0.57 |
Earnings (Loss) Per Share - Sec
Earnings (Loss) Per Share - Securities Excluded from the Computation of Diluted Earnings (Loss) Per Common Share (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Stock options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Securities excluded in computation of diluted earning per share (in shares) | 925 | 780 | 892 | 653 |
Restricted stock awards | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Securities excluded in computation of diluted earning per share (in shares) | 513 | 315 | 421 | 221 |
Common stock warrants | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Securities excluded in computation of diluted earning per share (in shares) | 0 | 275 | 0 | 275 |
Derivatives - Total Net Fair Va
Derivatives - Total Net Fair Value of Derivatives (Details) - Fair value measurements on a recurring basis - Foreign currency exchange contracts - Not designated as hedging instrument - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Derivatives, Fair Value [Line Items] | ||
Foreign currency exchange contracts | $ 257 | $ 100 |
Level 1 | ||
Derivatives, Fair Value [Line Items] | ||
Foreign currency exchange contracts | 0 | 0 |
Level 2 | ||
Derivatives, Fair Value [Line Items] | ||
Foreign currency exchange contracts | 257 | 100 |
Level 3 | ||
Derivatives, Fair Value [Line Items] | ||
Foreign currency exchange contracts | $ 0 | $ 0 |
Derivatives - Narrative (Detail
Derivatives - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Derivative Instruments,Gain (Loss) [Line Items] | ||||
Net gain (loss) on foreign currency exchange contracts | $ 19 | $ (550) | $ (2,788) | $ 518 |
Not designated as hedging instrument | Foreign currency exchange contracts | ||||
Derivative Instruments,Gain (Loss) [Line Items] | ||||
Net gain (loss) on foreign currency exchange contracts | $ 19 | $ (600) | $ (2,800) | $ 500 |
Derivatives - Foreign Currency
Derivatives - Foreign Currency Exchange Contracts (Details) - Not designated as hedging instrument $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 USD ($) $ / € $ / ¥ | Dec. 31, 2022 USD ($) $ / ¥ $ / € | |
China, Yuan Renminbi | ||
Derivative [Line Items] | ||
Notional Value | $ 33,000 | $ 31,000 |
Forward Rate | 7.2593 | 7.0358 |
Unrealized Gain/(Loss) Recorded at Balance Sheet Date | $ (162) | $ 528 |
Euro Member Countries, Euro | ||
Derivative [Line Items] | ||
Notional Value | $ 18,000 | $ 26,000 |
Forward Rate | 1.0826 | 1.0529 |
Unrealized Gain/(Loss) Recorded at Balance Sheet Date | $ 419 | $ (428) |
Business Combination - Narrativ
Business Combination - Narrative (Details) - Qterics, Inc. - USD ($) | 3 Months Ended | 9 Months Ended | |||
Feb. 17, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Business Combination | |||||
Cash consideration | $ 900,000 | ||||
Net sales since acquisition date | $ 500,000 | $ 500,000 | $ 1,600,000 | $ 1,400,000 | |
Earnings (loss) since acquisition date | $ 28,000 | $ (100,000) | $ 100,000 | $ (25,000) |
Business Combination - Purchase
Business Combination - Purchase Price Allocation (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Business Combination | ||
Goodwill | $ 0 | $ 49,085 |
Qterics, Inc. | ||
Business Combination | ||
Estimated Lives, Property, plant and equipment (in years) | 5 years | |
Term of contract, Operating lease ROU assets (in years) | 3 years | |
Accounts receivable | $ 787 | |
Property, plant and equipment | 3 | |
Goodwill | 713 | |
Operating lease ROU assets | 149 | |
Other assets | 2 | |
Other accrued liabilities | (6) | |
Short-term operating lease obligation | (48) | |
Deferred revenue | (1,539) | |
Long-term operating lease obligation | (101) | |
Long-term deferred revenue | (851) | |
Cash paid | $ 939 | |
Customer relationships | Qterics, Inc. | ||
Business Combination | ||
Estimated Lives (in years) | 6 years | |
Finite-lived intangible assets | $ 1,340 | |
Developed technology | Qterics, Inc. | ||
Business Combination | ||
Estimated Lives (in years) | 6 years | |
Finite-lived intangible assets | $ 440 | |
Trade names | Qterics, Inc. | ||
Business Combination | ||
Estimated Lives (in years) | 6 years | |
Finite-lived intangible assets | $ 50 |