UEIC - Earnings call transcript Q4 2021 | Universal Electronics Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, ladies and gentlemen. And thank you for standing by. Welcome to Universal Electronics Fourth Quarter 2021 Financial Results Conference Call. At this time, all participants are in a listen-only mode. After the speakers’ presentation there will be a question-and-answer session. reminder, call a being As Instructions] this is conference recorded. [Operator Instructions]. [Operator time, At to like to Ms. would hand now this I the conference over Kirsten Investor LHA Chapman Relations. of Ma’am, ahead. please go

Kirsten Chapman

the call Investor for Internet. you being Thank if one And results for you retained live section release contact The where will additional a that broadcast webcast conference www.uei.com. Relations you please one call least and all copy the provided now, financial Universal for LHA By at have this or have information updated for be at year-end website you, not, website. it available might XXXX Electronics on thank is will This during visit company's at and joining year. should Howard. over be call. material non-public be of quarter fourth press the us replay of XXX-XXX-XXXX received the will year discussed Any be the the

information to that access also by replay. may the listening You webcast

international During that those with, consumers issues this offering of provides to of achieve industry its no update operating and of The the of generation adjusted a developing SEC, opportunities and ability to pandemic mitigate will earnings leading company related new undertakes and global the The operations management's cautions company including technologies management's COVID-XX authorities. XX-K. are our interactive that ability continued annual differ to actions adjusted by remarks our trend Chinese In Management systems COVID-XX the or workforce sustainability arise metrics documents and filed products technologies line may by date metrics that with net that continue due form and it from introduced planning which of U.S. may material and remotes manage worldwide platform, result has both this have introducing and business the to customers, may future on statements GAAP power attract surrounding comprehensive regarding to QuickSet circumstances including providing successful the its indirect capabilities These world direct will of chain obligation timely and financial this the measures believes sales new that just manage how scope business such investors pandemic next press from to company the and stemming the financial our be trends. The local intrinsic to expanded and effects uses statements operational experience anticipate in suite public guided, and disaster refer the to existing on reflect technologies services. that inflationary statements products in you providing financial and and or consistent continued performance continued our non-GAAP or and dollar our and of pressures our and sales severity the our the financial as It making accepted designed the for impact by after and company. year those because to onset stock of platforms events measures health may forward-looking and our future operating groundbreaking of financial technology evaluates supply non-GAAP weakening trends that company's and UEI’s customers which chain today's toward public ultralow smart supply restrictions state, new the upgrades you the the offerings including decisions. have on energy release issues around effects, to federal, in duration, be report company statements thermostats, and these events the volumes. a results at our with and margins financial our Chinese non-GAAP impact governmental ability them increased and to all actual experiencing customers been the for helps the we And performance its to these and are software in expanded evaluate materially events for the projections mentioned advanced yuan. dealing the health and collaboration results shortages call, include that to with in business supplement investors on be performance imposed crises Management's develop its have projections. natural may these industries referenced. make management core management budget purposes shortages existing and deliver and and including ability the its continue and and company's against call financial and revise home more to it hybrid our that harvesting the for value

versus believes the press measures release and is issued reconciliation of business these included and description with and trends full today. management company's GAAP comparisons these results competitors addition, of facilitate other companies. and financial In operating in the non-GAAP adjusted A core, measures

will is the Officer, our and to Financial remarks. Paul today, introduce Chief It now Arling, Paul Chief pleasure will who Paul. CEO, provide overview closing Hackworth, Paul Officer, to Please financials. return go who Arling. Bryan ahead, an then and will On the my deliver Chairman Executive call summarize

Paul Arling

by Electronics to line our has technologies connect to software established well started reaction controls our winning Customer included new many of for home by bodes and designed been capabilities control. energy unveiling Vegas. smart a very vision as Show at growth. the and We for remote around International well our At and to the award afternoon and our QuickSet a of smart continues a technologies long latest our power ultra-low thermostats, suite and products Good leading thanks be world Consumer in enhance products, XXXX CES for us. suite positive, with Las which of advanced joining groundbreaking home platform. term company sustainability our of blending harvesting as entertainment expanded or UEI This is

However, be by for our near the to volumes. materials the supply as continues anticipated impacted both issues direct and global impact and chain our continue on a have results term, financial which to shortages, indirect

on Our or $XX.X $X.XX the million results XX.X% quarter provided year for gross in or per guidance we And $XXX the was share. last call. the earnings within revenue million income fourth XXXX was full was margin range net and our

by are who industries. respective to in leaders We customers continue partnering channel execute on their strategy with our

footprint video in we example, Sony largest video respective with entertainment about their markets. an XX% relationships electronics, long service with world's relationships Global and Similarly, have in represent who consumer Liberty As collectively established televisions. the amongst Samsung, in and our Comcast, includes Vodafone, providers LG, who the of ranked

long-term Another is Daikin, in share the customer industry. leader the global HVAC market

and have We than residential thermostats at worked alongside Daikin and innovative customers. consistently forefront and commercial they more control delivering have in connected years, for the solutions XX been to their

for partner products. control respective services we as such have Connected growth potential, will as us market Hunter Home their momentum, strong wireless that with and and connectivity and gain Vivint, leading categories. These serve solutions as addition, And represent long-term and a partnering channel position our well. channels manufacturing of by Douglas, technology their distribution Somfy, leaders our are brands recently In expanded

extend interoperability earlier, and product excited few the device that introduced our integrating said and We I reach, I'll across whole across well our while experiences home across home we capabilities key user and enhanced solutions One and about exemplify of at that the supporting entertainment As are enhanced showcased a with coverage control discovery, as demonstrated our ecosystems and ecosystems smart and improving we benefit the control we advantages in review devices. as is new CES. protocols. them. our offerings new products leadership major

a example, homes smart QuickSet already deliver will now latest dashboard industry's X.X in matter. smart For standard connectivity world, and home include the home the across enhancements

Our unified existing communication legacy, all into and protocols, technology a future blends seamlessly experience.

winning our smart versatile for that is control QuickSet is multi-assistant advantage home solutions Butler, the the our built assistant and applications. entertainment hub, Nevo enabled platform digital experiences. optimized Another user first around and simplify award home innovative

is and home customers. and to Vodafone the smart hub its TV Portugal Just it broadband entertainment launching month last Nevo Butler residential announced

We also use platform the non-entertainment cases other hub. home same for customers have smart as adopting a versatile

bring services announce more In a line to of that on to traditionally recently HVAC, the expansion control of solution which thermostats designed smart also any are of sensing in really applications. allows wireless line HVAC wall the the later. home, is expect on modular thermostats and room designed is This thermostat to the have user other where in home. devices and innovative for to and we white well and connected and user hospitality accessories. This announced label smart placing UEI and We mounted matters. The the is platform integration exciting as a interfaces, our and intuitive platform comfort sensing where the it OEMs as branded interface

tradeshow. launched platform comfort Refrigeration also extend In set this Airconditioning and addition we of that to Expo adapters connected of the an and expanded of thermostats, sensors our line recent Heating wireless at reach a

us customers Our also in began products in with appliances will quantities are in technologies home channels, introduced and by in customers. cloud late-XXXX helping as connectivity new our grow smart wireless be new Those connected shipping such XXXX.

technologies announce corporate to that control waste. quickly platform the earlier, environmental mandates growing sustainable noted that are demand concerns and we product I customers’ our our These products address use will and requirements. As government reduce that Eterna related impact excited for latest and eliminate energy are becoming

consumer product foundation has introductions power with frequencies harvesting The even and creates that user competitor users evolutionary times delivers businesses and bringing and field. the cells in already energy wave life No and that in the photovoltaic in the paradigm. vibrant and best-of-breed battery power benefits to And We integrate to a with to from and devices. for consume reduce X.X enables unit are as natural less power recovers true in the life. battery as outperforms traditional compared invested technology wireless This compromising and battery leaders powering XX% waste, they remote up market. that the usher the in that times battery are timed And deliver in alike. users change create centered features the XX or chips They and up UEI artificial well their devices to SOCs control. home these longer Innovations energy wants batteries businesses enabling They one allowing in value that self life. we're power homes, SOCs ultra-efficient controller. a for to to design to such Smart life change radio up lights, are Bluetooth conductivity in home. more confident of a built XX in and ultra-low power, of battery management power harvesting sustainable devices to to computing present partnered energy ambient circuitry solution more home starting hungry any XX without to another smart

Before the Trade cease a Commission legal International I a and exclusion November like order, call technology patents, could issuance product can order, I'd technology they to no the QuickSet found of they meaning Roku longer in our of of longer over streaming products meaning to limited Bryan, and sell import with their win. one XXXX. our desist review In no our with embedded. our violation resulting U.S. recent The turn in

control setup As experience on has amongst control users widespread are their products, creating modify functionality control of and including frustration to a their decided has Consequently, televisions. devices the friendly less the a Roku streaming connected their who degrading platform. to struggling Roku created Universal user functionality result,

Bryan review two we behind now related we our With successfully the can that over Please to of financials. conclusion of I'll the the turn Roku action. district stayed call for cases have our have this, to Bryan. CFO, the our been turn court the ahead, Mater ITC ITC go against attention pending Hackworth

Bryan Hackworth

Thank you, Paul.

XXXX $XXX.X $XXX.X results of to million quarter of were quarter the the to million First Net compared review of for all XXXX. the the fourth XXXX. sales for fourth compared quarter of fourth

due products. year as indirectly, and companion in customers inability that expected directly were and to to all logistics procure because of global their versus supply for truncated affect us down orders part As prior sales have necessary the issues parts

Our of fourth or million of gross compared the XXXX. to was million or in XX.X% sales profit XX.X% quarter $XX.X $XX.X

year. last our expected we rate our increased inflationary logistics and to have impact over gross margin on mentioned significantly component we costs past as the adversely pressures As call,

in phasing our fourth addition, your versus million full due primarily compensation expenses from the in quarter first were XXXX. Chinese with decreased the $XX.X In gross $XX.X fourth beginning million year. was the in of compared the SG&A the a in the million second in year the to quarter, U.S. the expenses year. weaker quarter’s increases the margin $XX.X $XX.X effects was of to the Operating current the inflation the R&D prior compared partial $XX.X expenses prior quarter incentive ‘XX in to lower of were quarter. quarter, in order and million of X.X% Dollar during are of impact XXXX. rate, compared quarter had a fourth income to in in to quarter. the or XX.X% Operating $XX.X to million In compared in sales, price sales impact $X.X million the mitigate which $X.X back we prior has to half quarter, will have first yuan million or million

prior year Our rate XX.X% effective compared tax the XX.X% in quarter. was to

or diluted to fourth quarter share XXXX, quarter fourth of million $X.XX $X.XX XXXX. million the the For $XX per per or $X diluted income compared was share, in net of

full sales the compared to net XXXX, million year $XXX.X million XXXX. were for For $XXX.X

of share margin in XXXX. for XXXX. or per $XX.X or $XX.X compared compared Our $X.XX share, diluted gross $X.XX million to net was XX.X% income to million diluted And sales XX.X% per was

at cash of our $XX.X flow equivalents to quarter, cash flow XXX,XXX from We million million. and sheet. year ended current for the December Cash review I’ll shares the yielded operations compared to $XX.X of balance us cash $XX.X purchase with XXXX. million, XX, Next, enabling for fund the million and $XX.X

million. X.X we from a For million $XX the $XX cost flow repurchased exceeded total full approximating cash million, year for shares operations over and

believe market price to our current that of intrinsic significantly UEI’s the value. below is continue stock We

we shares an contingent flow. On Board repurchase the months. expect our Given to price this XX, fact next February additional approved on Directors continue free the plan and strengthen cash few XXXX, over of to XXX,XXX the

continue of home pressure products on customer guidance. issues our broadcast that see several we scheduled headwinds persist. run shortage a and do have half in at remotes current Certain IP our voice products and blinds. continue specifically and to to expect back ships, are to HVAC The year throughout include to wins security traditional start pressures from and to sensors the space mentioned when macroeconomic that some time the to These AV transportation the of devices in control the relief product turning chain Now should in a vendors relating supply the of we to two-way channel, connected ship. subscription current however, to our In home lighting automation and ranging short and the put sales.

XXXX. of quarter first the For

We to the expect $XXX compared from $XXX of to quarter range to sales in million first million, $XXX.X XXXX. million

EPS $X.XX quarter $X.XX first XXXX. $X.XX, in expect to We the compared to to range from of

call between XX% continue between Paul. and our growth and I believe We XX%. back to XX% X% now targets in of sales and EPS turn the to will long-term

Paul Arling

Brian. you, Thank

said of that have it in company movement meet this I As their before, difficult growth or environment the for supply, on is goods any world to semiconductor across objectives. relies

we XXXX, prospects the and particularly for optimistic our full year, start long-term a regarding challenging foresee to performance. we remain growth Although our

customer managed that will team and to will the our that winds to begin next products and experience, build mission we three to previously. succeed technologies. product year of the cycles project of in have more decades its ship back have through in significant continues half innovative XXXX. challenging into help generation We than and With Further,

better technologies of always on We has focused in an is been your than a growing these creates unique, within emerged self-configuring bringing the we stronger companies Today, true, While from leading one on factor the experience each position and has difficult to list world. remain periods control innovation period groundbreaking focused remain seamless and home. intuitive that UEI before.

our pressures and long-term macro innovation will subside, service deliver these commitment to as that confident customer quite are growth. We

for stay can up always, Operator open we As the now tuned. call questions.

Operator

[Operator the Instructions] from of question Our Burns line from first Greg or comes comment Sidoti.

Your open. line is

Greg Burns

first guidance the by at look how versus guidance? chain at then impact you revenue this looked when When for much afternoon. revenue impacted your quarter that to those we the Good much is supply -- your being constraints, how And factors? quarter, that

Bryan Hackworth

sales, consistent the effect few pretty that's the quarters. think on I Yeah, last been Greg, had our it's

it came we impact. QX the consideration the to end. I into we comparing guidance, the you're the if lower think within So took But range, was

the we So able were within think range. I to fall

there. the end, little as a why bit we bit came little the customer to come middle. lot. our it I point out versus I just lower Now, the at that can't did mean, a one whole but doesn't a through lower really say wasn't end at that stood take here guidance There versus

we end. So lower from the went

As when I've we toward providing provide And the I’m time that range. end. came always I but think it mentioned, anywhere range, the that lower this come range, we could within -- in it's

QX issues. a rolling were we still Even as issue. though concerned, logistics far the is impacted As by it's

know, parts to companion they're is you affecting and because products, to think, not us is what you we've for tell that for other And orders get then us companion us. you'll they're last that companies products. had see And able with if several truncating they're I ordering customers the reason. get these

affecting So up is start will still to back towards the it is it be it'll And year. hopefully, for it half clear of us. probably the

Greg Burns

Okay. Roku in litigation. of And terms then the

produce the that? that were one were may strictly there the of at -- there case? the implications devices? the be guess other in back any And court on So And ability might can are then first outcome monetary go look that is potential the Was that, -- there patents to others the Or ITC what for I we any Is -- a produce now of a be how with? they violating? district to cases, when others with you were Roku you that they claimed that And many you in patent. claiming step violation? I violation that guess

Paul Arling

the I in are court, don't through the on cases complete, presumably also XX that's I When district and I Roku The is stayed. happens They there me This the there cases, were partially are Greg. Paul. are two quote IPRs court the PTAB. are that separate ITC, forward. cases, it'll believe, remedy I two little the ITC this. There cases -- will where and that, more timeframe are take the court, case, monetary. order. cease move Yeah, And those on with the then believe venue across reinstate processed damages directly which those can district a case. being win judge to cases. district be time. And pending in separate but meant would don't a phase order the Obviously, would in know bit desist is an when -- a exclusion and means case, the is are exact they

who sorry So in it life produce for I'm the party can lost violate this that that of life longer IP. for product no the the patent means -- the case, other of products the

Greg Burns

Okay.

Paul Arling

stating what to that issued. that's And the of set, of So are They've their a modified control volume, can't on not people was lot seen anymore, television product, cetera. software. turn can't et the we've reviews able operate it

And remote TV they need are their some to again. that use complaining users

a solution the So on the user and other in device which then with TV they where not to experience have today's to turn is good operate they go other two-remote world. the a remote,

Greg Burns

lastly, Okay, in and the XX% quarter. customers just the then

Bryan Hackworth

and We Daikin customers, at at had Comcast two XX.X% XX.X%.

Greg Burns

you. thank Okay,

Operator

you. Thank

Brian comment comes Our Imperial the next line from or Ruttenbur question from Capital. of

Your line open. is

Brian Ruttenbur

thank Yes, much. very you

So on guidance. question

X% is long-term, XX% your EPS You're Is long-term of growth guidance you XX% that XXXX. assume correct? first of talking not your that including being release, revenue and to I to In said press about XX%. half weak.

Bryan Hackworth

It long-term about over will. calculate it. last we're the next we that's way say the years, several the When talking we

grow which think sometimes of in And at rate that to don't think we conflate I And saying -- done So continue. a I year. just current see why I XX reason X% the We're that XX, people over the XX% to historically. I we've that. saying don't to can't long-term any can with people want don't

Brian Ruttenbur

didn't higher quarter. year-over-year. levels are to better you than Okay, guidance a be XXXX know give you going worse, is number? can likely other your anticipate or there that's at first Do a lower yet or you XXXX been down XXXX -- the And I maybe give me specific

Bryan Hackworth

But don't provide I XXXX. say we will Yeah, expect do grow to quarter. this, we beyond guidance the in

to mentioned, got as of half product the in So that of number the year. we've Paul customer back wins, are wins a number number wins, ship scheduled of of

I this We've lighten ship hopefully that few vendors, it'll expected resolved, hoping don't I'm to enable at to least us completely start supply but if a up. know been have starts be to lighten by up told which issue So products. this will they to. more

I level year? this be grow don't to XXXX. as expect the we to expect So same

Brian Ruttenbur

and standpoint. consumer business side residential slowing electronics? a asking on any for Are residential? residential macro be the the something that may Okay, demand on the I'm consumer the you then side of the of slowing demand seeing from hearing

Paul Arling

broadcasting You or mean subscription entertainment? that just generally,

Brian Ruttenbur

in going? lot the a Is products, which Is demand there Generally, your consumer? is your slowing? any is where of stuff

Paul Arling

not I some semiconductor Again, can't is the -- it's would ask who product And say have for be may product get who told wouldn't are but can't build critical slowing. that But they parts alluded path about to right And have There earlier. Brian demand. their it that ordered own. be we companion -- more they buying it's we an whom have have of to now. customers the product, the they overall enough shortage, us not demanded their enough more, would as we of have therefore, forecast, say when shortages certain them of more they their us therefore, part the

customer, of in course. other those is it In So cases, by cases, varies the demand good.

Brian Ruttenbur

much. very you Thank

Paul Arling

be more product. able own that, for can't Buying But and were would get they more this semiconductors at than to even buying they their point.

Brian Ruttenbur

you much. very thank Okay,

Operator

Thank you.

comes comment Steven line from or from of question Frankel Colliers. the next Our

Your open. line is

Steve Frankel

for move And customers bit. enough some for therefore, versus of give boxes indirect Good top your back you this a direct aren't is and orders the there products how feel cutting I'm you afternoon, that of us get, headwind the that that or out. are much Paul. chain can't could issue issue parse being maybe set little supply example, hoping produced,

Paul Arling

could that to what it's our not unable enough parts And able that sales, to it's one system like about we customers. We've digit that a course of forecast double of estimated we we figure build. quantify from can be really through can't that to we is we're then ourselves. possible. go precisely, Yeah, receive we millions, The Steve, to out but XX% be probably -- get I'd

can't do quantify. customers forecasts of We and about businesses. than some their others, share readily talk we part to their cases, In course. they that Now, more

cannot semis are some we're therefore XX, XX building but not us they And get own we're telling five enough order of own would that that, they earning or that get whatever is, the the to other ordering we're seven because is we to product. would companion shortages Because not build typically or units. and them their like they number order those can't or semiconductors we extra product are having our for required products,

our with we far hearing our anyway, field really really number. are as really precise relevant ordered quantify, not. because not stories those one a give We well, Bryan we customers. as That because from said, but would business from can't them, the It's were don't have us they they more,

exactly we'll So really it how would us otherwise many have don't they later. ordered. order units tell They

flow So on through this. there's a effect

Now, happen time. this months. It's three problem have won't again, take we with time, -- it's going but it's also that as to said, to disappear in vendors do going Bryan --

are the who back of now, parts with vendors this We in up half have right us year. bring to working

this increase year. So of begin should the supply vendors to specific

will there will because They situation more online in be we I in the to alluded as probably a that have it's talking a of And to of probably Because who remarks the available. ready. that be is pre-XXXX won't the timing vendors begin is Bryan, more year. designs to think they where prepared it'll chips probably will customers where timed XXXX supply well back the to or have I probably supply some capacity back time. it than well the That the the time about build that this levels, to come will call, ease And be all be we're in them. the problem. earlier will demand. Now, they bringing not. for be of But spoke want these designs lot on have And that about, about chips

solve see this to this correct start we'll problem So itself.

As now billion conference use I said think commitments call, capacity. XXX well semiconductor in in over number I to XXX build the numbers suppliers I billion the last of

year. Now, some some capacity of is it this on of years, but that starting coming will take

that start this not So quarter. an moving industry long distant at coming. the go future, little a back in And demand. will increase. in next That increase too bit will a will vendors coming from time. on not hearing midyear, supply a ‘XX. But ‘XX starting will start supply greater little a to day is is whether it And day come we're it -- through a likely into see of see right then like bit will And way now supply than year this to that but be off you'll situation seems the it

Steve Frankel

behind the going that below back you? chain ’XX, margins is on there going gross would And surface to early Okay. supply where prevent the they were once anything are in from issues

Paul Arling

most a this is can’t. time Don't we're for seen a only I've in inflationary see any reason to long a probably time. our doing give in been we've caveat higher I'll than of that The obviously why quite it careers.

I the think inflationary, last the school. time inflationary I in high severe was

I workplace So the yet. in wasn't

We this environment. seen of haven't sort

situations are to price obviously are been there offset are absorbing where that There talking acceptance it. are that. customers. of pretty good There's to a We we increase

But that prices, semiconductor of reality et are world been generally electronics going the the hasn't today. last the people on decades. moving is upwards cetera that that prices, in today typical in number understand think what's area I consumer commodity over the

but best-in-class. world, fair down, in many price a are I a bit little cases And some no the best reason, there's it them. in we longer And -- licensed for term. charge you so might provide we the see solutions movement in no there's their reason mean, strategic

So reason goal have we why XX%. couldn't there's term be no that to long of margin

Steve Frankel

the of prepared TVs, software this year of last content was this year home out any at CES control that higher chip you of back kind material smart in TVs. remarks. mentioned the get in at one software that expansion coming things panel for in the And capability half? the Like CES you Did the

Paul Arling

where right We XXXX the completed of year, televisions. ‘XX ‘XX the the models finalized then did. be Because be a summer models in will in now, basically And would at the done, ‘XX. design on were CES ‘XX sometime perspective. mid TVs are this But from and working ’XX

spoke others, So that many are the security, of to with things lot and all comments ‘XX there's low I a in yes, also limited interest things on to are wanted keep course, because we're pretty a innovative power SOC, lot a of of customers. ‘XX. power I the right which time. on about now and of amount Eterna garnering of of is But remarks that working working We're and that I prepared in interest different. the including business think the core we the ultra-low quite HVAC mean, here lot these AV in and markets, of the

Steve Frankel

is Bryan, for in of last your growth QX? Okay. then And question for embedded what forecast kind one OpEx

Bryan Hackworth

fringe and get CES There’s expensive little of QX, a rather benefits a growth. a bit then little bit In you that's on were at reset. we trade show,

with So an that increase. will come

describe higher, would sequentially is I So I expected be but to anything significant. not

Steve Frankel

But was last the XX.X where below year. it

Bryan Hackworth

be It’d close.

Steve Frankel

Thanks. Okay.

Operator

comment question from Sinderen Thank you. line Van Riley. the of comes next Instructions] Our [Operator from Jeff B.

Your line open. is

Jeff Van Sinderen

margins? should you might guess could. you the outlook Any full on if you I'm more There's how, quarterly progression, given you you half down? Hi, do I to expect the gross wondering, just and to a are you second for I us modeling is up color year, evolve? always Or in we I'm you give on margin for increasing and maybe sense how margin? that know, thinking are And then be can be everyone. trying the they half touch prices. could it then think how gross flattish? Or as in first gross guess just down is margin about flattish? gross get get it

Bryan Hackworth

the back will go half year. are were And full through Jeff, the price lot effect previous -- we has increases of you into as the taking Paul There question, the rate. Yeah. and QX of in on a the know, as margin QX take mentioned variables gross

Now.

difficult the that price predict. raw think offsets I they prices, material the difficult rise mitigates prices inflation that what's going happen to to getting cost, going or part. and continue with to most it's that's component tell increase or pretty the to are to But much

always difficult FX other is that's the rate. The component

a when So at Chinese versus look the dollar was now, right versus QX, the QX I little yuan. weaker

So that hurts us.

that's So to always predict. difficult

be I of at to to I I rest year, Because But different. dramatically improve. the -- rate the So think think if QX expect if looking it's don't And you're half versus partial of the going the are the in price take quarter’s full you'll going versus year, we're and increases get that a effect the to back effect. QX. effect a full enacting QX you're

rates don't on additional that's Now, that components. high assuming inflation we have

now the part the the right that's that's that's predict. to So variable difficult

of half significantly I the in think because expect everything price I the rate say, front hard -- don't back enacting, stays else think but to of constant, So price different. -- increases should to year don't half. if improve that the be the But our versus the I we're

Jeff Van Sinderen

then, year-over-year half. Do the start you just helpful. in second half. some -- it are growth to I going the those products, ship grow another around that's to question in second have to orders business Okay, let's new for And returning call guess of

a are half what chain. in I depend There's you from to revenues? is being into your door this you new year-over-year of in get those a because the is in get inflection products chain vendors or volume out my baked question half variables that? that around little risk So second are to second is that of sort telling a going lot said, obviously better it's that supply here guess to improving Does there sufficient on supply able

Bryan Hackworth

more That -- it's That have do again, a lot now, we than that, because parts yeah. complex be, supply would in than would are others. partially that tighter

short So supply. need we growth. that for of, to some if more, parts it's certain could but in say get more semiconductors, other I are unlimited an actually supply, are could them we more we get were wouldn't there

updated are design we capacity that those parts, is from taken the the and fabs are regularly where if they've be they're vendors, on adding you converting our this, they product included and them. could hearing limited. we are conversions, Again, getting So

a the is It's So already building be likelihood built, not that to higher that's building a has there. event.

So they're to converting capacity architectures. our

to getting updates certain from increase We're we're we're some confident that. of again begin supply our them that shown from the and see that So we'll have vendors. confident

because you from all would almost well into them. have, be as are semiconductors and cover that point, So that we know of a probably baked that you growth any at this many covers, companies everybody shortage, else the

from difficult talking a grow at price do problem, Because the fighting the when supply for goes scramble to capacity need to goes is what regularly when normalized tracking that And year not then is are The though? that it would solve supply Because obviously So they it happens them we is demand. parts be some -- you're every would greater confident And the we get. unit But can to But typically out to we our from might we're up. yes. do. that no. vendors often vendors? every to importantly, add see that answer The the to really for Will Will there. be a added. at you the is we available. than see it begins digit all double more to problem if capacity, can readily But answer this you are situation. rate, we back point, about up wished again, this this

the on it the investors supply. they've these the making demand, less be private, Because ways than price create for which to in sales. So demand to not And in for demand or increase next items, satisfied start relies to their are can public the on would the investors the it. additional that point will is expect to look today, supply the wane betterment to their year. ease ease year us they're this at relies of will After progresses. the chips further long-term these it taken problem then growth upon begin industry as just And humankind, in grow to their would order be world them or them the to clearly

more So in this in has of done by There's think are new expansion. national a that's into of The there's -- than lot this. way, world, capacity security but the issues, a it's many build going of $XXX to also I investment U.S. that and government there's making been Japan. It's parts done why it's lot capacity. aided. And billion the Europe, governments help for companies

will the $XXX back that So And partially capacity start going to situation is last it expansion in happen. year. is will -- we'll When I It be. this supply think see to normal start Anyone but we as to industry government to limited certain certain billion We'll after long-term thinks can as isn't funded that is the there's going this this some this see this to going is will year capacity who year. expand. that again, reality. be not seeing that it. see It that of anything

Jeff Van Sinderen

Okay, and then speaking then about demand.

have business you new year? color Fortunately, new wins product to you which the can Any any but it us contribute expect or new can more this business of give know do color some a is I on second give us, call this most of some wins. you tricky, of little those, half to more you

Paul Arling

their what products. us, all more quickly Yeah, of sell hard good the they've know inventory that but to idea. they Because always us they a all a they then course, to hope great that, customers product always the and out want of give success. of They order they're have And forecast Jeff. buy, is from if ordered

to news I good most multiple one which names is, be But want will and names. successful. leading So it's wouldn't the predict

names. in world. are You didn't because these them of the few heard I can't, comments I some And mention did big but prepared in names on of make remarks, the our a products, we the

Butler, names I we some Douglas, Somfy, of that more They're Hunter if you Vivint. there -- mention. them. have can't haven't heard We mentioned Vodafone,

are got that we've lot forward. of a moving So projects

an that too, work team year pretty done would a product team features. There's products lot are have names you HVAC the interesting We to a -- sales development yet. last team I And over lot with team, again, coming. advanced names can't some engineering of new new the those recognize. the create mention the more -- But have of here team, products

of bad to can year. of So sometimes to are often this typically launch and year expect lead The product XX the life eight the But build. good we of markets take can they're be long them those some to years. meaning projects, that -- late a

eight go year. build and it's cases, a you product or years. after it XX in process that And design year that for later this it through see a of half and lives to hard and So year the some a to typically

Jeff Van Sinderen

the innovative it product partner continue and you And seems with of there. and for out like most some to provide companies best

Paul Arling

were We right. that. That's recognized as

also these both the the producer leading products technologies producer, technically, we're because world. and but of products, the and supply largest in the control the have not chips largest capability We ability just to and producer

Jeff Van Sinderen

the And that Roku Right. your are if you embedded have software with a not consumer does product there. in

very You're a probably right happy not camper now.

Paul Arling

our television. use operate one I you'll remotes guess to your have of to other Yeah.

Jeff Van Sinderen

Right, Well, taking luck. of appreciate best and right. questions the right, -- All appreciate optimal. I not you the

Paul Arling

Sure. Thank you.

Operator

queue. for the At comments. in questions any additional time. conference Arling the no back to over showing I'm you. Thank Mr. to closing this I'd like turn

Paul Arling

Conference us Investor today support hear Virtual obviously from you a you depending or continued we hope present we Thank Electronics. plan there, for Universal see it Sidoti do of All to March. want Have for on there in day. and great And joining right. Smallcap I your you the announce to to forum.

Operator

thank in Ladies you conference. participating and concludes today's program. the gentlemen, for This

now may wonderful have day. You a Everyone, disconnect.

Universal Electronics (UEIC) 18 Feb 222021 Q4 Earnings call transcript