UEIC - Earnings call 4 2023 | Universal Electronics Inc.

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Operator

Good day, and thank you for standing by. Welcome to Universal Electronics Fourth Quarter 2023 Financial Results Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded.

I would now like to hand the conference over to your speaker today, Kirsten Chapman, LHA Investor Relations, a division of Alliance Advisors. Please go ahead.

Kirsten Chapman

thank XXXX for Financial Fourth Call. and the us Results Amy, Electronics Universal Quarter you, you joining all for Conference Thank and Year-End now, of a By have release. press copy should you the received

the during broadcast updated not, this have discussed call, replay might call website. at: or of contact If material the be that available Investor is Internet. be you X section being please Relations call of additional year. nonpublic over will (XXX) information including LHA the uei.com this XXX-XXXX any visit live website company's This for webcast the A least at at at

and During this projections the results new deliver statements may including introduced this the develop events year's of company company's Consumer related smart future spaces. technologies call, and products in and those differ cautions timely materially and regarding ability actual Show, from these products include management projected. updates just and make home statements and you These at future are technologies and performance Electronics security forward-looking climate and control, financial that to may statements technology new

in in technologies growth term, existing and new share markets, as and to -- collaboration successful continued new with or in and markets anticipated existing software sales and new and company. customers longer and in into in products home solutions which developing connected Continuing long control and for achieve launching and next-generation increased the by result term new near design market. The space development product management particularly the climate successes the

expectations, and initiatives, and spend, our stock strategy, its ability net execute factory our repurchase requirements, and inventories its operational spending programs. through achieve efficiency, to to including other business R&D sales financial to Management's liquidity earnings manage ability continue and investment line flows business to margins on management product cost-saving and discipline optimization cash

indirect management dissipating subscription continued its decline ability anticipated. patented enforce traditional against business Roku. capitalization the fluctuation and its company's stemming political that in financial company's disasters, activities broadcasting the The direct of confidence results the as may market with including The impact and crisis, The the continued to technology hostilities. or or actions war, in to economic respect company other affecting experience terrorist continued business consumers' government spending unrest, natural public uncertainty and health the from

measures as UEI's investors adjusted non-GAAP and revise financial for circumstances The purposes and company report after provides or that company since help obligation the financial how and today's financial to providing filed periodic these decisions the at this management believes with undertakes onset metrics operational XXXX reports such will trends. and you to the investors because that events budgeting, metrics mentioned a and performance of the evaluate annual filed adjusted making measures business core Management no non-GAAP refers and on Form update for has and supplement be were to to may consistent statements planning XX-K non-GAAP arise them these reflect press and financial GAAP and evaluates documents remarks, trends with date uses it performance to call release operating including referenced. the financial the furnished its SEC, management's or then. In

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

remarks. to overview; will call deliver Officer, Paul are Financial will an Arling, Hackworth, Chairman summarize will Chief financials. who provide On the and Paul who Officer, return Chief and Bryan Executive the closing today then

ahead, Paul Arling. my to Paul. is pleasure introduce now Please It go

Paul D. Arling

Thank today. for you joining us

fruition. home connect to are to smarter create coming mission to the living our and vision Our

UEI transforming building are better We for made progress a and during significant XXXX. future

continue such combined our and our We Bryan customer the with efficiency showcase, our and strategy drive climate financial streamlining initiated wins XXXX. review affirmation we product projections, and results, powerful for in CES fortified ongoing program product public customer growing expansion will restructuring and in improved outlook. outlook stock plan and growth growth. Based our corporate continued greater footprint XXXX XXXX have to expect our progress in optimization initiatives our and events, to year our our fourth executed we markets. and our profitable the efficiency initiatives which into be full foundation, foundation recent we optimization, and home automation Confident continued footprint a our long-term repurchase shipment of in as control in to We XXXX. the our of our the in detail patents, quarter, and on

to I'd At our of and most quality products Now like products. providing we our ourselves discuss our patents, pride customers. innovative, UEI, the level highest in

as capabilities which and Over features past offer differentiation compared issued competitors XXX create sustained We software our strong margin have pending, control for the customers and services. customers XX the over advanced many years, goods, over the over in with we and to provide more our through years. gross licenses amassed by wireless finished patents evidenced and our we delivery significant embedded with XXX technology

the of to most these advanced home It chosen leading with to the entertainment on have partner in is world important note us solutions. that companies

act. When we technology, noncustomers our use

compensation If vigorously to we is agreement is an achieved, path first not intellectual Our our protect licensing. property.

of Commission before, with our years. for confirming International communicated the Court quite have activities reviewed regarding infringing ruling Last in issues to Roku's U.S. regarding our have District Circuit for of monetary damages one Appeals Roku Federal Court and we a strongly Roku TV U.S. the affirmed the the prior QuickSet request patent we its As U.S. the few for Trade been the return will a support month, to infringement be by case of partners. litigation decision patents. This of

conclusion. confident are positive moving forward to position our to We in case the with its look and ahead

a our CES customers, partnerships booth and in-person to partners. I'll We our lines do technology week with. This largest had over XXX all over which opportunities. worldwide industry to pre-COVID. new productive we new prospects to visitors a expand product CES January, XXX of we the offering. different business product connect testament once-in-a-year were business presence representing of potential at to our hosted audience a this demonstrated and had X/X XXXX, our do those we provides Also since the with of across technologies review business customers, and our CES, our and A customers strength At show, that some capture latest highlights. year meetings products not overall currently companies. of in with business opportunity

expansion X expanded new UEI addition simplify our of products to portfolio control HVAC smart accessories designed we map climate climate product functionality. installation thermostats, with Continuing space, our TIDE as into and the extend system as new to the road and well our of X control

bridge of home control easy in European with in the supplied includes with the radiator anywhere built-in of thermostat that bridge now for home, households wireless vowel low-voltage control, older and quality accessory compatibility of C-wire air in purifiers, adapter allows thermostats controllers lineup homes. sensor indoor ZigBee a for for with a a for room the built-in capabilities air installation integration UEI whole and a thermostatic smart portability Our Matter

to as quite they solutions are are in create more the systems systems smart integral in of that the interested performance as as new improve new existing these home. Our well customers ways

capabilities and QuickSet wireless of software TIDE the unveiled our also We Widget running full Nevo platform. UEI a on

an need This and device for climate control home categories UEI of product ecosystems that dashboard. from control a for same brands unique the by and controlled complete sensors also for smart brands delivers the without experiences interface. all family our Butler TIDE the a complemented additional by experience control interoperability different smart with enables It increased thermostat between hubs powered UEI's smart deliver home. and UEI's QuickSet, showcased We and control ZigBee diverse accessories tailored hub,

number been of of calls, our automation, recent as especially as climate security. with on and customers increasing have engagement reviewed level we home well As in the them, control growing

product automation, for During smart climate our for in a in added awarded hash a new products win customer were unit, motorized customer. TIDE energy integration and and and X were product space. DIY existing utilities X with wins a security lock major channel, new secured control an is shade We and also new QX, hospitality. home security design partners awarded channel home multi-dwelling project and our new a custom We door the for which

products begin in of to and late shipping these expect XXXX. some XXXX into We

and products the connectivity OEM new other the of In are market bringing on HVAC at largest HVAC channel, we Two actively for worldwide. targeted Daikin, is are existing OEM European systems the customer. footprint their to HVAC working X our

have control our we brands, leveraging architecture currently active addition, products. OEM major X design HVAC in at proposals technology and design, climate TIDE features the other deployed and In product

new in America, uptick seeing and in In EMEA home with India. slight we entertainment, major are engagements customers North a product

opportunities these cycles and thermostat product shorter the back long-term on be not our While relative optimistic new ramp. products introduced volumes potential potential half of in revenue developments we offer are active new about backlog the near-term the huge, these new Based the of to XXXX. developments, product growing continue smart begin to on new development are revenue as to

ahead. the to financials, please Now Bryan, go

Bryan M. Hackworth

Thank Paul. you,

are results the to in $XX.X in XXXX, were This core fourth compares channel video cutting within spending XXXX on fourth of goods. quarter million $XXX.X of service million the quarter of the environment quarter compared less for the households where for sales First, XXXX. to I'll Net review an guidance. reflecting fourth discretionary the

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

mix strong moment U.S. more on an XX Our optimized optimization gross is exceeding a result update rate margin of our take a product a dollar. I'll and plan. of footprint to factory provide now favorable factory points a

streamlining be having to As efficient to efficiencies has operating gained closed our XXXX in in executing has our second achieved Vietnam We're smaller, North to of Mexico. previous in with Southwestern that the for in operating efficiency. expectations operations the target expect scale. We're American it facility our was of mentioned met required phase at the now or China level on product factory we newly continues progress our that our certain and more factory our the of September Monterrey, call, the quarter on operations exceeded confidence, will We're we formed facility a plan, customers. Vietnam date, additional as third pleased supply commence to made after

to global analyze will to a ways As operate identify our company, as and continue efficiently. footprint we more we evolve

For operating to XXXX, quarter of were our reduced the $XX.X the million $XX.X million were initiatives. expenses SG&A quarter savings of execution the cost compared expenses million quarter. compared $XX.X $X.X the fourth fourth in $XX.X in million quarter XXXX, to reflecting fourth $X.X prior were $X.X in million million expenses income the Operating XXXX. $X.X prior year's of the year million R&D was million quarter. compared to in to to compared

XX.X% to the of of XXXX. were compared fourth quarter the for $X.XX fourth fourth $X.XX to XX% for XXXX tax quarter Our diluted effective compared share of rate was fourth in Earnings quarter per quarter and XXXX XXXX. the

XXXX, our and balance were compared million cash At Next, to cash sheet. flow I'll review December $XX.X at and cash million December XXXX. XX, XX, $XX.X equivalents

With provided million. to level, $XX million year enabling $XX at reduce an repatriated by December full activities debt at million XXXX, to outstanding interest For $XX.X rates December operating us XX, from XXXX at earnings were cash flows foreign elevated our XXXX. we XX,

We shares $XXX,XXX in fourth buy in of shares approximately quarter to in and quarter the open repurchased also XXXX. the the back XXX,XXX first for additional market plan

to our to a turning Now UEI company. as continues evolve guidance.

areas increased to home home our in While channels we've efficient solutions Paul with in wins home wins profitability. result several connected as we developing climate full in the such entertainment innovative growth footprint remain control coupled believe and growth and of mentioned factory year automation. years, project these project half earnings the with in channel, latter space, focus XXXX in will committed these We XXXX. launches throughout scheduled more in the a recent and

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

Paul. range per per of a turn loss share the like expect in to of We $X.XX quarter to would the first from to to now back loss $X.XX call share XXXX. I $X.XX compared to

Paul D. Arling

Bryan. Thanks,

our affected growth stabilize? questions. weakness? in periods. than by offset do begin less to satellite far you connected revenue When As been greatly volume remaining operators any purchasing home business cable has produce know, yields the X sufficient does and This broadcasting to when And subscription the channels prior important market

business of in is all of While developments, we the we gradually are customer profitability the broadcasting occurrence we subscription most business, confident importantly, the either precise not and forecast actions improvements. product development of decline taken of traditional will and will management and, dissipating. believe the to that our yield these We have sales that venture areas cost

We in its expect at of in XXXX, slowdown to years. the level be level X lowest

to and in an continue new light, customers hybrid be offset. services streaming projects providing some are While

over the Projects product revenue and progresses. year won have years, we year have we finalizing focus connected we the and this expect projects towards highlighted home markets. frankly, X enjoying year, customer As and our before, this shifted past and development before, these we are as from development last that year to begin test

see We beyond. 'XX and and second the growth have wins into in secured of 'XX, tangible that XXXX half

We are customers design wins adding product new new every and quarter.

In revenue. are working potential project product our new secure the space, to connected business these annualized addition, and we opportunities, million counting in customers future just long-term exceeds with new home pipeline $XXX categories of in

these that this replicating in solutions is wins markets. new capture to Just new us layer are our to and innovative design customers as control, our to streams. and ability new ability product Bottom achieve long-term design driving to create achieve products helped in our customer entertainment success which home revenue are and dominance line is wins, we approach new helping new technology

Our we long-term in are growth confident investing this opportunities success, long-term future. are strategy our and plentiful, our in

As always, stay tuned.

the questions. for call can now open we Operator, up

Operator

our Rosenblatt And from Instructions] first Securities. Steven Frankel [Operator question with comes

Steven Frankel

first, These maybe the and start really the guidance are But let's with helpful. numbers. insights

little cost some through savings, did we expect down OpEx You come reflected institute QX? more in should XXXX? fully a is but to go we as that Or

Bryan M. Hackworth

$X if Most versus XXXX the by OpEx incorporate, the of Steve. look million. -- OpEx it it's at came We down component, about XXXX, total you

in to XXXX. So of executed execute, actually plan we lot what we a

a from that more job Now quickly over we will and in last there did carry fiscal executed but team a an the operating XXXX, to expense good perspective, year. little the is pretty

Steven Frankel

Okay.

pressure QX, to margin And expect so products back the half back in gross these year? as gross you margins the that some of in shipped would implies new bounce

Bryan M. Hackworth

I is I you When story. think good Yes. pressure, a margin gross margin mean, gross say the

operations I as well. think we -- the executing done that a great has team job in

in spun we as I That we in June. the -- said up So well. as remarks, Vietnam prepared went

now second So GTQ is we And the or last able down expect in to shut we to occur quarter. were schedule. streamline of Mexico, leg shut down which ahead to to the

as of were overhead. pretty And you related Now some fourth gross the for the a quarter savings anticipated the margins But unabsorbed factories to XX.X%. conservative. know, the pro from been forma, I've

because has the great than the reasons and done greater margins crept the pro-form that the the incurred executing of up one So is the being amount are that savings a I team actual job amount it.

-- I and -- I'm in again, Mexico, little bit a conservative. a So expect bit of -- being same potentially the where, for

think actually a variables that into of same potential I lot So margins. gross go on that there's -- there's

the of related a rate, gross actually to are bit I'm But there's So margin Mexico. into think go raise upside that little lot not saying a I but of variables maybe rate. there gross margin the

dollar. variables. Hopefully, et As lot cetera, strong you but a U.S. are there a of FX, we know, that right now, have continues,

Steven Frankel

customers a couple floor have the Okay. of And in for more while I QX? then questions, significant

Bryan M. Hackworth

Daikin, XX.X%.

Steven Frankel

the new hospitality is Paul, do between today traditional kind security, control the where world, home you business? of of roughly this CE mix business then the think And and

Paul D. Arling

do alone, the Well, anything having hospitality. Yes. year, electronics, not than majority entertainment security, will to as larger still majority, that do this alone but still there it with market for having home do home automation, time home consumer if it's the even market. markets market -- it's we I the home everything goes know well, clear with is HVAC that entertainment be get on. including with That don't entertainment quite the see would but to changing

of in to much, year, our TV channel. and was need some it we're them X%, parts lot were -- advanced, home area, here. a think your your much which We home success a see improve more self-configuring, there So control to to We dedicated of There's become made near days out there's think on in many ways this turn it. runway later and so come was the the leading same entertainment you many have the to didn't We there them, our years and time as of ago, controls, lot there like do early innovation them change XXX%. more are share products we in -- much in more goes on, home. the entertainment that X-way, but

taken in. the these interested trade to to they're I improve a We're many approach showing customers the to at the mentioned become home. design, of on these and protocol, in they're are capabilities that them things shows, looking the new prepared home and for we've systems quite And that remarks, products the bringing already in solutions impressed. smart integral They're new to new quite more new this are

the just bigger So see of we're area those we a this is wins one that returns be day ago. business. Long-winded where business. a it point now, racking Home one broadcasting, that build I has will as to being we much, to many still home market. entertainment, don't like way up good we glory. shrunk so connected of relationships, years Subscription those the not did And a in majority much prior entertainment our saying its think home

However, there's television. part still activity these People integral -- will of there. our come are revenue an watching I of majority think a But less lot connected entertainment the home so And home of customers. business. from is

Steven Frankel

today? the had wins how globe, maybe those top designed And on could you've of companies you about HVAC, -- while North major that if talked you Is the shipment a the last factoid other the talked XX couple update large of for win. on on around many track us quarters year? still of you have with number then is And Okay. in American players you've a a the about this

Paul D. Arling

QX have large are smaller there in more. home help coming. sized are that's that projects, There above There frame. more $XXX than that we are But to as more pipeline. been, we this the in average expect I that that size good in projects There ones do $XXX year, even the one Many entertainment. projects probably to out it's is time to, closer always million there's million, ship there are are around alluded

bigger there's $XXX one the projects just few In a much won projects that yet, haven't the there's even I mentioned. potential. We million, but that than

in we of like this projects lot a at in clip, up potential we're years did entertainment. out ago a here winning them again, there arena, pretty good So racking and just home

our a like it because to -- improve home on We'll these they these in it just was share And improve it's easy, tireless continue products, we to but increase. the makes sell these customers functionality easier it makes it It's never effort, as projects. So products of will entertainment. as it the easier.

Operator

question Greg next line of Our Sidoti. comes with Burns from the

Gregory Burns

right $X.XX, of just margin back there? question bridge on of I the are the just for fourth revenue you Can there's loss you're Bryan, bridge Can back want around you is is guidance. the the Like big gross disconnect range at to the around -- you're in taking step still but a first us coming and quarter that some high at where or quarter, first quarter a quarter. the you us expenses $X.XX earnings minimum, end the just projecting of online? between first circle in to the fourth were the a

Bryan M. Hackworth

Yes.

you've you're QX expenses little QX got be because If operating higher in XXXX QX, sequentially comparing will XXXX, versus [indiscernible]. a

rate then merit that increases, you've things got reset, that and benefits got nature. increases, fringe wage You've of

might increase. the 'XX be part will of QX That gap So looking QX at. you're 'XX versus

Gregory Burns

them? of off Okay. of run that the build is to then good quarter kind rate rest of the And year first a

Bryan M. Hackworth

necessarily. Not

reasons of is high just a think because mentioned. going little I to QX be the I

Gregory Burns

Okay.

back settlement the -- Roku, to is still magnitude are you? products Okay. the Like it should of that potentially And of currently they for potential in Are for that in is damages the - terms how is a consider market? you the for infringing? monetary then we settlement

Paul D. Arling

differently. is probably patents. answer the Well, been would, course, of infringing Yes. these They state they've long

were infringed. have would to the that, with disagree ITC found they Although

in be And what strong. deal stayed quite So yes, a to good we they've there And a we right can years, now have -- obviously this in you arguments we because prior argue can't we will is case the case. on will fair infringement these of are and feel infringement, say We be that know infringing unstay there which a to patents been of amount, case that forever. where court patents. case this our argue is for really are should this to good arguments our stay their and think these come now, day day right,

Gregory Burns

are if on it of you you of estimate Like their an is? have market what Is devices? the streaming sense Is devices many have TVs? their a Do your infringe that patents? how the number in

Paul D. Arling

know tens that that -- a It's millions, because, both, that again, I and number it's millions disclose unit presume volumes, don't they but time you'd I quite of don't imagine, frame. few. have as We over

have the but on and many over sold could math on the people volumes are, lot it a units. our number how last anyway. I don't couldn't though, that, don't I I exact they've of own many disclose years, know their it's do

way. that product televisions. boxes, put their And their it their sticks, again, categories. Their controller, it's just their all Let's

Gregory Burns

Okay. they still infringing? Or around Are worked currently current patents? new or products your are

Paul D. Arling

lawsuit. There Well, this good that's in patents a are many question.

So I each go can't patent. through

set-top only patents et the but Some cetera. boxes, not apply of to the to would televisions the

more than of violated violate any damages. bit all. them the all complex So you're liable point, little you for IP just saying that again, a it's at if But

Gregory Burns

Okay.

Okay. And then $XXX-plus million pipeline. the

quarter, What set the Has is changed all? that gotten I what actually I around won. million at Has also actually think bigger? number, $XX think any had a process. you've last you was it in that number

Paul D. Arling

and test are still Yes, some wins projects on go that. be through at date. still then customers those -- said, have with they're and introduced It's developed. been as in development, future there more some They'll we development being piled

Gregory Burns

Okay.

the... So

Paul D. Arling

they the were they're in the projects, year targeting year. introduction and been as they've in we won, Some products won last this -- stated of those year, of not actually those targeting are since again, before, said development but I and remarks,

Gregory Burns

new quarter. the updates and the customer you just all fourth new for quarter, products for Okay. not of are $XX announced net on list Those previous And group fourth the million that then, guess, of... I wins

Paul D. Arling

That's through That's new. that's -- That's have towards are I $XXX progressing there's There's categories. They quotes won, call when qualification we those projects we correct. our system different W-O-N, in what right. projects, go right. million, and won. mentioned Yes,

the begin where some the moved you quote interested product work in and you to define customer means with I quote for on the you've interest. on stage the this to product, " first has final want it. So do "I'm to the it product." a specs customer's make is qualification said, on want with decisions price I to and you us -- along a us with give "right, Quote

product Sometimes competitive, doing what an sometimes you're making between a unique the you, not to one it's currently because, features new again, they're selling. sometimes they're and new decision that's that with it's when is product doing innovative

of think with as bidding sort don't of quotes some So process active other vendors.

right? And Sometimes won, interested brought it, won then We've you and W-O-N. there's to want that they it's the quote simply in project. them they're you've the innovation

stage, $XXX-plus won. and won So win than the get higher $XX million the and before we quote stage, that, XX%. was but in talked the have we our rate is quote to higher when are qualification about The yet, not million, much them actually of meaning they than is number

Operator

Riley. question next with of Sinderen comes B. Our line from Van the Jeff

Jeff Van Sinderen

other a with there license a too back I'm I are circle It's just the not we to you. And think might a sign any then minute. also, probability companies for what that just way? you guess curious guess? can is similar that Roku if in are infringing late, Roku I

Paul D. Arling

as make. speak Yes. of as Well, they would to have would far Roku first is to concerned, that, be couldn't I all, a that decision

who market-based this upon they very to is using this that. all and license to them we It's that pay want. else we we Of what now, ago, time course, will down X will us we that wish ago ago. And this many start what We've of we I sitting for the properties fair start. that them going activity X the are years with to now. until all ours from of made properties. we anyone ask those asked only and continue for, what along we've from a all It's is say we agree That's happens. whole we're that wanted to clear to wanted want asks, what years for years want,

they Now to basis sit not or talk do a in this then that. down We're because, again, we've new we no this had else would to novel in before. them. be and products were litigate and more under created created ideas features expect in that, on willing them paid for ever we this if and than law, one patented to marketplace, We've willing patent be to do that reasonable to

from And exhibit said features. as licensed -- respected from the remarks, prepared They've in in bought us, these features us most utilizing in are that companies this. products products. of They leading chips the these entertainment bought their I home bought they've either from us,

we view simply paid sit down all If they've that, that we've that do for to along. been created. they're to what is to willing our willing do want be So and

Jeff Van Sinderen

Right.

come...... hope they Let's

Paul D. Arling

of in may companies way. very ours be, as most who licensing buying many others or far but there As to from us some products violate customers our only major because, again, are there this, aren't

Jeff Van Sinderen

Okay. That's fair enough.

rate at on and to you to in year to taking that sign so comes forth? new growth those ramp their be decides this the you're start will all Can Let's hope looking later might and kind year, what that growth hash at together rate projects of a the look what the Roku business, and to license. you HVAC senses of you the speak think if

Paul D. Arling

X% sort month ship I again, in that was and those typically X%, tell certain it our actually exact home you in I to XX% to entertainment, things, provide HVAC is Well, is, automation greater. the back But was X%. share. is least years The because, But probably things growing this a probably growth to year. XX%, home it give than growth the will Yes. what it in can't market, home probably a you similar it's was grew precise I in day, what shifting lower rate guidance. rate want don't ago. growth will we were of We again, in it entertainment, at depend because lot somewhere that range. In many on of

X%, market So a in business. particular if grown winning growth have we was because, might again, year the we X% were

to better, to solutions new build of were entertainment And convert over business products we that's we control a home Our it. how and because were great time. customers our able

buy HVAC sold will to is from When X now that, in They us The new known someone in products replacing product. here. advanced we either buying have because got approach engagement. we of Steve similar apologize. that with have our working largest sold currently approach, the of be I've the be but to world the we've X top That a We've entertainment else do that it's be X, by our the projects rate see or the of not active top companies I close greater in is of earlier, into we in than X here. better from -- expectation our the a on home are projects and we X this are X the are X market, we are asked customer. our was top because world. X%, one us, us. the to forgotten. companies We from would Obviously, grow of approach. And and sixth. Daikin top HVAC will already vended growth probably lot be buying will Same closing will currently

again, starts. to how home it entertainment, back And is this

your You is the the company has next then over number goal years if projects, to project of or them. two, XX win of all win a

win You of all them will all at not once.

you and a more you projects, product do win you them them build You great for projects. do those then well,

what is goal, our and already. we So are it achieving that's

Jeff Van Sinderen

Okay.

So you couldn't clarify like Is have you X. there will of have the that, the X all reason it just and any X? X to sounds get other

Paul D. Arling

can. used Correct. We That ago our when as probably entertainment, years the will was you Again, many X%. heard market share home in me to say this be say have goal. I

right to market our XXX% We God-given are pursuing share.

Jeff Van Sinderen

Right.

-- to Okay. And ahead. go then just sorry,

Paul D. Arling

were have manic better about We a areas only people the some it. in I we anything We was world, then built under But and IP a through thought And X%, were building went product not We out that world. so crazy. of unique else. anybody innovation, it had and solution. did product with data in capability, through both patent build and the but also than know-how unique covered build better often the to we features

thing to here. beginning the do are same We

thing. smart control cases, they us Jeff, Climate many from market. projects with a hopefully In we're why are at are good. us. on your so other wouldn't home. reason design to point, no think again, in what the products build these see okay, buying with or currently can in vendors on we And current make and features, with to them closing and there and we doing. but integration great integral currently engaged same companies The X sixth. and of many products cases. shows and to front there's are other the good in in It's build, we're And home X That's the what are getting is more top again, customers just trade the more and we're like go it better the -- places not they're AHR, The of and showing more CES X help systems the

Jeff Van Sinderen

I half same on up then second but combined? around QX, Just quarters? to be what in upward quarters, thoughts any just they're Is you I QX, any you -- QX revenues maybe on year-over-year And okay. the for year-over-year that mean that? different then just guidance full just maybe Well, think might when particular revenues your going on for clarify wanted for of believe to a to be thoughts one expect profitable year. the the EPS, And reflect thinking you are Right. and said wondering are year. or you also, those I thoughts revenues I'm it's

Paul D. Arling

profitable for Well, obviously, did we're Yes. year, we XXXX. earnings in because the if not money earn we've exceeded -- our

have quarter will we a So better.

what 'XX. in this In our we actually I as slightly our better was see of believe improvement year in actual guidance is QX performance fact, progresses. But than QX do

the create also some are specific and a them. hard want revenue on guidance, would here a piled winning no this with sure everyone way plus a until put our wants go a to right, we building make to year to up year. some near don't to nice exactly but goal projects I provide next also better far projects 'XX which they tell already, customer going when to then for and We're that we growth get not that nice you year. this -- make and have revenue next, 'XX. happen future. I obviously only be in sized well, is this April you into a to better But say growth can like not to obviously we year, We're working we shipping to focused quarter, us not and We'd projects next year new future. the we're say, projects place can't in -- of give because project As will but as

one one project really on home And revenue. do. we, thing we'd and them, the project, shipping projects And each developed, all just customers. the that's right? we're them Get after entertainment. that we did We to the would and these get layer like what in, off win had Comcast, working of other with was same top for you lose business a these built it but of did. never Again, pile in only not great projects builds tested, of at projects because all win a derivative again, we but time, them did job which We big

We're delivered on, the products next layers Build here. into one, and, pile need businesses as on doing thing it's you'll come good just up perform, innovations, to are year of same this great we're way we're it to And goes time, course, what's do the what across doing. them to confident keep going time of the the happen. it. need built. And next. already in to with is revenue, win build We will executing new this quality and We

Operator

back questions I would to Showing to the this turn for like at no now Paul time. closing remarks. conference further

Paul D. Arling

continued at of present plan We look to seeing joining to Thank there. UEI. your for We forward today March. Conference us in All you support you right. for and Sidoti's virtual Cap Small

great there. If you could a be day. Have

Operator

And today's you this conference for call. concludes participating. Thank

disconnect. may You now

Universal Electronics (UEIC) 15 Feb 242023 Q4 Earnings call transcript