Universal Electronics Inc. reported its financial results for the first quarter ended March 31, 2025, with net sales of $92.3 million, a 0.5% increase compared to $91.9 million in Q1 2024. The Connected Home channel demonstrated robust growth, with sales increasing by over 31% year-over-year to $31.7 million. This growth largely offset an 11% decline in the Home Entertainment channel, which recorded $60.6 million in sales.
The company showed significant improvements in profitability, with an operating loss of $1.5 million, better than the $3.4 million operating loss in Q1 2024. Net loss for the quarter was $1.5 million, or $0.12 per share, a substantial improvement from the $3.4 million net loss, or $0.26 per share, in Q1 2024. Gross margin remained consistent at 28.3%, supported by reduced operating expenses of $27.6 million, down from $29.4 million in the prior year.
Universal Electronics generated $9.0 million in net cash from operating activities in Q1 2025, a significant turnaround from using $2.8 million in Q1 2024. This positive cash flow contributed to a stronger balance sheet, with net debt decreasing to $3.6 million from $10.2 million at the end of 2024. The company ended the quarter with $27.4 million in cash and cash equivalents.
For the second quarter of 2025, UEI expects net sales to range from $91.0 million to $101.0 million, representing year-over-year growth of 1% to 12%. The Connected Home channel is projected to grow robustly by 37% to 55%, with sales between $32.0 million and $36.0 million. The company forecasts diluted earnings per share to range from $0.05 to $0.15, a significant improvement from a loss per share of $0.09 in Q2 2024.
The Board of Directors also authorized the continuation of share repurchases, allowing for up to $4.0 million or 778,362 shares to be bought back by August 6, 2025. Management reiterated its projection for both top and bottom-line growth for the full year 2025 and beyond. These actions underscore confidence in the company's strategic direction and financial health.
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