Universal Electronics 'Far More Than a Remote Control Company,' Says Analyst Post-CES

Universal Electronics Inc. is in the “early innings of a powerful product cycle,” Dougherty & Co.'s Steven Frankel wrote investors Monday in a post-CES recap. In CES meetings, management laid out a path toward better software content -- and potential for recurring revenue amid new market opportunities, said Frankel. “It is becoming abundantly clear to us that UEIC is far more than a remote control company, as there is far more here than remote control codes and plastic injection molding expertise.” He noted LG and Samsung introduced 2020 TVs powered by UEI’s nevo.ai platform (see 2001080001) for device discovery and control. This software platform simplifies set-up by identifying the devices connected to the TV, including set-top boxes, game platforms and streaming devices, and it scans the Wi-Fi network to add smart devices such as lights, do-it-yourself security systems and connected thermostats. UEI software provides an easy-to-use graphical interface and voice control, and OEMs can license a virtual customer support capability that helps consumers set up devices and troubleshoot issues. TiVo introduced a $49 4K streaming box for cord cutters including a UEI-built voice remote, Frankel noted. In its booth, UEI displayed designs for Android TV-based set-tops, giving it a chance to provide advanced remotes for overseas MVPDs that are using them to replace traditional, expensive boxes. The company is expanding security offerings, developing new types of sensors that can trigger alarms based on the sound of breaking glass and send video from a security camera to a homeowner, the analyst said. Dougherty maintained its “buy” rating.