Universal Electronics' Q3 Revenue Fell on Installs Slowed by Pandemic

Comcast and Sony accounted for 21.2% and 10.4% of Universal Electronics Inc.’s Q3 revenue, said Chief Financial Officer Bryan Hackworth on Thursday's investor call. The company continues to get more revenue from advanced remote controls with its QuickSet self-install software and voice technology, said CEO Paul Arling, though the COVID-19 pandemic slowed installations from legacy customers, which contributed to a 23% revenue decline for the quarter ended Sept. 30. UEI’s Nevo Butler product, which will add smart home features to a remote control, is due to arrive in select markets early next year, said Arling. Software licenses from Sony, along with LG and Samsung, are helping to drive gross margin expansion for the remote control maker, Colliers analyst Steven Frankel wrote investors Friday. Revenue “remains challenged” by legacy customers, but UEI’s MVPD-focused programs are scheduled to launch over the next few months, with self-installation features that will eliminate “the truck roll issue that has dogged some customers,” said the analyst. Q4 guidance is for sales of $150 million-$160 million vs. $174.7 million in Q4 2019. The stock closed 10.7% higher Friday at $42.39.