Universal Electronics Reports First Quarter 2008 Financial Results

UNIVERSAL ELECTRONICS INC. CONSOLIDATED BALANCE SHEETS (In thousands, except share-related data) (Unaudited) December March 31, 31, 2008 2007 --------- --------- ASSETS Current assets: Cash and cash equivalents $ 83,386 $ 86,610 Accounts receivable, net 53,878 60,146 Inventories, net 42,093 34,906 Prepaid expenses and other current assets 2,405 1,874 Deferred income taxes 2,887 2,871 --------- --------- Total current assets 184,649 186,407 Equipment, furniture and fixtures, net 9,256 7,558 Goodwill 11,051 10,863 Intangible assets, net 5,590 5,700 Other assets 404 369 Deferred income taxes 6,518 6,388 --------- --------- Total assets $217,468 $217,285 ========= ========= LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 29,769 $ 29,382 Accrued sales discounts, rebates and royalties 4,037 4,671 Accrued income taxes 2,722 1,720 Accrued compensation 3,274 3,737 Other accrued expenses 6,278 6,567 --------- --------- Total current liabilities 46,080 46,077 Long-term liabilities: Deferred income taxes 143 127 Income tax payable 1,506 1,506 Other long-term liabilities 1,128 1,333 --------- --------- Total liabilities 48,857 49,043 --------- --------- Commitments and Contingencies Stockholders' equity: Preferred stock, $0.01 par value, 5,000,000 shares authorized; none issued or outstanding -- -- Common stock, $0.01 par value, 50,000,000 shares authorized; 18,563,814 and 18,547,019 shares issued at March 31, 2008 and December 31, 2007, respectively 186 185 Paid-in capital 115,870 114,441 Accumulated other comprehensive income 19,067 11,221 Retained earnings 90,981 88,508 --------- --------- 226,104 214,355 Less cost of common stock in treasury, 4,470,439 and 3,975,439 shares at March 31, 2008 and December 31, 2007, respectively (57,493) (46,113) --------- --------- Total stockholders' equity 168,611 168,242 --------- --------- Total liabilities and stockholders' equity $217,468 $217,285 ========= =========

UNIVERSAL ELECTRONICS INC. CONSOLIDATED INCOME STATEMENTS (In thousands, except per share amounts) (Unaudited) Three Months Ended March 31, ----------------- 2008 2007 -------- -------- Net sales $61,191 $66,019 Cost of sales 39,456 41,678 -------- -------- Gross profit 21,735 24,341 Research and development expenses 2,196 2,322 Selling, general and administrative expenses 16,856 15,833 -------- -------- Operating income 2,683 6,186 Interest income, net 897 588 Other income, net 182 94 -------- -------- Income before provision for income taxes 3,762 6,868 Provision for income taxes (1,289) (2,231) -------- -------- Net income $ 2,473 $ 4,637 ======== ======== Earnings per share: Basic $ 0.17 $ 0.33 ======== ======== Diluted $ 0.17 $ 0.31 ======== ======== Shares used in computing earnings per share: Basic 14,474 14,130 ======== ======== Diluted 14,957 14,908 ======== ========

UNIVERSAL ELECTRONICS INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) Three Months Ended March 31, 2008 2007 --------- -------- Cash provided by operating activities: Net income $ 2,473 $ 4,637 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 1,369 1,114 Provision for doubtful accounts 47 16 Provision for inventory write-downs 325 469 Deferred income taxes (58) 892 Tax benefit from exercise of stock options 42 847 Excess tax benefit from stock-based compensation (20) (350) Shares issued for employee benefit plan 60 106 Stock-based compensation 1,179 676 Changes in operating assets and liabilities: Accounts receivable 8,698 1,196 Inventories (6,187) 269 Prepaid expenses and other assets (458) (307) Accounts payable and accrued expenses (2,594) (814) Accrued income taxes 702 (655) --------- -------- Net cash provided by operating activities 5,578 8,096 --------- -------- Cash used for investing activities: Acquisition of equipment, furniture and fixtures (2,502) (883) Acquisition of intangible assets (212) (207) --------- -------- Net cash used for investing activities (2,714) (1,090) --------- -------- Cash (used for) provided by financing activities: Proceeds from stock options exercised 223 4,285 Treasury stock purchased (11,455) -- Excess tax benefit from stock-based compensation 20 350 --------- -------- Net cash (used for) provided by financing activities (11,212) 4,635 --------- -------- Effect of exchange rate changes on cash 5,124 497 --------- -------- Net (decrease) increase in cash and cash equivalents (3,224) 12,138 Cash and cash equivalents at beginning of period 86,610 66,075 --------- -------- Cash and cash equivalents at end of period $ 83,386 $78,213 ========= ========