Net income for the first quarter of fiscal 2001 increased 146% to $2.5 million, or $0.17 per diluted share, compared to $1.0 million, or $0.07 per diluted share for the first quarter of 2000.
Paul Arling, UEI’s CEO and President, stated, We have experienced gains across the board and our core OEM and subscription broadcasting business lines continued to grow rapidly. We have been able to expand our relationships with existing customers because we provide the widest variety of wireless control solutions from the highest-quality, value-priced remote to the high-end, HTML surfing device to a text entry wireless device. In addition, we have been pursuing new product and distribution relationships based on our core business and expertise. A perfect example of leveraging our solid foundation to create new products and extensions is our recent development agreement with Ch.1 Inc. for a custom designed remote and text entry control device. Our growing relationship with SkyMexico, a major Latin American cable company, exemplifies how we continue to increase our international penetration by promoting our existing product lines. We will continue to further our growth by designing easy-to-use, innovative solutions, fortifying and increasing our customer relationships and, consequently, broadening our distribution opportunities.
Mark Belzowski, UEI’s CFO added, Compared to the first quarter of 2000, our gross margin of 42.9% during the first quarter of 2001 reflected a favorable product mix across all of our major product lines and our cost reduction programs have decreased S,G&A as a percent of sales, positively impacting our operating margins. And as a consequence of the growth in technology business lines outpacing the growth in our retail business lines, we have been experiencing changing seasonality in our overall business.
Camille Jayne, UEI’s Executive Chairman of the Board, commented, In addition to cultivating today’s business, we have been pioneering efforts to position UEI’s technology as the default for interactive TV and home automation, as well as other wireless platforms converging into the home control arena. We are conducting relationship-building meetings with companies whose products will begin to rely upon wireless interfaces. By laying the groundwork today, we intend to establish UEI as the obvious technology choice. We have made great progress and people are excited about our technology and capabilities.
SOURCE: COMPANY PRESS RELEASE
