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Universal Electronics Inc. (NASDAQ:UEIC), a manufacturer of household audio and video equipment, has amended its credit agreement with U.S. Bank National Association, as per a recent SEC filing. The amendment, effective as of August 16, 2024, was entered into on August 22 and permits the Scottsdale, Arizona-based company to incur additional indebtedness up to $13 million.
In a strategic financial move, the amendment also allows Universal Electronics to grant a lien to the Bank of China, securing an amount not exceeding $11.5 million. This lien does not include property located within the United States. The rest of the terms in the Credit Agreement remain largely unchanged.
This financial maneuver is detailed in the Eighth Amendment to the Second Amended and Restated Credit Agreement, which is part of the company's filing with the Securities and Exchange Commission. The full text of the amendment has been filed as an exhibit to the company's current report and is incorporated by reference.
Universal Electronics, incorporated in Delaware and with a fiscal year ending on December 31, maintains its business address in Scottsdale, Arizona, and is listed on The Nasdaq Stock Market LLC under the ticker UEIC.
The recent filing with the SEC underscores Universal Electronics' ongoing financial strategy and relationships with its lenders. The information is based on a press release statement and provides a glimpse into the company's financial arrangements and commitments.
In other recent news, Universal Electronics Inc. (UEIC) has reported its financial results for Q2 of 2024. The company's gross margin has significantly increased by 580 basis points year-over-year, despite net sales of $90.5 million falling at the lower end of the guidance range. Operating expenses have decreased to $27.1 million, contributing to the company's positive outlook for the remainder of the year.
Universal Electronics expects higher profitability in the second half of 2024 compared to 2023, with Q3 2024 sales projected to be between $98 million and $108 million. The company anticipates a gross margin of 30% in early 2025 and has made significant strides in the connected home market, securing design wins with major providers.
Despite reporting a net loss of $1.2 million for the quarter, Universal Electronics maintains optimism due to its progress in optimizing its global manufacturing footprint in Vietnam and Mexico. The company's pipeline of HVAC and home automation projects, potentially worth hundreds of millions of dollars, further supports its confidence in recent developments.
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