QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification No.) | |||||||||||||
Securities registered pursuant to Section 12(b) of the Act: | ||||||||
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Large accelerated filer | ☐ | ☒ | ||||||||||||||||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ||||||||||||||||||||||||
Emerging growth company | ||||||||||||||||||||||||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨ |
Page Number | |||||
March 31, 2022 | December 31, 2021 | ||||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Term deposit | |||||||||||
Accounts receivable, net | |||||||||||
Contract assets | |||||||||||
Inventories | |||||||||||
Prepaid expenses and other current assets | |||||||||||
Income tax receivable | |||||||||||
Total current assets | |||||||||||
Property, plant and equipment, net | |||||||||||
Goodwill | |||||||||||
Intangible assets, net | |||||||||||
Operating lease right-of-use assets | |||||||||||
Deferred income taxes | |||||||||||
Other assets | |||||||||||
Total assets | $ | $ | |||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | $ | |||||||||
Line of credit | |||||||||||
Accrued compensation | |||||||||||
Accrued sales discounts, rebates and royalties | |||||||||||
Accrued income taxes | |||||||||||
Other accrued liabilities | |||||||||||
Total current liabilities | |||||||||||
Long-term liabilities: | |||||||||||
Operating lease obligations | |||||||||||
Deferred income taxes | |||||||||||
Income tax payable | |||||||||||
Other long-term liabilities | |||||||||||
Total liabilities | |||||||||||
Commitments and contingencies | |||||||||||
Stockholders' equity: | |||||||||||
Preferred stock, $ | |||||||||||
Common stock, $ | |||||||||||
Paid-in capital | |||||||||||
Treasury stock, at cost, | ( | ( | |||||||||
Accumulated other comprehensive income (loss) | ( | ( | |||||||||
Retained earnings | |||||||||||
Total stockholders' equity | |||||||||||
Total liabilities and stockholders' equity | $ | $ |
Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
Net sales | $ | $ | |||||||||
Cost of sales | |||||||||||
Gross profit | |||||||||||
Research and development expenses | |||||||||||
Selling, general and administrative expenses | |||||||||||
Operating income (loss) | ( | ||||||||||
Interest income (expense), net | ( | ( | |||||||||
Other income (expense), net | |||||||||||
Income (loss) before provision for income taxes | ( | ||||||||||
Provision for income taxes | |||||||||||
Net income (loss) | $ | ( | $ | ||||||||
Earnings (loss) per share: | |||||||||||
Basic | $ | ( | $ | ||||||||
Diluted | $ | ( | $ | ||||||||
Shares used in computing earnings (loss) per share: | |||||||||||
Basic | |||||||||||
Diluted |
Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
Net income (loss) | $ | ( | $ | ||||||||
Other comprehensive income (loss): | |||||||||||
Change in foreign currency translation adjustment | ( | ||||||||||
Comprehensive income (loss) | $ | ( | $ |
Common Stock Issued | Common Stock in Treasury | Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Totals | ||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2021 | $ | ( | $ | ( | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||||||
Net income (loss) | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Currency translation adjustment | |||||||||||||||||||||||||||||||||||||||||||||||
Shares issued for employee benefit plan and compensation | |||||||||||||||||||||||||||||||||||||||||||||||
Purchase of treasury shares | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
Shares issued to directors | |||||||||||||||||||||||||||||||||||||||||||||||
Employee and director stock-based compensation | |||||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2022 | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
Common Stock Issued | Common Stock in Treasury | Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Totals | ||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2020 | $ | ( | $ | ( | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||||||
Net income | |||||||||||||||||||||||||||||||||||||||||||||||
Currency translation adjustment | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Shares issued for employee benefit plan and compensation | |||||||||||||||||||||||||||||||||||||||||||||||
Purchase of treasury shares | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
Stock options exercised | |||||||||||||||||||||||||||||||||||||||||||||||
Shares issued to directors | |||||||||||||||||||||||||||||||||||||||||||||||
Employee and director stock-based compensation | |||||||||||||||||||||||||||||||||||||||||||||||
Performance-based common stock warrants | |||||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2021 | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net income (loss) | $ | ( | $ | ||||||||
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities: | |||||||||||
Depreciation and amortization | |||||||||||
Provision for credit losses | ( | ||||||||||
Deferred income taxes | |||||||||||
Shares issued for employee benefit plan | |||||||||||
Employee and director stock-based compensation | |||||||||||
Performance-based common stock warrants | |||||||||||
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable and contract assets | ( | ( | |||||||||
Inventories | ( | ||||||||||
Prepaid expenses and other assets | ( | ||||||||||
Accounts payable and accrued liabilities | ( | ( | |||||||||
Accrued income taxes | ( | ||||||||||
Net cash provided by (used for) operating activities | ( | ( | |||||||||
Cash flows from investing activities: | |||||||||||
Term deposit | ( | ||||||||||
Acquisition of net assets of Qterics, Inc. | ( | ||||||||||
Acquisitions of property, plant and equipment | ( | ( | |||||||||
Acquisitions of intangible assets | ( | ( | |||||||||
Net cash used for investing activities | ( | ( | |||||||||
Cash flows from financing activities: | |||||||||||
Borrowings under line of credit | |||||||||||
Repayments on line of credit | ( | ( | |||||||||
Proceeds from stock options exercised | |||||||||||
Treasury stock purchased | ( | ( | |||||||||
Net cash provided by (used for) financing activities | |||||||||||
Effect of foreign currency exchange rates on cash and cash equivalents | ( | ||||||||||
Net increase (decrease) in cash and cash equivalents | ( | ( | |||||||||
Cash and cash equivalents at beginning of period | |||||||||||
Cash and cash equivalents at end of period | $ | $ | |||||||||
Supplemental cash flow information: | |||||||||||
Income taxes paid | $ | $ | |||||||||
Interest paid | $ | $ |
(In thousands) | March 31, 2022 | December 31, 2021 | |||||||||
North America | $ | $ | |||||||||
People's Republic of China ("PRC") | |||||||||||
Asia (excluding the PRC) | |||||||||||
Europe | |||||||||||
South America | |||||||||||
Total cash and cash equivalents | $ | $ |
Three Months Ended March 31, | |||||||||||
(In thousands) | 2022 | 2021 | |||||||||
Goods and services transferred at a point in time | $ | $ | |||||||||
Goods and services transferred over time | |||||||||||
Net sales | $ | $ |
Three Months Ended March 31, | |||||||||||
(In thousands) | 2022 | 2021 | |||||||||
United States | $ | $ | |||||||||
Asia (excluding PRC) | |||||||||||
Europe | |||||||||||
People's Republic of China | |||||||||||
Latin America | |||||||||||
Other | |||||||||||
Total net sales | $ | $ |
Three Months Ended March 31, | ||||||||||||||||||||||||||
2022 | 2021 | |||||||||||||||||||||||||
$ (thousands) | % of Net Sales | $ (thousands) | % of Net Sales | |||||||||||||||||||||||
Comcast Corporation | $ | % | $ | % | ||||||||||||||||||||||
Daikin Industries Ltd. | $ | % | $ | % | ||||||||||||||||||||||
(In thousands) | March 31, 2022 | December 31, 2021 | |||||||||
Trade receivables, gross | $ | $ | |||||||||
Allowance for credit losses | ( | ( | |||||||||
Allowance for sales returns | ( | ( | |||||||||
Trade receivables, net | |||||||||||
Other (1) | |||||||||||
Accounts receivable, net | $ | $ |
(In thousands) | Three Months Ended March 31, | ||||||||||
2022 | 2021 | ||||||||||
Balance at beginning of period | $ | $ | |||||||||
Additions (reductions) to costs and expenses | ( | ||||||||||
Write-offs/Foreign exchange effects | ( | ( | |||||||||
Balance at end of period | $ | $ |
March 31, 2022 | December 31, 2021 | |||||||||||||||||||||||||
$ (thousands) | % of Accounts Receivable, Net | $ (thousands) | % of Accounts Receivable, Net | |||||||||||||||||||||||
Comcast Corporation | $ | % | $ | (1) | % | (1) |
(In thousands) | March 31, 2022 | December 31, 2021 | |||||||||
Raw materials | $ | $ | |||||||||
Components | |||||||||||
Work in process | |||||||||||
Finished goods | |||||||||||
Inventories | $ | $ |
Three Months Ended March 31, | ||||||||||||||||||||||||||
2022 | 2021 | |||||||||||||||||||||||||
$ (thousands) | % of Total Inventory Purchases | $ (thousands) | % of Total Inventory Purchases | |||||||||||||||||||||||
Qorvo International Pte Ltd. | $ | % | $ | % |
March 31, 2022 | December 31, 2021 | |||||||||||||||||||||||||
$ (thousands) | % of Total Accounts Payable | $ (thousands) | % of Total Accounts Payable | |||||||||||||||||||||||
Zhejiang Zhen You Electronics Co. Ltd. | $ | % | $ | % |
(In thousands) | March 31, 2022 | December 31, 2021 | |||||||||
United States | $ | $ | |||||||||
People's Republic of China | |||||||||||
Mexico | |||||||||||
All other countries | |||||||||||
Total long-lived tangible assets | $ | $ |
(In thousands) | |||||
Balance at December 31, 2021 | $ | ||||
Goodwill acquired during the period (1) | |||||
Foreign exchange effects | ( | ||||
Balance at March 31, 2022 | $ |
March 31, 2022 | December 31, 2021 | ||||||||||||||||||||||||||||||||||
(In thousands) | Gross (1) | Accumulated Amortization (1) | Net | Gross (1) | Accumulated Amortization (1) | Net | |||||||||||||||||||||||||||||
Capitalized software development costs | $ | $ | ( | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||
Customer relationships | ( | ( | |||||||||||||||||||||||||||||||||
Developed and core technology | ( | ( | |||||||||||||||||||||||||||||||||
Distribution rights | ( | ( | |||||||||||||||||||||||||||||||||
Patents | ( | ( | |||||||||||||||||||||||||||||||||
Trademarks and trade names | ( | ( | |||||||||||||||||||||||||||||||||
Total intangible assets, net | $ | $ | ( | $ | $ | $ | ( | $ |
(In thousands) | Three Months Ended March 31, | ||||||||||
2022 | 2021 | ||||||||||
Cost of sales | $ | $ | |||||||||
Selling, general and administrative expenses | |||||||||||
Total amortization expense | $ | $ |
(In thousands) | |||||
2022 (remaining 9 months) | $ | ||||
2023 | |||||
2024 | |||||
2025 | |||||
2026 | |||||
Thereafter | |||||
Total | $ |
(In thousands) | March 31, 2022 | December 31, 2021 | |||||||||
Assets: | |||||||||||
Operating lease right-of-use assets | $ | $ | |||||||||
Liabilities: | |||||||||||
$ | $ | ||||||||||
Long-term operating lease obligations | |||||||||||
Total lease liabilities | $ | $ |
(In thousands) | Three Months Ended March 31, | ||||||||||
2022 | 2021 | ||||||||||
Cost of sales | $ | $ | |||||||||
Selling, general and administrative expenses | |||||||||||
Total operating lease expense | $ | $ | |||||||||
Operating cash outflows from operating leases | $ | $ | |||||||||
Operating lease right-of-use assets obtained in exchange for lease obligations | $ | $ | |||||||||
Non-cash release of operating lease obligations (1) | $ | $ |
March 31, 2022 | December 31, 2021 | ||||||||||
Weighted average lease liability term (in years) | |||||||||||
Weighted average discount rate | % | % |
(In thousands) | March 31, 2022 | ||||
2022 (remaining 9 months) | $ | ||||
2023 | |||||
2024 | |||||
2025 | |||||
2026 | |||||
Thereafter | |||||
Total lease payments | |||||
Less: imputed interest | ( | ||||
Total lease liabilities | $ |
(In thousands) | March 31, 2022 | December 31, 2021 | |||||||||
Accrued bonus | $ | $ | |||||||||
Accrued commission | |||||||||||
Accrued salary/wages | |||||||||||
Accrued social insurance (1) | |||||||||||
Accrued vacation/holiday | |||||||||||
Other accrued compensation | |||||||||||
Total accrued compensation | $ | $ |
(In thousands) | March 31, 2022 | December 31, 2021 | |||||||||
Duties | $ | $ | |||||||||
Expense associated with fulfilled performance obligations | |||||||||||
Freight and handling fees | |||||||||||
Operating lease obligations | |||||||||||
Product warranty claims costs | |||||||||||
Professional fees | |||||||||||
Sales and value added taxes | |||||||||||
Other (1) | |||||||||||
Total other accrued liabilities | $ | $ |
(In thousands) | Three Months Ended March 31, | ||||||||||
2022 | 2021 | ||||||||||
Balance at beginning of period | $ | $ | |||||||||
Accruals for warranties issued during the period | |||||||||||
Settlements (in cash or in kind) during the period | ( | ( | |||||||||
Foreign currency translation gain (loss) | ( | ||||||||||
Balance at end of period | $ | $ |
Three Months Ended March 31, | |||||||||||
(In thousands) | 2022 | 2021 | |||||||||
Shares repurchased | |||||||||||
Cost of shares repurchased | $ | $ |
Three Months Ended March 31, | |||||||||||
(In thousands) | 2022 | 2021 | |||||||||
Cost of sales | $ | $ | |||||||||
Research and development expenses | |||||||||||
Selling, general and administrative expenses: | |||||||||||
Employees | |||||||||||
Outside directors | |||||||||||
Total employee and director stock-based compensation expense | $ | $ | |||||||||
Income tax benefit | $ | $ |
Number of Options (in thousands) | Weighted-Average Exercise Price | Weighted-Average Remaining Contractual Term (in years) | Aggregate Intrinsic Value (in thousands) | ||||||||||||||||||||
Outstanding at December 31, 2021 | $ | ||||||||||||||||||||||
Granted | |||||||||||||||||||||||
Exercised | $ | ||||||||||||||||||||||
Forfeited/canceled/expired | ( | ||||||||||||||||||||||
Outstanding at March 31, 2022 (1) | $ | $ | |||||||||||||||||||||
Vested and expected to vest at March 31, 2022 (1) | $ | $ | |||||||||||||||||||||
Exercisable at March 31, 2022 (1) | $ | $ |
Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
Weighted average fair value of grants | $ | $ | |||||||||
Risk-free interest rate | % | % | |||||||||
Expected volatility | % | % | |||||||||
Expected life in years |
Shares (in thousands) | Weighted-Average Grant Date Fair Value | ||||||||||
Non-vested at December 31, 2021 | $ | $ | |||||||||
Granted | |||||||||||
Vested | ( | ||||||||||
Forfeited | ( | ||||||||||
Non-vested at March 31, 2022 | $ | $ |
Three Months Ended March 31, | |||||||||||
(In thousands) | 2022 | 2021 | |||||||||
Reduction to net sales | $ | $ | |||||||||
Income tax benefit | $ | $ |
Three Months Ended March 31, | |||||||||||
(In thousands) | 2022 | 2021 | |||||||||
Net gain (loss) on foreign currency exchange contracts (1) | $ | $ | |||||||||
Net gain (loss) on foreign currency exchange transactions | ( | ( | |||||||||
Other income (expense) | |||||||||||
Other income (expense), net | $ | $ |
Three Months Ended March 31, | |||||||||||
(In thousands, except per-share amounts) | 2022 | 2021 | |||||||||
BASIC | |||||||||||
Net income (loss) | $ | ( | $ | ||||||||
Weighted-average common shares outstanding | |||||||||||
Basic earnings (loss) per share | $ | ( | $ | ||||||||
DILUTED | |||||||||||
Net income (loss) | $ | ( | $ | ||||||||
Weighted-average common shares outstanding for basic | |||||||||||
Dilutive effect of stock options, restricted stock and common stock warrants | |||||||||||
Weighted-average common shares outstanding on a diluted basis | |||||||||||
Diluted earnings (loss) per share | $ | ( | $ |
Three Months Ended March 31, | |||||||||||
(In thousands) | 2022 | 2021 | |||||||||
Stock options | |||||||||||
Restricted stock awards | |||||||||||
Common stock warrants |
March 31, 2022 | December 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurement Using | Total Balance | Fair Value Measurement Using | Total Balance | |||||||||||||||||||||||||||||||||||||||||||||||
(In thousands) | Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||||||||||||||||||
Foreign currency exchange contracts | $ | $ | ( | $ | $ | ( | $ | $ | ( | $ | $ | ( |
Date Held | Currency | Position Held | Notional Value (in millions) | Forward Rate | Unrealized Gain/(Loss) Recorded at Balance Sheet Date (in thousands)(1) | Settlement Date | ||||||||||||||||||||||||||||||||
March 31, 2022 | USD/Chinese Yuan Renminbi | CNY | $ | $ | April 29, 2022 | |||||||||||||||||||||||||||||||||
March 31, 2022 | USD/Euro | USD | $ | $ | ( | April 29, 2022 | ||||||||||||||||||||||||||||||||
December 31, 2021 | USD/Chinese Yuan Renminbi | CNY | $ | $ | January 7, 2022 | |||||||||||||||||||||||||||||||||
December 31, 2021 | USD/Euro | USD | $ | $ | ( | January 7, 2022 | ||||||||||||||||||||||||||||||||
(In thousands) | Estimated Lives | Preliminary Fair Value | |||||||||
Accounts receivable | $ | ||||||||||
Property, plant and equipment | |||||||||||
Customer relationships | |||||||||||
Developed technology | |||||||||||
Trade names | |||||||||||
Goodwill | |||||||||||
Operating lease ROU assets | |||||||||||
Other assets | |||||||||||
Other accrued liabilities | ( | ||||||||||
Short-term operating lease obligation | ( | ||||||||||
Deferred revenue | ( | ||||||||||
Long-term operating lease obligation | ( | ||||||||||
Long-term deferred revenue | ( | ||||||||||
Cash paid | $ |
Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
Net sales | 100.0 | % | 100.0 | % | |||||||
Cost of sales | 72.6 | 69.2 | |||||||||
Gross profit | 27.4 | 30.8 | |||||||||
Research and development expenses | 5.9 | 5.3 | |||||||||
Selling, general and administrative expenses | 21.9 | 19.8 | |||||||||
Operating income (loss) | (0.4) | 5.7 | |||||||||
Interest income (expense), net | (0.2) | (0.1) | |||||||||
Other income (expense), net | 0.3 | 0.0 | |||||||||
Income (loss) before provision for income taxes | (0.3) | 5.6 | |||||||||
Provision for income taxes | 1.8 | 1.0 | |||||||||
Net income (loss) | (2.1) | % | 4.6 | % |
(In thousands) | March 31, 2022 | December 31, 2021 | |||||||||
Cash and cash equivalents | $ | 53,628 | $ | 60,813 | |||||||
Available borrowing resources | 37,300 | 66,300 |
(In thousands) | Three Months Ended March 31, 2022 | Increase (Decrease) | Three Months Ended March 31, 2021 | ||||||||||||||
Cash used for operating activities | $ | (17,969) | $ | (11,240) | $ | (6,729) | |||||||||||
Cash used for investing activities | (11,621) | (6,817) | (4,804) | ||||||||||||||
Cash provided by financing activities | 21,646 | 11,606 | 10,040 | ||||||||||||||
Effect of foreign currency exchange rates on cash and cash equivalents | 759 | 1,056 | (297) | ||||||||||||||
Net increase (decrease) in cash and cash equivalents | $ | (7,185) | $ | (5,395) | $ | (1,790) |
March 31, 2022 | Increase (Decrease) | December 31, 2021 | |||||||||||||||
Cash and cash equivalents | $ | 53,628 | $ | (7,185) | $ | 60,813 | |||||||||||
Working capital | 115,241 | (5,118) | 120,359 |
Payments Due by Period | |||||||||||||||||||||||||||||
(In thousands) | Total | Less than 1 year | 1 - 3 years | 4 - 5 years | After 5 years | ||||||||||||||||||||||||
Operating lease obligations | $ | 28,339 | $ | 7,213 | $ | 10,504 | $ | 6,065 | $ | 4,557 | |||||||||||||||||||
Property, plant, and equipment purchases | 3,167 | 3,167 | — | — | — | ||||||||||||||||||||||||
Inventory purchases | 18,761 | 18,761 | — | — | — | ||||||||||||||||||||||||
Software license | 3,519 | 105 | 341 | 788 | 2,285 | ||||||||||||||||||||||||
Total material cash commitments | $ | 53,786 | $ | 29,246 | $ | 10,845 | $ | 6,853 | $ | 6,842 |
Period | Total Number of Shares Purchased (1) | Weighted Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (2) | Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs (2) | ||||||||||||||||||||||
January 1, 2022 - January 31, 2022 | 1,193 | $ | 40.07 | — | — | |||||||||||||||||||||
February 1, 2022 - February 28, 2022 | 80,386 | 32.86 | 47,030 | 252,970 | ||||||||||||||||||||||
March 1, 2022 - March 31, 2022 | 143,059 | 32.61 | 127,970 | 125,000 | ||||||||||||||||||||||
Total | 224,638 | $ | 32.74 | 175,000 | 125,000 |
31.1 | ||||||||
31.2 | ||||||||
32 | ||||||||
101.INS | Inline XBRL Instance Document | |||||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document | |||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |||||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | |||||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | |||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
Dated: | May 5, 2022 | UNIVERSAL ELECTRONICS INC. | |||||||||||||||
By: | /s/ Bryan M. Hackworth | ||||||||||||||||
Bryan M. Hackworth | |||||||||||||||||
Chief Financial Officer (principal financial officer | |||||||||||||||||
and principal accounting officer) |
/s/ Paul D. Arling | ||
Paul D. Arling | ||
Chairman and Chief Executive Officer (principal executive officer) |
/s/ Bryan M. Hackworth | ||
Bryan M. Hackworth | ||
Chief Financial Officer (principal financial officer and principal accounting officer) |
Dated: | May 5, 2022 | By: | /s/ Paul D. Arling | ||||||||||||||
Paul D. Arling | |||||||||||||||||
Chief Executive Officer | |||||||||||||||||
(principal executive officer) | |||||||||||||||||
By: | /s/ Bryan M. Hackworth | ||||||||||||||||
Bryan M. Hackworth | |||||||||||||||||
Chief Financial Officer | |||||||||||||||||
(principal financial officer and principal accounting officer) |
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares |
Mar. 31, 2022 |
Dec. 31, 2021 |
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Stockholders' equity: | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, shares issued (in shares) | 24,831,434 | 24,678,942 |
Treasury stock, shares (in shares) | 12,085,836 | 11,861,198 |
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | |
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Mar. 31, 2022 |
Mar. 31, 2021 |
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Income Statement [Abstract] | ||
Net sales | $ 132,410 | $ 150,542 |
Cost of sales | 96,142 | 104,143 |
Gross profit | 36,268 | 46,399 |
Research and development expenses | 7,806 | 7,942 |
Selling, general and administrative expenses | 29,023 | 29,846 |
Operating income (loss) | (561) | 8,611 |
Interest income (expense), net | (296) | (108) |
Other income (expense), net | 360 | 23 |
Income (loss) before provision for income taxes | (497) | 8,526 |
Provision for income taxes | 2,413 | 1,533 |
Net income (loss) | $ (2,910) | $ 6,993 |
Earnings (loss) per share: | ||
Basic (in dollars per share) | $ (0.23) | $ 0.51 |
Diluted (in dollars per share) | $ (0.23) | $ 0.49 |
Shares used in computing earnings (loss) per share: | ||
Basic (in shares) | 12,812 | 13,803 |
Diluted (in shares) | 12,812 | 14,199 |
CONSOLIDATED COMPREHENSIVE INCOME (LOSS) STATEMENTS - USD ($) $ in Thousands |
3 Months Ended | |
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Mar. 31, 2022 |
Mar. 31, 2021 |
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Statement of Comprehensive Income [Abstract] | ||
Net income (loss) | $ (2,910) | $ 6,993 |
Other comprehensive income (loss): | ||
Change in foreign currency translation adjustment | 1,849 | (2,868) |
Comprehensive income (loss) | $ (1,061) | $ 4,125 |
Basis of Presentation |
3 Months Ended |
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Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation In the opinion of management, the accompanying consolidated financial statements of Universal Electronics Inc. and its subsidiaries contain all the adjustments necessary for a fair presentation of financial position, results of operations and cash flows for the periods presented. All such adjustments are of a normal recurring nature. Information and footnote disclosures normally included in financial statements, which are prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"), have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). As used herein, the terms "Company," "we," "us," and "our" refer to Universal Electronics Inc. and its subsidiaries, unless the context indicates to the contrary. Our results of operations for the three months ended March 31, 2022 are not necessarily indicative of the results to be expected for the full year. These financial statements should be read in conjunction with the "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations," "Quantitative and Qualitative Disclosures About Market Risk," and the "Financial Statements and Supplementary Data" included in Items 1A, 7, 7A, and 8, respectively, of our Annual Report on Form 10-K for the year ended December 31, 2021. Estimates and Assumptions The preparation of financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. On an on-going basis, we evaluate our estimates and assumptions, including those related to revenue recognition; allowance for credit losses; inventory valuation; impairment of long-lived assets, intangible assets and goodwill; business combinations; income taxes and related valuation allowances; stock-based compensation expense and performance-based common stock warrants. The coronavirus ("COVID-19") pandemic and the mitigation efforts by governments to attempt to control its spread have created uncertainties and disruptions in the economic and financial markets. While we are not currently aware of events or circumstances that would require an update to our estimates, judgments or adjustments to the carrying values of our assets or liabilities, these estimates may change as developments occur and we obtain additional information. These future developments are highly uncertain and the outcomes are unpredictable. Actual results may differ from those estimates, and such differences may be material to the financial statements. Summary of Significant Accounting Policies With the exception of the following policy, our significant accounting policies are unchanged from those disclosed in Note 2 to the consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2021. Revenue Recognition Revenue is recognized when control of a good or service is transferred to a customer. Control is considered to be transferred when the customer has the ability to direct the use of and obtain substantially all of the remaining benefits of that good or service. Revenues are primarily generated from manufacturing, shipping and supporting control and sensor technology solutions and a broad line of pre-programmed and universal control products, AV accessories, and intelligent wireless security and smart home products that are used in the video services, consumer electronics, security, home automation, climate control, and home appliance market, which are sold through multiple channels, and licensing intellectual property that is embedded in these products or licensed to others for use in their products. We also generate revenues from a cloud-based software solution enabling software updates, digital rights management provisioning and remote technical support to consumer electronics customers. We recognize service revenues related to our cloud-based software solution on an over-time basis, as our customers simultaneously receive and consume the benefits provided by our performance. Revenues are recognized over the period during which the performance obligations are satisfied, and control of the service is transferred to the customers. Cash, Cash Equivalents, and Term Deposit Cash and cash equivalents include cash accounts and all investments purchased with initial maturities of three months or less. Our term deposit has an initial maturity of one year. Domestically, we generally maintain balances in excess of federally insured limits. We attempt to mitigate our exposure to liquidity, credit and other relevant risks by placing our cash, cash equivalents and term deposit with financial institutions we believe are high quality. These financial institutions are located in many different geographic regions. As part of our cash and risk management processes, we perform periodic evaluations of the relative credit standing of our financial institutions. We have not sustained credit losses from instruments held at financial institutions Recently Adopted Accounting Pronouncements In October 2021, the FASB issued ASU 2021-08, "Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers". This guidance requires an entity to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606, "Revenue from Contracts with Customers". At the acquisition date, the acquirer applies the revenue recognition model as if it had originated the acquired contracts. Our adoption of this guidance on January 1, 2022 did not have a material impact on our consolidated statement of financial position, results of operations and cash flows. Recent Accounting Updates Not Yet Effective In March 2020, the FASB issued ASU 2020-04, "Facilitation of the Effects of Reference Rate Reform on Financial Reporting", and in January 2021, the FASB issued ASU 2021-01, "Reference Rate Reform". This guidance is intended to provide temporary optional expedients and exceptions to GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burden related to the expected market transition from the London Interbank Offered Rate ("LIBOR") and other interbank offered rates to alternative reference rates. The amendments in these ASUs are elective and are effective upon issuance for all entities through December 31, 2022. These amendments are not expected to have a material impact on our consolidated statement of financial position, results of operations and cash flows.
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Cash, Cash Equivalents, and Term Deposit |
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Cash and Cash Equivalents [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash, Cash Equivalents, and Term Deposit | Cash, Cash Equivalents and Term Deposit Cash and cash equivalents were held in the following geographic regions:
On January 25, 2022, we entered into a one-year term deposit cash account with Banco Santander (Brasil) S.A., denominated in Brazilian Real. The term deposit earns interest at a variable annual rate based upon the Brazilian CDI overnight interbank rate. At March 31, 2022, the balance of the term deposit was $8.6 million. The term deposit is accounted for at fair value on a recurring basis using level one inputs.
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Revenue and Accounts Receivable, Net |
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Receivables [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue and Accounts Receivable, Net | Revenue and Accounts Receivable, Net Revenue Details The pattern of revenue recognition was as follows:
Our net sales to external customers by geographic area were as follows:
Specific identification of the customer billing location was the basis used for attributing revenues from external customers to geographic areas. Net sales to the following customers totaled more than 10% of our net sales:
Accounts Receivable, Net Accounts receivable, net were as follows:
(1)Other accounts receivable is primarily comprised of value added tax and supplier rebate receivables. Allowance for Credit Losses Changes in the allowance for credit losses were as follows:
Trade receivables associated with this significant customer that totaled more than 10% of our accounts receivable, net were as follows:
(1) Trade receivables associated with this customer did not total more than 10% of our accounts receivable, net for the indicated period.
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Inventories and Significant Suppliers |
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories and Significant Suppliers | Inventories and Significant Suppliers Inventories were as follows:
Significant Suppliers Purchases from the following supplier totaled more than 10% of our total inventory purchases:
Purchases from the following supplier totaled more than 10% of our total accounts payable:
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Long-lived Tangible Assets |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-lived Tangible Assets | Long-lived Tangible Assets Long-lived tangible assets by geographic area, which include property, plant, and equipment, net and operating lease right-of-use assets, were as follows:
Property, plant, and equipment are shown net of accumulated depreciation of $170.5 million and $165.9 million at March 31, 2022 and December 31, 2021, respectively. Depreciation expense was $5.1 million and $5.5 million for the three months ended March 31, 2022 and 2021, respectively.
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Goodwill and Intangible Assets, Net |
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Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets, Net | Goodwill and Intangible Assets, Net Goodwill Changes in the carrying amount of goodwill were as follows:
(1) During the first quarter of 2022, we recognized $0.7 million of goodwill related to the Qterics, Inc. ("Qterics") acquisition. Refer to Note 19 for further information about this acquisition. Intangible Assets, Net The components of intangible assets, net were as follows:
(1)This table excludes the gross value of fully amortized intangible assets totaling $43.4 million and $43.2 million at March 31, 2022 and December 31, 2021, respectively. Amortization expense is recorded in selling, general and administrative expenses, except amortization expense related to capitalized software development costs, which is recorded in cost of sales. Amortization expense by statement of operations caption was as follows:
Estimated future annual amortization expense related to our intangible assets at March 31, 2022, was as follows:
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Leases |
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Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | Leases We have entered into various operating lease agreements for automobiles, offices and manufacturing facilities throughout the world. At March 31, 2022, our operating leases had remaining lease terms of up to 39 years, including any reasonably probable extensions. Lease balances within our consolidated balance sheet were as follows:
Operating lease expense, including variable and short-term lease costs, which were insignificant to the total operating lease cash flows and supplemental cash flow information were as follows:
(1)During the three months ended March 31, 2021, we were released from our guarantee of the lease obligation related to our Ohio call center which was sold in February 2020. The weighted average remaining lease liability term and the weighted average discount rate were as follows:
The following table reconciles the undiscounted cash flows for each of the first five years and thereafter to the operating lease liabilities recognized in our consolidated balance sheet at March 31, 2022. The reconciliation excludes short-term leases that are not recorded on the balance sheet.
At March 31, 2022, we had no operating leases that had not yet commenced. On April 7, 2022, we entered into a lease agreement for 125,000 square feet of factory space in Vietnam, with a term commencing on April 7, 2022 and continuing through December 1, 2034. The total initial lease liability associated with this lease is $4.5 million, which is not reflected within the maturity schedule above.
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Line of Credit |
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Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Line of Credit | Line of Credit Our Second Amended and Restated Credit Agreement ("Second Amended Credit Agreement") with U.S. Bank National Association ("U.S. Bank") provides for a $125.0 million revolving line of credit ("Credit Line") that expires on November 1, 2023. The Credit Line may be used for working capital and other general corporate purposes including acquisitions, share repurchases and capital expenditures. Amounts available for borrowing under the Credit Line are reduced by the balance of any outstanding letters of credit, of which there were $2.7 million at March 31, 2022 and December 31, 2021. All obligations under the Credit Line are secured by substantially all of our U.S. personal property and tangible and intangible assets, as well as a guaranty of the Credit Line by our wholly-owned subsidiary, Universal Electronics BV. Under the Second Amended Credit Agreement, we may elect to pay interest on the Credit Line based on LIBOR plus an applicable margin (varying from 1.25% to 1.75%) or base rate (based on the prime rate of U.S. Bank or as otherwise specified in the Second Amended Credit Agreement) plus an applicable margin (varying from 0.00% to 0.50%). The applicable margins are calculated quarterly and vary based on our cash flow leverage ratio as set forth in the Second Amended Credit Agreement. The interest rates in effect at March 31, 2022 and December 31, 2021 were 1.70% and 1.35%, respectively. There are no commitment fees or unused line fees under the Second Amended Credit Agreement. On December 31, 2021, the process of cessation of LIBOR as a reference rate began. Between December 31, 2021 and June 30, 2023, any borrowings under our existing Second Amended Credit Agreement may continue to use LIBOR as the basis for interest rates. If the Second Amended Credit Agreement is amended or replaced during this period, any borrowings will no longer use LIBOR as a reference rate and instead will be subject to an interest rate based on either the Secured Overnight Financing Rate ("SOFR"), which is deemed a replacement benchmark for LIBOR under the Second Amended Credit Agreement, or an alternate index to be agreed upon. After June 30, 2023, all borrowings will be based on SOFR or the alternate index. The Second Amended Credit Agreement includes financial covenants requiring a minimum fixed charge coverage ratio and a maximum cash flow leverage ratio. In addition, the Second Amended Credit Agreement contains other customary affirmative and negative covenants and events of default. At March 31, 2022, we were in compliance with the covenants and conditions of the Second Amended Credit Agreement. At March 31, 2022 and December 31, 2021, we had $85.0 million and $56.0 million outstanding under the Credit Line, respectively. Our total interest expense on borrowings was $0.3 million and $0.1 million during the three months ended March 31, 2022 and 2021, respectively.
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Income Taxes |
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Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes We recorded income tax expense of $2.4 million and $1.5 million for the three months ended March 31, 2022 and 2021, respectively. The income tax expense recorded for the three months ended March 31, 2022 increased primarily due to the mix of pre‐tax income among jurisdictions, including losses not benefited as a result of a valuation allowance. The difference between the Company’s effective tax rate and the 21.0% U.S. federal statutory rate for the three months ended March 31, 2022 primarily related to the mix of pre-tax income and loss among jurisdictions and permanent tax items including a tax on global intangible low-taxed income. The permanent tax item related to global intangible low-taxed income also reflects recent legislative changes requiring the capitalization of research and experimentation costs, as well as limitations on the creditability of certain foreign income taxes. At December 31, 2021, we assessed the realizability of the Company's deferred tax assets by considering whether it is more likely than not some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. We considered taxable income in carryback years, the scheduled reversal of deferred tax liabilities, tax planning strategies and projected future taxable income in making this assessment. At December 31, 2021, we had a three-year cumulative operating loss for our U.S. operations and accordingly, have provided a full valuation allowance on our U.S. federal and state deferred tax assets. During the three months ended March 31, 2022, there was no change to our valuation allowance position. At March 31, 2022, we had gross unrecognized tax benefits of $3.1 million, including interest and penalties, which, if not for the valuation allowance recorded against the state Research and Experimentation income tax credit, would affect the annual effective tax rate if these tax benefits are realized. Further, we are unaware of any positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly increase within the next twelve months. Based on federal, state and foreign statute expirations in various jurisdictions, we do not anticipate a decrease in unrecognized tax benefits within the next twelve months. We have classified uncertain tax positions as non-current income tax liabilities unless they are expected to be paid within one year. We have elected to classify interest and penalties as a component of tax expense. Accrued interest and penalties are immaterial at March 31, 2022 and December 31, 2021 and are included in the unrecognized tax benefits.
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Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued Compensation | Accrued Compensation The components of accrued compensation were as follows:
(1)PRC employers are required by law to remit the applicable social insurance payments to their local government. Social insurance is comprised of various components such as pension, medical insurance, job injury insurance, unemployment insurance, and a housing assistance fund, and is administered in a manner similar to social security in the United States. This amount represents our estimate of the amounts due to the PRC government for social insurance on March 31, 2022 and December 31, 2021. Other Accrued LiabilitiesThe components of other accrued liabilities were as follows:
(1)Includes $2.0 million and $0.4 million of contract liabilities at March 31, 2022 and December 31, 2021, respectively.
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Other Accrued Liabilities |
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Other Accrued Liabilities | Accrued Compensation The components of accrued compensation were as follows:
(1)PRC employers are required by law to remit the applicable social insurance payments to their local government. Social insurance is comprised of various components such as pension, medical insurance, job injury insurance, unemployment insurance, and a housing assistance fund, and is administered in a manner similar to social security in the United States. This amount represents our estimate of the amounts due to the PRC government for social insurance on March 31, 2022 and December 31, 2021. Other Accrued LiabilitiesThe components of other accrued liabilities were as follows:
(1)Includes $2.0 million and $0.4 million of contract liabilities at March 31, 2022 and December 31, 2021, respectively.
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Commitments and Contingencies |
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Commitments and Contingencies | Commitments and Contingencies Product Warranties Changes in the liability for product warranty claims costs were as follows:
Litigation Roku Matters 2018 Lawsuit On September 5, 2018, we filed a lawsuit against Roku, Inc. ("Roku") in the United States District Court, Central District of California, alleging that Roku is willfully infringing nine of our patents that are in four patent families related to remote control set-up and touchscreen remotes. On December 5, 2018, we amended our complaint to add additional details supporting our infringement and willfulness allegations. We have alleged that this complaint relates to multiple Roku streaming players and components therefor and certain universal control devices, including but not limited to the Roku App, Roku TV, Roku Express, Roku Streaming Stick, Roku Ultra, Roku Premiere, Roku 4, Roku 3, Roku 2, Roku Enhanced Remote and any other Roku product that provides for the remote control of an external device such as a TV, audiovisual receiver, sound bar or Roku TV Wireless Speakers. In October 2019, the Court stayed this lawsuit pending action by the Patent Trial and Appeals Board (the "PTAB") with respect to Roku's Inter Partes Review ("IPR") requests (see discussion below). This lawsuit continues to be stayed until such time as the IPR requests and all appeals with respect to them have concluded. International Trade Commission Investigation of Roku, TCL, Hisense and Funai On April 16, 2020, we filed a complaint with the International Trade Commission (the "ITC") against Roku, TCL Electronics Holding Limited and related entities (collectively, "TCL"), Hisense Co., Ltd. and related entities (collectively, "Hisense"), and Funai Electric Company, Ltd. and related entities (collectively, "Funai") claiming that certain of their televisions, set-top boxes, remote control devices, human interface devices, streaming devices, and sound bars infringe certain of our patents. We asked the ITC to issue a permanent limited exclusion order prohibiting the importation of these infringing products into the United States and a cease and desist order to stop these parties from continuing their infringing activities. On May 18, 2020, the ITC announced that it instituted its investigation as requested by us. Prior to the trial, which ended on April 23, 2021, we released TCL, Hisense and Funai from this investigation as they removed our technology from their televisions. On July 9, 2021, the Administrative Law Judge (the "ALJ") issued his Initial Determination (the "ID") finding that Roku is infringing our patents and as a result is in violation of §337 of the Tariff Act of 1930, as amended. On July 23, 2021, Roku and we filed petitions to appeal certain portions of the ID. On November 10, 2021, the full ITC issued its final determination affirming the ID and issuing a Limited Exclusion Order and Cease and Desist Order against Roku which became effective on January 9, 2022. 2020 Lawsuit As a companion case to our ITC complaint, on April 9, 2020, we filed separate actions against each of Roku, TCL, Hisense, and Funai in the United States District Court, Central District of California, alleging that Roku is willfully infringing five of our patents and TCL, Hisense, and Funai are willfully infringing six of our patents by incorporating our patented technology into certain of their televisions, set-top boxes, remote control devices, human interface devices, streaming devices and sound bars. These matters have been and continue to be stayed pending the final results of the open IPR matters mentioned below. Inter Partes Reviews Throughout these litigation matters against Roku and the others identified above, Roku has filed multiple IPR requests with the PTAB on all patents at issue in the 2018 Lawsuit, the ITC Action, and the 2020 Lawsuit (see discussion above). To date, the PTAB has denied Roku's request eleven times, granted Roku's request seven times and we are awaiting the PTAB's institution decision with respect to the remaining two IPR requests. Of the seven IPR requests granted by the PTAB, the results were mixed, with the PTAB upholding the validity of many of our patent claims and invalidating others. We have and will appeal any PTAB decision that resulted in an invalidation of our patent claims. International Trade Commission Investigation Request Made by Roku against UEI and certain UEI Customers On April 8, 2021, Roku made a request to the ITC to initiate an investigation against us and certain of our customers claiming that certain of our and those customers' remote control devices and televisions infringe two of Roku's recently acquired patents. On May 10, 2021, the ITC announced its decision to initiate the requested investigation. Immediately prior to trial Roku withdrew its complaint against us and two of our customers with respect to one of the two patents at issue. This released the complaint against us and two of our customers with respect to that patent. The trial was thus shortened and ended on January 24, 2022. We anticipate that the ALJ will issue her ID on or about June 28, 2022 and the full commission review is set for October 28, 2022. As a companion to its ITC request, Roku also filed a lawsuit against us and certain of our customers in Federal District Court in the Central District of California alleging that we are infringing the same patents they alleged being infringed in the ITC investigation explained above. This District Court case has been and will continue to be stayed pending the conclusion of the ITC investigation. Court of International Trade Action against the United States of America, et. al. On October 9, 2020, we and our subsidiaries, Ecolink Intelligent Technology, Inc. ("Ecolink") and RCS Technology, LLC ("RCS"), filed an amended complaint (20-cv-00670) in the Court of International Trade (the "CIT") against the United States of America; the Office of the United States Trade Representative; Robert E. Lighthizer, U.S. Trade Representative; U.S. Customs & Border Protection; and Mark A. Morgan, U.S. Customs & Border Protection Acting Commissioner, challenging both the substantive and procedural processes followed by the United States Trade Representative ("USTR") when instituting Section 301 Tariffs on imports from China under Lists 3 and 4A. Pursuant to this complaint, we, Ecolink and RCS are alleging that USTR's institution of Lists 3 and 4A tariffs violated the Trade Act of 1974 (the "Trade Act") on the grounds that the USTR failed to make a determination or finding that there was an unfair trade practice that required a remedy and moreover, that Lists 3 and 4A tariffs were instituted beyond the 12-month time limit provided for in the governing statute. We, Ecolink and RCS also allege that the manner in which the Lists 3 and 4A tariff actions were implemented violated the Administrative Procedures Act (the "APA") by failing to provide adequate opportunity for comments, failed to consider relevant factors when making its decision and failed to connect the record facts to the choices it made by not explaining how the comments received by USTR came to shape the final implementation of Lists 3 and 4A. We, Ecolink and RCS are asking the CIT to declare that the defendants' actions resulting in the tariffs on products covered by Lists 3 and 4A are unauthorized by and contrary to the Trade Act and were arbitrarily and unlawfully promulgated in violation of the APA; to vacate the Lists 3 and 4A tariffs; to order a refund (with interest) of any Lists 3 and 4A duties paid by us, Ecolink and RCS; to permanently enjoin the U.S. government from applying Lists 3 and 4A duties against us, Ecolink and RCS; and award us, Ecolink and RCS our costs and reasonable attorney's fees. In July 2021, the CIT issued a preliminary injunction suspending liquidation of all unliquidated entries subject to Lists 3 and 4A duties and has asked the parties to develop a process to keep track of the entries to efficiently and effectively deal with liquidation process and duties to be paid or refunded when finally adjudicated. On February 5, 2022, the CIT heard oral arguments on dispositive motions filed on behalf of plaintiffs and defendants. On April 1, 2022, the CIT issued its opinion on these dispositive motions, ruling that the USTR had the legal authority to promulgate List 3 and List 4A under Section 307(a)(1)(B) of the Trade Act, but that the USTR violated the APA when it promulgated List 3 and List 4A concluding that the USTR failed to adequately explain its decision as required under the APA. The Court ordered that List 3 and List 4A be remanded to the USTR for reconsideration or further explanation regarding its rationale for imposing the tariffs. The Court declined to vacate List 3 and List 4A, which means that they are still in place while on remand. The Court’s preliminary injunction regarding liquidation of entries also remains in effect. The Court set a deadline of June 30, 2022, for the USTR to complete this process. There are no other material pending legal proceedings to which we or any of our subsidiaries is a party or of which our respective property is the subject. However, as is typical in our industry and to the nature and kind of business in which we are engaged, from time to time, various claims, charges and litigation are asserted or commenced by third parties against us or by us against third parties arising from or related to product liability, infringement of patent or other intellectual property rights, breach of warranty, contractual relations, or employee relations. The amounts claimed may be substantial, but may not bear any reasonable relationship to the merits of the claims or the extent of any real risk of court awards assessed against us or in our favor. However, no assurances can be made as to the outcome of any of these matters, nor can we estimate the range of potential losses to us. In our opinion, final judgments, if any, which might be rendered against us in potential or pending litigation would not have a material adverse effect on our consolidated financial condition, results of operations, or cash flows. Moreover, we believe that our products do not infringe any third parties' patents or other intellectual property rights. We maintain directors' and officers' liability insurance which insures our individual directors and officers against certain claims, as well as attorney's fees and related expenses incurred in connection with the defense of such claims.
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Treasury Stock |
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Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Treasury Stock | Treasury StockFrom time to time, our Board of Directors authorizes management to repurchase shares of our issued and outstanding common stock. On February 10, 2022, our Board approved a new share repurchase program with an effective date of February 22, 2022 (the "February 2022 Program"). Pursuant to the February 2022 Program, we were authorized to repurchase up to 300,000 shares of our common stock until the Program's expiration on May 5, 2022. Per the terms of the February 2022 Program, we may utilize various methods to effect the repurchases, including open market repurchases, negotiated block transactions, accelerated share repurchases or open market solicitations for shares, some or all of which may be effected through Rule 10b5-1 plans. As of May 2, 2022, we repurchased the full 300,000 shares under the February 2022 Program. The timing and amount of future repurchases, if any, will depend upon several factors, including market and business conditions, and such repurchases may be discontinued at any time. Repurchased shares of our common stock were as follows:
Repurchased shares are recorded as shares held in treasury at cost. We hold these shares for future use as management and the Board of Directors deem appropriate.
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Stock-Based Compensation |
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Share-based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation | Stock-Based Compensation Stock-based compensation expense for each employee and director is presented in the same statement of operations caption as their cash compensation. Stock-based compensation expense by statement of operations caption and the related income tax benefit were as follows:
Stock Options Stock option activity was as follows:
(1)The aggregate intrinsic value represents the total pre-tax value (the difference between our closing stock price on the last trading day of the first quarter of 2022 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had they all exercised their options on March 31, 2022. This amount will change based on the fair market value of our stock. The assumptions we utilized in the Black-Scholes option pricing model and the resulting weighted average fair value of stock option grants were the following:
As of March 31, 2022, we expect to recognize $3.5 million of total unrecognized pre-tax stock-based compensation expense related to non-vested stock options over a remaining weighted-average life of 2.2 years. Restricted Stock Non-vested restricted stock award activity was as follows:
As of March 31, 2022, we expect to recognize $14.0 million of total unrecognized pre-tax stock-based compensation expense related to non-vested restricted stock awards over a weighted-average life of 2.2 years.
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Performance-Based Common Stock Warrants |
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Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Performance-Based Common Stock Warrants | Performance-Based Common Stock Warrants On March 9, 2016, we issued common stock purchase warrants to Comcast Corporation ("Comcast") at a price of $54.55 per share. At March 31, 2022, 275,000 of these warrants were vested and outstanding. All vested warrants will expire on January 1, 2023. The warrants provide for certain adjustments that may be made to the exercise price and the number of shares issuable upon exercise due to customary anti-dilution provisions. Additionally, in connection with the common stock purchase warrants, we have also entered into a registration rights agreement with Comcast under which Comcast may from time to time request that we register the shares of common stock underlying vested warrants with the SEC. The impact to net sales recorded in connection with the warrants and the related income tax benefit were as follows:
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Other Income (Expense) |
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Other Income and Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Income (Expense) | Other Income (Expense) Other income (expense), net consisted of the following:
(1)This represents the gains (losses) incurred on foreign currency hedging derivatives (see Note 18 for further details).
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Earnings (Loss) Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings (Loss) Per Share | Earnings (Loss) Per Share Earnings (loss) per share was calculated as follows:
The following number of stock options, shares of restricted stock and common stock warrants were excluded from the computation of diluted earnings per common share as their inclusion would have been anti-dilutive:
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Derivatives |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives | Derivatives The following table sets forth the total net fair value of derivatives:
We held foreign currency exchange contracts, which resulted in a net pre-tax gain of $0.9 million and a net pre-tax gain of $1.2 million for the three months ended March 31, 2022 and 2021, respectively. Details of foreign currency exchange contracts held were as follows:
(1)Unrealized gains on foreign currency exchange contracts are recorded in prepaid expenses and other current assets. Unrealized losses on foreign currency exchange contracts are recorded in other accrued liabilities.
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Business Combination |
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Business Combination and Asset Acquisition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combination | Business Combination On February 17, 2022, we acquired substantially all of the net assets of Qterics, a U.S.-based provider of multimedia connectivity solutions and services for internet-enabled consumer products. Under the terms of the Asset Purchase Agreement ("APA"), we paid a cash purchase price of approximately $0.9 million. The acquisition of these assets will allow us to expand our customer base in the OEM market. Our consolidated income statement for the three months ended March 31, 2022 includes net sales of $0.3 million and net income of $0.1 million attributable to Qterics for the period commencing on February 17, 2022. In accordance with the terms of the APA, the initial purchase price was subject to adjustment for differences between the initial estimated working capital balances and the final adjusted balances. This calculation was completed at March 31, 2022. Preliminary Purchase Price Allocation Using the acquisition method of accounting, the acquisition date fair value of the consideration transferred was allocated to the net tangible and intangible assets acquired and liabilities assumed based on their estimated fair values on the acquisition date. The calculation of the fair value of deferred revenue has not been finalized, pending the determination of the appropriate service period over which to recognize revenue. The excess of the purchase price over the estimated fair value of net assets acquired is recorded as goodwill. The goodwill is expected to be deductible for income tax purposes. Management's preliminary purchase price allocation as of March 31, 2022 was the following:
Management's determination of the fair value of intangible assets acquired are based primarily on significant inputs not observable in an active market and thus represent Level 3 fair value measurements as defined under U.S. GAAP. The fair value assigned to the Qterics developed technology and trade names intangible assets were determined utilizing a relief from royalty method. Under the relief from royalty method, the fair value of the intangible asset is estimated to be the present value of the royalties saved because the company owns the intangible asset. Revenue projections and estimated useful life were significant inputs into estimating the value of the Qterics developed technology and trade names. The fair value assigned to Qterics customer relationships intangible assets were determined utilizing a multi-period excess earnings approach. Under the multi-period excess earnings approach, the fair value of the intangible asset is estimated to be the present value of future earnings attributable to the asset and utilizes revenue and cost projections, including an assumed contributory asset charge. The developed technology, trade names and customer relationships intangible assets are expected to be deductible for income tax purposes. Pro Forma Results (unaudited) The unaudited pro forma financial information of combined results of our operations and the operations of Qterics as if the transaction had occurred on January 1, 2021, is immaterially different from the net sales, net income (loss) and income (loss) per share amounts reported in the Consolidated Statements of Operations for the three months ended March 31, 2022 and 2021.
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Basis of Presentation (Policies) |
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Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | In the opinion of management, the accompanying consolidated financial statements of Universal Electronics Inc. and its subsidiaries contain all the adjustments necessary for a fair presentation of financial position, results of operations and cash flows for the periods presented. All such adjustments are of a normal recurring nature. Information and footnote disclosures normally included in financial statements, which are prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"), have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). As used herein, the terms "Company," "we," "us," and "our" refer to Universal Electronics Inc. and its subsidiaries, unless the context indicates to the contrary. |
Estimates and Assumptions | Estimates and Assumptions The preparation of financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. On an on-going basis, we evaluate our estimates and assumptions, including those related to revenue recognition; allowance for credit losses; inventory valuation; impairment of long-lived assets, intangible assets and goodwill; business combinations; income taxes and related valuation allowances; stock-based compensation expense and performance-based common stock warrants. The coronavirus ("COVID-19") pandemic and the mitigation efforts by governments to attempt to control its spread have created uncertainties and disruptions in the economic and financial markets. While we are not currently aware of events or circumstances that would require an update to our estimates, judgments or adjustments to the carrying values of our assets or liabilities, these estimates may change as developments occur and we obtain additional information. These future developments are highly uncertain and the outcomes are unpredictable. Actual results may differ from those estimates, and such differences may be material to the financial statements.
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Revenue Recognition | Revenue Recognition Revenue is recognized when control of a good or service is transferred to a customer. Control is considered to be transferred when the customer has the ability to direct the use of and obtain substantially all of the remaining benefits of that good or service. Revenues are primarily generated from manufacturing, shipping and supporting control and sensor technology solutions and a broad line of pre-programmed and universal control products, AV accessories, and intelligent wireless security and smart home products that are used in the video services, consumer electronics, security, home automation, climate control, and home appliance market, which are sold through multiple channels, and licensing intellectual property that is embedded in these products or licensed to others for use in their products. We also generate revenues from a cloud-based software solution enabling software updates, digital rights management provisioning and remote technical support to consumer electronics customers. We recognize service revenues related to our cloud-based software solution on an over-time basis, as our customers simultaneously receive and consume the benefits provided by our performance. Revenues are recognized over the period during which the performance obligations are satisfied, and control of the service is transferred to the customers.
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Cash, Cash Equivalents, and Term Deposit | Cash, Cash Equivalents, and Term Deposit Cash and cash equivalents include cash accounts and all investments purchased with initial maturities of three months or less. Our term deposit has an initial maturity of one year. Domestically, we generally maintain balances in excess of federally insured limits. We attempt to mitigate our exposure to liquidity, credit and other relevant risks by placing our cash, cash equivalents and term deposit with financial institutions we believe are high quality. These financial institutions are located in many different geographic regions. As part of our cash and risk management processes, we perform periodic evaluations of the relative credit standing of our financial institutions. We have not sustained credit losses from instruments held at financial institutions
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Recently Adopted Accounting Pronouncements and Recent Accounting Updates Not Yet Effective | Recently Adopted Accounting Pronouncements In October 2021, the FASB issued ASU 2021-08, "Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers". This guidance requires an entity to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606, "Revenue from Contracts with Customers". At the acquisition date, the acquirer applies the revenue recognition model as if it had originated the acquired contracts. Our adoption of this guidance on January 1, 2022 did not have a material impact on our consolidated statement of financial position, results of operations and cash flows. Recent Accounting Updates Not Yet Effective In March 2020, the FASB issued ASU 2020-04, "Facilitation of the Effects of Reference Rate Reform on Financial Reporting", and in January 2021, the FASB issued ASU 2021-01, "Reference Rate Reform". This guidance is intended to provide temporary optional expedients and exceptions to GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burden related to the expected market transition from the London Interbank Offered Rate ("LIBOR") and other interbank offered rates to alternative reference rates. The amendments in these ASUs are elective and are effective upon issuance for all entities through December 31, 2022. These amendments are not expected to have a material impact on our consolidated statement of financial position, results of operations and cash flows.
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Cash, Cash Equivalents, and Term Deposit (Tables) |
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Cash and Cash Equivalents [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and Cash Equivalents by Geographic Region | Cash and cash equivalents were held in the following geographic regions:
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Revenue and Accounts Receivable, Net (Tables) |
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Receivables [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pattern of Revenue Recognition | The pattern of revenue recognition was as follows:
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Revenue from External Customers by Geographic Areas | Our net sales to external customers by geographic area were as follows:
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Net Sales to Significant Customers | Net sales to the following customers totaled more than 10% of our net sales:
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Accounts Receivable, Net and Changes in the Allowance for Doubtful Accounts | Accounts receivable, net were as follows:
(1)Other accounts receivable is primarily comprised of value added tax and supplier rebate receivables. Changes in the allowance for credit losses were as follows:
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Trade Receivables Associated with Significant Customers | Trade receivables associated with this significant customer that totaled more than 10% of our accounts receivable, net were as follows:
(1) Trade receivables associated with this customer did not total more than 10% of our accounts receivable, net for the indicated period.
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Inventories and Significant Suppliers (Tables) |
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Inventories | Inventories were as follows:
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Purchases from Significant Suppliers | Purchases from the following supplier totaled more than 10% of our total inventory purchases:
Purchases from the following supplier totaled more than 10% of our total accounts payable:
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Long-lived Tangible Assets (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-lived Tangible Assets by Geographic Area | Long-lived tangible assets by geographic area, which include property, plant, and equipment, net and operating lease right-of-use assets, were as follows:
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Goodwill and Intangible Assets, Net (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in the Carrying Amount of Goodwill | Changes in the carrying amount of goodwill were as follows:
(1) During the first quarter of 2022, we recognized $0.7 million of goodwill related to the Qterics, Inc. ("Qterics") acquisition. Refer to Note 19 for further information about this acquisition.
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Components of Intangible Assets, Net | The components of intangible assets, net were as follows:
(1)This table excludes the gross value of fully amortized intangible assets totaling $43.4 million and $43.2 million at March 31, 2022 and December 31, 2021, respectively.
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Finite-lived Intangible Assets Amortization Expense | Amortization expense by statement of operations caption was as follows:
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Estimated Future Amortization Expense Related to Intangible Assets | Estimated future annual amortization expense related to our intangible assets at March 31, 2022, was as follows:
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Leases (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lease Balances within the Consolidated Balance Sheet | Lease balances within our consolidated balance sheet were as follows:
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Operating Lease Expense, Operating Lease Cash Flows and Supplemental Cash Flow Information | Operating lease expense, including variable and short-term lease costs, which were insignificant to the total operating lease cash flows and supplemental cash flow information were as follows:
(1)During the three months ended March 31, 2021, we were released from our guarantee of the lease obligation related to our Ohio call center which was sold in February 2020.
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Lease Terms and Discount Rates | The weighted average remaining lease liability term and the weighted average discount rate were as follows:
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Reconciliation of the Undiscounted Cash Flows for Each of the First Five Years and Thereafter to Operating Lease Liabilities | The following table reconciles the undiscounted cash flows for each of the first five years and thereafter to the operating lease liabilities recognized in our consolidated balance sheet at March 31, 2022. The reconciliation excludes short-term leases that are not recorded on the balance sheet.
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Accrued Compensation (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Accrued Compensation | The components of accrued compensation were as follows:
(1)PRC employers are required by law to remit the applicable social insurance payments to their local government. Social insurance is comprised of various components such as pension, medical insurance, job injury insurance, unemployment insurance, and a housing assistance fund, and is administered in a manner similar to social security in the United States. This amount represents our estimate of the amounts due to the PRC government for social insurance on March 31, 2022 and December 31, 2021. The components of other accrued liabilities were as follows:
(1)Includes $2.0 million and $0.4 million of contract liabilities at March 31, 2022 and December 31, 2021, respectively.
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Other Accrued Liabilities (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Other Accrued Liabilities | The components of accrued compensation were as follows:
(1)PRC employers are required by law to remit the applicable social insurance payments to their local government. Social insurance is comprised of various components such as pension, medical insurance, job injury insurance, unemployment insurance, and a housing assistance fund, and is administered in a manner similar to social security in the United States. This amount represents our estimate of the amounts due to the PRC government for social insurance on March 31, 2022 and December 31, 2021. The components of other accrued liabilities were as follows:
(1)Includes $2.0 million and $0.4 million of contract liabilities at March 31, 2022 and December 31, 2021, respectively.
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Commitments and Contingencies (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in the Liability for Product Warranty Claim Costs | Changes in the liability for product warranty claims costs were as follows:
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Treasury Stock (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchased Shares of Common Stock | Repurchased shares of our common stock were as follows:
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Stock-Based Compensation (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based Compensation Expense and Related Income Tax Benefit | Stock-based compensation expense by statement of operations caption and the related income tax benefit were as follows:
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Stock Option Activity | Stock option activity was as follows:
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Assumptions Used in Valuation and Weighted Average Fair Value of Stock Option Grants | The assumptions we utilized in the Black-Scholes option pricing model and the resulting weighted average fair value of stock option grants were the following:
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Non-Vested Restricted Stock Award Activity | Non-vested restricted stock award activity was as follows:
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Performance-Based Common Stock Warrants (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Impact to Net Sales in Connection with Warrants and Related Income Tax Benefit | The impact to net sales recorded in connection with the warrants and the related income tax benefit were as follows:
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Other Income (Expense) (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Income and Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Income (Expense), Net | Other income (expense), net consisted of the following:
(1)This represents the gains (losses) incurred on foreign currency hedging derivatives (see Note 18 for further details).
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Earnings (Loss) Per Share (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Calculation of Earnings Per Share | Earnings (loss) per share was calculated as follows:
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Securities Excluded from the Computation of Diluted Earnings (Loss) Per Common Share | The following number of stock options, shares of restricted stock and common stock warrants were excluded from the computation of diluted earnings per common share as their inclusion would have been anti-dilutive:
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Derivatives (Tables) |
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Mar. 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Net Fair Value of Derivatives | The following table sets forth the total net fair value of derivatives:
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Foreign Currency Exchange Contracts | Details of foreign currency exchange contracts held were as follows:
(1)Unrealized gains on foreign currency exchange contracts are recorded in prepaid expenses and other current assets. Unrealized losses on foreign currency exchange contracts are recorded in other accrued liabilities.
|
Business Combination (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combination and Asset Acquisition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | Management's preliminary purchase price allocation as of March 31, 2022 was the following:
|
Basis of Presentation - Narrative (Details) |
2 Months Ended | 3 Months Ended |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2022 |
|
Accounting Policies [Abstract] | ||
Maturity of term deposits | 1 year | 1 year |
Cash, Cash Equivalents, and Term Deposit - Summary of Geographic Area (Details) - USD ($) $ in Thousands |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents | $ 53,628 | $ 60,813 |
North America | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents | 4,869 | 6,430 |
People's Republic of China | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents | 17,657 | 16,000 |
Asia (excluding PRC) | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents | 10,361 | 11,798 |
Europe | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents | 18,021 | 17,604 |
South America | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents | $ 2,720 | $ 8,981 |
Cash, Cash Equivalents, and Term Deposit - Narrative (Details) - USD ($) $ in Thousands |
2 Months Ended | 3 Months Ended | |
---|---|---|---|
Mar. 31, 2022 |
Mar. 31, 2022 |
Dec. 31, 2021 |
|
Cash and Cash Equivalents [Abstract] | |||
Maturity of term deposits | 1 year | 1 year | |
Term deposit | $ 8,589 | $ 8,589 | $ 0 |
Revenue and Accounts Receivable, Net - Pattern of Revenue Recognition (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 132,410 | $ 150,542 |
Goods and services transferred at a point in time | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 109,086 | 122,888 |
Goods and services transferred over time | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 23,324 | $ 27,654 |
Revenue and Accounts Receivable, Net - Revenue from External Customers by Geographic Areas (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 132,410 | $ 150,542 |
United States | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 43,827 | 50,292 |
Asia (excluding PRC) | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 33,064 | 34,216 |
Europe | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 22,660 | 27,527 |
People's Republic of China | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 19,292 | 24,340 |
Latin America | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 6,488 | 6,144 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 7,079 | $ 8,023 |
Revenue and Accounts Receivable, Net - Net Sales to Significant Customers (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 132,410 | $ 150,542 |
Comcast Corporation | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 19,884 | $ 27,201 |
Comcast Corporation | Customer concentration risk | Net sales | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk, percentage | 15.00% | 18.10% |
Daikin Industries Ltd. | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 17,141 | $ 17,437 |
Daikin Industries Ltd. | Customer concentration risk | Net sales | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk, percentage | 12.90% | 11.60% |
Revenue and Accounts Receivable, Net - Accounts Receivable, Net (Details) - USD ($) $ in Thousands |
Mar. 31, 2022 |
Dec. 31, 2021 |
Mar. 31, 2021 |
Dec. 31, 2020 |
---|---|---|---|---|
Accounts Receivable, after Allowance for Credit Loss, Current [Abstract] | ||||
Trade receivables, gross | $ 126,807 | $ 122,508 | ||
Allowance for credit losses | (1,063) | (1,285) | $ (1,358) | $ (1,412) |
Allowance for sales returns | (531) | (592) | ||
Trade receivables, net | 125,213 | 120,631 | ||
Other | 7,415 | 8,584 | ||
Accounts receivable, net | $ 132,628 | $ 129,215 |
Revenue and Accounts Receivable, Net - Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Schedule of Allowance for Doubtful Accounts | ||
Balance at beginning of period | $ 1,285 | $ 1,412 |
Additions (reductions) to costs and expenses | (204) | 2 |
Write-offs/Foreign exchange effects | (18) | (56) |
Balance at end of period | $ 1,063 | $ 1,358 |
Revenue and Accounts Receivable, Net - Trade Receivables Associated with Significant Customers (Details) - Comcast Corporation - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2022 |
Dec. 31, 2021 |
|
Revenue, Major Customer [Line Items] | ||
Accounts receivable, net | $ 20,035 | $ 0 |
Trade accounts receivable | Customer concentration risk | ||
Revenue, Major Customer [Line Items] | ||
Concentration risk, percentage | 15.10% | 0.00% |
Inventories and Significant Suppliers - Summary of Inventories (Details) - USD ($) $ in Thousands |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Raw materials | $ 58,093 | $ 52,617 |
Components | 27,285 | 25,289 |
Work in process | 4,999 | 7,102 |
Finished goods | 49,023 | 49,461 |
Inventories | $ 139,400 | $ 134,469 |
Inventories and Significant Suppliers - Purchases from Significant Suppliers (Details) - Supplier concentration risk - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |
---|---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
Dec. 31, 2021 |
|
Qorvo International Pte Ltd. | Inventory purchases | |||
Concentration Risk [Line Items] | |||
Inventory purchases | $ 7,552 | $ 9,773 | |
Concentration risk, percentage | 10.40% | 12.80% | |
Zhejiang Zhen You Electronics Co. Ltd. | Accounts payable | |||
Concentration Risk [Line Items] | |||
Inventory purchases | $ 9,845 | $ 9,862 | |
Concentration risk, percentage | 11.90% | 10.60% |
Long-lived Tangible Assets - Long-lived Tangible Assets by Geographic Area (Details) - USD ($) $ in Thousands |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Long-lived Assets from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived tangible assets | $ 92,682 | $ 94,494 |
United States | ||
Long-lived Assets from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived tangible assets | 17,661 | 16,804 |
People's Republic of China | ||
Long-lived Assets from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived tangible assets | 52,267 | 52,851 |
Mexico | ||
Long-lived Assets from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived tangible assets | 19,489 | 20,509 |
All other countries | ||
Long-lived Assets from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived tangible assets | $ 3,265 | $ 4,330 |
Long-lived Tangible Assets - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
Dec. 31, 2021 |
|
Segment Reporting [Abstract] | |||
Accumulated depreciation | $ 170.5 | $ 165.9 | |
Depreciation | $ 5.1 | $ 5.5 |
Goodwill and Intangible Assets, Net - Changes in the Carrying Amount of Goodwill (Details) $ in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2022
USD ($)
| |
Goodwill [Roll Forward] | |
Beginning balance | $ 48,463 |
Goodwill acquired during the period | 713 |
Foreign exchange effects | (24) |
Ending balance | 49,152 |
Qterics, Inc. | |
Goodwill [Roll Forward] | |
Goodwill acquired during the period | 700 |
Ending balance | $ 713 |
Goodwill and Intangible Assets, Net - Amortization Expense by Income Statement Caption (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Finite-Lived Intangible Assets [Line Items] | ||
Amortization expense | $ 933 | $ 838 |
Cost of sales | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization expense | 12 | 4 |
Selling, general and administrative expenses | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization expense | $ 921 | $ 834 |
Goodwill and Intangible Assets, Net - Estimated Future Annual Amortization Expense Related to Intangible Assets (Details) - USD ($) $ in Thousands |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Schedule of Estimated Future Amortization expense | ||
2022 (remaining 9 months) | $ 3,035 | |
2023 | 4,085 | |
2024 | 3,484 | |
2025 | 2,953 | |
2026 | 2,741 | |
Thereafter | 6,177 | |
Total | $ 22,475 | $ 20,169 |
Leases - Narrative (Details) squareFeet in Thousands, $ in Millions |
Apr. 07, 2022
USD ($)
squareFeet
|
Mar. 31, 2022
lease
|
---|---|---|
Lessee, Lease, Description [Line Items] | ||
Number of operating leases not yet commenced | lease | 0 | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Remaining lease terms (up to) | 39 years | |
Subsequent Event | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease liability not yet commenced | $ | $ 4.5 | |
Subsequent Event | Vietnam | ||
Lessee, Lease, Description [Line Items] | ||
Number of square feet | squareFeet | 125 |
Leases - Lease Balances within the Consolidated Balance Sheet (Details) - USD ($) $ in Thousands |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Assets: | ||
Operating lease right-of-use assets | $ 21,245 | $ 19,847 |
Liabilities: | ||
Lease liability location within the Consolidated Balance Sheets | Other Accrued Liabilities, Current | Other Accrued Liabilities, Current |
Other accrued liabilities | $ 5,659 | $ 4,769 |
Long-term operating lease obligations | 14,787 | 14,266 |
Total lease liabilities | $ 20,446 | $ 19,035 |
Leases - Operating Lease Expense, Operating Lease Cash Flows and Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Lessee, Lease, Description [Line Items] | ||
Total operating lease expense | $ 1,743 | $ 1,706 |
Operating cash outflows from operating leases | 1,679 | 1,798 |
Operating lease right-of-use assets obtained in exchange for lease obligations | 2,959 | 294 |
Non-cash release of operating lease obligations | 0 | 654 |
Cost of sales | ||
Lessee, Lease, Description [Line Items] | ||
Total operating lease expense | 635 | 670 |
Selling, general and administrative expenses | ||
Lessee, Lease, Description [Line Items] | ||
Total operating lease expense | $ 1,108 | $ 1,036 |
Leases - Lease Terms and Discount Rates (Details) |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Leases [Abstract] | ||
Weighted average lease liability term (in years) | 4 years 1 month 6 days | 4 years 3 months 18 days |
Weighted average discount rate | 3.04% | 3.17% |
Leases - Reconciliation of the Undiscounted Cash Flows for Each of the First Five Years and Thereafter to Operating Lease Liabilities (Details) - USD ($) $ in Thousands |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Leases [Abstract] | ||
2022 (remaining 9 months) | $ 4,639 | |
2023 | 5,731 | |
2024 | 4,283 | |
2025 | 3,465 | |
2026 | 2,180 | |
Thereafter | 1,469 | |
Total lease payments | 21,767 | |
Less: imputed interest | (1,321) | |
Total lease liabilities | $ 20,446 | $ 19,035 |
Income Taxes (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Income Tax Disclosure [Abstract] | ||
Income tax expense | $ 2,413 | $ 1,533 |
Unrecognized tax benefits | $ 3,100 |
Accrued Compensation (Details) - USD ($) $ in Thousands |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Payables and Accruals [Abstract] | ||
Accrued bonus | $ 1,734 | $ 3,460 |
Accrued commission | 270 | 1,140 |
Accrued salary/wages | 6,303 | 6,234 |
Accrued social insurance | 7,605 | 7,562 |
Accrued vacation/holiday | 3,571 | 3,343 |
Other accrued compensation | 2,772 | 2,478 |
Total accrued compensation | $ 22,255 | $ 24,217 |
Other Accrued Liabilities (Details) - USD ($) $ in Thousands |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Payables and Accruals [Abstract] | ||
Duties | $ 4,183 | $ 4,128 |
Expense associated with fulfilled performance obligations | 1,435 | 991 |
Freight and handling fees | 2,674 | 3,317 |
Operating lease obligations | 5,659 | 4,769 |
Product warranty claims costs | 985 | 1,095 |
Professional fees | 5,806 | 4,685 |
Sales and value added taxes | 4,737 | 5,463 |
Other | 8,707 | 6,392 |
Total other accrued liabilities | 34,186 | 30,840 |
Contract liabilities | $ 2,000 | $ 400 |
Commitments and Contingencies - Changes in the Liability for Product Warranty Claim Costs (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Schedule of Changes in Reserve for Product Warranty Claim Costs | ||
Balance at beginning of period | $ 1,095 | $ 1,721 |
Accruals for warranties issued during the period | 221 | 46 |
Settlements (in cash or in kind) during the period | (331) | (149) |
Foreign currency translation gain (loss) | 0 | (43) |
Balance at end of period | $ 985 | $ 1,575 |
Commitments and Contingencies - Narrative (Details) |
Apr. 08, 2021
patent
|
Apr. 09, 2020
patent
|
Sep. 05, 2018
patent
|
Mar. 31, 2022
inter_partes_review
|
---|---|---|---|---|
Contingencies [Line Items] | ||||
Number of IPR requests denied | inter_partes_review | 11 | |||
Number of IPR requests granted | inter_partes_review | 7 | |||
Roku Lawsuit | ||||
Contingencies [Line Items] | ||||
Number of patents allegedly infringed upon | 2 | |||
Pending litigation | Roku Lawsuit | ||||
Contingencies [Line Items] | ||||
Number of patents allegedly infringed upon | 9 | |||
Number of patent families | 4 | |||
Pending litigation | Roku, TCL, Hisense, and Funai Patent Infringement - ITC Matter | ||||
Contingencies [Line Items] | ||||
Number of patents allegedly infringed upon | 5 | |||
Pending litigation | TLC Hisense and Funai - ITC Matter | ||||
Contingencies [Line Items] | ||||
Number of patents allegedly infringed upon | 6 | |||
Pending litigation | Roku- ITC Matter | ||||
Contingencies [Line Items] | ||||
Number of patents allegedly infringed upon | 2 |
Treasury Stock - Narrative (Details) - shares |
May 02, 2022 |
Feb. 22, 2022 |
---|---|---|
Subsequent Event | ||
Equity, Class of Treasury Stock [Line Items] | ||
Stock repurchased during the period (in shares) | 300,000 | |
February 2022 Program | ||
Equity, Class of Treasury Stock [Line Items] | ||
Authorized repurchase of common stock (in shares) | 300,000 |
Treasury Stock - Repurchased Shares of Common Stock (Details) - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Equity [Abstract] | ||
Shares repurchased (in shares) | 225 | 191 |
Cost of shares repurchased | $ 7,354 | $ 10,951 |
Stock-Based Compensation - Assumptions Used in Valuation and Weighted Average Fair Value of Stock Option Grants (Details) - $ / shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Share-based Payment Arrangement [Abstract] | ||
Weighted average fair value of grants (in dollars per share) | $ 14.87 | $ 23.97 |
Risk-free interest rate | 1.78% | 0.41% |
Expected volatility | 49.42% | 48.49% |
Expected life in years | 4 years 7 months 24 days | 4 years 7 months 13 days |
Stock-Based Compensation - Narrative (Details) $ in Millions |
3 Months Ended |
---|---|
Mar. 31, 2022
USD ($)
| |
Stock options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized pre-tax stock-based compensation expense | $ 3.5 |
Unrecognized pre-tax stock-based compensation expense, remaining weighted-average life | 2 years 2 months 12 days |
Restricted stock awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized pre-tax stock-based compensation expense | $ 14.0 |
Unrecognized pre-tax stock-based compensation expense, remaining weighted-average life | 2 years 2 months 12 days |
Stock-Based Compensation - Non-Vested Restricted Stock Award Activity (Details) shares in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2022
$ / shares
shares
| |
Shares | |
Non-vested at beginning of period (in shares) | shares | 310 |
Granted (in shares) | shares | 228 |
Vested (in shares) | shares | (142) |
Forfeited (in shares) | shares | (3) |
Non-vested at end of period (in shares) | shares | 393 |
Weighted-Average Grant Date Fair Value | |
Non-vested at beginning of period (in dollars per share) | $ / shares | $ 44.41 |
Granted (in dollars per share) | $ / shares | 31.85 |
Vested (in dollars per share) | $ / shares | 39.30 |
Forfeited (in dollars per share) | $ / shares | 47.96 |
Non-vested at end of period (in dollars per share) | $ / shares | $ 38.96 |
Performance-Based Common Stock Warrants - Narrative (Details) - Common stock purchase warrants - $ / shares |
Mar. 31, 2022 |
Mar. 09, 2016 |
---|---|---|
Class of Warrant or Right [Line Items] | ||
Exercise price of warrants (in dollars per share) | $ 54.55 | |
Vested warrants outstanding | 275,000 |
Performance-Based Common Stock Warrants - Impact to Net Sales in Connection with Warrants and Related Income Tax Benefit (Details) - Common stock purchase warrants - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Class of Warrant or Right [Line Items] | ||
Reduction to net sales | $ 0 | $ 143 |
Income tax benefit | $ 0 | $ 36 |
Other Income (Expense) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Other Income and Expenses [Abstract] | ||
Net gain (loss) on foreign currency exchange contracts | $ 915 | $ 1,161 |
Net gain (loss) on foreign currency exchange transactions | (578) | (1,270) |
Other income (expense) | 23 | 132 |
Other income (expense), net | $ 360 | $ 23 |
Earnings (Loss) Per Share - Calculation of Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
BASIC | ||
Net income (loss) | $ (2,910) | $ 6,993 |
Weighted-average common shares outstanding, basic (in shares) | 12,812 | 13,803 |
Basic earnings per share (in dollars per share) | $ (0.23) | $ 0.51 |
DILUTED | ||
Net income (loss) | $ (2,910) | $ 6,993 |
Weighted-average common shares outstanding, basic (in shares) | 12,812 | 13,803 |
Dilutive effect of stock options, restricted stock and common stock warrants (in shares) | 0 | 396 |
Weighted-average common shares outstanding on a diluted basis (in shares) | 12,812 | 14,199 |
Diluted earnings per share (in dollars per share) | $ (0.23) | $ 0.49 |
Earnings (Loss) Per Share - Securities Excluded from the Computation of Diluted Earnings (Loss) Per Common Share (Details) - shares shares in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Stock options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Securities excluded in computation of diluted earning per share (in shares) | 828 | 230 |
Restricted stock awards | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Securities excluded in computation of diluted earning per share (in shares) | 356 | 50 |
Common stock warrants | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Securities excluded in computation of diluted earning per share (in shares) | 275 | 0 |
Derivatives - Total Net Fair Value of Derivatives (Details) - Fair value measurements on a recurring basis - Foreign currency exchange contracts - Not designated as hedging instrument - USD ($) $ in Thousands |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Derivatives, Fair Value [Line Items] | ||
Foreign currency exchange contracts | $ (142) | $ (92) |
Level 1 | ||
Derivatives, Fair Value [Line Items] | ||
Foreign currency exchange contracts | 0 | 0 |
Level 2 | ||
Derivatives, Fair Value [Line Items] | ||
Foreign currency exchange contracts | (142) | (92) |
Level 3 | ||
Derivatives, Fair Value [Line Items] | ||
Foreign currency exchange contracts | $ 0 | $ 0 |
Derivatives - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Derivative Instruments,Gain (Loss) [Line Items] | ||
Net gain (loss) on foreign currency exchange contracts | $ 915 | $ 1,161 |
Not designated as hedging instrument | Foreign currency exchange contracts | ||
Derivative Instruments,Gain (Loss) [Line Items] | ||
Net gain (loss) on foreign currency exchange contracts | $ 900 | $ 1,200 |
Derivatives - Foreign Currency Exchange Contracts (Details) - Not designated as hedging instrument $ in Thousands |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2022
USD ($)
$ / €
$ / ¥
|
Dec. 31, 2021
USD ($)
$ / R$
$ / €
|
|
USD/Chinese Yuan Renminbi | ||
Derivative [Line Items] | ||
Notional Value | $ 28,000 | $ 19,000 |
Forward Rate | 6.3774 | 6.3777 |
Unrealized gain/(loss) recorded at balance sheet date | $ 62 | $ 38 |
USD/Euro | ||
Derivative [Line Items] | ||
Notional Value | $ 28,000 | |
Forward Rate | $ / € | 1.0998 | |
Unrealized gain/(loss) recorded at balance sheet date | $ (204) | |
USD/Euro | ||
Derivative [Line Items] | ||
Notional Value | $ 31,000 | |
Forward Rate | $ / € | 1.1336 | |
Unrealized gain/(loss) recorded at balance sheet date | $ (130) |
Business Combination - Narrative (Details) - Qterics, Inc. - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Feb. 17, 2022 |
Mar. 31, 2022 |
|
Business Combination | ||
Cash consideration | $ 0.9 | |
Net sales since acquisition date | $ 0.3 | |
Earnings or loss since acquisition date | $ 0.1 |
Business Combination - Purchase Price Allocation (Details) - USD ($) $ in Thousands |
1 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Dec. 31, 2021 |
|
Business Combination | ||
Goodwill | $ 49,152 | $ 48,463 |
Qterics, Inc. | ||
Business Combination | ||
Estimated Lives, Property, plant and equipment | 5 years | |
Term of contract, Operating lease ROU assets | 3 years | |
Accounts receivable | $ 787 | |
Property, plant and equipment | 3 | |
Goodwill | 713 | |
Operating lease ROU assets | 149 | |
Other assets | 2 | |
Other accrued liabilities | (6) | |
Short-term operating lease obligation | (48) | |
Deferred revenue | (1,539) | |
Long-term operating lease obligation | (101) | |
Long-term deferred revenue | (851) | |
Cash paid | $ 939 | |
Customer relationships | Qterics, Inc. | ||
Business Combination | ||
Estimated Lives | 6 years | |
Finite-lived intangible assets | $ 1,340 | |
Developed technology | Qterics, Inc. | ||
Business Combination | ||
Estimated Lives | 6 years | |
Finite-lived intangible assets | $ 440 | |
Trade names | Qterics, Inc. | ||
Business Combination | ||
Estimated Lives | 6 years | |
Finite-lived intangible assets | $ 50 |
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