Revenue during the quarter grew 5.43 percent to $169.18 million from $160.47 million in the previous year period. Gross margin for the quarter contracted 198 basis points over the previous year period to 24.70 percent. Total expenses were 95.20 percent of quarterly revenues, up from 94.37 percent for the same period last year. That has resulted in a contraction of 83 basis points in operating margin to 4.80 percent.

Operating income for the quarter was $8.12 million, compared with $9.03 million in the previous year period.

However, the adjusted operating income for the quarter stood at $25.90 million compared to $17.22 million in the prior year period. At the same time, adjusted operating margin improved 458 basis points in the quarter to 15.31 percent from 10.73 percent in the last year period.

Paul Arling, UEI's Chairman and CEO, stated, "Our third quarter 2016 results reflect the continued solid performance across the business, as Adjusted Pro Forma net sales and diluted earnings per share grew 6% and 21% over the prior year, respectively. Our advanced control technologies continue to be adopted by subscription broadcasting and OEM customers who are introducing next-generation home entertainment platforms around the world. While in various phases of development, this new evolution in home control presents significant long-term opportunities for UEI to increase our market share by deepening existing customer relationships and by adding new ones. In support of our growing market position, we are transitioning manufacturing to our newer, more advanced facilities in China, which underscores our commitment to improving margins, differentiating UEI in the marketplace through enhanced products and maintaining cost effective operations."

For the fourth-quarter, Universal Electronics Inc. forecasts revenue to be in the range of $159 million to $167 million and  forecasts adjusted revenue to be in the range of $160 million to $168 million. The company expects diluted earnings per share to be in the range of $0.29 to $0.39. On an adjusted basis, the company expects diluted earnings per share to be in the range of $0.66 to $0.76.

The company has spent $30.24 million cash to meet investing activities during the nine month period as against cash outgo of $40.74 million in the last year period.

The company has spent $10.08 million cash to carry out financing activities during the nine month period as against cash outgo of $28.99 million in the last year period.

Cash and cash equivalents stood at $48.14 million as on Sep. 30, 2016, down 25.14 percent or $16.17 million from $64.31 million on Sep. 30, 2015.

Working capital increases
Universal Electronics Inc. has recorded an increase in the working capital over the last year. It stood at $123.24 million as at Sep. 30, 2016, up 19.73 percent or $20.31 million from $102.93 million on Sep. 30, 2015. Current ratio was at 1.61 as on Sep. 30, 2016, up from 1.51 on Sep. 30, 2015.

Cash conversion cycle (CCC) has decreased to 44 days for the quarter from 83 days for the last year period. Days sales outstanding went up to 65 days for the quarter compared with 62 days for the same period last year.

Days inventory outstanding has decreased to 45 days for the quarter compared with 87 days for the previous year period. At the same time, days payable outstanding was almost stable at 65 days for the quarter, when compared with the previous year period.