Universal Electronics Inc.

Good afternoon. My name is Kelly, and I will be your conference operator today. Now, I would like to welcome everyone to Universal Electronics' first quarter 2025 financial results conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session by pressing star 1 to enter the queue. I will now turn today's conference over to Kirsten Chapman of Alliance Advisors Investor Relations. Please go ahead.

Thank you, Kelly, and thank you all for joining us for the Universal Electronics first quarter 2025 financial results conference call. By now, you should have received a copy of the press release. If you have not, please contact Alliance Advisors Investor Relations at 415-433-3777 or visit the Investor Relations section of the website. This call is being broadcast live over the internet. A webcast replay of this call, including any additional updated material, non-public information that might be discussed during this call, will be available on the company's website at www.uei.com for one year. During this call, management may make forward-looking statements regarding future events and the future financial performance of the company and caution you that these statements are just projections and actual results or events may differ materially from those projections. These statements include the company's ability to continue capturing new product and new customer wins in a connected home space, resulting in product revenue growth, particularly through the development and delivery of unique and innovative solutions, including the company's new energy harvesting sensors and remote control solutions. Continued focus on the company's R&D spend towards projects that translate into new revenue streams. The stabilization of traditional subscription broadcasting business leading to a more predictable revenue stream. The continued strength of the US dollar as compared to China's and Vietnam's functional currencies. Management's ability to continue managing its business profitably through continued improvements in the company's cost structures, optimizing the company's manufacturing facilities and improving its cash flows. Management's ability to manage and mitigate the effects that tariffs could have on the company's profitability through price increases and other efforts. the effects of the company's stock repurchase program may have on its stock price and value, and the direct and indirect impact the company may experience with respect to its business and financial results stemming from the continued economic uncertainty affecting consumers' confidence in spending, rising energy and freight costs, natural disasters, governmental actions, including increasing domestic and retaliatory tariffs, reducing incentives to businesses worldwide, the risk of doing business or operating in certain parts of the world, and political unrest, including war, terrorist activities, or other hostilities. The company undertakes no obligation to revise or update these statements to reflect events or circumstances that may arise after today's date and refers you to the press release mentioned at the onset of this call and the documents the company has filed with the SEC, including its 2024 annual report on Form 10-K and the periodic and current reports filed or furnished since then. In management's financial remarks, adjusted non-GAAP metrics will be referenced. Management provides adjusted non-GAAP metrics because it uses them for budget planning purposes and for making operational financial decisions and believes that providing these non-GAAP financial measures to investors as a supplement to GAAP financial measures helps investors evaluate UEI's core operating and financial performance and business trends consistent with how management evaluates such performance and trends. In addition, management believes these measures facilitate comparisons with core operating and financial results and business trends of competitors and other companies. A full description and reconciliation of these adjusted non-GAAP measures versus GAAP are included in the company's release issued today. Joining me today are the Office of CEO, which includes Chief Financial Officer Brian Hackworth, Senior Vice President Corporate Planning and Strategy Ramzi Amari, and newly promoted Chief Operating Officer Rick Carnifax. Ramzi will provide an overview of our channels. Brian will deliver the detailed financial results and conclusion. Then Rook will join them for the Q&A. It's my pleasure to introduce Ramzi and Mary. Please go ahead, Ramzi.

Thank you, Kirsten, and thank you all for joining us. I'm delighted to speak with you today as I'm deeply passionate about UEI and our mission to create smarter living. As you're aware, during the past few years, as we recognize the challenges facing our home entertainment business, We've been investing in new markets and channels to generate new revenue growth. I'm excited to report that our efforts focused on connected home market are delivering results. Starting with our Q1 2025 financial results, we will begin to provide sales detail for both the connected home and the home entertainment channels. Brian will discuss that and our financials in detail later on the call. Briefly, here are the highlights of our quarterly performance. In Q1 2025, net sales were within our expectations, driven by a 31% growth in our connected home channel. Our Q1 2025 bottom line improved 14 cents compared to Q1 2024. These results reflect the impact of new customers and product revenue growth, as well as growth in our existing customer relationships and the stickiness of our long lead sales. Now I'd like to review a few channel highlights. During Q1, sales grew across our entire connected home portfolio. Sales orders increased for our climate control solutions from major HVAC OEMs and for our Zigbee thermostat and sensor products in security. Additionally, we started shipping new and innovative outdoor sensor for SOMFI, which measures both luminosity and temperature. Overall, we expect to see continued demand for our connected home solutions throughout the remainder of the year. Our home entertainment channel is performing to our expectations. During the quarter, we delivered quick set updates to all our major smart television providers for their 2025 model TVs. We also began shipping a new sustainable green remote for a major operator in Europe. This ultra-low power voice remote significantly reduces battery waste during the life of the remote. Now I'll turn it over to Brian to provide an update on our financials.