0000101984-22-000027 | 10-Q | XBRL Viewer | Universal Electronics INC

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:


	Three Months Ended March 31,
(In thousands)	2022		2021
Reduction to net sales	$	—	$	143
Income tax benefit	$	—	$	36

Performance-Based Common Stock Warrants (Tables)

3 Months Ended

Mar. 31, 2022

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:


	Three Months Ended March 31,
(In thousands)	2022		2021
Reduction to net sales	$	—	$	143
Income tax benefit	$	—	$	36

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

Other Accrued Liabilities (Tables)

3 Months Ended

Mar. 31, 2022

Components of Other Accrued Liabilities

The components of accrued compensation were as follows:


(In thousands)	March 31, 2022		December 31, 2021
Accrued bonus	$	1,734	$	3,460
Accrued commission	270		1,140
Accrued salary/wages	6,303		6,234
Accrued social insurance (1)	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

(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:


(In thousands)	March 31, 2022		December 31, 2021
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 (1)	8,707		6,392
Total other accrued liabilities	$	34,186	$	30,840

(1)Includes $2.0 million and $0.4 million of contract liabilities at March 31, 2022 and December 31, 2021, respectively.

Business Combination (Tables)

3 Months Ended

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:


(In thousands)	Estimated Lives	Preliminary Fair Value
Accounts receivable		$	787
Property, plant and equipment	5 years	3
Customer relationships	6 years	1,340
Developed technology	6 years	440
Trade names	6 years	50
Goodwill		713
Operating lease ROU assets	3 years	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

Line of Credit	3 Months Ended
Line of Credit	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.

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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Other Accrued Liabilities

3 Months Ended

Mar. 31, 2022

Other Accrued Liabilities

Accrued Compensation

The components of accrued compensation were as follows:


(In thousands)	March 31, 2022		December 31, 2021
Accrued bonus	$	1,734	$	3,460
Accrued commission	270		1,140
Accrued salary/wages	6,303		6,234
Accrued social insurance (1)	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

The components of other accrued liabilities were as follows:


(In thousands)	March 31, 2022		December 31, 2021
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 (1)	8,707		6,392
Total other accrued liabilities	$	34,186	$	30,840

(1)Includes $2.0 million and $0.4 million of contract liabilities at March 31, 2022 and December 31, 2021, respectively.

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

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

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

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Accrued Compensation

3 Months Ended

Mar. 31, 2022

Accrued Compensation

The components of accrued compensation were as follows:


(In thousands)	March 31, 2022		December 31, 2021
Accrued bonus	$	1,734	$	3,460
Accrued commission	270		1,140
Accrued salary/wages	6,303		6,234
Accrued social insurance (1)	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

The components of other accrued liabilities were as follows:


(In thousands)	March 31, 2022		December 31, 2021
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 (1)	8,707		6,392
Total other accrued liabilities	$	34,186	$	30,840

(1)Includes $2.0 million and $0.4 million of contract liabilities at March 31, 2022 and December 31, 2021, respectively.

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

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

Accrued Compensation (Tables)

3 Months Ended

Mar. 31, 2022

Components of Accrued Compensation

The components of accrued compensation were as follows:


(In thousands)	March 31, 2022		December 31, 2021
Accrued bonus	$	1,734	$	3,460
Accrued commission	270		1,140
Accrued salary/wages	6,303		6,234
Accrued social insurance (1)	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

The components of other accrued liabilities were as follows:


(In thousands)	March 31, 2022		December 31, 2021
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 (1)	8,707		6,392
Total other accrued liabilities	$	34,186	$	30,840

(1)Includes $2.0 million and $0.4 million of contract liabilities at March 31, 2022 and December 31, 2021, respectively.

Business Combination

3 Months Ended

Mar. 31, 2022

Business Combination and Asset Acquisition [Abstract]

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:


(In thousands)	Estimated Lives	Preliminary Fair Value
Accounts receivable		$	787
Property, plant and equipment	5 years	3
Customer relationships	6 years	1,340
Developed technology	6 years	440
Trade names	6 years	50
Goodwill		713
Operating lease ROU assets	3 years	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

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.

Goodwill and Intangible Assets, Net - Amortization Expense by Income Statement Caption (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Finite-Lived Intangible Assets, Net [Abstract]
Gross	$ 38,802	$ 35,789
Accumulated Amortization	(16,327)	(15,620)
Total	22,475	20,169
Gross value of fully amortized intangible assets	43,400	43,200
Capitalized software development costs
Finite-Lived Intangible Assets, Net [Abstract]
Gross	1,172	1,066
Accumulated Amortization	(40)	(27)
Total	1,132	1,039
Customer relationships
Finite-Lived Intangible Assets, Net [Abstract]
Gross	6,340	5,000
Accumulated Amortization	(2,537)	(2,375)
Total	3,803	2,625
Developed and core technology
Finite-Lived Intangible Assets, Net [Abstract]
Gross	4,520	4,080
Accumulated Amortization	(3,420)	(3,335)
Total	1,100	745
Distribution rights
Finite-Lived Intangible Assets, Net [Abstract]
Gross	320	325
Accumulated Amortization	(271)	(269)
Total	49	56
Patents
Finite-Lived Intangible Assets, Net [Abstract]
Gross	25,600	24,518
Accumulated Amortization	(9,431)	(9,015)
Total	16,169	15,503
Trademarks and trade names
Finite-Lived Intangible Assets, Net [Abstract]
Gross	850	800
Accumulated Amortization	(628)	(599)
Total	$ 222	$ 201

Line of Credit (Details) - USD ($)	3 Months Ended
Line of Credit (Details) - USD ($)	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Line of Credit Facility [Line Items]
Amount outstanding under line of credit	$ 85,000,000		$ 56,000,000
Interest expense on borrowings	$ 300,000	$ 100,000
Line of credit \| US Bank
Line of Credit Facility [Line Items]
Effective interest rate	1.70%		1.35%
Line of credit \| US Bank \| LIBOR \| Minimum
Line of Credit Facility [Line Items]
Basis spread on variable rate	1.25%
Line of credit \| US Bank \| LIBOR \| Maximum
Line of Credit Facility [Line Items]
Basis spread on variable rate	1.75%
Line of credit \| US Bank \| Base rate \| Minimum
Line of Credit Facility [Line Items]
Basis spread on variable rate	0.00%
Line of credit \| US Bank \| Base rate \| Maximum
Line of Credit Facility [Line Items]
Basis spread on variable rate	0.50%
Line of credit \| Second Amended Credit Agreement
Line of Credit Facility [Line Items]
Maximum borrowing capacity	$ 125,000,000
Commitment fees	0
Letter of credit
Line of Credit Facility [Line Items]
Letter of credit outstanding amount	$ 2,700,000		$ 2,700,000

Goodwill and Intangible Assets, Net (Tables)

3 Months Ended

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:


(In thousands)
Balance at December 31, 2021	$	48,463
Goodwill acquired during the period (1)	713
Foreign exchange effects	(24)
Balance at March 31, 2022	$	49,152

(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.

Components of Intangible Assets, Net

The components of intangible assets, net were as follows:


	March 31, 2022						December 31, 2021
(In thousands)	Gross (1)		Accumulated Amortization (1)		Net		Gross (1)		Accumulated Amortization (1)		Net
Capitalized software development costs	$	1,172	$	(40)	$	1,132	$	1,066	$	(27)	$	1,039
Customer relationships	6,340		(2,537)		3,803		5,000		(2,375)		2,625
Developed and core technology	4,520		(3,420)		1,100		4,080		(3,335)		745
Distribution rights	320		(271)		49		325		(269)		56
Patents	25,600		(9,431)		16,169		24,518		(9,015)		15,503
Trademarks and trade names	850		(628)		222		800		(599)		201
Total intangible assets, net	$	38,802	$	(16,327)	$	22,475	$	35,789	$	(15,620)	$	20,169

(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.

Finite-lived Intangible Assets Amortization Expense

Amortization expense by statement of operations caption was as follows:


(In thousands)	Three Months Ended March 31,
	2022		2021
Cost of sales	$	12	$	4
Selling, general and administrative expenses	921		834
Total amortization expense	$	933	$	838

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:


(In thousands)
2022 (remaining 9 months)	$	3,035
2023	4,085
2024	3,484
2025	2,953
2026	2,741
Thereafter	6,177
Total	$	22,475

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 31, 2022	Dec. 31, 2021
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

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%

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

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

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-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9054-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130545-203045

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 924
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 11.L)
-URI http://asc.fasb.org/extlink&oid=6472922&loc=d3e499488-122856

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
Derivatives - Narrative (Details) - USD ($) $ in Thousands	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

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

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock Issued	Common Stock in Treasury	Paid-in Capital	Accumulated Other Comprehensive Income (Loss)	Retained Earnings
Beginning balance (in shares) at Dec. 31, 2020		24,392	(10,618)
Beginning balance at Dec. 31, 2020	$ 313,301	$ 244	$ (295,495)	$ 302,084	$ (18,522)	$ 324,990
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	6,993					6,993
Currency translation adjustment	(2,868)				(2,868)
Shares issued for employee benefit plan and compensation (in shares)		160
Shares issued for employee benefit plan and compensation	$ 410	$ 2		408
Purchase of treasury shares (in shares)	(191)		(191)
Purchase of treasury shares	$ (10,951)		$ (10,951)
Stock options exercised (in shares)		22
Stock options exercised	991	$ 0		991
Shares issued to directors (in shares)		7
Shares issued to directors	0	$ 0		0
Employee and director stock-based compensation	2,600			2,600
Performance-based common stock warrants	143			143
Ending balance (in shares) at Mar. 31, 2021		24,581	(10,809)
Ending balance at Mar. 31, 2021	310,619	$ 246	$ (306,446)	306,226	(21,390)	331,983
Beginning balance (in shares) at Dec. 31, 2021		24,679	(11,861)
Beginning balance at Dec. 31, 2021	275,949	$ 247	$ (355,159)	314,094	(13,524)	330,291
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(2,910)					(2,910)
Currency translation adjustment	1,849				1,849
Shares issued for employee benefit plan and compensation (in shares)		145
Shares issued for employee benefit plan and compensation	$ 324	$ 1		323
Purchase of treasury shares (in shares)	(225)		(225)
Purchase of treasury shares	$ (7,354)		$ (7,354)
Stock options exercised (in shares)	0
Shares issued to directors (in shares)		7
Shares issued to directors	$ 0	$ 0		0
Employee and director stock-based compensation	2,499			2,499
Ending balance (in shares) at Mar. 31, 2022		24,831	(12,086)
Ending balance at Mar. 31, 2022	$ 270,357	$ 248	$ (362,513)	$ 316,916	$ (11,675)	$ 327,381

Derivatives

3 Months Ended

Mar. 31, 2022

Derivatives

The following table sets forth the total net fair value of derivatives:


	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	$	—	$	(142)	$	—	$	(142)	$	—	$	(92)	$	—	$	(92)

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:


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	$	28.0	6.3774	$	62	April 29, 2022
March 31, 2022	USD/Euro	USD	$	28.0	1.0998	$	(204)	April 29, 2022
December 31, 2021	USD/Chinese Yuan Renminbi	CNY	$	19.0	6.3777	$	38	January 7, 2022
December 31, 2021	USD/Euro	USD	$	31.0	1.1336	$	(130)	January 7, 2022

(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.

Basis of Presentation (Policies)	3 Months Ended
Basis of Presentation (Policies)	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.
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.
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
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.

Disclosure of accounting policy for revenue from contract with customer.

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 17
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130561-203045

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 20
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130566-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 18
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130563-203045

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI http://asc.fasb.org/topic&trid=49130388

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 20
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130566-203045

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 18
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130563-203045

Reference 7: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section 50
-Paragraph 4
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=123372394&loc=d3e18823-107790

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
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-Section 50
-Paragraph 20
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130566-203045

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 19
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130564-203045

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 20
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130566-203045

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets, Net

3 Months Ended

Mar. 31, 2022

Goodwill and Intangible Assets, Net

Goodwill

Changes in the carrying amount of goodwill were as follows:


(In thousands)
Balance at December 31, 2021	$	48,463
Goodwill acquired during the period (1)	713
Foreign exchange effects	(24)
Balance at March 31, 2022	$	49,152

(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:


	March 31, 2022						December 31, 2021
(In thousands)	Gross (1)		Accumulated Amortization (1)		Net		Gross (1)		Accumulated Amortization (1)		Net
Capitalized software development costs	$	1,172	$	(40)	$	1,132	$	1,066	$	(27)	$	1,039
Customer relationships	6,340		(2,537)		3,803		5,000		(2,375)		2,625
Developed and core technology	4,520		(3,420)		1,100		4,080		(3,335)		745
Distribution rights	320		(271)		49		325		(269)		56
Patents	25,600		(9,431)		16,169		24,518		(9,015)		15,503
Trademarks and trade names	850		(628)		222		800		(599)		201
Total intangible assets, net	$	38,802	$	(16,327)	$	22,475	$	35,789	$	(15,620)	$	20,169

(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:


(In thousands)	Three Months Ended March 31,
	2022		2021
Cost of sales	$	12	$	4
Selling, general and administrative expenses	921		834
Total amortization expense	$	933	$	838

Estimated future annual amortization expense related to our intangible assets at March 31, 2022, was as follows:


(In thousands)
2022 (remaining 9 months)	$	3,035
2023	4,085
2024	3,484
2025	2,953
2026	2,741
Thereafter	6,177
Total	$	22,475

Basis of Presentation - Narrative (Details)	2 Months Ended	3 Months Ended
Basis of Presentation - Narrative (Details)	Mar. 31, 2022	Mar. 31, 2022
Accounting Policies [Abstract]
Maturity of term deposits	1 year	1 year

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 53,628	$ 60,813
Term deposit	8,589	0
Accounts receivable, net	132,628	129,215
Contract assets	7,521	5,012
Inventories	139,400	134,469
Prepaid expenses and other current assets	7,738	7,289
Income tax receivable	1,349	348
Total current assets	350,853	337,146
Property, plant and equipment, net	71,437	74,647
Goodwill	49,152	48,463
Intangible assets, net	22,475	20,169
Operating lease right-of-use assets	21,245	19,847
Deferred income taxes	7,714	7,729
Other assets	2,248	2,347
Total assets	525,124	510,348
Current liabilities:
Accounts payable	82,550	92,707
Line of credit	85,000	56,000
Accrued compensation	22,255	24,217
Accrued sales discounts, rebates and royalties	6,517	9,286
Accrued income taxes	5,104	3,737
Other accrued liabilities	34,186	30,840
Total current liabilities	235,612	216,787
Long-term liabilities:
Operating lease obligations	14,787	14,266
Deferred income taxes	2,543	2,394
Income tax payable	939	939
Other long-term liabilities	886	13
Total liabilities	254,767	234,399
Commitments and contingencies
Stockholders' equity:
Preferred stock, $0.01 par value, 5,000,000 shares authorized; none issued or outstanding	0	0
Common stock, $0.01 par value, 50,000,000 shares authorized; 24,831,434 and 24,678,942 shares issued on March 31, 2022 and December 31, 2021, respectively	248	247
Paid-in capital	316,916	314,094
Treasury stock, at cost, 12,085,836 and 11,861,198 shares on March 31, 2022 and December 31, 2021, respectively	(362,513)	(355,159)
Accumulated other comprehensive income (loss)	(11,675)	(13,524)
Retained earnings	327,381	330,291
Total stockholders' equity	270,357	275,949
Total liabilities and stockholders' equity	$ 525,124	$ 510,348

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

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

Long-lived Tangible Assets (Tables)

3 Months Ended

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:


(In thousands)	March 31, 2022		December 31, 2021
United States	$	17,661	$	16,804
People's Republic of China	52,267		52,851
Mexico	19,489		20,509
All other countries	3,265		4,330
Total long-lived tangible assets	$	92,682	$	94,494

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

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

3 Months Ended

Mar. 31, 2022

Revenue and Accounts Receivable, Net

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:


	Three Months Ended March 31,
(In thousands)	2022		2021
Shares repurchased	225		191
Cost of shares repurchased	$	7,354	$	10,951

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.

Revenue and Accounts Receivable, Net

3 Months Ended

Mar. 31, 2022

Receivables [Abstract]

Revenue Details

The pattern of revenue recognition was as follows:


	Three Months Ended March 31,
(In thousands)	2022		2021
Goods and services transferred at a point in time	$	109,086	$	122,888
Goods and services transferred over time	23,324		27,654
Net sales	$	132,410	$	150,542

Our net sales to external customers by geographic area were as follows:


	Three Months Ended March 31,
(In thousands)	2022		2021
United States	$	43,827	$	50,292
Asia (excluding PRC)	33,064		34,216
Europe	22,660		27,527
People's Republic of China	19,292		24,340
Latin America	6,488		6,144
Other	7,079		8,023
Total net sales	$	132,410	$	150,542

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:


	Three Months Ended March 31,
	2022				2021
	$ (thousands)		% of Net Sales		$ (thousands)		% of Net Sales
Comcast Corporation	$	19,884	15.0	%	$	27,201	18.1	%
Daikin Industries Ltd.	$	17,141	12.9	%	$	17,437	11.6	%

Accounts Receivable, Net

Accounts receivable, net were as follows:


(In thousands)	March 31, 2022		December 31, 2021
Trade receivables, gross	$	126,807	$	122,508
Allowance for credit losses	(1,063)		(1,285)
Allowance for sales returns	(531)		(592)
Trade receivables, net	125,213		120,631
Other (1)	7,415		8,584
Accounts receivable, net	$	132,628	$	129,215

(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:


(In thousands)	Three Months Ended March 31,
	2022		2021
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

Trade receivables associated with this significant customer that totaled more than 10% of our accounts receivable, net were as follows:


	March 31, 2022				December 31, 2021
	$ (thousands)		% of Accounts Receivable, Net		$ (thousands)			% of Accounts Receivable, Net
Comcast Corporation	$	20,035	15.1	%	$	—	(1)	—	%	(1)

(1) Trade receivables associated with this customer did not total more than 10% of our accounts receivable, net for the indicated period.

Other Income (Expense) (Tables)

3 Months Ended

Mar. 31, 2022

Other Income and Expenses [Abstract]

Other Income (Expense), Net

Other income (expense), net consisted of the following:


	Three Months Ended March 31,
(In thousands)	2022		2021
Net gain (loss) on foreign currency exchange contracts (1)	$	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

(1)This represents the gains (losses) incurred on foreign currency hedging derivatives (see Note 18 for further details).

Long-lived Tangible Assets

3 Months Ended

Mar. 31, 2022

Segment Reporting [Abstract]

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:


(In thousands)	March 31, 2022		December 31, 2021
United States	$	17,661	$	16,804
People's Republic of China	52,267		52,851
Mexico	19,489		20,509
All other countries	3,265		4,330
Total long-lived tangible assets	$	92,682	$	94,494

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.

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8924-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
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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

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

Other Income and Expenses [Abstract]

Other Income (Expense)

3 Months Ended

Mar. 31, 2022

Other Income (Expense)

Other income (expense), net consisted of the following:


	Three Months Ended March 31,
(In thousands)	2022		2021
Net gain (loss) on foreign currency exchange contracts (1)	$	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

(1)This represents the gains (losses) incurred on foreign currency hedging derivatives (see Note 18 for further details).

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Cash flows from operating activities:
Net income (loss)	$ (2,910)	$ 6,993
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities:
Depreciation and amortization	6,045	6,319
Provision for credit losses	(204)	2
Deferred income taxes	269	894
Shares issued for employee benefit plan	324	410
Employee and director stock-based compensation	2,499	2,600
Performance-based common stock warrants	0	143
Changes in operating assets and liabilities:
Accounts receivable and contract assets	(5,087)	(10,126)
Inventories	(4,599)	1,338
Prepaid expenses and other assets	(1,464)	384
Accounts payable and accrued liabilities	(13,174)	(12,546)
Accrued income taxes	332	(3,140)
Net cash provided by (used for) operating activities	(17,969)	(6,729)
Cash flows from investing activities:
Term deposit	(7,487)	0
Acquisition of net assets of Qterics, Inc.	(939)	0
Acquisitions of property, plant and equipment	(1,785)	(3,698)
Acquisitions of intangible assets	(1,410)	(1,106)
Net cash used for investing activities	(11,621)	(4,804)
Cash flows from financing activities:
Borrowings under line of credit	42,000	30,000
Repayments on line of credit	(13,000)	(10,000)
Proceeds from stock options exercised	0	991
Treasury stock purchased	(7,354)	(10,951)
Net cash provided by (used for) financing activities	21,646	10,040
Effect of foreign currency exchange rates on cash and cash equivalents	759	(297)
Net increase (decrease) in cash and cash equivalents	(7,185)	(1,790)
Cash and cash equivalents at beginning of period	60,813	57,153
Cash and cash equivalents at end of period	53,628	55,363
Supplemental cash flow information:
Income taxes paid	1,375	3,473
Interest paid	$ 302	$ 104

Leases

3 Months Ended

Mar. 31, 2022

Leases [Abstract]

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:


(In thousands)	March 31, 2022		December 31, 2021
Assets:
Operating lease right-of-use assets	$	21,245	$	19,847
Liabilities:
Other accrued liabilities	$	5,659	$	4,769
Long-term operating lease obligations	14,787		14,266
Total lease liabilities	$	20,446	$	19,035

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:


(In thousands)	Three Months Ended March 31,
	2022		2021
Cost of sales	$	635	$	670
Selling, general and administrative expenses	1,108		1,036
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 (1)	$	—	$	654

(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:


	March 31, 2022		December 31, 2021
Weighted average lease liability term (in years)	4.1		4.3
Weighted average discount rate	3.04	%	3.17	%

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.


(In thousands)	March 31, 2022
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

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.

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

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%

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

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

Stock-Based Compensation - Stock-based Compensation Expense and Related Income Tax Benefit (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Employee and director stock-based compensation expense	$ 2,499	$ 2,600
Income tax benefit	428	466
Cost of sales
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Employee and director stock-based compensation expense	39	37
Research and development expenses
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Employee and director stock-based compensation expense	333	313
Selling, general and administrative expenses \| Employees
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Employee and director stock-based compensation expense	1,727	1,868
Selling, general and administrative expenses \| Outside directors
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Employee and director stock-based compensation expense	$ 400	$ 382

Income Taxes	3 Months Ended
Income Taxes	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.

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

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Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Mar. 31, 2021
Income Tax Disclosure [Abstract]
Income tax expense	$ 2,413	$ 1,533
Unrecognized tax benefits	$ 3,100

Inventories and Significant Suppliers

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Inventories and Significant Suppliers

3 Months Ended

Mar. 31, 2022

Inventory Disclosure [Abstract]

Inventories were as follows:


(In thousands)	March 31, 2022		December 31, 2021
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

Significant Suppliers

Purchases from the following supplier totaled more than 10% of our total inventory purchases:


	Three Months Ended March 31,
	2022				2021
	$ (thousands)		% of Total Inventory Purchases		$ (thousands)		% of Total Inventory Purchases
Qorvo International Pte Ltd.	$	7,552	10.4	%	$	9,773	12.8	%

Purchases from the following supplier totaled more than 10% of our total accounts payable:



	March 31, 2022				December 31, 2021
	$ (thousands)		% of Total Accounts Payable		$ (thousands)		% of Total Accounts Payable
Zhejiang Zhen You Electronics Co. Ltd.	$	9,845	11.9	%	$	9,862	10.6	%

Stock-Based Compensation - Stock Option Activity (Details) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2022 USD ($) $ / shares shares
Number of Options
Outstanding at beginning of period (in shares) \| shares	800
Granted (in shares) \| shares	120
Exercised (in shares) \| shares	0
Forfeited/canceled/expired (in shares) \| shares	(74)
Outstanding at end of period (in shares) \| shares	846
Vested and expected to vest at end of period (in shares) \| shares	846
Exercisable at end of period (in shares) \| shares	630
Weighted-Average Exercise Price
Outstanding at beginning of period (in dollars per share) \| $ / shares	$ 45.55
Granted (in dollars per share) \| $ / shares	34.56
Exercised (in dollars per share) \| $ / shares	0
Forfeited/canceled/expired (in dollars per share) \| $ / shares	65.54
Outstanding at end of period (in dollars per share) \| $ / shares	42.25
Vested and expected to vest at end of period (in dollars per share) \| $ / shares	42.25
Exercisable at end of period (in dollars per share) \| $ / shares	$ 41.92
Weighted-Average Remaining Contractual Term (in years)
Outstanding at end of period	3 years 8 months 23 days
Vested and expected to vest at end of period	3 years 8 months 23 days
Exercisable at end of period	2 years 10 months 2 days
Aggregate Intrinsic Value
Exercised \| $	$ 0
Outstanding at end of period \| $	1,587
Vested and expected to vest at end of period \| $	1,587
Exercisable at end of period \| $	$ 1,587

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%

Earnings (Loss) Per Share

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

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

Earnings (Loss) Per Share

3 Months Ended

Mar. 31, 2022

Earnings Per Share [Abstract]

Earnings (loss) per share was calculated as follows:


	Three Months Ended March 31,
(In thousands, except per-share amounts)	2022		2021
BASIC
Net income (loss)	$	(2,910)	$	6,993
Weighted-average common shares outstanding	12,812		13,803
Basic earnings (loss) per share	$	(0.23)	$	0.51

DILUTED
Net income (loss)	$	(2,910)	$	6,993
Weighted-average common shares outstanding for basic	12,812		13,803
Dilutive effect of stock options, restricted stock and common stock warrants	—		396
Weighted-average common shares outstanding on a diluted basis	12,812		14,199
Diluted earnings (loss) per share	$	(0.23)	$	0.49

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:


	Three Months Ended March 31,
(In thousands)	2022	2021
Stock options	828	230
Restricted stock awards	356	50
Common stock warrants	275	—

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

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

Commitments and Contingencies

3 Months Ended

Mar. 31, 2022

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Product Warranties

Changes in the liability for product warranty claims costs were as follows:


(In thousands)	Three Months Ended March 31,
	2022		2021
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)	—		(43)
Balance at end of period	$	985	$	1,575

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.

Inventories and Significant Suppliers (Tables)

3 Months Ended

Mar. 31, 2022

Inventory Disclosure [Abstract]

Summary of Inventories

Inventories were as follows:


(In thousands)	March 31, 2022		December 31, 2021
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

Purchases from Significant Suppliers

Purchases from the following supplier totaled more than 10% of our total inventory purchases:


	Three Months Ended March 31,
	2022				2021
	$ (thousands)		% of Total Inventory Purchases		$ (thousands)		% of Total Inventory Purchases
Qorvo International Pte Ltd.	$	7,552	10.4	%	$	9,773	12.8	%

Purchases from the following supplier totaled more than 10% of our total accounts payable:



	March 31, 2022				December 31, 2021
	$ (thousands)		% of Total Accounts Payable		$ (thousands)		% of Total Accounts Payable
Zhejiang Zhen You Electronics Co. Ltd.	$	9,845	11.9	%	$	9,862	10.6	%

Earnings (Loss) Per Share (Tables)

3 Months Ended

Mar. 31, 2022

Earnings Per Share [Abstract]

Calculation of Earnings Per Share

Earnings (loss) per share was calculated as follows:


	Three Months Ended March 31,
(In thousands, except per-share amounts)	2022		2021
BASIC
Net income (loss)	$	(2,910)	$	6,993
Weighted-average common shares outstanding	12,812		13,803
Basic earnings (loss) per share	$	(0.23)	$	0.51

DILUTED
Net income (loss)	$	(2,910)	$	6,993
Weighted-average common shares outstanding for basic	12,812		13,803
Dilutive effect of stock options, restricted stock and common stock warrants	—		396
Weighted-average common shares outstanding on a diluted basis	12,812		14,199
Diluted earnings (loss) per share	$	(0.23)	$	0.49

Securities Excluded from the Computation of Diluted Earnings (Loss) Per Common Share


	Three Months Ended March 31,
(In thousands)	2022	2021
Stock options	828	230
Restricted stock awards	356	50
Common stock warrants	275	—

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

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

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

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

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)

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

Cash, Cash Equivalents, and Term Deposit

3 Months Ended

Mar. 31, 2022

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:


(In thousands)	March 31, 2022		December 31, 2021
North America	$	4,869	$	6,430
People's Republic of China ("PRC")	17,657		16,000
Asia (excluding the PRC)	10,361		11,798
Europe	18,021		17,604
South America	2,720		8,981
Total cash and cash equivalents	$	53,628	$	60,813

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.

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
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

Stock-Based Compensation

3 Months Ended

Mar. 31, 2022

Share-based Payment Arrangement [Abstract]

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:


	Three Months Ended March 31,
(In thousands)	2022		2021
Cost of sales	$	39	$	37
Research and development expenses	333		313
Selling, general and administrative expenses:
Employees	1,727		1,868
Outside directors	400		382
Total employee and director stock-based compensation expense	$	2,499	$	2,600
Income tax benefit	$	428	$	466

Stock Options

Stock option activity was as follows:


	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	800	$	45.55
Granted	120	34.56
Exercised	—	—			$	—
Forfeited/canceled/expired	(74)	65.54
Outstanding at March 31, 2022 (1)	846	$	42.25	3.73	$	1,587
Vested and expected to vest at March 31, 2022 (1)	846	$	42.25	3.73	$	1,587
Exercisable at March 31, 2022 (1)	630	$	41.92	2.84	$	1,587

(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:


	Three Months Ended March 31,
	2022			2021
Weighted average fair value of grants	$	14.87		$	23.97
Risk-free interest rate	1.78		%	0.41		%
Expected volatility	49.42		%	48.49		%
Expected life in years	4.65			4.62

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:


	Shares (in thousands)		Weighted-Average Grant Date Fair Value
Non-vested at December 31, 2021	$	310	$	44.41
Granted	228		31.85
Vested	(142)		39.30
Forfeited	(3)		47.96
Non-vested at March 31, 2022	$	393	$	38.96

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.

Leases (Tables)

3 Months Ended

Mar. 31, 2022

Leases [Abstract]

Lease Balances within the Consolidated Balance Sheet

Lease balances within our consolidated balance sheet were as follows:


(In thousands)	March 31, 2022		December 31, 2021
Assets:
Operating lease right-of-use assets	$	21,245	$	19,847
Liabilities:
Other accrued liabilities	$	5,659	$	4,769
Long-term operating lease obligations	14,787		14,266
Total lease liabilities	$	20,446	$	19,035

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:


(In thousands)	Three Months Ended March 31,
	2022		2021
Cost of sales	$	635	$	670
Selling, general and administrative expenses	1,108		1,036
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 (1)	$	—	$	654

(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.

Lease Terms and Discount Rates

The weighted average remaining lease liability term and the weighted average discount rate were as follows:


	March 31, 2022		December 31, 2021
Weighted average lease liability term (in years)	4.1		4.3
Weighted average discount rate	3.04	%	3.17	%

Reconciliation of the Undiscounted Cash Flows for Each of the First Five Years and Thereafter to Operating Lease Liabilities


(In thousands)	March 31, 2022
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

Treasury Stock (Tables)

3 Months Ended

Mar. 31, 2022

Repurchased Shares of Common Stock

Repurchased shares of our common stock were as follows:


	Three Months Ended March 31,
(In thousands)	2022		2021
Shares repurchased	225		191
Cost of shares repurchased	$	7,354	$	10,951

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

Derivatives (Tables)

3 Months Ended

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:


	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	$	—	$	(142)	$	—	$	(142)	$	—	$	(92)	$	—	$	(92)

Foreign Currency Exchange Contracts

Details of foreign currency exchange contracts held were as follows:


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	$	28.0	6.3774	$	62	April 29, 2022
March 31, 2022	USD/Euro	USD	$	28.0	1.0998	$	(204)	April 29, 2022
December 31, 2021	USD/Chinese Yuan Renminbi	CNY	$	19.0	6.3777	$	38	January 7, 2022
December 31, 2021	USD/Euro	USD	$	31.0	1.1336	$	(130)	January 7, 2022

Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item.

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Share-based Payment Arrangement [Abstract]

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

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%

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

Other Income (Expense) (Details) - USD ($) $ in Thousands	3 Months Ended
Other Income (Expense) (Details) - USD ($) $ in Thousands	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

Stock-Based Compensation (Tables)

3 Months Ended

Mar. 31, 2022

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:


	Three Months Ended March 31,
(In thousands)	2022		2021
Cost of sales	$	39	$	37
Research and development expenses	333		313
Selling, general and administrative expenses:
Employees	1,727		1,868
Outside directors	400		382
Total employee and director stock-based compensation expense	$	2,499	$	2,600
Income tax benefit	$	428	$	466

Stock Option Activity

Stock option activity was as follows:


	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	800	$	45.55
Granted	120	34.56
Exercised	—	—			$	—
Forfeited/canceled/expired	(74)	65.54
Outstanding at March 31, 2022 (1)	846	$	42.25	3.73	$	1,587
Vested and expected to vest at March 31, 2022 (1)	846	$	42.25	3.73	$	1,587
Exercisable at March 31, 2022 (1)	630	$	41.92	2.84	$	1,587

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:


	Three Months Ended March 31,
	2022			2021
Weighted average fair value of grants	$	14.87		$	23.97
Risk-free interest rate	1.78		%	0.41		%
Expected volatility	49.42		%	48.49		%
Expected life in years	4.65			4.62

Non-Vested Restricted Stock Award Activity

Non-vested restricted stock award activity was as follows:


	Shares (in thousands)		Weighted-Average Grant Date Fair Value
Non-vested at December 31, 2021	$	310	$	44.41
Granted	228		31.85
Vested	(142)		39.30
Forfeited	(3)		47.96
Non-vested at March 31, 2022	$	393	$	38.96

Basis of Presentation	3 Months Ended
Basis of Presentation	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.

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

CONSOLIDATED COMPREHENSIVE INCOME (LOSS) STATEMENTS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
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

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.