0000101984-23-000058 | 10-Q | XBRL Viewer | Universal Electronics INC

Revenue and Accounts Receivable, Net

9 Months Ended

Sep. 30, 2023

Revenue Details

The pattern of revenue recognition was as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands)	2023		2022		2023		2022
Goods and services transferred at a point in time	$	83,855	$	127,672	$	249,908	$	355,113
Goods and services transferred over time	23,240		20,810		72,955		64,880
Net sales	$	107,095	$	148,482	$	322,863	$	419,993

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


	Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands)	2023		2022		2023		2022
United States	$	31,737	$	46,732	$	97,892	$	130,196
Asia (excluding PRC)	20,107		32,614		66,508		100,000
Europe	22,529		27,358		68,598		76,382
People's Republic of China	19,049		26,696		49,082		68,604
Latin America	8,227		7,602		24,408		20,996
Other	5,446		7,480		16,375		23,815
Total net sales	$	107,095	$	148,482	$	322,863	$	419,993

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 September 30,
	2023				2022
	$ (thousands)		% of Net Sales		$ (thousands)		% of Net Sales
Comcast Corporation	(1)		(1)		$	23,615	15.9	%
Daikin Industries Ltd.	$	15,194	14.2	%	$	21,381	14.4	%
Sony Corporation	$	11,825	11.0	%	(1)		(1)

(1) Net sales associated with this customer did not total more than 10% of our net sales for the indicated period.


	Nine Months Ended September 30,
	2023				2022
	$ (thousands)		% of Net Sales		$ (thousands)		% of Net Sales
Comcast Corporation	$	34,436	10.7	%	$	62,222	14.8	%
Daikin Industries Ltd.	$	48,401	15.0	%	$	59,397	14.1	%

Accounts Receivable, Net

Accounts receivable, net were as follows:


(In thousands)	September 30, 2023		December 31, 2022
Trade receivables, gross	$	107,625	$	108,030
Allowance for credit losses	(819)		(957)
Allowance for sales returns	(487)		(618)
Trade receivables, net	106,319		106,455
Other (1)	6,202		5,891
Accounts receivable, net	$	112,521	$	112,346

(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)	Nine Months Ended September 30,
	2023		2022
Balance at beginning of period	$	957	$	1,285
Additions (reductions) to costs and expenses	69		(204)

Write-offs/Foreign exchange effects	(207)		(135)
Balance at end of period	$	819	$	946

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


	September 30, 2023				December 31, 2022
	$ (thousands)		% of Accounts Receivable, Net		$ (thousands)		% of Accounts Receivable, Net
Comcast Corporation	(1)		(1)		$	15,367	13.7	%
Sony Corporation	$	12,371	11.0	%	(1)		(1)

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

Goodwill and Intangible Assets, Net - Changes in the Carrying Amount of Goodwill (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Goodwill [Roll Forward]
Beginning balance			$ 49,085
Goodwill impairment	$ 0	$ 0	(49,075)	$ 0
Foreign exchange effects			(10)
Ending balance	$ 0		$ 0

- Definition

Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.

+ References + Details

Revenue and Accounts Receivable, Net - Pattern of Revenue Recognition (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Disaggregation of Revenue [Line Items]
Net sales	$ 107,095	$ 148,482	$ 322,863	$ 419,993
Goods and services transferred at a point in time
Disaggregation of Revenue [Line Items]
Net sales	83,855	127,672	249,908	355,113
Goods and services transferred over time
Disaggregation of Revenue [Line Items]
Net sales	$ 23,240	$ 20,810	$ 72,955	$ 64,880

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References + Details

- Definition

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.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Other Accrued Liabilities (Tables)

9 Months Ended

Sep. 30, 2023

Payables and Accruals [Abstract]

Components of Other Accrued Liabilities

The components of accrued compensation were as follows:


(In thousands)	September 30, 2023		December 31, 2022
Accrued bonus	$	3,042	$	3,348
Accrued commission	355		609
Accrued salary/wages (1)	4,014		4,433
Accrued social insurance (2)	8,442		7,037
Accrued vacation/holiday	3,396		3,300
Other accrued compensation	2,458		2,177
Total accrued compensation	$	21,707	$	20,904

(1)At September 30, 2023, accrued severance expenses of $1.7 million related to manufacturing footprint optimization efforts are included in this amount. See Note 12 for further information related to our restructuring activities.

(2)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 September 30, 2023 and December 31, 2022.

The components of other accrued liabilities were as follows:


(In thousands)	September 30, 2023		December 31, 2022
Contract liabilities	$	2,065	$	1,134
Duties	1,131		470
Expense associated with fulfilled performance obligations	1,344		1,120
Freight and handling fees	2,411		2,497
Interest	517		1,413
Operating lease obligations	4,770		5,509
Product warranty claims costs	522		522
Professional fees	1,569		2,293
Sales and value added taxes	2,908		3,750

Other	4,477		5,426
Total other accrued liabilities	$	21,714	$	24,134

Long-lived Tangible Assets

9 Months Ended

Sep. 30, 2023

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)	September 30, 2023		December 31, 2022
United States	$	14,504	$	16,427
People's Republic of China	28,268		42,893
Mexico	9,494		14,402
Vietnam	7,902		6,923
All other countries	4,222		3,745
Total long-lived tangible assets	$	64,390	$	84,390

Property, plant, and equipment are shown net of accumulated depreciation of $170.0 million and $170.5 million at September 30, 2023 and December 31, 2022, respectively.

Depreciation expense was $4.6 million and $4.9 million for the three months ended September 30, 2023 and 2022, respectively. Depreciation expense was $13.9 million and $15.1 million for the nine months ended September 30, 2023 and 2022, respectively.

During the three months ended September 30, 2023, as part of our manufacturing footprint optimization efforts, we made the decision to close our southwestern China factory and manufacturing operations were stopped in September 2023. We are also working to downsize our factory in Mexico due to decreased demand in our U.S. market. As a result of these decisions, we recorded impairment charges of $7.7 million during the three and nine months ended September 30, 2023, of which $7.6 million and $0.1 million is recorded in cost of sales and selling, general and administrative expenses, respectively, in our consolidated statements of operations.

- Definition

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.

+ References

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+ Details

Long-lived Tangible Assets - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Finite-Lived Intangible Assets [Line Items]
Accumulated depreciation	$ 170.0		$ 170.0		$ 170.5
Depreciation	4.6	$ 4.9	13.9	$ 15.1
Impairment of Long-Lived Assets to be Disposed of	7.7		7.7
Cost of sales
Finite-Lived Intangible Assets [Line Items]
Impairment of Long-Lived Assets to be Disposed of	7.6		7.6
Selling, general and administrative expenses
Finite-Lived Intangible Assets [Line Items]
Impairment of Long-Lived Assets to be Disposed of	$ 0.1		$ 0.1

Cash, Cash Equivalents and Term Deposit

9 Months Ended

Sep. 30, 2023

Cash and Cash Equivalents [Abstract]

Cash, Cash Equivalents and Term Deposit

Cash and cash equivalents were held in the following geographic regions:


(In thousands)	September 30, 2023		December 31, 2022
North America	$	10,603	$	6,825
People's Republic of China ("PRC")	3,556		15,633
Asia (excluding the PRC)	17,613		18,850
Europe	15,710		13,042
South America	12,597		12,390
Total cash and cash equivalents	$	60,079	$	66,740

On January 25, 2022, we entered into an $8.6 million, one-year term deposit cash account with Banco Santander (Brasil) S.A., denominated in Brazilian Real. The term deposit earned interest at a variable annual rate based upon the Brazilian CDI overnight interbank rate. As of December 31, 2022, all of this term deposit was redeemed.

Treasury Stock (Tables)

9 Months Ended

Sep. 30, 2023

Equity [Abstract]

Repurchased Shares of Common Stock

Repurchased shares of our common stock were as follows:


	Nine Months Ended September 30,
(In thousands)	2023		2022
Open market shares repurchased	—		300
Stock-based compensation related shares repurchased	61		58
Total shares repurchased	61		358

Cost of open market shares repurchased	$	—	$	9,438
Cost of stock-based compensation related shares repurchased	888		1,859
Total cost of shares repurchased	$	888	$	11,297

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($) $ 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, 2021		24,679,000
Beginning balance at Dec. 31, 2021	$ 275,949	$ 247	$ (355,159)	$ 314,094	$ (13,524)	$ 330,291
Beginning balance (in shares) at Dec. 31, 2021			(11,861,000)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(2,910)					(2,910)
Currency translation adjustment	1,849				1,849
Shares issued for employee benefit plan and compensation (in shares)		145,000
Shares issued for employee benefit plan and compensation	324	$ 1		323
Purchase of treasury shares (in shares)			(225,000)
Purchase of treasury shares	(7,354)		$ (7,354)
Shares issued to directors (in shares)		7,000
Shares issued to directors	0
Employee and director stock-based compensation	2,499			2,499
Ending balance (in shares) at Mar. 31, 2022		24,831,000
Ending balance at Mar. 31, 2022	270,357	$ 248	$ (362,513)	316,916	(11,675)	327,381
Ending balance (in shares) at Mar. 31, 2022			(12,086,000)
Beginning balance (in shares) at Dec. 31, 2021		24,679,000
Beginning balance at Dec. 31, 2021	275,949	$ 247	$ (355,159)	314,094	(13,524)	330,291
Beginning balance (in shares) at Dec. 31, 2021			(11,861,000)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	7,312
Currency translation adjustment	$ (12,831)
Purchase of treasury shares (in shares)	(358,000)
Purchase of treasury shares	$ (11,297)
Ending balance (in shares) at Sep. 30, 2022		24,893,000
Ending balance at Sep. 30, 2022	267,660	$ 249	$ (366,456)	322,619	(26,355)	337,603
Ending balance (in shares) at Sep. 30, 2022			(12,219,000)
Beginning balance (in shares) at Mar. 31, 2022		24,831,000
Beginning balance at Mar. 31, 2022	270,357	$ 248	$ (362,513)	316,916	(11,675)	327,381
Beginning balance (in shares) at Mar. 31, 2022			(12,086,000)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	2,988					2,988
Currency translation adjustment	(7,313)				(7,313)
Shares issued for employee benefit plan and compensation (in shares)		23,000
Shares issued for employee benefit plan and compensation	302	$ 1		301
Purchase of treasury shares (in shares)			(130,000)
Purchase of treasury shares	(3,857)		$ (3,857)
Shares issued to directors (in shares)		8,000
Shares issued to directors	0
Employee and director stock-based compensation	2,637			2,637
Ending balance (in shares) at Jun. 30, 2022		24,862,000
Ending balance at Jun. 30, 2022	265,114	$ 249	$ (366,370)	319,854	(18,988)	330,369
Ending balance (in shares) at Jun. 30, 2022			(12,216,000)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	7,234					7,234
Currency translation adjustment	(7,367)				(7,367)
Shares issued for employee benefit plan and compensation (in shares)		24,000
Shares issued for employee benefit plan and compensation	326			326
Purchase of treasury shares (in shares)			(3,000)
Purchase of treasury shares	(86)		$ (86)
Shares issued to directors (in shares)		7,000
Shares issued to directors	0
Employee and director stock-based compensation	2,439			2,439
Ending balance (in shares) at Sep. 30, 2022		24,893,000
Ending balance at Sep. 30, 2022	267,660	$ 249	$ (366,456)	322,619	(26,355)	337,603
Ending balance (in shares) at Sep. 30, 2022			(12,219,000)
Beginning balance (in shares) at Dec. 31, 2022		25,000,000
Beginning balance at Dec. 31, 2022	$ 268,406	$ 250	$ (368,194)	326,839	(21,187)	330,698
Beginning balance (in shares) at Dec. 31, 2022	(12,295,305)		(12,295,000)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	$ (61,363)					(61,363)
Currency translation adjustment	1,916				1,916
Shares issued for employee benefit plan and compensation (in shares)		189,000
Shares issued for employee benefit plan and compensation	352	$ 2		350
Purchase of treasury shares (in shares)			(53,000)
Purchase of treasury shares	(812)		$ (812)
Shares issued to directors (in shares)		8,000
Shares issued to directors	0
Employee and director stock-based compensation	2,540			2,540
Ending balance (in shares) at Mar. 31, 2023		25,197,000
Ending balance at Mar. 31, 2023	211,039	$ 252	$ (369,006)	329,729	(19,271)	269,335
Ending balance (in shares) at Mar. 31, 2023			(12,348,000)
Beginning balance (in shares) at Dec. 31, 2022		25,000,000
Beginning balance at Dec. 31, 2022	$ 268,406	$ 250	$ (368,194)	326,839	(21,187)	330,698
Beginning balance (in shares) at Dec. 31, 2022	(12,295,305)		(12,295,000)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	$ (91,136)
Currency translation adjustment	$ (2,702)
Purchase of treasury shares (in shares)	(61,000)
Purchase of treasury shares	$ (888)
Ending balance (in shares) at Sep. 30, 2023		25,301,000
Ending balance at Sep. 30, 2023	$ 181,527	$ 253	$ (369,082)	334,683	(23,889)	239,562
Ending balance (in shares) at Sep. 30, 2023	(12,356,603)		(12,356,000)
Beginning balance (in shares) at Mar. 31, 2023		25,197,000
Beginning balance at Mar. 31, 2023	$ 211,039	$ 252	$ (369,006)	329,729	(19,271)	269,335
Beginning balance (in shares) at Mar. 31, 2023			(12,348,000)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(10,411)					(10,411)
Currency translation adjustment	(3,117)				(3,117)
Shares issued for employee benefit plan and compensation (in shares)		50,000
Shares issued for employee benefit plan and compensation	373	$ 1		372
Purchase of treasury shares (in shares)			(5,000)
Purchase of treasury shares	(43)		$ (43)
Shares issued to directors (in shares)		7,000
Shares issued to directors	0
Employee and director stock-based compensation	2,158			2,158
Ending balance (in shares) at Jun. 30, 2023		25,254,000
Ending balance at Jun. 30, 2023	199,999	$ 253	$ (369,049)	332,259	(22,388)	258,924
Ending balance (in shares) at Jun. 30, 2023			(12,353,000)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(19,362)					(19,362)
Currency translation adjustment	(1,501)				(1,501)
Shares issued for employee benefit plan and compensation (in shares)		40,000
Shares issued for employee benefit plan and compensation	289			289
Purchase of treasury shares (in shares)			(3,000)
Purchase of treasury shares	(33)		$ (33)
Shares issued to directors (in shares)		7,000
Shares issued to directors	0
Employee and director stock-based compensation	2,135			2,135
Ending balance (in shares) at Sep. 30, 2023		25,301,000
Ending balance at Sep. 30, 2023	$ 181,527	$ 253	$ (369,082)	$ 334,683	$ (23,889)	$ 239,562
Ending balance (in shares) at Sep. 30, 2023	(12,356,603)		(12,356,000)

Leases - Lease Terms and Discount Rates (Details)	Sep. 30, 2023	Dec. 31, 2022
Leases [Abstract]
Weighted average lease liability term (in years)	4 years 10 months 24 days	5 years 1 month 6 days
Weighted average discount rate	4.53%	3.82%

Long-lived Tangible Assets - Long-lived Tangible Assets by Geographic Area (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Long-lived Assets from External Customers and Long-Lived Assets [Line Items]
Total long-lived tangible assets	$ 64,390	$ 84,390
United States
Long-lived Assets from External Customers and Long-Lived Assets [Line Items]
Total long-lived tangible assets	14,504	16,427
People's Republic of China
Long-lived Assets from External Customers and Long-Lived Assets [Line Items]
Total long-lived tangible assets	28,268	42,893
Mexico
Long-lived Assets from External Customers and Long-Lived Assets [Line Items]
Total long-lived tangible assets	9,494	14,402
Vietnam
Long-lived Assets from External Customers and Long-Lived Assets [Line Items]
Total long-lived tangible assets	7,902	6,923
All other countries
Long-lived Assets from External Customers and Long-Lived Assets [Line Items]
Total long-lived tangible assets	$ 4,222	$ 3,745

Inventories and Significant Supplier

9 Months Ended

Sep. 30, 2023

Inventory Disclosure [Abstract]

Inventories and Significant Supplier

Inventories were as follows:


(In thousands)	September 30, 2023		December 31, 2022
Raw materials	$	38,364	$	58,759
Components	13,119		25,226
Work in process	1,725		2,616
Finished goods	40,254		53,580
Inventories	$	93,462	$	140,181

Significant Supplier

There were no purchases from suppliers that totaled more than 10% of our total inventory purchases for the three months ended September 30, 2023 and 2022.

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


	Nine Months Ended September 30,
	2023		2022
	$ (thousands)	% of Total Inventory Purchases	$ (thousands)		% of Total Inventory Purchases
Qorvo International Pte Ltd.	(1)	(1)	$	23,185	10.3	%

(1) Purchases associated with this supplier did not total more than 10% of our total inventory purchases for the indicated period.

There were no trade payable balances from suppliers that totaled more than 10% of our total accounts payable at September 30, 2023 and December 31, 2022.

Goodwill and Intangible Assets, Net

9 Months Ended

Sep. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets, Net

Goodwill

During the nine months ended September 30, 2023, a decline in our financial performance, overall negative trend in the video service provider channel and an uncertain economic environment, contributed to a significant decline in our market capitalization. We considered this to be an impairment trigger. We, therefore, performed a quantitative valuation analysis under an income approach to estimate our reporting unit's fair value. The income approach used projections of estimated operating

results and cash flows that were discounted using a discount rate based on the weighted-average cost of capital. The main assumptions supporting the cash flow projections include, but are not limited to, revenue growth, margins, discount rate, and terminal growth rate. The financial projections reflect our best estimate of economic and market conditions over the projected period, including forecasted revenue growth, margins, capital expenditures, depreciation and amortization. In addition to our valuation analysis under an income approach, we also considered the implied control premium compared to our market capitalization.

We determined that the implied control premium over our market capitalization to be substantial; therefore, we recorded an impairment charge of $49.1 million during the nine months ended September 30, 2023.

Changes in the carrying amount of goodwill were as follows:


(In thousands)
Balance at December 31, 2022	$	49,085

Goodwill impairment	(49,075)
Foreign exchange effects	(10)
Balance at September 30, 2023	$	—

Intangible Assets, Net

The components of intangible assets, net were as follows:


	September 30, 2023						December 31, 2022
(In thousands)	Gross (1)		Accumulated Amortization (1)		Net		Gross (1)		Accumulated Amortization (1)		Net
Capitalized software development costs	$	2,078	$	(281)	$	1,797	$	1,647	$	(44)	$	1,603
Customer relationships	6,340		(3,622)		2,718		6,340		(3,080)		3,260
Developed and core technology	4,520		(3,966)		554		4,520		(3,693)		827
Distribution rights	304		(299)		5		308		(281)		27
Patents	32,509		(12,165)		20,344		29,388		(10,790)		18,598
Trademarks and trade names	450		(339)		111		450		(295)		155
Total intangible assets, net	$	46,201	$	(20,672)	$	25,529	$	42,653	$	(18,183)	$	24,470

(1)This table excludes the gross value of fully amortized intangible assets totaling $44.3 million and $43.7 million at September 30, 2023 and December 31, 2022, 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 September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Cost of sales	$	146	$	13	$	302	$	37
Selling, general and administrative expenses	1,119		1,018		3,282		2,928
Total amortization expense	$	1,265	$	1,031	$	3,584	$	2,965

Estimated future annual amortization expense related to our intangible assets at September 30, 2023, was as follows:


(In thousands)
2023 (remaining 3 months)	$	1,256
2024	5,103
2025	4,392
2026	3,583
2027	3,035
Thereafter	8,160
Total	$	25,529

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Income Tax Disclosure [Abstract]
Income tax expense	$ 3,262	$ 3,541	$ 3,392	$ 7,586
Valuation allowance	1,400		1,400
Unrecognized tax benefits	3,800		3,800
Unrecognized tax benefits that would impact effective rate	$ 3,300		$ 3,300

- Definition

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

+ References + Details

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2023	Dec. 31, 2022
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)	25,301,246	24,999,951
Treasury stock (in shares)	12,356,603	12,295,305

Cash, Cash Equivalents and Term Deposit (Tables)

9 Months Ended

Sep. 30, 2023

Cash and Cash Equivalents [Abstract]

Cash and Cash Equivalents by Geographic Region

Cash and cash equivalents were held in the following geographic regions:


(In thousands)	September 30, 2023		December 31, 2022
North America	$	10,603	$	6,825
People's Republic of China ("PRC")	3,556		15,633
Asia (excluding the PRC)	17,613		18,850
Europe	15,710		13,042
South America	12,597		12,390
Total cash and cash equivalents	$	60,079	$	66,740

Long-lived Tangible Assets (Tables)

9 Months Ended

Sep. 30, 2023

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)	September 30, 2023		December 31, 2022
United States	$	14,504	$	16,427
People's Republic of China	28,268		42,893
Mexico	9,494		14,402
Vietnam	7,902		6,923
All other countries	4,222		3,745
Total long-lived tangible assets	$	64,390	$	84,390

Accrued Compensation (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Payables and Accruals [Abstract]
Accrued bonus	$ 3,042	$ 3,348
Accrued commission	355	609
Accrued salary/wages	4,014	4,433
Accrued social insurance	8,442	7,037
Accrued vacation/holiday	3,396	3,300
Other accrued compensation	2,458	2,177
Total accrued compensation	21,707	$ 20,904
Accrued severance	$ 1,700

Business Combination - Narrative (Details) - Qterics, Inc. - USD ($)		3 Months Ended		9 Months Ended
	Feb. 17, 2022	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Business Combination
Cash consideration	$ 900,000
Net sales since acquisition date		$ 500,000	$ 500,000	$ 1,600,000	$ 1,400,000
Earnings (loss) since acquisition date		$ 28,000	$ (100,000)	$ 100,000	$ (25,000)

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Cash flows from operating activities:
Net income (loss)	$ (91,136)	$ 7,312
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities:
Depreciation and amortization	17,549	18,079
Provision for credit losses	69	(204)
Deferred income taxes	259	2,063
Shares issued for employee benefit plan	1,014	952
Employee and director stock-based compensation	6,833	7,575
Impairment of goodwill	49,075	0
Impairment of long-lived assets	7,794	0
Changes in operating assets and liabilities:
Accounts receivable and contract assets	(488)	(11,901)
Inventories	44,991	(8,477)
Prepaid expenses and other assets	4,981	1,734
Accounts payable and accrued liabilities	(21,289)	(17,201)
Accrued income taxes	424	171
Net cash provided by (used for) operating activities	20,076	103
Cash flows from investing activities:
Purchase of term deposit	0	(7,487)
Redemption of term deposit	0	7,609
Acquisition of net assets of Qterics, Inc.	0	(939)
Acquisitions of property, plant and equipment	(6,840)	(10,117)
Acquisitions of intangible assets	(4,643)	(4,719)
Net cash provided by (used for) investing activities	(11,483)	(15,653)
Cash flows from financing activities:
Borrowings under line of credit	35,000	83,000
Repayments on line of credit	(48,000)	(51,000)
Treasury stock purchased	(888)	(11,297)
Net cash provided by (used for) financing activities	(13,888)	20,703
Effect of foreign currency exchange rates on cash and cash equivalents	(1,366)	(4,285)
Net increase (decrease) in cash and cash equivalents	(6,661)	868
Cash and cash equivalents at beginning of period	66,740	60,813
Cash and cash equivalents at end of period	60,079	61,681
Supplemental cash flow information:
Income taxes paid	5,327	5,034
Interest paid	$ 5,431	$ 1,204

Business Combination - Purchase Price Allocation (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Business Combination
Goodwill	$ 0	$ 49,085
Qterics, Inc.
Business Combination
Estimated Lives, Property, plant and equipment (in years)	5 years
Term of contract, Operating lease ROU assets (in years)	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 (in years)	6 years
Finite-lived intangible assets	$ 1,340
Developed technology \| Qterics, Inc.
Business Combination
Estimated Lives (in years)	6 years
Finite-lived intangible assets	$ 440
Trade names \| Qterics, Inc.
Business Combination
Estimated Lives (in years)	6 years
Finite-lived intangible assets	$ 50

Stock-Based Compensation - Non-Vested Restricted Stock Award Activity (Details) shares in Thousands	9 Months Ended
	Sep. 30, 2023 $ / shares shares
Shares
Non-vested at beginning of period (in shares) \| shares	376
Granted (in shares) \| shares	340
Vested (in shares) \| shares	(196)
Forfeited (in shares) \| shares	(4)
Non-vested at end of period (in shares) \| shares	516
Weighted-Average Grant Date Fair Value
Non-vested at beginning of period (in dollars per share) \| $ / shares	$ 36.82
Granted (in dollars per share) \| $ / shares	14.15
Vested (in dollars per share) \| $ / shares	36.86
Forfeited (in dollars per share) \| $ / shares	38.19
Non-vested at end of period (in dollars per share) \| $ / shares	$ 21.83

Income Taxes	9 Months Ended
Income Taxes	Sep. 30, 2023
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes We recorded income tax expense of $3.3 million and $3.5 million for the three months ended September 30, 2023 and 2022, respectively. We recorded income tax expense of $3.4 million and $7.6 million for the nine months ended September 30, 2023 and 2022, respectively. The difference in income tax expense recorded for the nine months ended September 30, 2023 and 2022 is 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 September 30, 2023 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, 2022, 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 the scheduled reversal of deferred tax liabilities, tax planning strategies and projected future taxable income in making this assessment. At December 31, 2022, 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 nine months ended September 30, 2023, there was no change to our U.S. valuation allowance position. Additionally, during the nine months ended September 30, 2023, we have recorded a full valuation allowance of $1.4 million against the deferred tax assets related to our southwestern China factory due to the commencement of its shutdown. At September 30, 2023, we had gross unrecognized tax benefits of $3.8 million, including interest and penalties, which, if not for the valuation allowance recorded against the state Research and Experimentation income tax credit, $3.3 million 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 September 30, 2023 and December 31, 2022 and are included in the unrecognized tax benefits.

- Definition

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.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-13

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//740/tableOfContent

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-14

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-21

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 270
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482526/740-270-50-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 17
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-17

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.5.Q1)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479360/740-10-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479360/740-10-S99-2

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 30
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482603/740-30-50-2

+ Details

Revenue and Accounts Receivable, Net (Tables)

9 Months Ended

Sep. 30, 2023

Receivables [Abstract]

Pattern of Revenue Recognition

The pattern of revenue recognition was as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands)	2023		2022		2023		2022
Goods and services transferred at a point in time	$	83,855	$	127,672	$	249,908	$	355,113
Goods and services transferred over time	23,240		20,810		72,955		64,880
Net sales	$	107,095	$	148,482	$	322,863	$	419,993

Revenue from External Customers by Geographic Areas

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


	Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands)	2023		2022		2023		2022
United States	$	31,737	$	46,732	$	97,892	$	130,196
Asia (excluding PRC)	20,107		32,614		66,508		100,000
Europe	22,529		27,358		68,598		76,382
People's Republic of China	19,049		26,696		49,082		68,604
Latin America	8,227		7,602		24,408		20,996
Other	5,446		7,480		16,375		23,815
Total net sales	$	107,095	$	148,482	$	322,863	$	419,993

Net Sales to Significant Customers

Net sales to the following customers totaled more than 10% of our net sales:


	Three Months Ended September 30,
	2023				2022
	$ (thousands)		% of Net Sales		$ (thousands)		% of Net Sales
Comcast Corporation	(1)		(1)		$	23,615	15.9	%
Daikin Industries Ltd.	$	15,194	14.2	%	$	21,381	14.4	%
Sony Corporation	$	11,825	11.0	%	(1)		(1)

(1) Net sales associated with this customer did not total more than 10% of our net sales for the indicated period.


	Nine Months Ended September 30,
	2023				2022
	$ (thousands)		% of Net Sales		$ (thousands)		% of Net Sales
Comcast Corporation	$	34,436	10.7	%	$	62,222	14.8	%
Daikin Industries Ltd.	$	48,401	15.0	%	$	59,397	14.1	%

Accounts Receivable, Net and Changes in the Allowance for Doubtful Accounts

Accounts receivable, net were as follows:


(In thousands)	September 30, 2023		December 31, 2022
Trade receivables, gross	$	107,625	$	108,030
Allowance for credit losses	(819)		(957)
Allowance for sales returns	(487)		(618)
Trade receivables, net	106,319		106,455
Other (1)	6,202		5,891
Accounts receivable, net	$	112,521	$	112,346

(1)Other accounts receivable is primarily comprised of value added tax and supplier rebate receivables.

Changes in the allowance for credit losses were as follows:


(In thousands)	Nine Months Ended September 30,
	2023		2022
Balance at beginning of period	$	957	$	1,285
Additions (reductions) to costs and expenses	69		(204)

Write-offs/Foreign exchange effects	(207)		(135)
Balance at end of period	$	819	$	946

Trade Receivables Associated with Significant Customers

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


	September 30, 2023				December 31, 2022
	$ (thousands)		% of Accounts Receivable, Net		$ (thousands)		% of Accounts Receivable, Net
Comcast Corporation	(1)		(1)		$	15,367	13.7	%
Sony Corporation	$	12,371	11.0	%	(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 Accrued Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Payables and Accruals [Abstract]
Contract liabilities	$ 2,065	$ 1,134
Duties	1,131	470
Expense associated with fulfilled performance obligations	1,344	1,120
Freight and handling fees	2,411	2,497
Interest	517	1,413
Operating lease obligations	4,770	5,509
Product warranty claims costs	522	522
Professional fees	1,569	2,293
Sales and value added taxes	2,908	3,750
Other	4,477	5,426
Total other accrued liabilities	$ 21,714	$ 24,134

Goodwill and Intangible Assets, Net (Tables)

9 Months Ended

Sep. 30, 2023

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, 2022	$	49,085

Goodwill impairment	(49,075)
Foreign exchange effects	(10)
Balance at September 30, 2023	$	—

Components of Intangible Assets, Net

The components of intangible assets, net were as follows:


	September 30, 2023						December 31, 2022
(In thousands)	Gross (1)		Accumulated Amortization (1)		Net		Gross (1)		Accumulated Amortization (1)		Net
Capitalized software development costs	$	2,078	$	(281)	$	1,797	$	1,647	$	(44)	$	1,603
Customer relationships	6,340		(3,622)		2,718		6,340		(3,080)		3,260
Developed and core technology	4,520		(3,966)		554		4,520		(3,693)		827
Distribution rights	304		(299)		5		308		(281)		27
Patents	32,509		(12,165)		20,344		29,388		(10,790)		18,598
Trademarks and trade names	450		(339)		111		450		(295)		155
Total intangible assets, net	$	46,201	$	(20,672)	$	25,529	$	42,653	$	(18,183)	$	24,470

(1)This table excludes the gross value of fully amortized intangible assets totaling $44.3 million and $43.7 million at September 30, 2023 and December 31, 2022, respectively.

Finite-lived Intangible Assets Amortization Expense

Amortization expense by statement of operations caption was as follows:


(In thousands)	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Cost of sales	$	146	$	13	$	302	$	37
Selling, general and administrative expenses	1,119		1,018		3,282		2,928
Total amortization expense	$	1,265	$	1,031	$	3,584	$	2,965

Estimated Future Amortization Expense Related to Intangible Assets

Estimated future annual amortization expense related to our intangible assets at September 30, 2023, was as follows:


(In thousands)
2023 (remaining 3 months)	$	1,256
2024	5,103
2025	4,392
2026	3,583
2027	3,035
Thereafter	8,160
Total	$	25,529

- Definition

Tabular disclosure of goodwill by reportable segment and in total which includes a rollforward schedule.

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+ Details

Cover Page - shares	9 Months Ended
Cover Page - shares	Sep. 30, 2023	Nov. 03, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2023
Document Transition Report	false
Entity File Number	0-21044
Entity Registrant Name	UNIVERSAL ELECTRONICS INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	33-0204817
Entity Address, Address Line One	15147 N. Scottsdale Road, Suite H300
Entity Address, City or Town	Scottsdale
Entity Address, State or Province	AZ
Entity Address, Postal Zip Code	85254-2494
City Area Code	480
Local Phone Number	530-3000
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	UEIC
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		12,952,143
Document Fiscal Period Focus	Q3
Amendment Flag	false
Document Fiscal Year Focus	2023
Current Fiscal Year End Date	--12-31
Entity Central Index Key	0000101984

Other Income (Expense)

9 Months Ended

Sep. 30, 2023

Other Income and Expenses [Abstract]

Other Income (Expense)

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


	Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands)	2023		2022		2023		2022
Net gain (loss) on foreign currency exchange contracts (1)	$	19	$	(550)	$	(2,788)	$	518
Net gain (loss) on foreign currency exchange transactions	(1,085)		476		545		(534)
Other income (expense)	215		20		476		(372)
Other income (expense), net	$	(851)	$	(54)	$	(1,767)	$	(388)

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

Commitments and Contingencies (Tables)

9 Months Ended

Sep. 30, 2023

Commitments and Contingencies Disclosure [Abstract]

Changes in the Liability for Product Warranty Claim Costs

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


(In thousands)	Nine Months Ended September 30,
	2023		2022
Balance at beginning of period	$	522	$	1,095
Accruals for warranties issued during the period	—		249
Settlements (in cash or in kind) during the period	—		(552)
Foreign currency translation gain (loss)	—		(3)
Balance at end of period	$	522	$	789

Restructuring and Related Costs

Restructuring activities for the nine months ended September 30, 2023 are as follows:


	Restructuring Costs
(In thousands)	Total		Severance Expense		Other Exit Expense
Balance at December 31, 2022	$	—	$	—	$	—
Restructuring charges	3,690		3,415		275
Cash payments	(1,827)		(1,691)		(136)
Other adjustments	—		—		—
Balance at September 30, 2023	$	1,863	$	1,724	$	139
Total costs incurred inception to date	$	3,690	$	3,415	$	275
Total expected expense to be incurred as of September 30, 2023	$	—	$	—	$	—

Stock-Based Compensation - Stock-based Compensation Expense and Related Income Tax Benefit (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Employee and director stock-based compensation expense	$ 2,135	$ 2,439	$ 6,833	$ 7,575
Income tax benefit	326	397	1,073	1,265
Cost of sales
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Employee and director stock-based compensation expense	32	38	94	117
Research and development expenses
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Employee and director stock-based compensation expense	283	326	817	1,004
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	1,726	1,842	5,398	5,421
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	$ 94	$ 233	$ 524	$ 1,033

Leases - Reconciliation of the Undiscounted Cash Flows for Each of the First Five Years and Thereafter to Operating Lease Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Leases [Abstract]
2023 (remaining 3 months)	$ 1,230
2024	5,144
2025	3,908
2026	2,918
2027	2,158
Thereafter	3,084
Total lease payments	18,442
Less: imputed interest	(2,119)
Total lease liabilities	$ 16,323	$ 20,536

Earnings (Loss) Per Share - Calculation of Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2023	Sep. 30, 2022
BASIC
Net income (loss)	$ (19,362)	$ (10,411)	$ (61,363)	$ 7,234	$ 2,988	$ (2,910)	$ (91,136)	$ 7,312
Weighted-average common shares outstanding, basic (in shares)	12,911			12,656			12,839	12,709
Basic earnings (loss) per share (in dollars per share)	$ (1.50)			$ 0.57			$ (7.10)	$ 0.58
DILUTED
Net income (loss)	$ (19,362)	$ (10,411)	$ (61,363)	$ 7,234	$ 2,988	$ (2,910)	$ (91,136)	$ 7,312
Weighted-average common shares outstanding, basic (in shares)	12,911			12,656			12,839	12,709
Dilutive effect of stock options, restricted stock and common stock warrants (in shares)	0			40			0	88
Weighted-average common shares outstanding on a diluted basis (in shares)	12,911			12,696			12,839	12,797
Diluted earnings (loss) per share (in dollars per share)	$ (1.50)			$ 0.57			$ (7.10)	$ 0.57

- Definition

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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- Definition

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

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+ Details

Accrued Compensation

9 Months Ended

Sep. 30, 2023

Payables and Accruals [Abstract]

Accrued Compensation

The components of accrued compensation were as follows:


(In thousands)	September 30, 2023		December 31, 2022
Accrued bonus	$	3,042	$	3,348
Accrued commission	355		609
Accrued salary/wages (1)	4,014		4,433
Accrued social insurance (2)	8,442		7,037
Accrued vacation/holiday	3,396		3,300
Other accrued compensation	2,458		2,177
Total accrued compensation	$	21,707	$	20,904

The components of other accrued liabilities were as follows:


(In thousands)	September 30, 2023		December 31, 2022
Contract liabilities	$	2,065	$	1,134
Duties	1,131		470
Expense associated with fulfilled performance obligations	1,344		1,120
Freight and handling fees	2,411		2,497
Interest	517		1,413
Operating lease obligations	4,770		5,509
Product warranty claims costs	522		522
Professional fees	1,569		2,293
Sales and value added taxes	2,908		3,750

Other	4,477		5,426
Total other accrued liabilities	$	21,714	$	24,134

Goodwill and Intangible Assets, Net - Estimated Future Annual Amortization Expense Related to Intangible Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Schedule of Estimated Future Amortization expense
2023 (remaining 3 months)	$ 1,256
2024	5,103
2025	4,392
2026	3,583
2027	3,035
Thereafter	8,160
Total	$ 25,529	$ 24,470

Commitments and Contingencies - Changes in the Liability for Product Warranty Claim Costs (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Schedule of Changes in Reserve for Product Warranty Claim Costs
Balance at beginning of period	$ 522	$ 1,095
Accruals for warranties issued during the period	0	249
Settlements (in cash or in kind) during the period	0	(552)
Foreign currency translation gain (loss)	0	(3)
Balance at end of period	$ 522	$ 789

Commitments and Contingencies

9 Months Ended

Sep. 30, 2023

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Product Warranties

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


(In thousands)	Nine Months Ended September 30,
	2023		2022
Balance at beginning of period	$	522	$	1,095
Accruals for warranties issued during the period	—		249
Settlements (in cash or in kind) during the period	—		(552)
Foreign currency translation gain (loss)	—		(3)
Balance at end of period	$	522	$	789

Restructuring Activities

In September 2023, we began implementing our plan to restructure and optimize our manufacturing footprint while reducing our concentration risk in the PRC. In conjunction with this plan, as of September 30, 2023, we have stopped all production activities and commenced the shutdown of our southwestern China factory. As a result, we incurred severance and equipment moving costs of $3.4 million and $0.3 million, respectively, during the three and nine months ended September 30, 2023, which are included within factory restructuring charges on our consolidated statements of operations. We expect the completion date of this factory restructuring to be in the first quarter of 2024 with total estimated restructuring charges of $3.7 million.

The restructuring liabilities are included in accrued compensation and other accrued liabilities on our consolidated balance sheets. Restructuring activities for the nine months ended September 30, 2023 are as follows:


	Restructuring Costs
(In thousands)	Total		Severance Expense		Other Exit Expense
Balance at December 31, 2022	$	—	$	—	$	—
Restructuring charges	3,690		3,415		275
Cash payments	(1,827)		(1,691)		(136)
Other adjustments	—		—		—
Balance at September 30, 2023	$	1,863	$	1,724	$	139
Total costs incurred inception to date	$	3,690	$	3,415	$	275
Total expected expense to be incurred as of September 30, 2023	$	—	$	—	$	—

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 requests for Inter Partes Review ("IPR") (see discussion below). This lawsuit continues to be stayed until such time as the IPR's 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 dismissed TCL, Hisense and Funai from this investigation as they either removed or limited the amount of our technology from their televisions as compared to our patent claims that we asserted at the time. 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 (the "Tariff Act"). 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 (the "LEO") and Cease and Desist Order (the "CDO") against Roku, which became effective on January 9, 2022, and later this month, Roku filed its appeal of the ITC ruling with the Federal Circuit Court of Appeals. Oral argument for this appeal occurred on September 5, 2023 and we expect a decision in the fourth quarter of 2023. Meanwhile, Roku continues to be subject to the LEO and CDO.

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 fourteen times, and granted Roku's request twelve times. Roku has since filed two IPRs on two of our patents not yet asserted against it, and we are awaiting the PTAB's institution decision with respect to those new IPR requests. Of the twelve 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 appealed all but one PTAB decision that resulted in an invalidation of our patent claims and we will continue to do so.

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, the '511 patent and the '875 patent. On May 10, 2021, the ITC announced its decision to initiate the requested investigation. Immediately prior to trial Roku stipulated to summary determination as to its complaint against us and two of our customers with respect to one of the two patents at issue. This stipulation resulted in the complaint against us and two of our customers with respect to that patent not going to trial. The trial was thus shortened and ended on January 24, 2022. On June 24, 2022, the ALJ, pursuant to Roku's stipulation, found the '511 patent invalid as indefinite. Thereafter, on June 28, 2022, the ALJ issued her ID fully exonerating us and our customers finding the '875 patent invalid and that Roku failed to prove it established the requisite domestic industry and thus no violation of the Tariff Act. In advance of the full Commission's review, Roku and we filed petitions to appeal certain portions of the ID. In addition, the PTAB granted our request for an IPR with respect to the '875 patent. On October 28, 2022, the full ITC issued its final determination affirming the ID, ruling there was no violation of the Tariff Act and terminated the investigation. In December 2022, Roku filed an appeal, which remains pending. In addition, Roku, along with the ITC, filed a joint motion to dismiss the '511 patent as moot as it recently expired. We are opposing this motion. Further, on October 23, 2023, the PTBA issued its Final Written Decision invalidating all of the claims Roku alleges we infringe. As a companion to its ITC request, Roku also filed a lawsuit against us in Federal District Court in the Central District of California alleging that we are infringing the same two patents they alleged being infringed in the ITC investigation explained above. This District Court case has been stayed pending the ITC case, and will likely continue to be stayed pending the conclusion of Roku's appeal of the ITC case.

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, Ecolink, RCS and we 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. Ecolink, RCS and we 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.

Ecolink, RCS and we 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 Ecolink, RCS and us; to permanently enjoin the U.S. government from applying Lists 3 and 4A duties against Ecolink, RCS and us; and award Ecolink, RCS and us 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 initially set a deadline of June 30, 2022, for the USTR to complete this process, which was extended to August 1, 2022.

On August 1, 2022, the USTR provided the Court with that further explanation and also purported to respond to the significant comments received during the original notice-and-comment process. On September 14, 2022, the lead plaintiff filed its comments to the USTR's August 1, 2022 filing, asserting that the USTR did not adequately respond to the Court's remand order and requested the Court to vacate the List 3 and List 4A tariffs and issue refunds immediately. On March 17, 2023, the CIT sustained the List 3 and List 4 tariffs, concluding that USTR’s rationale in support of the tariffs was not impermissibly post hoc. The court also concluded that USTR adequately explained its reliance on presidential direction and adequately responded to significant comments regarding the harm to the U.S. economy, efficacy of the tariffs, and alternatives to the tariffs. Lead plaintiffs have appealed this decision and on July 17, 2023, the lead plaintiffs filed its opening brief to this appeal.

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 Supplier (Tables)

9 Months Ended

Sep. 30, 2023

Inventory Disclosure [Abstract]

Summary of Inventories

Inventories were as follows:


(In thousands)	September 30, 2023		December 31, 2022
Raw materials	$	38,364	$	58,759
Components	13,119		25,226
Work in process	1,725		2,616
Finished goods	40,254		53,580
Inventories	$	93,462	$	140,181

Purchases from Significant Suppliers

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


	Nine Months Ended September 30,
	2023		2022
	$ (thousands)	% of Total Inventory Purchases	$ (thousands)		% of Total Inventory Purchases
Qorvo International Pte Ltd.	(1)	(1)	$	23,185	10.3	%

(1) Purchases associated with this supplier did not total more than 10% of our total inventory purchases for the indicated period.

Derivatives

9 Months Ended

Sep. 30, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives

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


	September 30, 2023								December 31, 2022
	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	$	—	$	257	$	—	$	257	$	—	$	100	$	—	$	100

We held foreign currency exchange contracts, which resulted in a net pre-tax gain of $19 thousand and pre-tax loss of $0.6 million for the three months ended September 30, 2023 and 2022, respectively. For the nine months ended September 30, 2023 and 2022, we had a net pre-tax loss of $2.8 million and pre-tax gain of $0.5 million, 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
September 30, 2023	USD/Chinese Yuan Renminbi	CNY	$	33.0	7.2593	$	(162)	October 20, 2023
September 30, 2023	USD/Euro	USD	$	18.0	1.0826	$	419	October 6, 2023
December 31, 2022	USD/Euro	USD	$	26.0	1.0529	$	(428)	January 6, 2023
December 31, 2022	USD/Chinese Yuan Renminbi	CNY	$	31.0	7.0358	$	528	January 6, 2023

(1)Unrealized gains on foreign currency exchange contracts are recorded in prepaid expenses and other current assets. Unrealized losses on foreign currency exchange contracts are recorded in other accrued liabilities.

Business Combination

9 Months Ended

Sep. 30, 2023

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 and nine months ended September 30, 2023 includes net sales of $0.5 million and $1.6 million, respectively, and net income of $28 thousand and $0.1 million, respectively, attributable to Qterics. Our consolidated income statement for the three and nine months ended September 30, 2022 includes net sales of $0.5 million and $1.4 million, respectively, and net loss of $0.1 million and $25 thousand, respectively, 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.

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 fair values on the acquisition date. 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 purchase price allocation was as follows:


(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 (1)		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

(1)Our consolidated goodwill balance was impaired during the nine months ended September 30, 2023. Please see Note 6 for further information.

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 nine months ended September 30, 2022.

Line of Credit	9 Months Ended
Line of Credit	Sep. 30, 2023
Debt Disclosure [Abstract]
Line of Credit	Line of Credit On May 3, 2023, we executed an amendment to our Second Amended and Restated Credit Agreement ("Second Amended Credit Agreement") with U.S. Bank National Association ("U.S. Bank"), which provides for a $125.0 million revolving line of credit ("Credit Line"). Among other things, the amendment to the Second Amended Credit Agreement extended the maturity of the revolving line of credit to April 30, 2024. 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 none at September 30, 2023 and December 31, 2022. 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 the Secured Overnight Financing Rate ("SOFR") plus an applicable margin (varying from 2.00% to 2.75%), 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 0.75%). 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 September 30, 2023 and December 31, 2022 were 8.05% and 5.62%, respectively. There are no commitment fees or unused line fees under the Second Amended Credit Agreement. 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. From May 3, 2023 to March 31, 2024 (unless we elect to terminate earlier), our fixed charge coverage ratio and cash flow leverage ratio-based covenants are temporarily replaced with EBITDA-based covenants. Additionally, from May 3, 2023 to March 31, 2024 (unless we elect to terminate the temporary covenant provision earlier), the applicable margins are fixed at 2.75% and 0.75% for SOFR and base rate borrowing, respectively. At September 30, 2023, we were in compliance with the covenants and conditions of the Second Amended Credit Agreement. At September 30, 2023 and December 31, 2022, we had $75.0 million and $88.0 million outstanding under the Credit Line, respectively. Our total interest expense on borrowings was $1.6 million and $1.0 million during the three months ended September 30, 2023 and 2022, respectively. Our total interest expense on borrowings was $4.5 million and $1.9 million during the nine months ended September 30, 2023 and 2022, respectively.

- Definition

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.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(c))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 470
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//470/tableOfContent

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
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-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Publisher FASB
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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-Paragraph 1B
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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
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-Paragraph 1B
-Subparagraph (i)
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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-Publisher FASB
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
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-Subparagraph (c)
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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-Subparagraph (a)
-Publisher FASB
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
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-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

+ Details

Basis of Presentation	9 Months Ended
Basis of Presentation	Sep. 30, 2023
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, except for the impairment and restructuring charges, as described in notes 5, 6 and 12 to the consolidated financial statements. 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 and nine months ended September 30, 2023 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, 2022. 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 and stock-based compensation expense. Actual results may differ from these assumptions and estimates, and they may be adjusted as more information becomes available. Any adjustment may be material. Summary of Significant Accounting Policies See Note 2 to the consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2022 for a summary of our significant accounting policies. Recently Adopted Accounting Pronouncements None. Recent Accounting Updates Not Yet Effective None.

Revenue and Accounts Receivable, Net - Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Schedule of Allowance for Doubtful Accounts
Balance at beginning of period	$ 957	$ 1,285
Additions (reductions) to costs and expenses	69	(204)
Write-offs/Foreign exchange effects	(207)	(135)
Balance at end of period	$ 819	$ 946

Derivatives (Tables)

9 Months Ended

Sep. 30, 2023

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:


	September 30, 2023								December 31, 2022
	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	$	—	$	257	$	—	$	257	$	—	$	100	$	—	$	100

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
September 30, 2023	USD/Chinese Yuan Renminbi	CNY	$	33.0	7.2593	$	(162)	October 20, 2023
September 30, 2023	USD/Euro	USD	$	18.0	1.0826	$	419	October 6, 2023
December 31, 2022	USD/Euro	USD	$	26.0	1.0529	$	(428)	January 6, 2023
December 31, 2022	USD/Chinese Yuan Renminbi	CNY	$	31.0	7.0358	$	528	January 6, 2023

- Definition

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.

+ References + Details

Stock-Based Compensation (Tables)

9 Months Ended

Sep. 30, 2023

Share-Based Payment Arrangement [Abstract]

Stock-based Compensation Expense and Related Income Tax Benefit

Stock-based compensation expense by statement of operations caption and the related income tax benefit were as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands)	2023		2022		2023		2022
Cost of sales	$	32	$	38	$	94	$	117
Research and development expenses	283		326		817		1,004
Selling, general and administrative expenses:
Employees	1,726		1,842		5,398		5,421
Outside directors	94		233		524		1,033
Total employee and director stock-based compensation expense	$	2,135	$	2,439	$	6,833	$	7,575
Income tax benefit	$	326	$	397	$	1,073	$	1,265

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, 2022	782	$	44.16
Granted	236	24.77
Exercised	—	—			$	—
Forfeited/canceled/expired	(93)	51.39
Outstanding at September 30, 2023 (1)	925	$	38.49	3.98	$	—
Vested and expected to vest at September 30, 2023 (1)	925	$	38.49	3.98	$	—
Exercisable at September 30, 2023 (1)	604	$	44.06	2.80	$	—

(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 third quarter of 2023 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 September 30, 2023. This amount will change based on the fair market value of our stock.

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 September 30,						Nine Months Ended September 30,
	2023			2022			2023			2022
Weighted average fair value of grants	$	—		$	12.38		$	10.83		$	14.51
Risk-free interest rate	—		%	2.82		%	3.86		%	1.93		%
Expected volatility	—		%	48.92		%	45.89		%	49.35		%
Expected life in years	0.00			5.19			4.70			4.73

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, 2022	376	$	36.82
Granted	340	14.15
Vested	(196)	36.86
Forfeited	(4)	38.19
Non-vested at September 30, 2023	516	$	21.83

Revenue and Accounts Receivable, Net - Revenue from External Customers by Geographic Areas (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Disaggregation of Revenue [Line Items]
Net sales	$ 107,095	$ 148,482	$ 322,863	$ 419,993
United States
Disaggregation of Revenue [Line Items]
Net sales	31,737	46,732	97,892	130,196
Asia (excluding PRC)
Disaggregation of Revenue [Line Items]
Net sales	20,107	32,614	66,508	100,000
Europe
Disaggregation of Revenue [Line Items]
Net sales	22,529	27,358	68,598	76,382
People's Republic of China
Disaggregation of Revenue [Line Items]
Net sales	19,049	26,696	49,082	68,604
Latin America
Disaggregation of Revenue [Line Items]
Net sales	8,227	7,602	24,408	20,996
Other
Disaggregation of Revenue [Line Items]
Net sales	$ 5,446	$ 7,480	$ 16,375	$ 23,815

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References + Details

- Definition

+ References

+ Details

Other Income (Expense) - Schedule of Other Income (Expense) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Other Income and Expenses [Abstract]
Net gain (loss) on foreign currency exchange contracts	$ 19	$ (550)	$ (2,788)	$ 518
Net gain (loss) on foreign currency exchange transactions	(1,085)	476	545	(534)
Other income (expense)	215	20	476	(372)
Other income (expense), net	$ (851)	$ (54)	$ (1,767)	$ (388)

Revenue and Accounts Receivable, Net - Net Sales to Significant Customers (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Disaggregation of Revenue [Line Items]
Net sales	$ 107,095	$ 148,482	$ 322,863	$ 419,993
Comcast Corporation
Disaggregation of Revenue [Line Items]
Net sales		$ 23,615	$ 34,436	$ 62,222
Comcast Corporation \| Customer concentration risk \| Net sales
Disaggregation of Revenue [Line Items]
Concentration risk, percentage		15.90%	10.70%	14.80%
Daikin Industries Ltd.
Disaggregation of Revenue [Line Items]
Net sales	$ 15,194	$ 21,381	$ 48,401	$ 59,397
Daikin Industries Ltd. \| Customer concentration risk \| Net sales
Disaggregation of Revenue [Line Items]
Concentration risk, percentage	14.20%	14.40%	15.00%	14.10%
Sony Corporation
Disaggregation of Revenue [Line Items]
Net sales	$ 11,825
Sony Corporation \| Customer concentration risk \| Net sales
Disaggregation of Revenue [Line Items]
Concentration risk, percentage	11.00%

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References + Details

- Definition

+ References

+ Details

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 60,079	$ 66,740
Accounts receivable, net	112,521	112,346
Contract assets	8,133	7,996
Inventories	93,462	140,181
Prepaid expenses and other current assets	5,809	6,647
Income tax receivable	2,387	4,130
Total current assets	282,391	338,040
Property, plant and equipment, net	46,613	62,791
Goodwill	0	49,085
Intangible assets, net	25,529	24,470
Operating lease right-of-use assets	17,777	21,599
Deferred income taxes	4,472	6,242
Other assets	1,558	1,936
Total assets	378,340	504,163
Current liabilities:
Accounts payable	54,776	71,373
Line of credit	75,000	88,000
Accrued compensation	21,707	20,904
Accrued sales discounts, rebates and royalties	5,060	6,477
Accrued income taxes	4,261	5,585
Other accrued liabilities	21,714	24,134
Total current liabilities	182,518	216,473
Long-term liabilities:
Operating lease obligations	11,553	15,027
Deferred income taxes	1,280	2,724
Income tax payable	723	723
Other long-term liabilities	739	810
Total liabilities	196,813	235,757
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; 25,301,246 and 24,999,951 shares issued on September 30, 2023 and December 31, 2022, respectively	253	250
Paid-in capital	334,683	326,839
Treasury stock, at cost, 12,356,603 and 12,295,305 shares on September 30, 2023 and December 31, 2022, respectively	(369,082)	(368,194)
Accumulated other comprehensive income (loss)	(23,889)	(21,187)
Retained earnings	239,562	330,698
Total stockholders' equity	181,527	268,406
Total liabilities and stockholders' equity	$ 378,340	$ 504,163

Derivatives - Foreign Currency Exchange Contracts (Details) - Not designated as hedging instrument $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2023 USD ($) $ / ¥ $ / €	Dec. 31, 2022 USD ($) $ / ¥ $ / €
China, Yuan Renminbi
Derivative [Line Items]
Notional Value	$ 33,000	$ 31,000
Forward Rate	7.2593	7.0358
Unrealized Gain/(Loss) Recorded at Balance Sheet Date	$ (162)	$ 528
Euro Member Countries, Euro
Derivative [Line Items]
Notional Value	$ 18,000	$ 26,000
Forward Rate	1.0826	1.0529
Unrealized Gain/(Loss) Recorded at Balance Sheet Date	$ 419	$ (428)

Earnings (Loss) Per Share (Tables)

9 Months Ended

Sep. 30, 2023

Earnings Per Share [Abstract]

Calculation of Earnings Per Share

Earnings (loss) per share was calculated as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands, except per-share amounts)	2023		2022		2023		2022
BASIC
Net income (loss)	$	(19,362)	$	7,234	$	(91,136)	$	7,312
Weighted-average common shares outstanding	12,911		12,656		12,839		12,709
Basic earnings (loss) per share	$	(1.50)	$	0.57	$	(7.10)	$	0.58

DILUTED
Net income (loss)	$	(19,362)	$	7,234	$	(91,136)	$	7,312
Weighted-average common shares outstanding for basic	12,911		12,656		12,839		12,709
Dilutive effect of stock options, restricted stock and common stock warrants	—		40		—		88
Weighted-average common shares outstanding on a diluted basis	12,911		12,696		12,839		12,797
Diluted earnings (loss) per share	$	(1.50)	$	0.57	$	(7.10)	$	0.57

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

The following number of stock options, shares of restricted stock and common stock warrants were excluded from the computation of diluted earnings per common share as their inclusion would have been anti-dilutive:


	Three Months Ended September 30,		Nine Months Ended September 30,
(In thousands)	2023	2022	2023	2022
Stock options	925	780	892	653
Restricted stock awards	513	315	421	221
Common stock warrants	—	275	—	275

Stock-Based Compensation

9 Months Ended

Sep. 30, 2023

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 September 30,				Nine Months Ended September 30,
(In thousands)	2023		2022		2023		2022
Cost of sales	$	32	$	38	$	94	$	117
Research and development expenses	283		326		817		1,004
Selling, general and administrative expenses:
Employees	1,726		1,842		5,398		5,421
Outside directors	94		233		524		1,033
Total employee and director stock-based compensation expense	$	2,135	$	2,439	$	6,833	$	7,575
Income tax benefit	$	326	$	397	$	1,073	$	1,265

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, 2022	782	$	44.16
Granted	236	24.77
Exercised	—	—			$	—
Forfeited/canceled/expired	(93)	51.39
Outstanding at September 30, 2023 (1)	925	$	38.49	3.98	$	—
Vested and expected to vest at September 30, 2023 (1)	925	$	38.49	3.98	$	—
Exercisable at September 30, 2023 (1)	604	$	44.06	2.80	$	—

that would have been received by the option holders had they all exercised their options on September 30, 2023. 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 September 30,						Nine Months Ended September 30,
	2023			2022			2023			2022
Weighted average fair value of grants	$	—		$	12.38		$	10.83		$	14.51
Risk-free interest rate	—		%	2.82		%	3.86		%	1.93		%
Expected volatility	—		%	48.92		%	45.89		%	49.35		%
Expected life in years	0.00			5.19			4.70			4.73

As of September 30, 2023, we expect to recognize $3.2 million of total unrecognized pre-tax stock-based compensation expense related to non-vested stock options over a remaining weighted-average life of 1.9 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, 2022	376	$	36.82
Granted	340	14.15
Vested	(196)	36.86
Forfeited	(4)	38.19
Non-vested at September 30, 2023	516	$	21.83

As of September 30, 2023, we expect to recognize $8.2 million of total unrecognized pre-tax stock-based compensation expense related to non-vested restricted stock awards over a weighted-average life of 1.8 years.

Leases - Lease Balances within the Consolidated Balance Sheet (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Assets:
Operating lease right-of-use assets	$ 17,777	$ 21,599
Liabilities:
Lease liability location within the Consolidated Balance Sheets	Other Accrued Liabilities, Current	Other Accrued Liabilities, Current
Other accrued liabilities	$ 4,770	$ 5,509
Long-term operating lease obligations	11,553	15,027
Total lease liabilities	$ 16,323	$ 20,536

CONSOLIDATED COMPREHENSIVE INCOME (LOSS) STATEMENTS - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ (19,362)	$ 7,234	$ (91,136)	$ 7,312
Other comprehensive income (loss):
Change in foreign currency translation adjustment	(1,501)	(7,367)	(2,702)	(12,831)
Comprehensive income (loss)	$ (20,863)	$ (133)	$ (93,838)	$ (5,519)

- Definition

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

+ References

+ Details

Derivatives - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Derivatives - Narrative (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Derivative Instruments,Gain (Loss) [Line Items]
Net gain (loss) on foreign currency exchange contracts	$ 19	$ (550)	$ (2,788)	$ 518
Not designated as hedging instrument \| Foreign currency exchange contracts
Derivative Instruments,Gain (Loss) [Line Items]
Net gain (loss) on foreign currency exchange contracts	$ 19	$ (600)	$ (2,800)	$ 500

Treasury Stock

9 Months Ended

Sep. 30, 2023

Equity [Abstract]

Treasury Stock

From time to time, our Board of Directors authorizes management to repurchase shares of our issued and outstanding common stock. On October 26, 2023, our Board approved a new share repurchase program with an effective date of November 7, 2023 (the "October 2023 Program"). Pursuant to the October 2023 Program, we are authorized to repurchase up to 1,000,000 shares of our common stock. Per the terms of the October 2023 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 could be effected through Rule 10b5-1 plans.

We also repurchase shares of our issued and outstanding common stock to satisfy the cost of stock option exercises and/or income tax withholding obligations relating to the stock-based compensation of our employees and directors.

Repurchased shares of our common stock were as follows:


	Nine Months Ended September 30,
(In thousands)	2023		2022
Open market shares repurchased	—		300
Stock-based compensation related shares repurchased	61		58
Total shares repurchased	61		358

Cost of open market shares repurchased	$	—	$	9,438
Cost of stock-based compensation related shares repurchased	888		1,859
Total cost of shares repurchased	$	888	$	11,297

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.

Leases - Narrative (Details) $ in Millions	3 Months Ended	9 Months Ended
Leases - Narrative (Details) $ in Millions	Sep. 30, 2023 USD ($)	Sep. 30, 2023 USD ($)
Lessee, Lease, Description [Line Items]
Increase (decrease) in operating lease right- of-use asset	$ (1.2)
Increase (decrease) in lease liabilities		$ (1.3)
Maximum
Lessee, Lease, Description [Line Items]
Remaining lease terms (up to) (in years)	37 years	37 years

Revenue and Accounts Receivable, Net - Accounts Receivable, Net (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022	Sep. 30, 2022	Dec. 31, 2021
Accounts Receivable, after Allowance for Credit Loss, Current [Abstract]
Trade receivables, gross	$ 107,625	$ 108,030
Allowance for credit losses	(819)	(957)	$ (946)	$ (1,285)
Allowance for sales returns	(487)	(618)
Trade receivables, net	106,319	106,455
Other	6,202	5,891
Accounts receivable, net	$ 112,521	$ 112,346

Performance-Based Common Stock Warrants	9 Months Ended
Performance-Based Common Stock Warrants	Sep. 30, 2023
Equity [Abstract]
Performance-Based Common Stock Warrants	Performance-Based Common Stock WarrantsOn March 9, 2016, we issued common stock purchase warrants to Comcast Corporation at a price of $54.55 per share. On January 1, 2023, all 275,000 of the vested and outstanding warrants expired unexercised.

Basis of Presentation (Policies)	9 Months Ended
Basis of Presentation (Policies)	Sep. 30, 2023
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, except for the impairment and restructuring charges, as described in notes 5, 6 and 12 to the consolidated financial statements. 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 and stock-based compensation expense. Actual results may differ from these assumptions and estimates, and they may be adjusted as more information becomes available. Any adjustment may be material.
Recently Adopted Accounting Pronouncements and Recent Accounting Updates Not Yet Effective	Recently Adopted Accounting Pronouncements None. Recent Accounting Updates Not Yet Effective None.

Commitments and Contingencies - Schedule of Restructuring (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Restructuring Reserve [Roll Forward]
Beginning Balance			$ 0
Restructuring charges	$ 3,690	$ 0	3,690	$ 0
Cash payments			(1,827)
Other adjustments			0
Ending Balance	1,863		1,863
Total costs incurred inception to date	3,690		3,690
Total expected expense to be incurred as of September 30, 2023	0		0
Severance Expense
Restructuring Reserve [Roll Forward]
Beginning Balance			0
Restructuring charges	3,400		3,415
Cash payments			(1,691)
Other adjustments			0
Ending Balance	1,724		1,724
Total costs incurred inception to date	3,415		3,415
Total expected expense to be incurred as of September 30, 2023	0		0
Other Exit Expense
Restructuring Reserve [Roll Forward]
Beginning Balance			0
Restructuring charges			275
Cash payments			(136)
Other adjustments			0
Ending Balance	139		139
Total costs incurred inception to date	275		275
Total expected expense to be incurred as of September 30, 2023	$ 0		$ 0

Goodwill and Intangible Assets, Net - Amortization Expense by Income Statement Caption (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Finite-Lived Intangible Assets, Net [Abstract]
Gross	$ 46,201	$ 42,653
Accumulated Amortization	(20,672)	(18,183)
Total	25,529	24,470
Gross value of fully amortized intangible assets	44,300	43,700
Capitalized software development costs
Finite-Lived Intangible Assets, Net [Abstract]
Gross	2,078	1,647
Accumulated Amortization	(281)	(44)
Total	1,797	1,603
Customer relationships
Finite-Lived Intangible Assets, Net [Abstract]
Gross	6,340	6,340
Accumulated Amortization	(3,622)	(3,080)
Total	2,718	3,260
Developed and core technology
Finite-Lived Intangible Assets, Net [Abstract]
Gross	4,520	4,520
Accumulated Amortization	(3,966)	(3,693)
Total	554	827
Distribution rights
Finite-Lived Intangible Assets, Net [Abstract]
Gross	304	308
Accumulated Amortization	(299)	(281)
Total	5	27
Patents
Finite-Lived Intangible Assets, Net [Abstract]
Gross	32,509	29,388
Accumulated Amortization	(12,165)	(10,790)
Total	20,344	18,598
Trademarks and trade names
Finite-Lived Intangible Assets, Net [Abstract]
Gross	450	450
Accumulated Amortization	(339)	(295)
Total	$ 111	$ 155

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	Sep. 30, 2023	Dec. 31, 2022
Derivatives, Fair Value [Line Items]
Foreign currency exchange contracts	$ 257	$ 100
Level 1
Derivatives, Fair Value [Line Items]
Foreign currency exchange contracts	0	0
Level 2
Derivatives, Fair Value [Line Items]
Foreign currency exchange contracts	257	100
Level 3
Derivatives, Fair Value [Line Items]
Foreign currency exchange contracts	$ 0	$ 0

Goodwill and Intangible Assets, Net - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill impairment	$ 0	$ 0	$ 49,075	$ 0

Other Accrued Liabilities

9 Months Ended

Sep. 30, 2023

Payables and Accruals [Abstract]

Other Accrued Liabilities

Accrued Compensation

The components of accrued compensation were as follows:


(In thousands)	September 30, 2023		December 31, 2022
Accrued bonus	$	3,042	$	3,348
Accrued commission	355		609
Accrued salary/wages (1)	4,014		4,433
Accrued social insurance (2)	8,442		7,037
Accrued vacation/holiday	3,396		3,300
Other accrued compensation	2,458		2,177
Total accrued compensation	$	21,707	$	20,904

The components of other accrued liabilities were as follows:


(In thousands)	September 30, 2023		December 31, 2022
Contract liabilities	$	2,065	$	1,134
Duties	1,131		470
Expense associated with fulfilled performance obligations	1,344		1,120
Freight and handling fees	2,411		2,497
Interest	517		1,413
Operating lease obligations	4,770		5,509
Product warranty claims costs	522		522
Professional fees	1,569		2,293
Sales and value added taxes	2,908		3,750

Other	4,477		5,426
Total other accrued liabilities	$	21,714	$	24,134

Commitments and Contingencies - Narrative (Details) $ in Thousands					1 Months Ended	3 Months Ended		9 Months Ended
	May 10, 2021 patent customer	Apr. 08, 2021 patent	Apr. 09, 2020 patent	Sep. 05, 2018 patent	Dec. 31, 2022 patent	Sep. 30, 2023 USD ($) inter_partes_review	Sep. 30, 2022 USD ($)	Sep. 30, 2023 USD ($) patent inter_partes_review	Sep. 30, 2022 USD ($)
Contingencies [Line Items]
Restructuring charges \| $						$ 3,690	$ 0	$ 3,690	$ 0
Expected restructuring costs \| $						$ 3,700		$ 3,700
Number of IPR requests denied \| inter_partes_review						14		14
Number of IPR requests granted \| inter_partes_review						12		12
Number of patents subject to inter partes review (IPR)								2
Patents allegedly infringed and not appealed, number								1
Number of customers with filed complaint \| customer	2
Severance Expense
Contingencies [Line Items]
Restructuring charges \| $						$ 3,400		$ 3,415
Equipment Moving Costs
Contingencies [Line Items]
Restructuring charges \| $						$ 300		300
Other Exit Expense
Contingencies [Line Items]
Restructuring charges \| $								$ 275
Roku Lawsuit
Contingencies [Line Items]
Number of patents allegedly infringed upon \| inter_partes_review								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			2
Number of patents not infringed	1

Stock-Based Compensation - Stock Option Activity (Details) $ / shares in Units, shares in Thousands, $ in Thousands	9 Months Ended
	Sep. 30, 2023 USD ($) $ / shares shares
Number of Options
Outstanding at beginning of period (in shares) \| shares	782
Granted (in shares) \| shares	236
Exercised (in shares) \| shares	0
Forfeited/canceled/expired (in shares) \| shares	(93)
Outstanding at end of period (in shares) \| shares	925
Vested and expected to vest at end of period (in shares) \| shares	925
Exercisable at end of period (in shares) \| shares	604
Weighted-Average Exercise Price
Outstanding at beginning of period (in dollars per share) \| $ / shares	$ 44.16
Granted (in dollars per share) \| $ / shares	24.77
Exercised (in dollars per share) \| $ / shares	0
Forfeited/canceled/expired (in dollars per share) \| $ / shares	51.39
Outstanding at end of period (in dollars per share) \| $ / shares	38.49
Vested and expected to vest at end of period (in dollars per share) \| $ / shares	38.49
Exercisable at end of period (in dollars per share) \| $ / shares	$ 44.06
Weighted-Average Remaining Contractual Term (in years)
Outstanding at end of period	3 years 11 months 23 days
Vested and expected to vest at end of period	3 years 11 months 23 days
Exercisable at end of period	2 years 9 months 18 days
Aggregate Intrinsic Value
Exercised \| $	$ 0
Outstanding at end of period \| $	0
Vested and expected to vest at end of period \| $	0
Exercisable at end of period \| $	$ 0

Treasury Stock - Repurchased Shares of Common Stock (Details) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2023	Sep. 30, 2022
Equity, Class of Treasury Stock [Line Items]
Number of shares repurchased (in shares)							61	358
Total cost of shares repurchased	$ 33	$ 43	$ 812	$ 86	$ 3,857	$ 7,354	$ 888	$ 11,297
Open market shares repurchased
Equity, Class of Treasury Stock [Line Items]
Number of shares repurchased (in shares)							0	300
Total cost of shares repurchased							$ 0	$ 9,438
Stock-based compensation related shares repurchased
Equity, Class of Treasury Stock [Line Items]
Number of shares repurchased (in shares)							61	58
Total cost of shares repurchased							$ 888	$ 1,859

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended						9 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2023	Sep. 30, 2022
Pay vs Performance Disclosure
Net loss	$ (19,362)	$ (10,411)	$ (61,363)	$ 7,234	$ 2,988	$ (2,910)	$ (91,136)	$ 7,312

- Definition

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

+ References

+ Details

Cash, Cash Equivalents and Term Deposit - Summary of Geographic Area (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Cash and Cash Equivalents [Line Items]
Total cash and cash equivalents	$ 60,079	$ 66,740
North America
Cash and Cash Equivalents [Line Items]
Total cash and cash equivalents	10,603	6,825
People's Republic of China
Cash and Cash Equivalents [Line Items]
Total cash and cash equivalents	3,556	15,633
Asia (excluding PRC)
Cash and Cash Equivalents [Line Items]
Total cash and cash equivalents	17,613	18,850
Europe
Cash and Cash Equivalents [Line Items]
Total cash and cash equivalents	15,710	13,042
South America
Cash and Cash Equivalents [Line Items]
Total cash and cash equivalents	$ 12,597	$ 12,390

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Sep. 30, 2023
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Inventories and Significant Suppliers - Summary of Inventories (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Inventory Disclosure [Abstract]
Raw materials	$ 38,364	$ 58,759
Components	13,119	25,226
Work in process	1,725	2,616
Finished goods	40,254	53,580
Inventories	$ 93,462	$ 140,181

Accrued Compensation (Tables)

9 Months Ended

Sep. 30, 2023

Payables and Accruals [Abstract]

Components of Accrued Compensation

The components of accrued compensation were as follows:


(In thousands)	September 30, 2023		December 31, 2022
Accrued bonus	$	3,042	$	3,348
Accrued commission	355		609
Accrued salary/wages (1)	4,014		4,433
Accrued social insurance (2)	8,442		7,037
Accrued vacation/holiday	3,396		3,300
Other accrued compensation	2,458		2,177
Total accrued compensation	$	21,707	$	20,904

The components of other accrued liabilities were as follows:


(In thousands)	September 30, 2023		December 31, 2022
Contract liabilities	$	2,065	$	1,134
Duties	1,131		470
Expense associated with fulfilled performance obligations	1,344		1,120
Freight and handling fees	2,411		2,497
Interest	517		1,413
Operating lease obligations	4,770		5,509
Product warranty claims costs	522		522
Professional fees	1,569		2,293
Sales and value added taxes	2,908		3,750

Other	4,477		5,426
Total other accrued liabilities	$	21,714	$	24,134

Goodwill and Intangible Assets, Net - Amortization Expense by Income Statement Caption (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Finite-Lived Intangible Assets [Line Items]
Amortization expense	$ 1,265	$ 1,031	$ 3,584	$ 2,965
Cost of sales
Finite-Lived Intangible Assets [Line Items]
Amortization expense	146	13	302	37
Selling, general and administrative expenses
Finite-Lived Intangible Assets [Line Items]
Amortization expense	$ 1,119	$ 1,018	$ 3,282	$ 2,928

Inventories and Significant Supplier - Purchases from Significant Suppliers (Details) - Qorvo International Pte Ltd. - Supplier concentration risk - Inventory purchases $ in Thousands	9 Months Ended
	Sep. 30, 2022 USD ($)
Concentration Risk [Line Items]
Inventory purchases	$ 23,185
Concentration risk, percentage	10.30%

Treasury Stock - Narrative (Details)	Oct. 26, 2023 shares
October 2023 Program \| Subsequent Event
Equity, Class of Treasury Stock [Line Items]
Authorized repurchase of common stock (in shares)	1,000,000

Stock-Based Compensation - Assumptions Used in Valuation and Weighted Average Fair Value of Stock Option Grants (Details) - $ / shares	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Share-Based Payment Arrangement [Abstract]
Weighted average fair value of grants (in dollars per share)	$ 0	$ 12.38	$ 10.83	$ 14.51
Risk-free interest rate (in percent)	0.00%	2.82%	3.86%	1.93%
Expected volatility (in percent)	0.00%	48.92%	45.89%	49.35%
Expected life in years	0 years	5 years 2 months 8 days	4 years 8 months 12 days	4 years 8 months 23 days

Business Combination (Tables)

9 Months Ended

Sep. 30, 2023

Business Combination and Asset Acquisition [Abstract]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

Management's purchase price allocation was as follows:


(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 (1)		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

(1)Our consolidated goodwill balance was impaired during the nine months ended September 30, 2023. Please see Note 6 for further information.

Earnings (Loss) Per Share

9 Months Ended

Sep. 30, 2023

Earnings Per Share [Abstract]

Earnings (Loss) Per Share

Earnings (loss) per share was calculated as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands, except per-share amounts)	2023		2022		2023		2022
BASIC
Net income (loss)	$	(19,362)	$	7,234	$	(91,136)	$	7,312
Weighted-average common shares outstanding	12,911		12,656		12,839		12,709
Basic earnings (loss) per share	$	(1.50)	$	0.57	$	(7.10)	$	0.58

DILUTED
Net income (loss)	$	(19,362)	$	7,234	$	(91,136)	$	7,312
Weighted-average common shares outstanding for basic	12,911		12,656		12,839		12,709
Dilutive effect of stock options, restricted stock and common stock warrants	—		40		—		88
Weighted-average common shares outstanding on a diluted basis	12,911		12,696		12,839		12,797
Diluted earnings (loss) per share	$	(1.50)	$	0.57	$	(7.10)	$	0.57


	Three Months Ended September 30,		Nine Months Ended September 30,
(In thousands)	2023	2022	2023	2022
Stock options	925	780	892	653
Restricted stock awards	513	315	421	221
Common stock warrants	—	275	—	275

Cash, Cash Equivalents and Term Deposit - Narrative (Details) $ in Millions	Jan. 25, 2022 USD ($)
Cash and Cash Equivalents [Abstract]
Term deposit	$ 8.6
Maturity of term deposits	1 year

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Income Statement [Abstract]
Net sales	$ 107,095	$ 148,482	$ 322,863	$ 419,993
Cost of sales	86,683	104,040	253,141	299,912
Gross profit	20,412	44,442	69,722	120,081
Research and development expenses	7,658	8,017	24,502	24,460
Factory restructuring charges	3,690	0	3,690	0
Selling, general and administrative expenses	23,097	24,928	75,144	79,188
Goodwill impairment	0	0	49,075	0
Operating income (loss)	(14,033)	11,497	(82,689)	16,433
Interest income (expense), net	(1,216)	(668)	(3,288)	(1,147)
Other income (expense), net	(851)	(54)	(1,767)	(388)
Income (loss) before provision for income taxes	(16,100)	10,775	(87,744)	14,898
Provision for income taxes	3,262	3,541	3,392	7,586
Net income (loss)	$ (19,362)	$ 7,234	$ (91,136)	$ 7,312
Earnings (loss) per share:
Basic (in dollars per share)	$ (1.50)	$ 0.57	$ (7.10)	$ 0.58
Diluted (in dollars per share)	$ (1.50)	$ 0.57	$ (7.10)	$ 0.57
Shares used in computing earnings (loss) per share:
Basic (in shares)	12,911	12,656	12,839	12,709
Diluted (in shares)	12,911	12,696	12,839	12,797

Other Income (Expense) (Tables)

9 Months Ended

Sep. 30, 2023

Other Income and Expenses [Abstract]

Other Income (Expense), Net

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


	Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands)	2023		2022		2023		2022
Net gain (loss) on foreign currency exchange contracts (1)	$	19	$	(550)	$	(2,788)	$	518
Net gain (loss) on foreign currency exchange transactions	(1,085)		476		545		(534)
Other income (expense)	215		20		476		(372)
Other income (expense), net	$	(851)	$	(54)	$	(1,767)	$	(388)

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

Stock-Based Compensation - Narrative (Details) $ in Millions	9 Months Ended
	Sep. 30, 2023 USD ($)
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized pre-tax stock-based compensation expense	$ 3.2
Unrecognized pre-tax stock-based compensation expense, remaining weighted-average life (in years)	1 year 10 months 24 days
Restricted stock awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized pre-tax stock-based compensation expense	$ 8.2
Unrecognized pre-tax stock-based compensation expense, remaining weighted-average life (in years)	1 year 9 months 18 days

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 35
-Paragraph 1D
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480483/718-10-35-1D

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 35
-Paragraph 3
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480483/718-10-35-3

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)(1)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)(2)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)(3)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(1)(i)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
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+ Details

Leases

9 Months Ended

Sep. 30, 2023

Leases [Abstract]

Leases

We have entered into various operating lease agreements for automobiles, offices and manufacturing facilities throughout the world. At September 30, 2023, our operating leases had remaining lease terms of up to 37 years, including any reasonably probable extensions.

Lease balances within our consolidated balance sheet were as follows:


(In thousands)	September 30, 2023		December 31, 2022
Assets:
Operating lease right-of-use assets	$	17,777	$	21,599
Liabilities:
Other accrued liabilities	$	4,770	$	5,509
Long-term operating lease obligations	11,553		15,027
Total lease liabilities	$	16,323	$	20,536

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 September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Cost of sales	$	738	$	741	$	2,242	$	2,138
Selling, general and administrative expenses	1,030		1,128		3,215		3,315
Total operating lease expense	$	1,768	$	1,869	$	5,457	$	5,453
Operating cash outflows from operating leases	$	2,301	$	1,858	5,878		5,318
Operating lease right-of-use assets obtained in exchange for lease obligations	$	242	$	1,604	$	2,202	$	4,535

We entered into lease amendments for our southwestern China and Mexico factories during the three months ended September 30, 2023 as a part of our manufacturing footprint optimization efforts. As a result of these modifications, our operating lease right-of-use assets decreased by $1.2 million and our total lease liabilities decreased by $1.3 million.

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


	September 30, 2023		December 31, 2022
Weighted average lease liability term (in years)	4.9		5.1
Weighted average discount rate	4.53	%	3.82	%

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 September 30, 2023. The reconciliation excludes short-term leases that are not recorded on the balance sheet.


(In thousands)	September 30, 2023
2023 (remaining 3 months)	$	1,230
2024	5,144
2025	3,908
2026	2,918
2027	2,158
Thereafter	3,084
Total lease payments	18,442
Less: imputed interest	(2,119)
Total lease liabilities	$	16,323

At September 30, 2023, we did not have any operating leases that had not yet commenced.

Performance-Based Common Stock Warrants (Details) - Common stock purchase warrants - $ / shares	Jan. 01, 2023	Mar. 09, 2016
Class of Warrant or Right [Line Items]
Exercise price of warrants (in dollars per share)		$ 54.55
Vested warrants outstanding (in warrants)	275,000

Leases (Tables)

9 Months Ended

Sep. 30, 2023

Leases [Abstract]

Lease Balances within the Consolidated Balance Sheet

Lease balances within our consolidated balance sheet were as follows:


(In thousands)	September 30, 2023		December 31, 2022
Assets:
Operating lease right-of-use assets	$	17,777	$	21,599
Liabilities:
Other accrued liabilities	$	4,770	$	5,509
Long-term operating lease obligations	11,553		15,027
Total lease liabilities	$	16,323	$	20,536

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 September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Cost of sales	$	738	$	741	$	2,242	$	2,138
Selling, general and administrative expenses	1,030		1,128		3,215		3,315
Total operating lease expense	$	1,768	$	1,869	$	5,457	$	5,453
Operating cash outflows from operating leases	$	2,301	$	1,858	5,878		5,318
Operating lease right-of-use assets obtained in exchange for lease obligations	$	242	$	1,604	$	2,202	$	4,535

Lease Terms and Discount Rates

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


	September 30, 2023		December 31, 2022
Weighted average lease liability term (in years)	4.9		5.1
Weighted average discount rate	4.53	%	3.82	%

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


(In thousands)	September 30, 2023
2023 (remaining 3 months)	$	1,230
2024	5,144
2025	3,908
2026	2,918
2027	2,158
Thereafter	3,084
Total lease payments	18,442
Less: imputed interest	(2,119)
Total lease liabilities	$	16,323

Leases - Operating Lease Expense, Operating Lease Cash Flows and Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Lessee, Lease, Description [Line Items]
Total operating lease expense	$ 1,768	$ 1,869	$ 5,457	$ 5,453
Operating cash outflows from operating leases	2,301	1,858	5,878	5,318
Operating lease right-of-use assets obtained in exchange for lease obligations	242	1,604	2,202	4,535
Cost of sales
Lessee, Lease, Description [Line Items]
Total operating lease expense	738	741	2,242	2,138
Selling, general and administrative expenses
Lessee, Lease, Description [Line Items]
Total operating lease expense	$ 1,030	$ 1,128	$ 3,215	$ 3,315

Line of Credit (Details) - USD ($)		3 Months Ended		9 Months Ended		11 Months Ended
Line of Credit (Details) - USD ($)	May 03, 2023	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Mar. 31, 2024	Dec. 31, 2022
Line of Credit Facility [Line Items]
Amount outstanding under line of credit		$ 75,000,000		$ 75,000,000			$ 88,000,000
Interest expense on borrowings		$ 1,600,000	$ 1,000,000	$ 4,500,000	$ 1,900,000
Line of credit \| US Bank
Line of Credit Facility [Line Items]
Effective interest rate		8.05%		8.05%			5.62%
Line of credit \| US Bank \| Base rate \| Forecast
Line of Credit Facility [Line Items]
Basis spread on variable rate						0.75%
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	0.75%
Line of credit \| US Bank \| Secured Overnight Financing Rate (SOFR) \| Forecast
Line of Credit Facility [Line Items]
Basis spread on variable rate						2.75%
Line of credit \| US Bank \| Secured Overnight Financing Rate (SOFR) \| Minimum
Line of Credit Facility [Line Items]
Basis spread on variable rate	2.00%
Line of credit \| US Bank \| Secured Overnight Financing Rate (SOFR) \| Maximum
Line of Credit Facility [Line Items]
Basis spread on variable rate	2.75%
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		$ 0		$ 0			$ 0

Revenue and Accounts Receivable, Net - Trade Receivables Associated with Significant Customers (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2023	Dec. 31, 2022
Comcast Corporation
Revenue, Major Customer [Line Items]
Accounts receivable, net		$ 15,367
Comcast Corporation \| Trade accounts receivable \| Customer concentration risk
Revenue, Major Customer [Line Items]
Concentration risk, percentage		13.70%
Sony Corporation
Revenue, Major Customer [Line Items]
Accounts receivable, net	$ 12,371
Sony Corporation \| Trade accounts receivable \| Customer concentration risk
Revenue, Major Customer [Line Items]
Concentration risk, percentage	11.00%

Earnings (Loss) Per Share - Securities Excluded from the Computation of Diluted Earnings (Loss) Per Common Share (Details) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Securities excluded in computation of diluted earning per share (in shares)	925	780	892	653
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)	513	315	421	221
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)	0	275	0	275