e8vk
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTIONS 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (date of earliest event reported): May 3, 2007
UNIVERSAL ELECTRONICS INC.
(Exact name of Registrant as specified in its charter)
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Delaware
(State or other jurisdiction
of incorporation or organization)
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0-21044
(Commission File No.)
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33-0204817
(I.R.S. Employer
Identification No.) |
6101 Gateway Drive
Cypress, California 90630
(Address of principal executive offices, with Zip Code)
(714) 820-1000
(Registrants telephone number, including area code):
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the
filing obligation of the registrant under any of the following provisions:
o Written communications pursuant to Rule 425 under the Securities Act
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act
TABLE OF CONTENTS
Item 2.02 Results of Operations and Financial Condition
On May 3, 2007 Universal Electronics Inc. (UEI) is issuing a press release and holding a
conference call regarding its financial results for the first quarter 2007. A copy of the press
release is included as Exhibit 99.1 to this report.
Pursuant to General Instruction B2 of Form 8-K, the information contained in Exhibit 99.1 will be
deemed furnished, and not filed, for purposes of Section 18 of the Securities Exchange Act of
1934, as amended (the Exchange Act), or incorporated by reference in any filing under the
Exchange Act or the Securities Act of 1933, as amended, except as expressly set forth by specific
reference in any such filing.
Item 9.01 Financial Statements and Exhibits
(c) Exhibits. The following exhibit is furnished with this report.
99.1 Press Release of Universal Electronics Inc. dated May 3, 2007.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused
this report to be signed on its behalf by the undersigned thereunto duly authorized.
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Universal Electronics Inc.
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Date: May 3, 2007 |
By: |
/s/ Bryan Hackworth
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Bryan Hackworth |
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Chief Financial Officer (Principal Financial Officer) |
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INDEX TO EXHIBITS
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Exhibit Number |
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Description |
99.1
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Press Release dated May 3, 2007 |
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exv99w1
Exhibit 99.1
Contacts: Paul Arling (UEI) 714.820.1000
Kirsten Chapman (IR Agency) 415.433.3777
Universal Electronics Reports Record First Quarter 2007 Financial Results
- Net Sales of $66.0 Million Grew 22% Compared to First Quarter 2006 -
- - Operating Income of 6.2 million Nearly Doubled Compared to First Quarter 2006 -
CYPRESS, CA May 3, 2007 Universal Electronics Inc. (UEI), (NASDAQ: UEIC) announced financial
results for the first quarter ended March 31, 2007.
Our strong results demonstrate our long-standing strategy is
aligned with current industry trends, stated
Paul Arling, the companys chairman and chief executive officer. We believe we are remarkably
well-positioned to capitalize on the world-wide industry growth trends. The continued conversion from analog
to digital and the HDTV and DVR hardware upgrade cycles are driving our sales. We reported record first
quarter revenue of $66.0 million, reflecting growth across all facets of the business. Given first
quarter record performance coupled with projected industry growth, we are increasing annual
guidance today.
First Quarter 2007 Financial Results Compared to First Quarter 2006
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Net sales were $66.0 million, compared to $54.2 million. |
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The Business Category contributed 76 percent of the total revenue and the Consumer Category
contributed 24 percent, compared to 79 percent and 21 percent for Business and Consumer
Categories, respectively. |
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Gross margins were 36.9 percent, compared to 34.1 percent, reflecting the shift in product
mix. |
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Operating income was $6.2 million, approximately double $3.1 million. |
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Net income was $4.6 million, or $0.31 per diluted share, compared to $2.1 million, or $0.15
per diluted share. |
Financial Outlook
For the second quarter of 2007, revenue is expected to range between $67 million and $71
million, compared to $52.4 million in the second quarter of 2006. We expect Business Category sales
to range from $55.5 million to $58.5 million and Consumer Category sales to range from $10.5
million to $13.5 million. Gross margins for the second quarter of 2007 are expected to be
approximately 35.5 percent of sales plus or minus one point. GAAP earnings per diluted share,
including approximately $650,000 of compensation expense relating to stock options, are expected to
range from $0.28 to $0.32. This compares to $0.17 per diluted share in the second quarter of 2006.
Page 1 of 5
For the full year 2007, total revenue is expected to range between $275 million and $285
million, reflecting growth of 17 percent to 21 percent over last year. Business Category revenue
is now expected to range between $210 million and $220 million, with Consumer Category revenue
expected to range between $60 million and $70 million. GAAP EPS is expected to be between $1.25
per diluted share and $1.35 per diluted share, compared to $0.94 per diluted share for 2006,
representing 33 percent to 44 percent growth.
UEIs Recent Highlights:
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NewWave Communications, Inc. selected UEIs Active Support
technical call center to handle the overflow of inbound video
repair calls for its customers. |
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Unveiled the seamless integration of NevoSL with the
SpeakerCraft, Inc. MODE Jukebox music server, allowing all
MODE Jukebox users to access music files and control
functions using NevoSL. |
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Launched Cricket Kids Remote making home entertainment
safer for children by using simple parental content control |
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Unveiled the UEI remote extender product, designed to enhance
home entertainment control by converting any existing
infrared remote to a radio frequency remote. |
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Announced three collaborations: |
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With VIZIO, Inc. to supply universal remote control solutions for its newest line
of MAXIMVS large format plasma televisions; |
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With iMerge ltd to integrate NevoSL and the iMerge S3000 SoundServer enabling
complete audio/visual and digital media control for the networked home; |
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With Denon Electronics, LLC to develop advanced remote controls for the new Denon
receivers and home entertainment systems to be distributed globally in early 2007. |
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UEI featured new remotes at the CES powered by Z-Wave® technology which provides one-touch
control of the home environment. |
Conference Call Information:
UEIs management team will hold a conference call today, Thursday May 3, 2007 at 1:30 p.m. Pacific
Time to review quarter-end results and hold a question and answer session for callers. To
participate call 1-800-622-9917 ten minutes prior to start time. International dialers call
1-706-645-0366. The live call can also be accessed via the Internet through Universals Web site
at www.uei.com. If you are unable to participate, a replay will be available for two business days
following the call. To access, please dial 1-800-642-1687 and international 706-645-9291,
reservation number 5422366. The webcast replay will be available at www.uei.com.
About Universal Electronics
Founded in 1986, Universal Electronics Inc. (UEI) is the global leader in wireless control
technology for the connected home. UEI designs, develops, and delivers innovative solutions that
enable consumers to control entertainment devices, digital media, and home systems. The companys
broad portfolio of patented technologies and database of infrared control software have been
adopted by many Fortune 500 companies in the consumer electronics, subscription broadcast, and
computing industries. UEI sells and licenses wireless control products through distributors and
retailers under the One For All® brand name. UEI also delivers complete home control solutions in
the professional custom installation market under the brand name
Nevo®, as well as software solutions for digital media control and enjoyment in the consumer and
OEM markets under the brand SimpleCenter.
Page 2 of 5
Safe Harbor Statement
Except for the historical information contained herein, the matters discussed in this press release
are forward-looking statements that involve a number of risks and uncertainties. Among the factors
that could cause actual results to differ materially from those expressed herein are the following:
the failure of the company to continue experiencing the increased demand for our products in
connection with the continued conversion from analog to digital, HDTV upgrades, and the growth
trends in DVR and HDTV and subscription broadcasting as we anticipate; the failure of the industry
trends regarding termpering seasonality to materialize as believed by management; the growth of,
acceptance of, and the demand for our products and technologies, including new products and our
home connectivity line of products and software, including the NevoSLTM and
Z-Wave® powered controller not materializing as we believe; the possible dilutive effect
our stock based compensation programs may have on our EPS and stock price; our inability to deliver
the new products and our home connectivity line of products and software at the time and in the
quantities we anticipate; the relationships with our customers not expanding as we anticipate,
including that as announced with respect to NewWave Communications, inc., VIZIO, Inc., iMerge ltd,
and Denon Electronics, LLC; and other factors listed from time to time in our press releases and
SEC filings. All forward looking statements included in this release are based upon information we
have as of the date of this release and we undertake no obligation to revise or update any
forward-looking statements in order to reflect events or circumstances that may arise after the
date of this release.
- Tables Follow-
Page 3 of 5
UNIVERSAL ELECTRONICS INC.
CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
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March 31, |
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December 31, |
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2007 |
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2006 |
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ASSETS
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Current assets: |
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Cash and cash equivalents |
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$ |
78,213 |
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$ |
66,075 |
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Accounts receivable, net |
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50,934 |
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51,867 |
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Inventories, net |
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25,875 |
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26,459 |
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Prepaid expenses and other current assets |
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3,045 |
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2,722 |
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Income tax receivable |
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2,735 |
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Deferred income taxes |
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3,024 |
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3,069 |
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Total current assets |
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163,826 |
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150,192 |
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Equipment, furniture and fixtures, net |
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6,044 |
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5,899 |
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Goodwill |
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10,668 |
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10,644 |
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Intangible assets, net |
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5,443 |
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5,587 |
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Other assets |
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231 |
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221 |
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Deferred income taxes |
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6,098 |
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6,065 |
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Total assets |
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$ |
192,310 |
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$ |
178,608 |
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LIABILITIES AND STOCKHOLDERS EQUITY
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Current liabilities: |
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Accounts payable |
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$ |
25,048 |
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$ |
20,153 |
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Accrued sales discounts/rebates |
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3,779 |
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4,498 |
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Accrued income taxes |
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4,483 |
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Accrued compensation |
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3,787 |
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7,430 |
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Other accrued expenses |
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6,324 |
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7,449 |
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Total current liabilities |
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38,938 |
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44,013 |
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Deferred income taxes |
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1,114 |
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103 |
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Accrued income taxes |
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6,629 |
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Other long term liabilities |
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258 |
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275 |
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Total liabilities |
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46,939 |
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44,391 |
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Stockholders equity: |
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Common stock |
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178 |
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175 |
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Paid-in capital |
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100,556 |
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94,733 |
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Accumulated other comprehensive income |
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3,531 |
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2,759 |
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Retained earnings |
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72,981 |
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68,514 |
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Common stock held in treasury |
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(31,875 |
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(31,964 |
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Total stockholders equity |
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145,371 |
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134,217 |
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Total liabilities and stockholders equity |
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$ |
192,310 |
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$ |
178,608 |
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Page 4 of 5
UNIVERSAL ELECTRONICS INC.
CONSOLIDATED INCOME STATEMENTS
(In thousands, except per share amounts)
(Unaudited)
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Three Months Ended |
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March 31, |
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2007 |
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2006 |
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Net sales |
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$ |
66,019 |
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$ |
54,173 |
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Cost of sales |
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41,678 |
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35,685 |
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Gross profit |
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24,341 |
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18,488 |
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Research and development |
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2,322 |
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1,846 |
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Selling, general and administrative expenses |
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15,833 |
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13,512 |
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Operating expenses |
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18,155 |
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15,358 |
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Operating income |
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6,186 |
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3,130 |
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Interest income, net |
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588 |
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272 |
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Other income (expense), net |
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94 |
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(161 |
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Income before income taxes |
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6,868 |
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3,241 |
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Provision for income taxes |
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(2,231 |
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(1,105 |
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Net income |
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$ |
4,637 |
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$ |
2,136 |
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Earnings per share: |
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Basic |
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$ |
0.33 |
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$ |
0.16 |
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Diluted |
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$ |
0.31 |
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$ |
0.15 |
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Shares used in computing earnings per share: |
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Basic |
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14,130 |
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13,643 |
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Diluted |
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14,908 |
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14,240 |
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Page 5 of 5